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“Sympathy For The Speaker” GOP Leaders Appear To Know They Have A Credibility Problem

I have sympathy (not much, but some) for John Boehner.

When it comes to the Affordable Care Act, the Republican House Speaker is nearly always between a rock and a hard place.

On one hand, he and the GOP leadership must stand against President Barack Obama’s health care law, because the longer it remains on the books, the more likely those who receive its benefits are going to support Democrats, not Republicans.

On the other hand, if someday the Republicans repeal the law, after having returned to the White House with congressional majorities, they will be forced to devise an alternative — an impossibility given the reactionary impulses of today’s GOP.

In the former scenario, Republicans lose.

In the latter scenario, they lose.

So Boehner must thread the needle while hoping his credibility as a GOP leader isn’t badly tarnished, even as rank-and-file Republicans discover through their experience that Obamacare isn’t actually a harbinger of North Korean-style totalitarianism.

Of course, that’s easier said than done. Boehner reiterated the Republican position on health care on the May 3 broadcast of Meet the Press, saying that Obamacare wasn’t working.

“Obamacare made it harder for employers to hire people,” he said. “You can ask any employer in America, ask them whether Obamacare has made it harder for them to hire employees, and they’ll tell you yes.”

When asked why none of the Republican Party’s dire predictions about health care came true, Boehner responded: “You know why there’s more people insured? Because a lot more people are on Medicaid.” He continued, “Giving people Medicaid insurance is almost like giving them nothing, because you can’t find a doctor that will see Medicaid patients. So where do they end up? The same place they used to end up: the emergency room.”

Events later in the week suggested, however, that something wasn’t right about Boehner’s claims. On Wednesday, the largest independent study of its kind was released. It found that nearly 17 million Americans are now covered under the Affordable Care Act.

Some lost coverage (about 6 million), according to the RAND Corporation study, but many more found coverage, with a net gain of 16.9 million. The evidence also contravenes those who say Obamacare encumbers hiring. For one thing, the largest gains (nearly 10 million) were made in employer-run insurance plans. For another, some 80 percent of the working population under the age of 65 saw no change at all in their health care coverage.

That wasn’t the only reason to look askance at Boehner’s claims. Last Friday’s monthly jobs report showed the unemployment rate had dropped to 5.4 percent, the lowest it’s been since May 2008, before Obama won the presidency. Even wages, which have not typically kept pace with inflation, rose by 2.2 percent in the past year.

So something’s wrong with the picture Boehner is painting. If most employers are offering insurance, and if the job market is expanding, why is Boehner saying that the Affordable Care Act has led to less insurance coverage and more unemployment?

GOP leaders appear to know they have a credibility problem. They are shifting their stance against Obamacare from quantity to quality. According to a report in The Hill published after Boehner’s appearance on Meet the Press, the Republicans now concede that Obamacare has covered more Americans but argue that the coverage is inferior. Hence, Boehner’s comment about Medicaid: Doctors don’t take Medicaid, and having it is like having nothing.

Such a shift raises its own question of credibility. Why would a Republican Party that equates tyranny with the presence of government in the lives of individuals be worried about the government’s role in providing quality health care to individuals?

Some might judge this as hypocrisy and thus dismiss the new Republican position as entirely unworthy of scrutiny. There’s merit to that, as Washington wallows in hypocrisy. But hypocrisy can prevent us from seeing what’s really going on. In this case, I wonder if Boehner and the leadership are worried about holding their ranks, as the temptation to defect grows from within.

Over time, the Affordable Care Act will penetrate deeper into the population. The millions of Americans who will benefit from the law will have an incentive to maintain the status quo. They’ll likely support the Democratic Party as long as the Republicans demand repeal of the law. So, as of now, a vote for a Republican, from the point of someone covered by the Affordable Care Act, is a self-destructive vote. And among those millions are conservatives.

Some might argue that in saying things about Obamacare that just aren’t true, Boehner risks alienating conservatives that make up the base of the Republican Party. Why would they trust the House Speaker if he is so consistently wrong? There’s something to that, but a likelier explanation for the GOP’s continued, and shifting, stance against the health care law is that opposition, no matter how contorted, is the best way to keep the conservatives in line.

Given time, more conservatives are going to benefit from the law. And the more they do, they more they will vote their self-interests. And that’s why I have (a little) sympathy for John Boehner.

 

By: John Stoehr, The National Memo, May 16, 2015

May 17, 2015 Posted by | Affordable Care Act, John Boehner, Obamacare | , , , , , , , | 1 Comment

“When Things Go Well”: Republicans Now Take Credit For The Recovery They Sabotaged

This is unlikely to prompt anyone to break out the bubbly in the Oval Office, but last week’s poll numbers are nevertheless good news for President Obama. Since Democrats were thrashed in November’s midterm elections, the president’s approval ratings have been on the upswing.

As he prepares to deliver his sixth State of the Union address on Jan. 20, Obama’s approval has crept up to 47 percent, according to a new survey from Pew Research. That’s up 5 points since December.

Most analysts believe Obama’s recovering fortunes are the result of a much-improved economy — the one gauge that’s reliably important to voters. It’s taken a few years, but average workers are finally beginning to put the Great Recession behind them.

Take note of this now. Keep it in a spare file in your memory bank. Remember that the economy has been advancing for the six years of Obama’s tenure — a frustratingly slow process that is finally bearing fruit. The unemployment rate is now at 5.6 percent, the lowest since 2008. Foreclosures are down to pre-recession levels. The stock market is in historically high territory.

Why do I want you to remember this? In a stunning show of chutzpah, the president’s harshest critics, the hyper-conservatives who’ve done everything they could to wreck his presidency, want to take credit for the recovery they tried to sabotage.

Just take a look at the speech Kentucky Republican Mitch McConnell gave on the day he took the helm of the Senate as the new majority leader.

“After so many years of sluggish growth, we’re finally starting to see some economic data that can provide a glimmer of hope. The uptick appears to coincide with the biggest political change of the Obama administration’s long tenure in Washington: the expectation of a new Republican Congress,” he said.

According to his logic, consumers spent more money and businesses hired more workers starting back in the summer because they expected Republicans to win a majority in Congress. That’s nonsense.

Obama inherited a mess from George W. Bush — a financial crisis brought on by the excesses of Wall Street. President Bush started the bailout, but most of the work was left for the Obama administration. Obama continued the Wall Street bailout, passed a massive stimulus package and rescued the auto industry. Congressional Republicans, meanwhile, fought him every step of the way. That the economy has bounced back anyway is testament to its underlying resiliency.

Perhaps the greatest driver of consumers’ new optimism is the free-fall in gas prices, which haven’t been this low since the Great Recession drove down demand worldwide. Obama didn’t spur the investment in domestic oil drilling, but he has encouraged it, noting that it would help to free us from a dependence on foreign oil.

None of these hard-won gains have come a moment too soon. And, yes, there’s still much work to be done to revive the American middle class. The growing gap between the comfortable and everybody else remains one of the biggest threats to domestic tranquility. Wages are still stagnant.

Obama is well aware of that. In his State of the Union speech, he is expected to announce an ambitious new proposal to provide free access to the nation’s two-year community colleges. It’s an excellent plan.

Education experts say there are about 8 million community college students, and their average annual tuition is around $3,800. To the comfortable classes, that might not seem like much. But it presents a barrier to many working-class students trying to change their circumstances. It’s an investment that the nation can afford to make — and should make.

But like the other proposals the president has made to boost the economy, this one is likely to meet resistance from the Republicans in Congress. They want to take credit when things go well, but they’re only too willing to block a good idea if it comes from Obama.

 

By: Cynthia Tucker, The National Memo, January 17, 2015

January 19, 2015 Posted by | Economic Recovery, Economy, Great Recession | , , , , , , , , | Leave a comment

“It’s The Facts Stupid”: The GOP Should Stop Lying About Obama’s Economy

Friday’s boffo jobs report—the 58th straight month of jobs growth in an expansion that has now entered its 67th month—was only the latest in a long string of positive economic data.

This recovery, which started in July 2009, has been the most politicized, partisan expansion I can recall. Indeed, for the last six years, monthly data like the employment report –as well as new initiatives and proposals to get the economy rolling—have been greeted by critics with apocalyptic declarations. For the last six years, we’ve seen a continuing response from Republicans: Under the set of policies pursued by President Obama (some of them continuations of policies enacted by President Bush) and of Federal Reserve Chairman Ben Bernanke (a Bush appointee) and Federal Reserve Chairman Janet Yellen, the U.S. economic ship is like the Titanic—rudderless in dangerous seas, bound for doom, about to sink.

Let’s review some of the greatest hits. In March 2009, at the depths of the recession, when the stimulus bill passed Michael Boskin, economic adviser to the first President Bush, took to the Wall Street Journal editorial page on March 6, 2009, to proclaim ”Obama’s Radicalism is Killing the Dow.” Were his budget and stimulus plans to be adopted, the U.S. would risk becoming a “European-style social welfare state with its concomitant long-run economic stagnation.” That day, the Dow touched, 6,600. Almost immediately, the markets commenced a raging, historical bull run. The Dow closed Friday at 17,737, an increase of 168 percent from March 2009.

In February, 2011, Rep. Paul Ryan, the former vice presidential candidate, took out after Bernanke, arguing that the Fed’s efforts to support an economy still laboring under the fallout of a financial crisis and a deep recession were poison. Specifically, Ryan assured the public that the Fed’s bond-buying  efforts would ignite runaway inflation and tank the dollar. “There is nothing more insidious that a country can do to its citizens than debase its currency.” Whoops. Since then, inflation has been remarkably tame. The consumer price index, the official measure of inflation, actually fell .3 percent in November, and is up a mere 1.3 percent in the previous 12 months—far below the historical norm.  And the dollar? Far from depreciating, it has been going gangbusters. The trade-weighted dollar index, which measures the strength of our currency against those of our major economic partners and competitors, has soared 15 percent since early 2011 and now stands at a nine-year high.

As the Bureau of Labor Statistics started pumping out reports that showed the economy adding jobs starting in early 2010, the response was generally to ignore them, or worse.  In October, 2012, former General Electric CEO Jack Welch famously tweeted, “Unbelievable jobs numbers…these Chicago guys will do anything..can’t debate so change numbers.” In fact, we now know that the September 2012 jobs report  was one of a continuing series—59 straight months and counting—in which the economy has added jobs. More than 10 million in all, more than recouping all the positions lost in the deep recession.

In 2011, candidate Mitt Romney claimed that, were he to be elected, the unemployment rate would fall below 6 percent by the end of his first term in 2016. Last month, under Obama, the rate fell to 5.6 percent, the lowest level since June 2008.

Next we were assured, the botched rollout of Obamacare was certain to manage the twin tasks of tanking the economy as a whole and resulting in a massive loss of insurance. In March 2014, House Speaker John Boehner noted “there are less people today with health insurance than there were before this law went into effect.” In fact, as countless studies and the continuing series of Gallup polls have shown, the percentage of people without health insurance has declined dramatically—from 18 percent in the third quarter of 2013, to 12.9 percent in the final quarter of 2014, a decline of nearly 30 percent. Oh, and in the year since Obamacare formally launched, the U.S. economy has posted solid growth while adding 2.95 million jobs—the best such performance since 1999.

Look. The recovery is nowhere near complete—there are still too many people who want and need jobs but can’t find them. And wages remain stagnant. But the larger narrative that has played out in front of our eyes has defied the one predicted by Republican establishment economists and economic thinkers, and vindicated those who argued America was coming back (like me). The stock market is booming, not tanking; interest rates are muted, not out of control; the deficit is shrinking, not expanding; the economy is adding lots of jobs, not shedding them; the dollar is robust, not weak; inflation is nonexistent, not out of control; energy prices have plummeted, not soared; millions of people have gained health insurance, not lost it.

Virtually everything GOP critics have told us would follow from the policies put in place has not come to pass. You would think that this would occasion a few mea culpas, some rethinking, an admission of poor prognostication. But, alas, it continues. Rep. Paul Ryan is now warning in a column that Obamacare “is weighing down our economy and discouraging hiring” and will ultimately “collapse under its own weight.”

I shouldn’t say nothing has changed. Efforts to deny economic gains have been increasingly difficult to carry off the longer the expansion continues. And so we’re now seeing a slight shift in narrative. Rather than argue that the economy and everything associated with it is in the crapper, Republicans are conceding that things might be looking up. But it’s only because the GOP won control of the House and Senate in November. “After so many years of sluggish growth, we’re finally starting to see some economic data that can provide a glimmer of hope,” Majority Leader Mitch McConnell said last week. “the uptick appears to coincide with the biggest political change of the Obama Administration’s long tenure in Washington: the expectation of a new Republican Congress.”

 

By: Daniel Gross, The Daily Beast, January 12, 2014

 

January 13, 2015 Posted by | Economic Recovery, Economy, GOP | , , , , , , , | Leave a comment

“Economic Facts Get In The Way”: For Republicans, Pretending That ‘Up Is Down’ Won’t Cut It

Uh-oh. Now that the economy is doing well, what are Republicans – especially those running for president – going to complain about? And what are Democrats willing to celebrate?

Last week’s announcement that the economy grew at a 5 percent rate in the third quarter of 2014 – following 4.6 percent second-quarter growth – was the clearest and least debatable indication to date that sustained recovery is no longer a promise, it’s a fact.

Remember how Mitt Romney painted President Obama as an economic naïf, presented himself as the consummate job-creator and promised to reduce unemployment to 6 percent by the end of his first term? Obama beat him by two full years: The jobless rate stands at 5.8 percent, which isn’t quite full unemployment but represents a stunning turnaround.

Since the day Obama took office, the U.S. economy has created well over 5 million jobs; if you measure from the low point of the Great Recession, as the administration prefers, the number approaches 10 million. It is true that the percentage of Americans participating in the workforce has declined, but this has to do with long-term demographic and social trends beyond any president’s control.

Middle-class incomes have been flat, despite a recent uptick in wages. But gasoline prices have plummeted to an average of $2.29 a gallon nationwide, according to AAA. This translates into more disposable income for consumers; as far as the economy is concerned, it’s as if everyone got a raise.

The stock market, meanwhile, is at an all-time high, with the Dow soaring above 18,000. This is terrific for Wall Street and the 1 percenters, but it also fattens the pension funds and retirement accounts of the middle class.

All this happy economic news presents political problems – mostly for Republicans but to some extent Democrats as well.

For Rand Paul, Jeb Bush, Chris Christie, Marco Rubio and other potential GOP presidential contenders, the first question is whether to deny the obvious, accept it grudgingly or somehow embrace it.

For years, a central tenet of the Republican argument has been that on economic issues, Obama is either an incompetent or a socialist. It should have been clear from the beginning that he is neither, given the fact that he rescued an economy that was on the brink of tipping into depression – and did it in a way that was friendly to Wall Street’s interests. But the GOP rarely lets the facts get in the way of a good story, so attacks on Obama’s economic stewardship have persisted.

The numbers we’re seeing now, however, make these charges of incompetence and/or socialism untenable. Even the Affordable Care Act – which Republicans still claim to want to repeal – turned out not to be the job-killer that critics imagined. All it has done, aside from making it possible for millions of uninsured Americans to get coverage, is help hold down the cost of medical care, which is rising at its slowest rate in decades.

GOP candidates face a dilemma. To win in the primaries, where the influence of the far-right activist base is magnified, it may be necessary to continue the give-no-quarter attacks on Obama’s record, regardless of what the facts might say. But in the general election, against a capable Democratic candidate – someone like Hillary Clinton, if she decides to run – pretending that up is down won’t cut it.

Likewise, the Republican leadership in the House and now the Senate will confront a stark choice. Do they collaborate with Obama on issues such as tax reform, infrastructure and the minimum wage in an attempt to further boost the recovery? Or do they grumble on the sidelines, giving the impression they are rooting against the country’s success?

Democrats, too, have choices to make. The fall in gas prices is partly due to a huge increase in U.S. production of fossil fuels. “Drill, baby, drill” may have been a GOP slogan, but it became reality under the Obama administration. Is the party prepared to celebrate fracking? Will Democratic candidates trumpet the prospect of energy independence?

Likewise, Elizabeth Warren charges that the administration’s coziness with Wall Street helps ensure that the deck remains stacked against the middle class. Warren says she isn’t running for president but wants to influence the debate. She has. Clinton’s speeches have begun sounding more populist, in spite of her long-standing Wall Street ties.

You know the old saying about how there’s no arguing with success? Our politicians are about to prove it wrong.

 

By: Eugene Robinson, Opinion Writer, The Washington Post, December 20, 2014

December 30, 2014 Posted by | Economic Recovery, Economy, GOP Presidential Candidates | , , , , , , , , , | Leave a comment

“The Alleged Socialists Are Saving Capitalism”: Why You Don’t Know Obama Has Created 4.5 Million Jobs

The terrific June jobs report may be the signal we’ve been waiting for that we’re finally turning the psychic corner. The overall jobs number was great at 288,000, and the unemployment rate was down to 6.1 percent. But the most important number was that the employment-to-population ratio, which many economists think of as the truest measure of the jobs market, was up a bit to 59 percent, a high for the recovery, indicating that maybe more people are finally out looking for work than staying home.

A lot of liberals puzzle over why the Obama administration isn’t getting more credit, or doesn’t do a better job of making sure it gets credit, for such good economic news. There are a lot of theories, and most of them hold varying amounts of water. But the main reason to me is fairly obvious: Liberals don’t speak as one big fat propagandistic voice on this subject in remotely the same way conservatives do when a Republican president is in power.

Before I get into all that, I want to review some numbers with you, because unless you’re a hyper-informed political junkie, I doubt you know them. How many net jobs has the economy created during Barack Obama’s presidency, and how many did it create during George W. Bush’s tenure? Notice first that I wrote “has the economy created” rather than “did Obama create/did Bush create.” I think it’s a better description of reality.

I also should note that I just measured the numbers under each president—I gave Bush the numbers from January 2001 to December 2008, and Obama the numbers from January 2009 to the present, with the following asterisk. January 2009 was when Obama became president, but he didn’t start until the 20th, of course. That was a particularly awful month, with 798,000 jobs lost. So I think it’s reasonable to give Bush, whose policies helped cause the meltdown anyway, two-thirds of that 798,000. (January 2001, by the way, was a tiny number, 30,000 jobs lost, but just to be consistent, I assigned only 10,000 of those to Bush.)

Here are Bush’s numbers: It’s 8.657 million jobs gained, and 7.121 million jobs lost, for a net job-creation number of 1.536 million. Pathetic. It’s interesting to look back over the numbers from 2001. The economy stank. The month of 9/11, we lost 242,000 jobs. Want to ascribe that just to the attacks? In August, we’d lost 158,000. The decent Bush years were 2004, 2005, 2006, and part of 2007, but even then the numbers were hoppy and inconsistent: 307,000 jobs added in May 2004 and just 74,000 in June, for instance.

And what about Obama’s numbers? I’d bet that even if you’re an Obama partisan, you think they’re not all that different from Bush’s. After all, 2009 was miserable: minus 798,000, minus 701,000, minus 826,000, and so on. The numbers went into the black in early 2010, but dipped back into the red in the summer. But remember, since October 2010, every report has been positive—the now 45 straight months of job growth that the president and his team, to little avail, crow about.

But they’ve added up, because under Obama, the economy has added 9.425 million jobs and lost 4.887, for a net gain of 4.538 million jobs. That’s a 3 million advantage over Bush. Now, 6.5 million jobs doesn’t put Obama up there in Clinton (22 million) and Reagan (around 16 million) territory. But remember—he has 30 months to go yet. Let’s say we average a gain of 250,000 a month the rest of the way. That’s another 7.5 million. And that would edge him up toward Reagan territory. And that seems conservative, if anything. If the recovery gets genuinely humming, we could start seeing months between 300,000 and 400,000 next year. It seems unlikely to happen, but God would it be hilarious if Obama, with everything the Republicans in Congress have done to keep the economy in a state of contraction, ended up surpassing Reagan.

[UPDATE: I rechecked my math this morning, and it’s a good thing I did. I had originally given Obama nearly 2 million more jobs created than the actual numbers reflect. Obviously, I want to be accurate here. I added and re-added these three times.]

But all that’s speculative. After all, there could be a recession coming, too, though most experts don’t seem to fear that much. So let’s just talk about the up to now, the 6.5 million net jobs. As I said before, I bet you didn’t know that. Why?

Two main reasons. One, the administration doesn’t go a great job of trumpeting it, and I think for good reason. Officials may feel constrained from doing too much boasting because a lot of people’s perception and experience is still worse than that. A lot of these aren’t great jobs, and the economy is still only doing real well for the top 5 or 10 percent.

The second reason is that figures on the broad left simply aren’t superficial cheerleaders. The two men who are probably the most influential economic voices on the left, Paul Krugman and Robert Reich, have both been pretty harsh critics of the administration’s economic policies, as have other liberal economists. They, and less well-known but still prominent people such as Dean Baker, look at the numbers and report the truth as they see it. Democratic politicians are cheerleaders in varying degree—there’s Debbie Wasserman Schultz on the rah-rah end, but most Democrats don’t brag too much for the same reason the White House doesn’t.

And the media voices on the left—the folks on MSNBC, say—try to accentuate the positive in political terms, but they don’t ignore the bad news by any stretch of the imagination. MSNBC talks a lot about obstreperous Republicans, a theme to which I certainly contribute on air, but the network also offers a consistent diet of news features on and interviews with people stuck in the dead-end economy and having a hard time of it, segments that usually demand the government do more.

Now, imagine that a Republican president produced 45 straight months of job growth coming off the worst financial crisis since the Depression. Lord, we’d never hear the end of it from Fox and Limbaugh and even from CNBC. They wouldn’t care about the reality that a lot of the jobs are low wage. They’d just trumpet the bottom-line numbers as evidence of their president’s Churchillian greatness.

That’s how they are, and nothing’s going to change them. The important question now, as I said up top, is whether we’re really turning the psychic corner. Corporations have been hoarding record profits, banks still aren’t lending they way they should be, businesses have been skittish about large-scale hiring. It’s a big game of economic chicken, and it certainly has a political element. Most of these corporate titans and bankers and business leaders are Republicans. I don’t think most of them would intentionally hold the economy back because they don’t like the president, but I do think they take their cues from elected Republicans more than from Obama. When the Republicans stand up and say repeatedly that the president’s policies are failing, failing, failing, these private-sector titans hear them, and it influences what they do.

It may be that we’re finally working our way through all that. Happy days aren’t yet here again, but, once again, Democrats, the alleged socialists, are saving capitalism from the supposed lovers of capitalism who almost destroyed it.

 

By: Michael Tomasky, The Daily Beast, July 7, 2014

July 8, 2014 Posted by | Economic Recovery, Economy, Jobs | , , , , , , | 1 Comment