Federal assistance in the United States

Food Stamps Get Licked by Cuts

AP Images/Carolyn Caster

This week, the Senate and House committees in charge of agriculture passed farm bills—mammoth bills that will last for five years if passed and signed—and sent them to their chamber floors. The bills handle farm policy, but the vast majority of their spending goes to a program that has proven a rich target for a Washington drunk on spending cuts—the food stamp program. The House bill would lower benefits across the board, cutting a fourth of the program’s $80 billion budget. The Senate bill would trim $4.4 billion from food stamps. Many of the cuts in both bills come from getting rid of a program that allowed states to streamline the ways they provide assistance to the poor.

Has Obama Forgotten that Republicans Want to Shrink Government?

Jamelle Bouie/The American Prospect

The lead Politico story today is on President Obama’s rhetoric of “class warfare” and its implications for showdowns on guns, immigration, and budget politics. Politico takes an odd tone throughout, treating Obama’s push for higher taxes on “millionaires and billionaires” as opportunistic rhetoric, and not as a (half-hearted) response to yawning income inequality and tax policies skewed to favor the wealthiest Americans.

Mr. Brooks’s Planet

Josh Haner/The New York Times

Since New York Times columnist David Brooks is the very model of the sentient conservative, his acknowledgements of social reality are often more than just personal—they signal that a particular state of affairs has become incontestable to all but the epistemically shuttered.

How to Fix Social Security? Make it Bigger

401(K) 2013/Flickr

Many liberals, myself included, are frustrated by the mainstream conversation on entitlement spending, which holds as gospel that we need cuts to our two major retirement programs, Social Security and Medicare. But only one of them–Medicare–faces the prospect of high long-term costs. Social Security, by contrast, is a stable and well-funded program, and needs slight adjustments–at most–to ensure its long-term stability.

Take Social Security and Medicare Off the Bargaining Table

Flickr/Adam Fagen

Prominent Democrats—including the president and House Minority Leader Nancy Pelosi—are openly suggesting that Medicare be means-tested and Social Security payments be reduced by applying a lower adjustment for inflation. 

This is even before they’ve started budget negotiations with Republicans—who still refuse to raise taxes on the rich, close tax loopholes the rich depend on (such as hedge-fund and private-equity managers’ “carried interest”), increase capital gains taxes on the wealthy, cap their tax deductions, or tax financial transactions. 

It’s not the first time Democrats have led with a compromise, but these particular pre-concessions are especially unwise.

How to Fix Entitlements? More Immigrants

Gallup

Given Washington’s obsession with spending, this won’t enter the picture, but this figure—from a recent Gallup poll on immigration—is more important to the future of entitlement reform than any policy discussed by President Obama or Congress:

Ringside Seat: Grand Blergain

The sequester cuts have begun to bite, and if Congress doesn't pass a continuing resolution by the end of the month, the federal government will shut down. With that deadline looming, talk has turned once again to the possibility of a Grand Bargain, in which Republicans and Democrats come together in the spirit of compromise, putting aside their differences for the good of the country. "Yeah right," you may be saying, and you have good reason to be skeptical.

The Paul Ryan Medicare Shuffle

When Wisconsin Rep. Paul Ryan ran for vice president last year, he campaigned against the $716 billion Medicare cut in the Affordable Care Act, calling it a "raid" on the program. "Medicare should not be used as a piggy bank for 'Obamacare,'" said Ryan last August, after joining the Romney campaign, "Medicare should be used to be the promise that it made to our current seniors. Period. End of Story."

Next Up: Another Budget Fight

Flickr/Ryan McFarland

Senate Democrats are set to release a budget this week, the first time they've done so since 2009. As always, it will be a collection of the party's goals and priorities—more a political statement than a plan for governing. Democrats, according to National Journal, will propose new revenue beyond the fiscal-cliff deal as well as new spending on education, infrastructure, and job training.

When Public Is Better

Flickr/Mirsasha

Long before we thought of founding The American Prospect in 1989, I came to know Paul Starr through a prescient article titled “Passive Intervention.” The piece was published in 1979, in a now-defunct journal, Working Papers for a New Society.

Shorter White House on the Sequester: "It Will Destroy Everything"

Wikipedia

At this point, odds are low for a deal to avert the sequester. Republicans want an agreement to replace the planned across-the-board spending cuts—which include cuts to defense spending—with ones that target social spending and entitlements. President Obama is willing to compromise on spending cuts, but insists on new revenues. "Balanced" deficit reduction—a key part of his reelection platform—is still a priority for the administration, and it commands wide support from the public.

Republican Rationality on Medicaid

Rick Scott, who surprised everyone and did the right thing. (Flickr/Gage Skidmore)

Florida governor Rick Scott, with his skeletal frame, shiny bald pate, 9-figure fortune possibly obtained at least partially through Medicare fraud, and love of humiliating poor people, resembles nothing so much as a comic-book villain. So it was something of a surprise when he announced yesterday that he is reversing his previous position and will allow poor Floridians to receive Medicaid coverage as provided for in the Affordable Care Act. It isn't hard to explain why: the federal government is paying 100 percent of the cost of new enrollees in the first few years, and nearly all the cost thereafter, meaning for a small investment on the state's part it gets a healthier, happier, more productive citizenry. Only a truly despicable politician would turn it down, preferring to see their constituents go without health insurance than get it from the government, as I've argued (OK, "raged" is more like it) before.

After the Supreme Court said it its Obamacare decision that states could opt out of the Medicaid expansion, some people were more optimistic than I was, arguing that though Republican governors might shake their fist at Barack Obama for a while, eventually the Medicaid money would be too difficult to turn down. It's looking like I was wrong and they were right; Scott follows Republican governors in states like Ohio and Michigan in announcing that they'll accept the expansion, and though there are still some holdouts (most notably Rick Perry of Texas, which has more uninsured than any other state), the dominoes are starting to fall.

So what does this tell us? It turns out that even the most ideological politicians respond rationally to the incentives they're presented with—maybe not all the time, but much of the time.

Powell's Diagnosis—And Ours

Why is the American political system so weakly responsive to the policy preferences of the majority of Americans?

This piece is part of the Prospect's series on progressives' strategy over the next 40 years. To read the introduction, click here.

The Powell Memo is remembered today as a blueprint for business counter-mobilization. So it’s easy to forget that one of Lewis Powell’s principal goals—and, it seems, achievements—was to wake up business leaders to the nature of the challenges they faced: the hostility in some campus quarters, the strength of foes like Ralph Nader, and, above all, the weakness of corporate political organization. Before he could get business leaders to act on his prescriptions, Powell had to convince them of his diagnosis.

The Truth about Welfare

After absorbing months of attacks on him as an economic royalist, Mitt Romney is hitting back with an ad as dishonest as any you'll ever see, accusing Barack Obama of coddling welfare recipients ("You wouldn't have to work … they just send you your welfare check"). Literally every word after the 8 second mark on this ad is a lie, with the exception of "I'm Mitt Romney and I approve this message." But the welfare attack is an old Republican standby; if the middle class suspects you're not one of them, remind them that their resentment should be pointed down, not up. The real enemy is poor people, and those who would indulge them.

Farm Bill on Life Support as Drought Worsens

(Flickr/David Morris)

This month, the House agriculture committee finished its work on the farm bill—a massive piece of legislation that sets policy on everything from government subsidies to food stamps. Even though the Senate had passed its version of the farm bill, which must be reauthorized every five years, no one expected House Majority Leader John Boehner to bring the House committee’s version to the floor before the August recess.

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