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“Eat The Future”: The GOP And Federal Spending

On Friday, House Republicans unveiled their proposal for immediate cuts in federal spending. Uncharacteristically, they failed to accompany the release with a catchy slogan. So I’d like to propose one: Eat the Future.

I’ll explain in a minute. First, let’s talk about the dilemma the G.O.P. faces.

Republican leaders like to claim that the midterms gave them a mandate for sharp cuts in government spending. Some of us believe that the elections were less about spending than they were about persistent high unemployment, but whatever. The key point to understand is that while many voters say that they want lower spending, press the issue a bit further and it turns out that they only want to cut spending on other people.

That’s the lesson from a new survey by the Pew Research Center, in which Americans were asked whether they favored higher or lower spending in a variety of areas. It turns out that they want more, not less, spending on most things, including education and Medicare. They’re evenly divided about spending on aid to the unemployed and — surprise — defense.

The only thing they clearly want to cut is foreign aid, which most Americans believe, wrongly, accounts for a large share of the federal budget.

Pew also asked people how they would like to see states close their budget deficits. Do they favor cuts in either education or health care, the main expenses states face? No. Do they favor tax increases? No. The only deficit-reduction measure with significant support was cuts in public-employee pensions — and even there the public was evenly divided.

The moral is clear. Republicans don’t have a mandate to cut spending; they have a mandate to repeal the laws of arithmetic.

How can voters be so ill informed? In their defense, bear in mind that they have jobs, children to raise, parents to take care of. They don’t have the time or the incentive to study the federal budget, let alone state budgets (which are by and large incomprehensible). So they rely on what they hear from seemingly authoritative figures.

And what they’ve been hearing ever since Ronald Reagan is that their hard-earned dollars are going to waste, paying for vast armies of useless bureaucrats (payroll is only 5 percent of federal spending) and welfare queens driving Cadillacs. How can we expect voters to appreciate fiscal reality when politicians consistently misrepresent that reality?

Which brings me back to the Republican dilemma. The new House majority promised to deliver $100 billion in spending cuts — and its members face the prospect of Tea Party primary challenges if they fail to deliver big cuts. Yet the public opposes cuts in programs it likes — and it likes almost everything. What’s a politician to do?

The answer, once you think about it, is obvious: sacrifice the future. Focus the cuts on programs whose benefits aren’t immediate; basically, eat America’s seed corn. There will be a huge price to pay, eventually — but for now, you can keep the base happy.

If you didn’t understand that logic, you might be puzzled by many items in the House G.O.P. proposal. Why cut a billion dollars from a highly successful program that provides supplemental nutrition to pregnant mothers, infants, and young children? Why cut $648 million from nuclear nonproliferation activities? (One terrorist nuke, assembled from stray ex-Soviet fissile material, can ruin your whole day.) Why cut $578 million from the I.R.S. enforcement budget? (Letting tax cheats run wild doesn’t exactly serve the cause of deficit reduction.)

Once you understand the imperatives Republicans face, however, it all makes sense. By slashing future-oriented programs, they can deliver the instant spending cuts Tea Partiers demand, without imposing too much immediate pain on voters. And as for the future costs — a population damaged by childhood malnutrition, an increased chance of terrorist attacks, a revenue system undermined by widespread tax evasion — well, tomorrow is another day.

In a better world, politicians would talk to voters as if they were adults. They would explain that discretionary spending has little to do with the long-run imbalance between spending and revenues. They would then explain that solving that long-run problem requires two main things: reining in health-care costs and, realistically, increasing taxes to pay for the programs that Americans really want.

But Republican leaders can’t do that, of course: they refuse to admit that taxes ever need to rise, and they spent much of the last two years screaming “death panels!” in response to even the most modest, sensible efforts to ensure that Medicare dollars are well spent.

And so they had to produce something like Friday’s proposal, a plan that would save remarkably little money but would do a remarkably large amount of harm.

By: Paul Krugman, Op-Ed Columnist, The New York Times-February 13, 2011

February 14, 2011 Posted by | Budget, Deficits, Politics | , , , , , , , , , , , , | Leave a comment

Beyond Reason on the Budget: House Republicans Have Finally Revealed There Real Vision

After two years of raging at President Obama’s spending plans, House Republican leaders have finally revealed their real vision of small government: tens of billions in ideologically driven cuts to job training, environmental protection, disease control, crime protection and dozens of other critical functions that only the government can perform.

In all, they want more than $32 billion in cuts below current spending packed into the next seven months. They would be terribly damaging to a frail recovery and, while spending reductions must be part of long-term deficit control, these are the wrong cuts, to the wrong programs, at the wrong time.

But they are not deep enough for many Tea Party members, freshmen and other extremists in the House Republican caucus. In a closed-door meeting on Wednesday, they forced the leadership to abandon its cuts and prepare to double them. The new list is expected on Friday and promises to be one of the most irresponsible budget documents ever issued by a House majority.

The Senate should make it clear that it is not worthy of consideration, and President Obama should back them up with a veto threat.

If House Republicans don’t come to their senses, they could shut down the government on March 4 when the stopgap measure that is now financing it runs out. If that does take place, it will at least be clear to voters that their essential government services were turned off in the service of two single-minded and destructive goals: giving the appearance of cutting a deficit that was deliberately inflated by years of tax cuts for the rich, and going after programs that the Republicans never liked in good times or bad.

Many of the Republican freshmen want to stick to the “Pledge to America” that they would cut $100 billion from the president’s 2011 budget, a nice round number apparently plucked from thin air. More experienced Republican leaders knew it would be impossible to cut that much in the remaining few months of the fiscal year and said they would trim the equivalent percentage. Harold Rogers, the Republican chairman of the House Appropriations Committee, warned that the full cut would require laying off F.B.I. agents and air traffic controllers.

If he was trying to make his $32 billion in cutbacks seem modest by comparison, he failed. The list would cut $2 billion from job training programs — precisely what is needed to help employ workers mismatched with the job market. It would cut $1.6 billion from the Environmental Protection Agency, which is struggling to keep up with the growth of greenhouse gases. There would be significant cuts to legal assistance for the poor and renewable energy programs and an end to all spending for AmeriCorps, public broadcasting and high-speed rail.

The battle over the rest of the 2011 budget is only a prelude, of course, to the bigger fight about to begin over the 2012 budget. President Obama is scheduled to unveil his budget on Monday, and already he seems willing to feed the bottomless Republican hunger for cuts rather than fight them. An ominous early sign is his proposal to cut the low-income heating assistance program nearly in half to $2.57 billion. Administration officials say that energy prices have fallen, but, as Democratic lawmakers from the frostbitten Northeast have pointed out to him, there are many more unemployed people now.

Some cuts will have to be made, but strategically it seems to make little sense to start giving away important ones before reaching the negotiating table. Republican lawmakers in the House have already made it clear that they are indifferent to the suffering and increased joblessness their cuts will cause. As the extreme reductions are heaped up in the next few days, Democrats in Congress and in the White House need to make a clear case to the public that quality of the nation’s civic life is at stake.

By: Editorial-Opinion Pages, The New York Times, February 10, 2011

February 14, 2011 Posted by | Budget, Deficits, Jobs | , , , , , , , , , , | Leave a comment

Convenient Amnesia: House Republicans and The EPA

House Republicans are vigorously denouncing the Environmental Protection Agency as a rogue agency engaged in a borderline-illegal effort to regulate greenhouse gases. If anyone believes this to be a principled position, it is useful to recall that under President George W. Bush, the E.P.A. argued for very similar policies, based on the same reading of its responsibilities.

This reminder comes courtesy of Representative Henry Waxman, a California Democrat, who released a personal letter written by Mr. Bush’s E.P.A administrator, Stephen Johnson, imploring the president to allow his agency to begin regulating carbon dioxide, the main greenhouse gas. The letter was written in January 2008, only a month after the Office of Management and Budget — almost certainly under orders from Vice President Dick Cheney — had rebuffed a similar request.

Mr. Johnson reminded the president that the Supreme Court had said in 2007 that the federal government was required to regulate carbon dioxide if it endangered public health. He said that he had been persuaded that it did threaten public health and that both the law and the “latest science of climate change” had left him no choice but to issue a formal “endangerment finding.”

Mr. Johnson then outlined what he called a “prudent” plan for a multiyear reduction in emissions from vehicles and large industrial sources like power plants and refineries. So far as is known, he never got a reply.

That left the job of controlling carbon dioxide to Lisa Jackson, President Obama’s E.P.A. administrator. She issued an endangerment finding in 2009, and last year presented a plan for regulating emissions that closely resembles Mr. Johnson’s. That historical parallel did not deter Republicans from spending two hours on Wednesday grilling Ms. Jackson for “regulatory overreach.”

It is also worth recalling that the “cap and trade” proposal for controlling greenhouse gas emissions, so maligned by Republicans these days, was first proposed by President George H. W. Bush in 1990 to control acid rain. Partisan amnesia may play well with some voters, but it is disastrous public policy.

By: Editorial-The New York Times Opinion Pages, February 12, 2011

February 14, 2011 Posted by | Environment, Environmental Protection Agency | , , , , , , , , , | Leave a comment

Congress Passes Socialized Medicine and Mandates Health Insurance -In 1798

The ink was barely dry on the PPACA when the first of many lawsuits to block the mandated health insurance provisions of the law was filed in a Florida District Court.

The pleadings, in part, read –

The Constitution nowhere authorizes the United States to mandate, either directly or under threat of penalty, that all citizens and legal residents have qualifying health care coverage.

State of Florida, et al. vs. HHS

It turns out, the Founding Fathers would beg to disagree.

In July of 1798, Congress passed – and President John Adams signed – “An Act for the Relief of Sick and Disabled Seamen.” The law authorized the creation of a government operated marine hospital service and mandated that privately employed sailors be required to purchase health care insurance.

Keep in mind that the 5th Congress did not really need to struggle over the intentions of the drafters of the Constitutions in creating this Act as many of its members were the drafters of the Constitution.

And when the Bill came to the desk of President John Adams for signature, I think it’s safe to assume that the man in that chair had a pretty good grasp on what the framers had in mind.

Here’s how it happened.

During the early years of our union, the nation’s leaders realized that foreign trade would be essential to the young country’s ability to create a viable economy. To make it work, they relied on the nation’s private merchant ships – and the sailors that made them go – to be the instruments of this trade.

The problem was that a merchant mariner’s job was a difficult and dangerous undertaking in those days. Sailors were constantly hurting themselves, picking up weird tropical diseases, etc.

The troublesome reductions in manpower caused by back strains, twisted ankles and strange diseases often left a ship’s captain without enough sailors to get underway – a problem both bad for business and a strain on the nation’s economy.

But those were the days when members of Congress still used their collective heads to solve problems – not create them.

Realizing that a healthy maritime workforce was essential to the ability of our private merchant ships to engage in foreign trade, Congress and the President resolved to do something about it.

Enter “An Act for The Relief of Sick and Disabled Seamen”.

I encourage you to read the law as, in those days, legislation was short, to the point and fairly easy to understand.

The law did a number of fascinating things.

First, it created the Marine Hospital Service, a series of hospitals built and operated by the federal government to treat injured and ailing privately employed sailors. This government provided healthcare service was to be paid for by a mandatory tax on the maritime sailors (a little more than 1% of a sailor’s wages), the same to be withheld from a sailor’s pay and turned over to the government by the ship’s owner. The payment of this tax for health care was not optional. If a sailor wanted to work, he had to pay up.

This is pretty much how it works today in the European nations that conduct socialized medical programs for its citizens – although 1% of wages doesn’t quite cut it any longer.

The law was not only the first time the United States created a socialized medical program (The Marine Hospital Service) but was also the first to mandate that privately employed citizens be legally required to make payments to pay for health care services. Upon passage of the law, ships were no longer permitted to sail in and out of our ports if the health care tax had not been collected by the ship owners and paid over to the government – thus the creation of the first payroll tax in our nation’s history.

When a sick or injured sailor needed medical assistance, the government would confirm that his payments had been collected and turned over by his employer and would then give the sailor a voucher entitling him to admission to the hospital where he would be treated for whatever ailed him.

While a few of the healthcare facilities accepting the government voucher were privately operated, the majority of the treatment was given out at the federal maritime hospitals that were built and operated by the government in the nation’s largest ports.

As the nation grew and expanded, the system was also expanded to cover sailors working the private vessels sailing the Mississippi and Ohio rivers.

The program eventually became the Public Health Service, a government operated health service that exists to this day under the supervision of the Surgeon General.

So much for the claim that “The Constitution nowhere authorizes the United States to mandate, either directly or under threat of penalty….”

 As for Congress’ understanding of the limits of the Constitution at the time the Act was passed, it is worth noting that Thomas Jefferson was the President of the Senate during the 5th Congress while Jonathan Dayton, the youngest man to sign the United States Constitution, was the Speaker of the House.

While I’m sure a number of readers are scratching their heads in the effort to find the distinction between the circumstances of 1798 and today, I think you’ll find it difficult.

Yes, the law at that time required only merchant sailors to purchase health care coverage. Thus, one could argue that nobody was forcing anyone to become a merchant sailor and, therefore, they were not required to purchase health care coverage unless they chose to pursue a career at sea.

However, this is no different than what we are looking at today.

Each of us has the option to turn down employment that would require us to purchase private health insurance under the health care reform law.

Would that be practical? Of course not – just as it would have been impractical for a man seeking employment as a merchant sailor in 1798 to turn down a job on a ship because he would be required by law to purchase health care coverage.

What’s more, a constitutional challenge to the legality of mandated health care cannot exist based on the number of people who are required to purchase the coverage – it must necessarily be based on whether any American can be so required.

Clearly,  the nation’s founders serving in the 5th Congress, and there were many of them, believed that mandated health insurance coverage was permitted within the limits established by our Constitution.

The moral to the story is that the political right-wing has to stop pretending they have the blessings of the Founding Fathers as their excuse to oppose whatever this president has to offer.

History makes it abundantly clear that they do not.

By: Rick Ungar, The Policy Page, Forbes-Originally Posted January 17, 2011

February 2, 2011 Posted by | Individual Mandate | , , , , , , , , , , | Leave a comment