“Doom And Gloom”: A History Of Paul Ryan’s Attempts To Dismantle Social Security
That House Budget Committee Chairman Paul Ryan (R-WI) supports the privatization of Social Security is well known. Ryan proposed $1.2 trillion in cuts and the partial privatization of Social Security upon taking control of the Budget Committee in 2011, and he has constantly warned about the supposed doom facing the program if major reforms aren’t enacted immediately.
But Ryan’s attempts to gut the most popular entitlement program in America go back quite a few years, as Ryan Lizza’s New Yorker profile of the conservative hero makes clear. Ryan’s fight against Social Security has been ongoing since he pushed President George W. Bush to privatize the program in 2005:
Under Ryan’s initial version, American workers would be able to invest about half of their payroll taxes, which fund Social Security, in private accounts. As a plan to reduce government debt, it made no sense. It simply took money from one part of the budget and spent it on private accounts, at a cost of two trillion dollars in transition expenses. But, as an ideological statement about the proper relationship between individuals and the federal government, Ryan’s plan was clear. […]
Two weeks after Bush’s Inauguration, Ryan gave a speech at Cato asserting that Social Security was no longer the third rail of American politics. He toured his district with a PowerPoint presentation and invited news crews to document how Republicans could challenge Democrats on a sacrosanct policy issue and live to tell about it.
Bush ultimately went with a slightly less radical proposal that still failed in the Senate and caused Republicans massive losses in the 2006 mid-term elections. But Ryan, undeterred, told Lizza that the failure of privatization was simply due to marketing, not that the plan was unpopular:
What some might interpret as the failure of an unpopular idea Ryan insisted was mostly a communications problem. “The Administration did a bad job of selling it,” he told me. Bush had campaigned on national-security issues, only to pitch Social Security reform after reëlection. “And . . . thud,” Ryan said. “You’ve got to prepare the country for these things. You can’t just spring it on them after you win.” The lesson: “Don’t let the engineers run the marketing department.”
Aided by the mainstream media’s spreading of the lie that Social Security is “going bankrupt,” Ryan has been able to thrust Social Security “reform” back onto the table, and it was embraced during the primary by virtually every Republican candidate.
What Ryan and his Republican colleagues continue to ignore, however, is how easy fixing Social Security would be if they weren’t so insistent on protecting the wealthiest Americans from a single tax increase. By lifting the payroll tax cap that currently limits Social Security contributions to the first $110,100 in income, Congress could ensure the program’s solvency for the next 75 years — longer than the program has been in existence to this point.
That wouldn’t fit Ryan’s belief that the government doesn’t have a role in helping protect the financial security of the American people. But it would prevent millions of Americans from losing the much of their retirement savings, as they would have during the 2008 financial crisis had Ryan’s plan to privatize Social Security become law.
By: Travis Waldron, Think Progress, July 30, 2012
“Restoring Economic Mobility”: A Challenge To Conservatives
It’s good that conservatives are finally taking seriously the problems of inequality and declining upward mobility. It’s unfortunate that they often evade the ways in which structural changes in the economy, combined with conservative policies, have made matters worse.
Occupy Wall Street, whatever its future, will always merit praise for placing inequality at the center of our politics. The biggest sign of the Occupiers’ success: Conservatives once stubbornly insisted that inequality wasn’t a problem because the United States was the land of opportunity and upward mobility. Now they are facing the fact that we are by no means the most socially mobile country in the world.
Reports from the Organization for Economic Cooperation and Development and others show that social mobility is greater elsewhere, notably in Denmark, Australia, Norway, Finland, Canada, Sweden and Germany.
What do these countries have in common? Not to put too fine a point on it, all have national policies that are, in right-wing parlance, more “socialist” or (to be precise) social democratic than ours. They guarantee their citizens health insurance. They have stronger union movements and more generous welfare states. They tend to keep higher education more affordable. In most cases, especially Germany’s, they have robust apprenticeship and job training programs. They levy higher taxes.
The lesson from this list is not that cutting back government, gutting unions and reducing taxes on the rich will re-create an America of opportunity. On the contrary, we need more active and thoughtful government policies to become again the nation we claim to be.
We also need to be more candid about the large forces that are buffeting the American middle class. Writing in The Nation about Timothy Noah’s excellent new book, “The Great Divergence,” William Julius Wilson, the distinguished Harvard sociologist, nicely summarized the factors Noah sees as explaining rising disparities of wealth and income.
They included “the increasing importance of a college degree due to the shortage of better-educated workers; trade between the United States and low-wage nations; changes in government policy in labor and finance; and the decline of the labor movement. He also considers the extreme changes in the wage structure of corporations and the financial industry, in which American CEOs typically receive three times the salaries earned by their European counterparts.”
Most conservatives accept the importance of education but then choose to ignore all the other forces Noah describes.
Recently, my friends David Brooks and Michael Gerson used their columns to address the decline in mobility. It’s to the credit of these two conservatives that they did so, yet both found ways of downplaying the challenge inequality poses to conservatism itself.
Brooks cited a fine study by Robert Putnam, also a Harvard scholar, noting that the different parenting styles of the upper middle class and the working class are aggravating inequalities. Brooks’s conclusion: “Liberals are going to have to be willing to champion norms that say marriage should come before child-rearing and be morally tough about it. Conservatives are going to have to be willing to accept tax increases or benefit cuts so that more can be spent on the earned-income tax credit and other programs that benefit the working class.”
Yes, parenting (including the time crunch that two- or three-income working-class families face) is part of the issue, which is why I also admire Putnam’s study. But the balance in Brooks’s call to arms is entirely false. It’s not 1969 anymore. Progressives — including Wilson, Barack Obama and, if I may say so, yours truly — have been talking about the importance of family breakdown for decades. Brooks rightly acknowledges the need for measures to help those skidding down the class structure. The barrier here is not liberal attitudes toward the family but conservative attitudes toward government.
Gerson also said sensible things about promoting a “broad diffusion of skills and social capital” but then closed by accusing liberals of wanting to “soak the rich” and insisting that “economic redistribution is not the answer.”
Actually, liberals are not for “soaking the rich,” unless you consider the Clinton-era tax rates some kind of socialist bath. And as the experience of the more social democratic countries shows, a modest amount of “economic redistribution” — to offset the radical redistribution toward the very rich of recent decades — can begin the process of restoring the kind of mobility we once bragged about.
My challenge to conservatives worried about inequality is to follow the logic of their concern to what may be some uncomfortable conclusions, especially in an election year.
By: E. J. Dionne, Jr., Opinion Writer, The Washington Post, July 15, 2012
“Back To The Category Of Crazy”: Mitt Romney’s Tea Party Masters
At first blush, it looked so deftly orchestrated on Tuesday—Mitt Romney giving his blistering “prairie fire” speech on the debt, and John Boehner telling Pete Peterson and crowd that he relishes forcing another debt-ceiling showdown. The old one-two. Dominated the headlines. The speeches appeared to reflect a shift in focus to debts and deficits. But is this really where Romney wants to go? And in the company of Boehner? What’s next, an ethnic sensitivity speech at Mel Gibson’s place?
First of all, Romney’s speech was completely out of control. Several people have torn it to pieces already, so I needn’t do that. What remains interesting, though, is why he would choose to talk in such an incendiary way about a topic that is such an obvious liability for him.
Why is it a liability? Because of the two candidates running for president, only one has proposed a tax plan that would send the deficit soaring to ever-new heights, and that candidate is Romney. It’s hard to come up with a concrete number, because Romney won’t say which loopholes he’d close. But the deficit will balloon by at least several hundred billion dollars, and maybe a few trillion. The reason it will do so, of course, is that the most important thing for Republicans to do is to reduce the tax revenues the federal government collects, especially from the top 1 percent. Indeed, under Romney’s proposal, they will see their average tax bill fall by around $150,000 a year. If Romney wants to open up that conversation, he can be my guest.
Now let’s consider Boehner’s role here. We know that he has to play to the cheap seats in his caucus, or else they’re going to dump him next year and make Eric Cantor the speaker. Fine. And we know that many independents like to hear tough budgetary talk. That’s fine, too. By these measures, what he’s doing makes very clear political sense.
But if I were Romney, I’m pretty sure I’d be leery of this. It’s apparently not likely, says Tim Geithner, that there will be a debt-ceiling battle before the election. But let’s say that at the very least, Boehner and his restive caucus make some kind of dramatic move to keep the debt issue alive over the summer: They release a list of draconian budget cuts, for example, and say that they won’t budget until Obama agrees to every single one of their cuts. That puts Romney in a spot. As he’s trying to move to the center, he has to endorse a far-right set of principles dictated by a bunch of Tea Partiers. Um, who’s the presidential candidate here anyway?
It also gives Obama a free shot at tying Romney to the hard right, and to the whole set of polarization-dysfunction issues that sent the congressional GOP’s approval ratings down into Kardashian territory during the last debt fight. Obama can say to voters: “Look at how far-right congressional Republicans are going to lead this guy around by the nose if he becomes president.” Most independents may want tough talk on the deficit, but they certainly don’t want the Tea Party running the country.
Can Romney keep his distance from Boehner? Typically in presidential election years, the presidential nominee is given lots of free rein by others in the party to run whatever sort of campaign he needs to run to win. But the strange brew of Romney’s suspect right-wing credentials and the no-compromise posture of the Tea Party wing might make that a bit trickier this time around the track.
The polls have tightened in the last month for two reasons. First, the jobs reports haven’t been so great. And second, Romney isn’t running in primaries anymore, so he’s not talking about taking away contraception and hating on immigrants and all those things. He hasn’t really done anything affirmative that I can see to move to the middle, but the mere fact that he’s not up there on a stage anymore with Rick Santorum and Newt Gingrich has definitionally removed him from a certain category of crazy. But Boehner and Cantor and the House GOP caucus could certainly drag him back there.
The Tea Party obviously still has a lot of staying power. Dozens of its candidates, for Senate and House, will be out there this fall. Romney will of course stay miles away from them physically. He’s not going to be attending any Purdue games with Richard Mourdock. But the Tea Party ethos is going to be out there in the atmosphere. Boehner has to acknowledge its existence, and Romney is going to have to as well. We don’t know what he’s going to do, but we do know that he hasn’t said no to the far right yet.
By: Michael Tomasky, The Daily Beast, May 17, 2012
“Out Of Egypt, Into The Red Sea”: Romney’s Cowardly Speech On The Deficit
Another day, another economic speech by Mitt Romney. Romney is constantly trying to refocus the campaign on the economy. After being sidetracked by President Obama’s announcement that he supports gay marriage speech last week, and Romney’s appeal to the religious right at Liberty University on Saturday, Romney is once again on the attack against Obama’s economic record. Romney’s Tuesday afternoon speech in Des Moines, Iowa, was nominally focused on deficit reduction.
There are plenty of reasons to worry about the rate of job growth in the short term and federal debt accumulation in the long term, but unfortunately Romney’s proposals would make both problems worse. Rather than offer specific investments or incentives to hire now and plausible plans to reduce the deficit later, when the economy is strong enough to withstand spending cuts, Romney offers the same austerity measures that have crippled the recovery in much of Europe.
It’s worse than just that. If Romney specified which tax loopholes he would close and spending he would cut, at least we’d get deficit reduction, if nothing else. It would also allow for an honest debate about the American people’s priorities on taxes, spending and deficit reduction. But he stubbornly refuses, out of cowardice. Specific cuts could trigger opposition, so Romney offers only bromides.
Romney compared the rising federal debt to a “prairie fire” sweeping the nation. “The people of Iowa and America have watched President Obama for nearly four years, much of that time with Congress controlled by his own party. And rather than put out the spending fire, he has fed the fire,” said Romney. “He has spent more and borrowed more.”
While technically true, this is a bit misleading. Obama inherited an imbalance between spending and revenue because of tax cuts and wars started by George W. Bush and congressional Republicans. Much of the increase in the deficit since Obama took office can be attributed to increases in mandatory spending such as food stamps and decreases in tax revenue that were caused by the recession he also inherited, rather than any of his policies. While Obama did sign some new spending bills, he also signed the Affordable Care Act, which would reduce the deficit. Romney pledges to repeal the ACA and complains that it cut spending on Medicare.
“The time has come for a president, a leader, who will lead. I will lead us out of this debt and spending inferno,” Romney promised. But how? Romney does not say. He wants to extend the Bush tax cuts, then cut taxes an additional 20 percent and raise spending on defense. All of this increases the deficit.
To pay for all of this and then reduce the deficit from current levels would require drastic cuts in domestic programs. But Romney knows that the American people like the idea of cutting domestic spending more than they like cutting actual programs they rely upon. So he avoids offering any specifics. “Move programs to states or to the private sector where they can be run more efficiently and where we can do a better job helping the people who need our help,” said Romney. “Shut down programs that aren’t working. And streamline everything that’s left.” None of this really means anything. No one is for programs that aren’t working or inefficiencies. Unless you say which programs you believe are not working, or which inefficiencies you will remove, you aren’t really saying anything at all. Romney says he will lead on this issue, but he offers no leadership at all.
By: Ben Adler, The Nation, May 15, 2012
“Recalcitrant And Incorrigible”: John Boehner Threatens To Take The Debt Limit Hostage Again
Last August, the nation narrowly avoided hittingits debt limit thanks to a last minute deal cut by Congress. House Republicans had threatened to push the country into a default unless Democrats agreed to spending cuts that were larger than the amount of the debt limit increase.
The episode is widely regarded as an embarrassment for good governance and a blow for the economy. Standard & Poor’s, even with the deal, downgraded America’s credit rating, citing the GOP’s complete intransigence regarding revenue increases. But it seems Speaker of the House John Boehner (R-OH) is ready to write the sequel, as he will reportedly demand today that the next increase in the debt limit follow the same GOP criteria:
In a speech Tuesday, House Speaker John A. Boehner (R-Ohio) plans to address the issue of national debt, which will once again be nearing its legal limit in January, just as the tax hikes and spending cuts are due to hit.
According to advance remarks provided to The Post, Boehner will insist that any increase in the debt limit be accompanied by spending “cuts and reforms greater than the debt limit increase” — the same demand that pushed the Treasury to the brink of default during last summer’s debt-limit standoff.
According to the Economic Policy Institute, the cuts demanded by the GOP in exchange for raising the debt limit will cost the economy 1.8 million jobs this year. Treasury Secretary Tim Geithner already pushed back on Boehner’s remarks, saying, “this commitment to meet the obligations of the nation, this commitment to protect the creditworthiness of the country, is a fundamental commitment that you can never call into question or violate.”
By: Pat Garofalo, Think Progress, May 15, 2012
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