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“No Fools On Our Ticket”: A Battle Between The GOP Outsiders And Insiders

Just over the last few months, we’ve seen reports from the New York Times, Bloomberg News, and the Washington Post on the simmering tensions between Corporate America and Tea Party Republicans, driving a wedge into the GOP coalition. With party primaries looming, talk of a “Republican civil war” abounds.

Some of the party’s major players are even putting their money where their mouths are. This Wall Street Journal piece yesterday was circulated far and wide in Republican circles.

Republican leaders and their corporate allies have launched an array of efforts aimed at diminishing the clout of the party’s most conservative activists and promoting legislation instead of confrontation next year. […]

The U.S. Chamber of Commerce early next year plans to roll out an aggressive effort – expected to cost at least $50 million – to support establishment, business-friendly candidates in primaries and the general election, with an aim of trying to win a Republican Senate majority.

“Our No. 1 focus is to make sure, when it comes to the Senate, that we have no loser candidates,” said the business group’s top political strategist, Scott Reed. “That will be our mantra: No fools on our ticket.”

Though Reed did not specify who would qualify as a “fool,” it’s not hard to look back at major Senate races from the last couple of cycles and know exactly the kind of candidates he’s referencing (O’Donnell, Akin, Mourdock, Angle, et al). In other words, when Reed and the Republican Party’s Chamber of Commerce wing talk about “loser candidates” and “fools,” they’re obviously talking about right-wing Tea Party favorites.

Also note, there’s been ample analysis this year noting that Corporate America may want to overcome extremist candidates in GOP primaries, but if this wing of the party doesn’t commit real resources, Tea Partiers will prevail. It’s worth acknowledging, then, that $50 million in support of establishment candidates is a considerable sum.

But as word of the Chamber’s intentions spread, the backlash soon followed. “Special interests in Washington will do whatever it takes to protect big government Republicans,” Senate Conservatives Fund Executive Director Matt Hoskins told TPM yesterday. “Their ability to get future bailouts, kickbacks, and other favors depends on it.”

Club for Growth senior fellow Tom Borrelli added, “This is a battle between the outsiders and insiders and insiders include big bucks and establishment Republicans.”

Remember, primary season hasn’t really begun in earnest, which means these disputes are likely to intensify very soon. For many Democrats, hoping to see Republicans at each other’s throats during an election year, the popcorn is already being popped.

 

By: Steve Benen, The Maddow Blog, December 27, 2013

December 28, 2013 Posted by | GOP, Tea Party | , , , , , , , | Leave a comment

“Toiling On The Bottom Rungs Of The Ladder”: Why The Right Should Support Boosting The Minimum Wage, Too

I’ve heard a lot of goofy arguments against raising the federal minimum wage. The silliest goes like this: “You want to raise the minimum wage to $15? Why not $50? Why not $100?”

Of course, that’s not a real argument. Yet I hear it a lot, which means it probably originates somewhere in the nation’s vast menagerie of conservative talk-show hosts.

The answer, if this pseudo-argument deserves one, is that $15 is at least where the current minimum hourly wage of $7.25 would be if it had kept up with worker productivity since the 1960s, according to various experts.

For example, the liberal-leaning Economic Policy Institute estimates that, if the minimum wage had kept pace with productivity growth since 1968, as it did for the two decades before, it would now be $18.67 per hour. Ah, the good old days.

That figure makes President Barack Obama’s request for a raise to $10.10, after asking for $9 earlier in the year, sound modest.

Yet at the other end of the political spectrum you have conservatives like Rep. Joe Barton, a Texas Republican, who told National Journal that he would rather just get rid of the federal minimum wage altogether. “I think it’s outlived its usefulness,” he said, although he acknowledged that “it may have been of some value back in the Great Depression.”

No minimum wage? It seems to me that America tried that before. It’s called slavery.

But whether Barton’s fellow Republicans share his extreme view or not, a minimum wage increase isn’t likely to have any easier time in the current Congress than most of this president’s other requests.

That’s a tragedy for millions of hard-working Americans who are having an increasingly tough time making ends meet — even as stocks soar to record highs on Wall Street.

Does it sound like I’m talking class warfare? Americans didn’t think so in the three decades after World War II, when the idea of wages keeping up with productivity had much more bipartisan support.

In the years from 1947 to 1969, the minimum wage actually did keep pace with productivity growth, according to the Center for Economic and Policy Research, another liberal-leaning Washington think tank. As recently as President George W. Bush’s administration, Congress passed a bipartisan minimum wage increase in 2007 that included tax breaks for small businesses. That’s not class warfare. It’s legislating.

Yet not all conservatives are opposed to raising the minimum wage. While Washington sounds gridlocked, the issue has produced productive alliances in various states and municipalities.

In California, fast-food workers and others who have been rallying nationwide for minimum wage increases, have found an unusual ally in Ron Unz. The conservative Silicon Valley businessman probably is best known for backing Proposition 227 in 1998, a ballot issue that eliminated bilingual education as it had been practiced in California schools.

Now the former publisher of The American Conservative magazine has submitted a ballot initiative to the California secretary of state that would raise the state minimum wage to $12 an hour in 2016 from the current $8.

His reasons? Strictly conservative, he points out. He sees it as an economic growth measure. It would put $15 billion a year into the pockets of workers who would spend it as “one of the largest economic stimulus packages in California history,” he told KQED radio. And it would be funded entirely by the private sector, he pointed out.

More controversially, Unz hopes that raising the minimum wage would help slow the flow of illegal immigration. “In effect, a much higher minimum wage serves to remove the lowest rungs in the employment ladder,” he wrote in the magazine he used to publish, “thus preventing newly arrived immigrants from gaining their initial foothold in the economy.”

That may be asking too much, in my view. History shows that immigration, legal or illegal, rises or falls according to how well the U.S. economy is doing.

But there’s no question that raising wages would make work in this country even more attractive, particularly to Americans who already toil on the bottom rungs of the income ladder. They deserve a raise.

By: Clarence Page, The National Memo, December 26, 2013

December 28, 2013 Posted by | Minimum Wage | , , , , , , , , | 2 Comments

“There’s Something There”: GOP ‘Confronting A New Reality’ On Healthcare

The Obama administration won’t have an official announcement on December’s health care enrollment numbers for a few more weeks, but chances are good that we’ll see a spike in the number of newly enrollment Americans. At the end of November, the Affordable Care Act had helped bring coverage to about 1.2 million people; by the end of this month, that total will include millions more.

And with each new enrollment, it slowly dawns on congressional Republicans that the larger calculus has changed in fundamental ways. Jonathan Weisman reported overnight that GOP policymakers are “confronting a new reality.”

The enrollment figures may be well short of what the Obama administration had hoped for. But the fact that a significant number of Americans are now benefiting from the program is resulting in a subtle shift among Republicans.

“It’s no longer just a piece of paper that you can repeal and it goes away,” said Senator Ron Johnson, Republican of Wisconsin and a Tea Party favorite. “There’s something there. We have to recognize that reality. We have to deal with the people that are currently covered under Obamacare.”

And that underscores a central fact of American politics since Franklin D. Roosevelt signed the Social Security Act during the Depression: Once a benefit has been bestowed, it is nearly impossible to take it away.

Quite right. The Republican repeal crusade, whether the party wants to admit it or not, is over. Sure, Boehner & Co. can schedule a few dozen more repeal votes to help Tea Partiers feel warm and fuzzy, but even that’s less likely in light of the millions of consumers who’ve signed up for coverage – in an election year, candidates don’t generally thrive running on a platform that says, “Vote for me so I can take health care benefits away from your family.”

Indeed, GOP officials are desperate to talk about the “cancellation notices” a small sliver of the population received, but it gets a little tricky for these same Republicans to draw up plans to cancel millions more health care plans on purpose.

As we discussed a few weeks ago, the fight over health care is no longer an abstraction over hypothetical benefits. There’s a profound difference between “Republicans are voting to deny you a benefit you don’t yet enjoy” and “Republicans are voting to take away your health insurance and replace it with nothing.” The former struck GOP officials as plausible; the latter is politically suicidal.

So, as of this minute, what’s the Republican position on health care? No one, including GOP policymakers themselves, has any idea. For years, it was a straightforward push to repeal the entirety of the law, regardless of the consequences or human suffering. Now, some still want to pretend repeal is possible, others want to tinker around the edges with “reforms.” Some believe it’s time for Republicans to craft a policy alternative of their own to present to voters, others believe incessant complaining should be enough to give the GOP a boost on Election Day.

“The hardest problem for us is what to do next,” Sen. Lindsey Graham (R-S.C.) told Weisman.

Ya don’t say.

 

By: Steve Benen, The Maddow Blog, December 27, 2013

December 28, 2013 Posted by | Affordable Care Act, GOP | , , , , , , | Leave a comment

“The Fear Economy”: The Economy May Be Lousy For Workers, But Corporate America Is Doing Just Fine

More than a million unemployed Americans are about to get the cruelest of Christmas “gifts.” They’re about to have their unemployment benefits cut off. You see, Republicans in Congress insist that if you haven’t found a job after months of searching, it must be because you aren’t trying hard enough. So you need an extra incentive in the form of sheer desperation.

As a result, the plight of the unemployed, already terrible, is about to get even worse. Obviously those who have jobs are much better off. Yet the continuing weakness of the labor market takes a toll on them, too. So let’s talk a bit about the plight of the employed.

Some people would have you believe that employment relations are just like any other market transaction; workers have something to sell, employers want to buy what they offer, and they simply make a deal. But anyone who has ever held a job in the real world — or, for that matter, seen a Dilbert cartoon — knows that it’s not like that.

The fact is that employment generally involves a power relationship: you have a boss, who tells you what to do, and if you refuse, you may be fired. This doesn’t have to be a bad thing. If employers value their workers, they won’t make unreasonable demands. But it’s not a simple transaction. There’s a country music classic titled “Take This Job and Shove It.” There isn’t and won’t be a song titled “Take This Consumer Durable and Shove It.”

So employment is a power relationship, and high unemployment has greatly weakened workers’ already weak position in that relationship.

We can actually quantify that weakness by looking at the quits rate — the percentage of workers voluntarily leaving their jobs (as opposed to being fired) each month. Obviously, there are many reasons a worker might want to leave his or her job. Quitting is, however, a risk; unless a worker already has a new job lined up, he or she doesn’t know how long will it take to find a new job, and how that job will compare with the old one.

And the risk of quitting is much greater when unemployment is high, and there are many more people seeking jobs than there are job openings. As a result, you would expect to see the quits rate rise during booms, fall during slumps — and, indeed, it does. Quits plunged during the 2007-9 recession, and they have only partially rebounded, reflecting the weakness and inadequacy of our economic recovery.

Now think about what this means for workers’ bargaining power. When the economy is strong, workers are empowered. They can leave if they’re unhappy with the way they’re being treated and know that they can quickly find a new job if they are let go. When the economy is weak, however, workers have a very weak hand, and employers are in a position to work them harder, pay them less, or both.

Is there any evidence that this is happening? And how. The economic recovery has, as I said, been weak and inadequate, but all the burden of that weakness is being borne by workers. Corporate profits plunged during the financial crisis, but quickly bounced back, and they continued to soar. Indeed, at this point, after-tax profits are more than 60 percent higher than they were in 2007, before the recession began. We don’t know how much of this profit surge can be explained by the fear factor — the ability to squeeze workers who know that they have no place to go. But it must be at least part of the explanation. In fact, it’s possible (although by no means certain) that corporate interests are actually doing better in a somewhat depressed economy than they would if we had full employment.

What’s more, I don’t think it’s too much of a stretch to suggest that this reality helps explain why our political system has turned its backs on the unemployed. No, I don’t believe that there’s a secret cabal of C.E.O.’s plotting to keep the economy weak. But I do think that a major reason why reducing unemployment isn’t a political priority is that the economy may be lousy for workers, but corporate America is doing just fine.

And once you understand this, you also understand why it’s so important to change those priorities.

There’s been a somewhat strange debate among progressives lately, with some arguing that populism and condemnations of inequality are a diversion, that full employment should instead be the top priority. As some leading progressive economists have pointed out, however, full employment is itself a populist issue: weak labor markets are a main reason workers are losing ground, and the excessive power of corporations and the wealthy is a main reason we aren’t doing anything about jobs.

Too many Americans currently live in a climate of economic fear. There are many steps that we can take to end that state of affairs, but the most important is to put jobs back on the agenda.

By: Paul Krugman, Op-Ed Columnist, The New York Times, December 26, 2013

December 27, 2013 Posted by | Economic Inequality, Economy, Jobs | , , , , , | 3 Comments

“Rove’s Republican Rivals Step Up”: With The Bloom Off The Rose, Struggle Over Money And Influence Is Roiling The Republican Party

About a year ago at this time, Karl Rove found himself in a fairly awkward position. While maintaining a prominent media role as a campaign analyst, the Republican strategist was also raising truckloads full of cash for his Crossroads operation, which was trying to buy victories for the candidates Rove was covering.

The result was a rather striking fiasco. Rove burned through several hundred million dollars, but lost nearly every race he targeted, culminating in an unfortunate on-air tantrum. Conservative activist Richard Viguerie said at the time that “in any logical universe,” Rove “would never be hired to run or consult on a national campaign again.”

Indeed, a Republican operative told the Huffington Post, “The billionaire donors I hear are livid…. There is some holy hell to pay.”

A year later, on a superficial level, much of the landscape appears similar – Rove still enjoys his media perches, still leads the Crossroads attack operation, and still hopes wealthy far-right donors will finance his election plans. But Nick Confessore reports that there’s one important difference: Rove has more intra-party rivals, hoping to take advantage of his record of failure.

A quiet but intense struggle over money and influence is roiling the Republican Party just as the 2014 election season is getting underway.

At least a dozen “super PACs” are setting up to back individual Republican candidates for the United States Senate, challenging the strategic and financial dominance that Karl Rove and the group he co-founded, American Crossroads, have enjoyed ever since the Supreme Court’s Citizens United decision in 2010 cleared the way for unlimited independent spending.

In wooing donors, the new groups – in states like Texas, Iowa, West Virginia and Louisiana – are exploiting Crossroads’ poor showing in 2012, when $300 million spent by the super PAC and a sister nonprofit group yielded few victories. Some are suggesting that Crossroads’ deep ties to the Republican establishment and recent clashes with conservative activists are a potential liability for Republican incumbents facing Tea Party challengers.

It wasn’t too long ago that Rove’s name carried almost mythical weight in Republican circles, which no doubt made a difference when Crossroads approached donors for checks. But after 2012, the bloom is off the rose. Rove’s reputation took a hit and it hasn’t recovered.

In some respects, this is overdue. In 2000, it was Rove’s idea to keep George W. Bush in California in the campaign’s waning days, instead of stumping in key battleground states. Bush lost California by a wide margin, and Rove’s strategy practically cost his candidate the election.

In 2006, after nearly getting indicted, Rove’s sole responsibility was overseeing the Republican Party’s 2006 election strategy. At the time, he told NPR in late October that he’d found a secret math that gave him insights that mere mortals can’t comprehend, and soon after, Democrats won back both the House and Senate in a historic victory.

And then in 2012, Rove managed to strike out in ignominious fashion with other people’s money, raising questions anew about whether his reputation was ever fully deserved.

The result is skeptical GOP donors who not only see Rove as someone who can’t deliver victories, but also part of a tired Republican Beltway establishment that’s lost perspective. With the proliferation of groups similar to Crossroads, Rove has to worry about competition within his own party in ways he’s not accustomed to.

 

By: Steve Benen, the Maddow Blog, December 26, 2013

December 27, 2013 Posted by | GOP, Karl Rove | , , , , , , , | Leave a comment