Americans Finally Realize GOP Handling Debt Debate Poorly
And the loser is… the GOP!
Or so says the latest CBS poll showing 71 percent of Americans don’t like the GOP’s handling of the debt crisis. And why would they? Americans have shown in polls, time and time again, that they want both sides, Democrat and Republican, to work together to get business done in Washington. To get the business of raising the debt ceiling done, that takes compromise; a word I fear Republicans don’t like or perhaps aren’t that familiar with. A great man once told me the best negotiations are when both parties leave the room winning and losing. The president has shown his ability to compromise; he put cuts to Medicare and Social Security on the table. Heck, he’s even willing to talk about cuts rather than just raising the debt ceiling on his own!
To read the polls is not only confusing, but it shows how confused we the people are. Some polls show Americans want to cut spending, but they don’t want to raise taxes. Other polls show a majority of Americans want the Bush tax credits to end for the wealthy. And after Rep. Paul Ryan put forth his machete to Medicare, he was booed at town hall meetings, and a Democrat won a congressional seat in a district which had been a Republican stronghold for decades.
This current proposal by Republicans is not a GOP plan, it’s a Tea Party debt plan, appealing to the overwhelming minority of their base, obviously pandering to the “Teapublicans” for their cash for the upcoming election.
It sickens me when I hear the GOP talk about leaving something for our children and future generations when their proposals cut more education and Medicare and Social Security, making those programs a memory for our children. And without them, our children will be financially strapped, taking care of sick and elderly parents and grandparents.
These poll numbers show the GOP cannot even convince their own party of what they’re doing, which is obviously playing politics and puffing their chests out like chicken hawks, trying desperately not to blink first in this game. And for all their talk about the Democrats’ scare tactics, the poll shows the majority feel the president raises valid concerns if the debt ceiling is not lifted.
My favorite president, and a man who I think is the most intelligent of all of them (maybe not in choices he made in his personal life), is Bill Clinton. President Clinton says he would raise the debt ceiling using powers granted under the 14th Amendment—“validity of the public debt shall not be questioned…”
Maybe it’s time President Obama took a page from the Clinton handbook and took his advice. After all, he was a constitutional lawyer. If President Obama stops the economy from going into a double dip recession by raising the debt ceiling, he’ll not only be re-elected, he’ll show America that the GOP are the losers, and prevent the American people from being so—which is what would happen if he signed that GOP plan into law.
By: Leslie Marshall, U. S. News and World Report, July 20, 2011
Can You Handle The Truth?: What The Public Doesn’t Understand About The Debt Ceiling
When a CBS reporter asked President Obama why a recent poll shows that 69% of Americans don’t want the debt ceiling lifted, he responded by stating that “professional politicians understand the debt crisis better than the general public.” As I heard the words come from his lips, I knew there would be outrage on the right, and the left and certainly the right again!
The problem is, the president was right; ahem, correct.
When posed with the question, “If you have a credit limit and have maxed out your credit card, should you raise your credit limit so you can spend more?” Americans respond with a resounding “NO!” as would I if that were the question.
But here is the real question:
As an American, did you know if we do not raise the debt ceiling and go into default, that thousands of Americans will lose their jobs? And a 9% unemployment rate will be something you’ll hope for? Or that programs like Homeland Security will be cut which I’m sure will make any terrorist organization smile.
How about home owners and small business owners longing for the days of 2008? And that double dip recession the Republicans were trying to scare you about? Well, it certainly would happen. Speaking of money, our bonds will be worthless; and if you think that TARP and the bailout were bad, that’s just an appetizer for the domino effect not raising the debt ceiling would have on Wall Street, perhaps worldwide; just look at what happened with Greece.
I mentioned that the president was right when he said Americans don’t know as much about the debt ceiling crisis as a professional politician; and I do believe that. When some of the nation was outraged or offended by his remark, I could hear Jack Nicholson saying, “The truth, you can’t handle the truth!!”
We need only look at our own television viewing habits to see evidence to support the president’s rhetoric. Let’s take a little quiz shall we?
- Were the Bush tax credits meant to last forever? Answer: No, just ask the authors of the legislation.
- When is the president planning on removing those temporary credits? Answer: 2013 and beyond, not a massive tax cut taking place in August.
- How many times did President George W. Bush raise the debt ceiling? Answer: 7 times.
And where was the Republican outrage then? Answer: they didn’t have a Democrat in the White House up for re-election!
OK…now a few more…
- What former governor’s daughter was on “Dancing With The Stars?” Answer: Sarah Palin.
- What was the verdict in the Casey Anthony trial? Answer: Not guilty.
- Who was voted off (pick one) American Idol, The Biggest Loser or The Bachelorette? Answer: I don’t know, I was too busy paying attention to the debt crisis.
The point is, most Americans would’ve been able to easily answer the latter three questions. We were glued to our T.V. sets during the Casey Anthony trial; not to CSPAN and the ratings prove it. So don’t be offended, the president’s not saying you’re dumb. He is simply saying you don’t have the time to spend 40-60 hours a week to do a job you elected him and Congress to do. Oh, and by the way, the latest poll shows 47% of Americans (Rasmussen) don’t want the debt ceiling lifted; see even the CBS reporter proved the president right with his question. Love that!
By: Leslie Marshall, U. S. News and World Report, July 13, 2011
How Can Anyone Take The GOP Seriously: The Dismal Republican Record On Taxes
“In the present weak economic climate,” a group of conservatives, including Newt Gingrich, wrote in an open statement, “we believe that to restore the health of the economy and put Americans back to work, America should follow a course against high taxes and federal spending.”
The White House was unmoved. “Republicans may feel they can’t go to voters after supporting a tax increase,” one administration official told the New York Times. “We’ve got to convince them that the situation won’t be as devastating as it would be if the tax bill is sabotaged.”
The latest moves in the debt ceiling debate? Not quite: The administration was Ronald Reagan’s, and the year was 1982. With his previous year’s landmark tax cuts having exploded the budget deficit, Reagan had reluctantly backed a tax increase to bring it back under control, prompting a minor conservative uprising led by then Rep. Jack Kemp and which included then backbench House member Gingrich. “You can’t have the largest tax cut in history and then turn around and have the largest tax increase in history,” one conservative rebel groused.
Right-wing economists issued dire forecasts. Arthur Laffer, widely described as the father of supply-side economics, warned that the bill would “stifle economic recovery” and “lengthen and deepen the recession.” The president of the U.S. Chamber of Commerce wrote that the tax hike would “curb the economic recovery everyone wants,” adding: “It will mean a lower cash flow as more businesses pay more taxes, with a depressing effect on stock prices. It will reduce incentives for the increased savings and investment so badly needed to improve productivity and create more jobs.” As Bruce Bartlett, an early supply-sider and Reagan aide who has since recanted the faith, noted last month, “It would be hard to find an economic forecast that was more wrong in every respect.” Real gross domestic product grew at 4.5 percent in 1983 and 7.2 percent in 1984, while unemployment fell from 10.6 percent in December 1982 to 7.1 percent in 1984.
Just about the only thing the conservative rebels got right back in 1982 was Gingrich’s comment to the New York Times that the skirmish was the “opening round of a fight over the soul and future of the Republican Party.” Looking back, the extent to which the conservatives won the fight within the party while losing the war with economic reality is fairly astounding. In the nearly three decades since, the Republican feeling toward tax increases has moved from Reaganesque dislike but acceptance (he signed tax increases into law in seven of his eight years in office) to their current, blindly absolutist position flatly opposing any tax increases at all, even in the face of spiraling deficits and possible economic default.
Witness comments like House Speaker John Boehner’s that “raising taxes is going to destroy jobs.” The rhetoric hasn’t changed much since 1982, but the accumulated evidence against this GOP dogma is overwhelming.
Gingrich was again at the forefront of the fight against taxes in 1993 when he warned that the Clinton budget plan “will in fact kill the current recovery and put us back in a recession.” Rep. Dick Armey, who would go on to be House majority leader and now is a Tea Party godfather, warned that “the impact on job creation is going to be devastating.” Texas GOP Sen. Phil Gramm warned that the budget deal was a “one-way ticket to a recession,” adding that Clinton’s would be one of the jobs killed by the bill. (Gramm would seek Clinton’s job, but couldn’t best Bob Dole; he was last seen being muzzled by John McCain’s presidential campaign in 2008 after calling the country a “nation of whiners.”) Laffer warned that “Clinton’s tax bill will do about as much damage to the U.S. economy as could be feasibly done in the current political environment.” Boehner himself dismissed the Clinton plan as “Christmas in August for liberal Democrats: more taxes, more spending, and bigger government.”
He got the Christmas part right. Unemployment, which had been 7.1 percent in January 1993, fell to 5.4 percent by the end of 1994. Real GDP grew from 2.9 percent in 1993 to 4.1 percent in 1994. The final tally of the Clinton years was 23 million new jobs and a budget surplus.
Clinton and his villainous tax hikes were followed by George W. Bush and his cure-all tax cuts. “Tax relief will create new jobs,” Bush argued in April 2001. “Tax relief will generate new wealth.” When the bill was enacted that June, GOP Rep. Mike Pence (now running for governor of Indiana) gushed that they would “stimulate our economy” and “put the ax to the root of the Internal Revenue Code as it wages war on the American dream.”
How’d that turn out? From 2001 to 2007, jobs grew at one fifth the pace of the 1990s, the slowest rate in the post-World War II era. GDP in those years grew at half the rate of the 1990s. Oh yeah, and the deficit exploded. Fully 10 years after the largest tax cuts in history, the economy had shed 1.1 million jobs. It seems Pence’s ax was put to the root of the American dream itself.
Given the historical and economic record, one has to ask: How can anyone take the GOP seriously, especially when they are playing fast and loose with economic disaster in service to a political philosophy that not even their main icon—Reagan—followed with such monomania?
Decrying the Clinton tax plan in 1993, Boehner recalled the quote: “Those who do not learn from history are doomed to repeat it.” He went on, “It very appropriately applies to Congress today.” That’s one piece of rhetoric Boehner really should recycle. And learn from.
By: Robert Schlesinger, U. S. News and World Report, July 13, 2011
Mitt Romney ‘Makes It Worse’ With Obvious Falsehood
Republican presidential hopeful Mitt Romney has focused most his message on attacking President Obama’s economic record. To that end, the former governor has repeated a specific phrase over and over again: “He made it worse.”
“He” in this sentence is the president, and “it” references the economy. Romney has used the exact same line, word for word, in debate appearances, press releases, exchanges with voters, and even his campaign kick-off speech, when Romney said of the president, “When he took office, the economy was in recession. He made it worse.”
This is, in other words, one of the driving messages of Romney’s presidential campaign. Unfortunately for the GOP frontrunner, it’s also a lie.
With that in mind, Romney held a press conference yesterday in Pennsylvania, and NBC’s Sue Kroll, to her enormous credit, asked the candidate the question no other reporter has been willing to pose.
[Kroll] asked the former Massachusetts governor why he believes that Obama’s policies have made the economy worse — when the economy is now growing (and not shrinking like it was in 2009), when the Dow is climbing (and no longer in a free-fall like it was in ‘09), and when the unemployment rate is down a full percentage point from where it was in Oct. ‘09.
Romney offered a response that was nothing short of extraordinary.
“I didn’t say that things are worse…. What I said was that economy hasn’t turned around.”
When a candidate lies, it’s a problem. When a candidate lies about lying, it’s a bigger problem.
Even for Romney, who’s flip-flopped more often and on more issues than any American politician in a generation, this is ridiculous. He’s argued repeatedly that Obama made the economy worse, and when asked to defend the bogus claim, says he never made the argument in the first place.
Romney does realize that Google exists, right? That it’s pretty easy to find all kinds of examples of him saying exactly what he claims to have never said?
What’s more, as part of his defense, Romney’s new line — the economy “hasn’t turned around” — is itself wrong. The economy was shrinking, now it’s growing. The economy was hemorrhaging jobs, now it’s gaining jobs. The stock market was collapsing, now it’s soaring. When compared to where things were when the president took office, the economy has obviously turned around, even if it’s far short of where it needs to be.
I’m not sure why this isn’t a bigger deal this morning. It was amusing when Michele Bachmann falsely characterized John Quincy Adams as a Founding Father, but Romney getting caught telling a blatant falsehood about one of the central themes of his presidential campaign is infinitely more important.
Remember when John Kerry, talking about Iraq funding, said he was for it before he was against it? Romney’s incoherence yesterday is every bit as interesting.
By: Steve Benen, Contributing Writer, Political Animal, The Washington Monthly, July 1, 2011
Corporate Tax Cuts Don’t Stimulate Job Growth
Prevailing conservative wisdom dictates that businesses need tax cuts—and investors need capital gains tax cuts—to get the economy moving. But two very well-executed articles on wages and taxes published recently suggest that targeting tax cuts at business executives may do little to improve the dismal unemployment picture.
The Washington Post offers a startling analysis of income disparity, noting that the gap between the very rich and the rest of us has grown dramatically in the past few decades, reaching current levels that have not been seen since the Great Depression. In 2008, the Post reports, the top one-tenth of one percent of earners took in more than a tenth of the personal income in the United States. But the moneyed class is not dominated by professional athletes or big-name artistic performers or even hedge fund managers, the Post found. Instead, it is due to a big increase in executive compensation, even as real wages for some of their workers have dropped:
The top 0.1 percent of earners make about $1.7 million or more, including capital gains. Of those, 41 percent were executives, managers and supervisors at non-financial companies, according to the analysis, with nearly half of them deriving most of their income from their ownership in privately-held firms. An additional 18 percent were managers at financial firms or financial professionals at any sort of firm. In all, nearly 60 percent fell into one of those two categories.
The New York Times has a fascinating story that serves as an unwitting companion piece to the Post story. Corporate executives, the paper reports, are clamoring for a tax holiday to encourage them to bring their offshore profits back to the United States. And the money in question is big, the Times notes: Apple has $12 billion in offshore cash, while Google has $17 billion, and Microsoft, $29 billion. The companies with money sitting offshore argue that if the federal government were to offer them a huge tax break—say, a one-year drop from 35 percent to 5.25 percent—the businesses would bring the money home and operate as a private-sector economic stimulus.
However, the Times notes:
(T)hat’s not how it worked last time. Congress and the Bush administration offered companies a similar tax incentive, in 2005, in hopes of spurring domestic hiring and investment, and 800 took advantage. Though the tax break lured them into bringing $312 billion back to the United States, 92 percent of that money was returned to shareholders in the form of dividends and stock buybacks, according to a study by the nonpartisan National Bureau of Economic Research.
Who needs a tax cut, then? The U.S. economy is very much consumer-driven; companies aren’t hiring, many business owners say, because people aren’t buying. The past behavior of corporations that have received huge tax cuts has not necessarily been to use the money to hire more people; the Bush-era tax cuts have been in place for a decade, and the unemployment rate is still 9.1 percent. And executive compensation has grown. Executives may feel entitled to earn more and more if their companies are doing well and expanding. But without customers, those companies will go bust.
By: Susan Milligan, U. S. News and World Report, JUne 20, 2011
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