“It’s Time For Republicans To Get Serious”: Spending Cuts In President Obama’s Budget Put Onus On Paul Ryan
When it comes to deficit reduction, President Barack Obama may have correctly taken the measure of Alan Simpson and Erskine Bowles and U.S. corporate leaders; that’s a reason why any deficit deal is more remote than ever.
Two and a half years ago, when the president refused to embrace the recommendations of his own deficit-reduction panel, he was criticized by the authors, Bowles, a former chief of staff to President Bill Clinton, and Simpson, a former Republican senator from Wyoming, as well as by business leaders.
The plan proposed a balance of spending reductions and tax increases of about $4 trillion over almost a decade; that would bring the long-term debt to a sustainable level, according to proponents, who said the president was abdicating leadership.
Privately, Obama saw the proposal as a trap. If he embraced it, Republicans would say, “let’s focus on areas where we agree — spending, including entitlement cuts — and return later to raising revenue.” Then, he feared, Simpson, Bowles and those worried executives would provide aid and comfort for that position, handing a devastating defeat to Democrats.
In these recurring budget battles, Obama deserves his share of blame. At the turn of the year, he was unwilling to hang tough for an entitlements-revenue deal as tax increases loomed for all Americans. He blinked and accepted a smaller tax increase on the wealthy. The White House then miscalculated that the mindless across-the-board spending cuts under sequestration were so bad that an alternative would emerge.
Yet, a month ago, Obama took a risk and proposed a budget containing cuts to entitlements cherished by his party. House Budget Committee Chairman Paul Ryan, a Wisconsin Republican, and his cohorts were unmoved; they wouldn’t give an inch on new revenue.
Simpson and Bowles gave Obama a pat on the back and largely refrained from criticizing Ryan or House Speaker John Boehner, while corporate leaders ducked.
Moreover, Simpson and Bowles have revised their plan and moved to the right, proposing proportionately more spending cuts and less in new revenue. Obama is playing ball, Ryan isn’t, and the two deficit hawks, and their CEO supporters, are rewarding the guy who is stiffing them.
Simpson and Bowles have been admirably persistent, open to some modifications and correctly insistent on the need to curb long-term health-care costs. A spokesman offered this explanation for their latest move to the right: Republicans now control the House. Sorry, Republicans had just won a huge victory, taking control of the House, and were on a high when Bowles-Simpson was first offered in December 2010.
What’s really going on is that their fervent hope for a deal rests on a naïve assumption that the able Ryan will strike a responsible compromise, even though he has made clear that he won’t.
The Republican position is that taxes went up as part of the deal on the so-called fiscal cliff, and there will be no more increases. In reality, all the tax cuts enacted under President George W. Bush were slated to expire anyway, and Republican congressional leaders, their backs against the wall, had to accept some higher levies on the wealthy.
Moreover, that $600 billion, over a decade, is only a little more than half of what Bowles-Simpson proposed. In addition, the new revenue is dwarfed by spending cuts, which have been more than twice as large.
Obama, for all his earlier timidity, showed political guts with his budget last month. He would lower cost-of-living adjustments for most Social Security recipients, means-test Medicare benefits for wealthier senior citizens and enact other reforms to entitlements that would amount to about as much as the deficit commission recommended.
This has infuriated the Democratic base, some of whom, unreasonably, oppose any cuts to Social Security or Medicare. Others warned that, whatever the merits, there was a political risk to a unilateral gesture, which would be rejected by the Republicans and rob the Democrats of a good issue.
So far, that’s proven to be the case.
Other Republican criticisms are equally dubious. The charge that Obama doesn’t deal with long-term health-care spending would be more credible if a stronger alternative were on the table. Obama’s Medicare cutbacks, over 20 years, are larger than Ryan’s. The sequestration cuts, now accepted by many Republicans, as the White House notes, provide no permanent entitlement changes. None.
There’s also sniping that the entitlement changes would be phased in only gradually. Well, that’s the only way to make entitlement changes politically viable. Consider the much-praised 1983 commission led by future Federal Reserve Chairman Alan Greenspan that made Social Security more solvent with spending cuts and higher taxes. It takes full effect in 2022, almost 40 years after it was enacted.
Corporate executives say they’re pessimistic about any long-term deficit changes and thus it’s better not to rock the boat. Who’s abdicating now?
Senate Democrats, after legitimate criticism for failing to pass a budget for years, did so this year. Now, it’s Ryan and the House Republicans who refuse to go to a conference to try to reconcile differences.
In Washington, there’s a propensity to find bipartisan fault in most conflicts. Often, that is on the mark.
Now, however, if Simpson and Bowles and the CEOs who warned about the dire need to get America’s fiscal house in order are serious, they have a clear target: Paul Ryan.
By: Albert R. Hunt, The National Memo, May 16, 2013
“The Incredible Shrinking Issue”: Lack Of Jobs, Not The Deficit, Is The Actual Scandal That Congress Should Be Trying To Grapple
Republicans gleeful over the recent slew of scandals afflicting the Obama administration – some imagined and some worthy of the name – should be thanking their lucky stars that they have new issues to wield as political cudgels. After all, their favorite of the last few years, the federal deficit, is getting smaller and smaller and smaller.
The Congressional Budget Office – Washington’s nonpartisan number crunchers – released new projections Tuesday showing that the deficit will fall to $642 billion this fiscal year, a 24 percent drop in its projection from just a few months ago. The improvement is primarily due to increasing revenue and fewer expected outlays to government-backed mortgage giants Fannie Mae and Freddie Mac.
If this holds, it will be the smallest the deficit has been since President Barack Obama took office. As a percentage of the economy, the deficit will have been cut by more than half over Obama’s first five years, from 10.1 percent in 2009 to 4 percent in 2013.
And the incredible shrinking deficit doesn’t stop there, falling to 2.1 percent of gross domestic product by 2015, which, as the New York Times David Leonhardt noted, is “a level many economists consider healthy.” (For comparison’s sake, the much-ballyhooed Simpson-Bowles budget plan called for a deficit in 2015 of 2.3 percent of GDP.) It’s also worth noting that the CBO assumes perpetual levels of both war spending in Afghanistan and aid for Hurricane Sandy victims, so the projections for future years will certainly be lower than they appear now.
This report is one more piece of evidence showing that the economic discussion that has gripped Washington recently is absurdly backwards. The short-term deficit is barely a problem, while the long-term issue for the nation’s finances remains, as everyone has known for years, spiraling health care costs (but there’s reason to believe they are also coming down).
What the dropping deficit has not done is spark the sort of economic growth or job creation that will bring down America’s still-too-high unemployment rate; lack of jobs, not the deficit, is the actual crisis with which Congress should be trying to grapple. In fact, as the Center on Budget and Policy Priorities’ Jared Bernstein notes, the deficit is coming down too fast considering the country’s current economic doldrums:
The deficit is falling quickly when it shouldn’t be and rising later when it shouldn’t be.
Certainly, if facts drove the day, this update would be a fire hose for the hair-on-fire austerity crowd re: the near-term deficit. The patient is checking out of the hospital while Drs Cantor, Ryan, and McConnell are still preparing for major surgery.
Considering that Republicans on the House Budget Committee claim that the CBO report “provided a fresh reminder of Washington’s out-of-control spending,” chances seem slim that those pushing austerity will change their tune anytime soon. So perhaps the silver lining in lawmakers focusing on what they see as today’s hottest “scandal-gate” is that it will distract them from doing any more to undermine the economic recovery or to cut a deficit that doesn’t need to be cut anymore.
By: Pat Garofalo, U. S. News and World Report, May 14, 2013
“A Warped Prism”: Sequestration And How The “Liberal Media” Keeps Blaming Obama For Republican Behavior
Reading what has now become a cavalcade of Beltway pundits, led by New York Times writers, denouncing President Obama for failing to avoid the drastic budget sequestration, and berating him for not “leading” by getting Republicans to abandon their chronic intransigence, I keep thinking back to the earliest days of Obama’s presidency when the press concocted new rules regarding bipartisanship.
Specifically, I recall a question NBC’s Chuck Todd asked at a February 2009 press briefing as the president’s emergency stimulus bill was being crafted in Congress. With the country still reeling from the 2008 financial collapse, and the economy in desperate need of an immediate stimulus shot in the arm, Todd asked if Obama would consider vetoing his own party’s stimulus bill if it passed Congress without Republican support.
Todd wanted to know if Obama would hold off implementing urgent stimulus spending in order to a pass different piece of legislation, one that more Republicans liked and would vote for, because that way it would be considered more bipartisan.
I mention that curious Todd query because only when you understand the warped prism through which so much of the Washington, D.C. press corps now views the issue of bipartisanship does the current blame-Obama punditry regarding sequestration begins to make sense, even remotely.
Here’s what the prism looks like, and here’s what it’s looked like for the last four years: Blame Obama for Republican obstinacy. (Or, as a backup: Both sides are to blame!)
And remember, most of the pundits currently taking misguided aim at Obama on sequestration are part of the supposedly “liberal media” cabal, the one that conservatives insist protect Obama at any cost.
As key observers have noted in recent days, the facts on sequestration are not in dispute: Obama has made repeated offers to meet Republicans in the middle with a proposed deficit reduction plan built around a mix of spending cuts, reform to entitlement programs, and revenue increases. Republicans have countered by saying they will not agree to any deal that includes revenue increases. In terms of “leading,” Obama has done everything in his power to try to fashion a deal with Republicans. In response, the absolutist GOP has refused to move off its starting point; it’s refused to move at all. (Hint: They wanted sequestration to occur.)
So, because Obama, who just won an electoral landslide re-election, wasn’t willing to concede to Republicans everything they wanted, the sequester impasse was reached and $85 billion worth of across-the-board spending cuts went into effect. From those facts, too many pundits have rushed in to blame Obama. Why him? Because he hasn’t been able to change Republican behavior. He wasn’t able to get them to agree to a bipartisan solution.
Question: If you’re an obstructionist Republican and the press blames Obama for your actions, why would you ever change your obstructionist ways? Answer: You wouldn’t. And they haven’t.
Remember, the recently concluded confirmation battle over Chuck Hagel becoming Secretary of Defense wasn’t just about the Republicans’ unprecedented opposition to the cabinet choice. It was also about the press’ ongoing refusal to acknowledge the GOP’s radical obstructionism. A refusal that simply encourages more of the same destructive behavior.
Not surprisingly that theme now runs through the sequestration coverage, as pundits and commentators do their best to downplay those obstructionist tactics in order to clear a way at their real rhetorical target: Obama. (Notable exceptions are appreciated.)
My sense of déjà vu on the sequester media mess is especially intense. I noticed this same trend 49 months ago:
If Republicans simply do not want to cooperate in any meaningful way with Democrats, is there anything Obama can do to change that? No, not really. But according to the press, Obama — and Obama alone — is supposed to change that mindset.
For four years this nonsensical narrative about how it’s up to Obama to change the GOP’s conduct has been promoted and celebrated inside Beltway newsrooms. And now all the savvy pundits agree: Republicans’ obstinate ways created the sequestration showdown, so that means it’s Obama’s fault. By failing to lead, by failing to change Republican behavior, Obama must shoulder the blame.
As noted though, the agreed-upon sequester facts are not in dispute. So in order to blame Obama for Republican obstructionism, pundits have been inserting boulder-sized caveats to their illogical writing that ultimately points the finger at the president [emphasis added]:
“And, of course, it is true that much of the responsibility for our perpetual crisis can be laid at the feet of a pigheaded Republican Party, cowed by its angry, antispending, antitaxing, anti-Obama base.” (Bill Keller, New York Times)
“We have a political system that is the equivalent of a drunk driver. The primary culprits are the House Republicans.” (David Ignatius, Washington Post)
“The great debt-ceiling crisis of 2011 was initiated entirely by the Republicans refusing to do anything.” (Howard Kurtz, The Daily Beast)
“Most Republicans in Congress have been utterly irresponsible in this debate.” (Washington Post editorial).
But never mind all that. It’s Obama’s fault that Republicans are the “pigheaded” “culprits” who “initiated entirely” the “utterly irresponsible” debate over sequestration.
By: Eric Boehlert, Media Matters for America, May 5, 2013
Don’t Like The Facts, Stop Collecting Them”: The Conservative Quest To Eliminate Facts
The very first post at FactCheck.org referenced that great line from the late Sen. Daniel Patrick Moynihan: “Everyone is entitled to their own opinion — but not their own facts.”
During the years I spent at FactCheck, I certainly wittnessed my share of politicians trying to make up their own facts. And while I wasn’t allowed to say this at the time, it was always pretty clear (to me, anyway), that one side was making up a lot more facts than the other. Republicans have happily embraced half-truths and outright falsehoods. From “Death Panels” to climate change denialism to the austerity discussion to Paul Ryan’s budget math, the GOP appears to have embraced a policy of Making Stuff Up.
But now it seems that conservatives’ War on Facts has entered a new phase. If the facts are against you, just stop collecting them.
Rep. Jeff Duncan, a South Carolina Republican, has introduced a bill that would prevent the federal government from collecting data about the economy.
That’s right. The bill would require that the Census Bureau stop collecting the information that economists use to calculate (among other things) the unemployment rate, the labor force participation rate, housing construction rates, trade deficits, and much more.
So you might well be saying, “This sounds like a pain for economists, but why should I care if a bunch of stuffy economists are inconvenienced?”
The answer is that without this information, it will be impossible to tell how much any legislation coming out of the Congress costs.
When the Congressional Budget Office calculates the cost of a particular piece of legislation, they have to have something to compare it against. They do this by calculating a budget baseline—that is, they look at how much the federal government will spend and how much revenue it will collect under current law. It’s that last part that’s important here.
To know how much money the government will collect in taxes, you have to know a lot of things about the economy generally. Much of this is incredibly complicated, and a whole lot of extremely smart CBOers spend hundreds of person-hours each year trying to produce an economic forecast. Not being an economist, I can’t tell you exactly what goes into all of those models, but I do know one thing for sure. If you want to know how much tax revenue you’ll collect, you pretty much have to know how many people have jobs.
But, then, if you’re just planning to make up your own numbers anyway, you probably don’t much care whether the CBO has the data it needs to produce accurate estimates.
By: Joe Miller, Director of Digital Communications, Century Foundation, The National Memo, May 2, 2013
“Gotta Nuke Something”: House Republicans Eyeing New Hostage Opportunity
The House Republicans are contemplating a new budget-hostage strategy, the Washington Post reports in a story that is both highly useful and inadvertently Onion-esque. The hallmark of Onion news reporting is conveying insanity as if it were sane in a completely deadpan way. The news contained within the story is that the House GOP is thinking of tying the next increase in the debt ceiling to tax reform. Under this proposed strategy, the Post reports, “The debt limit might be raised for only a few months, with the promise of another increase when tax reform legislation passes the Senate.”
If you didn’t fall out of your chair when reading that apparently anodyne sentence, let me explain why you should have. In 2011, House Republicans undertook a novel and radically new dangerous political tactic of using the debt limit as a political bargaining chip. Before, the opposition party had treated the debt limit increase as a necessary step, though one they would posture over and use to flay the administration. (Senator Barack Obama followed this pattern.) The Republicans instead decided to actually threaten not to raise the debt ceiling unless Obama granted them policy concessions. This was extraordinarily risky. By mixing together a vote that was needed to prevent economic calamity with inherently contentious debates over the size of government, it turned routine budget disputes into a financial Cuban Missile Crisis.
The official party rationale for this extraordinary tactic was that, risky though it may be to fail to lift the debt ceiling, failing to reduce the debt was even riskier. An extreme imminent crisis justified extreme tactics. The risk of becoming Greece outweighed the risk of a debt-limit snafu (though it was not, of course, high enough to justify even a partial repeal of the Bush tax cuts).
President Obama has taken these arguments at face value, offering to meet the opposition halfway, or more than halfway, in order to strike a deal. He has publicly offered significant cuts to spending on retirement programs. But some Republicans don’t want that deal, the Post reports, because “The proposals, included in the president’s budget request, outraged seniors, and some Republicans fear that embracing them would be political suicide.”
Oh! So you threaten to melt down the world economy unless Obama agrees to cut spending on retirement programs, and then he offers to do that, and then you decide it’s too unpopular?
The decision that they no longer care about the thing they were prepared to unleash worldwide economic havoc to achieve has not caused them to abandon the debt ceiling as a hostage. (It’s the party’s Nelson Muntz–ian approach to resolving policy disagreements: “Gotta nuke something.”) If obtaining retirement cuts went from so urgent it was worth threatening to nuke the world economy over to “meh,” the next step is to figure out the next thing to nuke the world economy over. That thing, the Post reports, is tax reform.
But what is the GOP position on tax reform? It’s that tax reform must cut tax rates and not raise any revenue at all. So House Republicans are prepared to refuse to raise the debt ceiling unless Democrats agree to let them cut tax rates without increasing revenue. Their extraordinary threat, first presented as a way to force a reduction in the deficit, is now being wielded to prevent a reduction in the deficit.
By: Jonathan Chait, Daily Intelligencer, New York Magazine, April 29, 2013
Share This Blog
Unknown Feed- An error has occurred; the feed is probably down. Try again later.
mykeystrokes.com 