Budget

Republicans' Governing Glossary

AP Photo/Manuel Balce Ceneta
Agencycide noun – The effective killing of a statutorially established agency of government by legislative refusal to confirm the nominees required to lead that agency. The term dates from December 2011, when Senate Republicans killed (by exploiting Senate rules requiring a supermajority to bring up votes) President Barack Obama’s nomination of former Ohio Attorney General Richard Cordray for the position of director of the Consumer Financial Protection Bureau, which had been created by the Dodd-Frank Act passed by the previous Congress. Republicans stated that they had no objections to Cordray himself but didn’t wish to appoint a director so long as the agency possessed the autonomous power with which it was vested by Dodd-Frank, preferring that it be reconstituted as subordinate to other regulatory bodies charged with helping and sustaining banks. While this one episode of nominee-blocking was not sufficient to give rise to the neologism agencycide , it was to be followed in short...

Elizabeth Warren: Bailout Queen

Karl Rove’s latest ad has to set an all-time record for hypocrisy and factual inversion. The ad actually manages to blame Elizabeth Warren for the bank bailouts. As anyone who hasn’t spent the past three years in a cave must know, Warren has been the nation’s single most effective, relentless, and brave critic of the bailouts. It was that service as chair of the Congressional Oversight Panel that made her one of America’s most admired public leaders. The ad slyly begins with Warren speaking, leading the viewer to imagine that this is a Warren ad. Warren says, “The first thing I’m going to promise is that I’m going to be a voice in the room on behalf of middle-class families.” Then a sneering female voiceover cuts in, and asks, “Really? Congress had Warren oversee how your tax dollars were spent bailing out the same banks that caused the financial meltdown, bailouts that helped pay big bonuses to bank executives while the middle class lost out.” The ad concludes, “Tell Professor Warren...

The Wrong Fix

AP Photo/Bernd Kammerer
Yesterday, both Bob Kuttner, here in the Prospect , and I , in my Washington Post column , noted that the deal that German Chancellor Angela Merkel and French President Nicolas Sarkozy struck to save the Eurozone will inflict years of austerity on European nations that are already mired in depression. Spain, for instance, has an unemployment rate of about 20 percent and a youth unemployment rate that is approaching a mind-boggling 50 percent. It needs a massive Keynesian jolt to its economy, not budgetary constraints that will condemn it to a decade or quarter-century of penury. Both Bob and I also noted that the Merkel-Sarokzy solution was based on a misdiagnosis of Europe’s woes. Some of Europe’s current basket cases were actually running budget surpluses in the years before the Lehman meltdown. Ireland and Spain weren’t overspending at all—but the banks and investors speculating on their housing markets most certainly were. When their banks went under, their economies collapsed,...

GOP vs. Job Creators

In the ongoing battle over extending the payroll tax cuts that currently save the median American household about $1,000 a year, one salient point is commonly overlooked: The proposal that the Obama administration and congressional Democrats are championing also cuts in half the payroll tax for employers. Currently, employers are subjected to a payroll tax of 6.2 percent on every paycheck they write. The Democratic proposal would reduce that to 3.1 percent on the first $5 million in taxable payroll—that is, it would chiefly benefit small and middle-sized businesses. Yet every Senate Republican but one (Maine’s Susan Collins) voted against this proposal when it came to a vote on Thursday, complaining that it taxed job creators by proposing to off set the tax cut by raising taxes on individuals and couples for that portion of their annual income in excess of $1 million. Never mind that that the Treasury Department has concluded that only 1 percent of those taxpayers are small businesses...

Police Raze Occupy DC Shelter

Will resistance give the protest movement in the nation's capital the shot in the arm it needs?

After an extended showdown that began around noon Sunday, police in Washington, D.C., succeeded in destroying a wooden structure Occupy DC protesters had erected in McPherson Square to provide shelter throughout the winter. Police arrested 31 people in total—15 for crossing a police line and 16 for disobeying a lawful order, according to police spokesman Sergeant David Schlosser. The last protester, who climbed onto the top of the structure and held up an American flag, was forcibly removed by police in a cherry picker around 9 P.M. He faces additional charges for indecent exposure and public urination after urinating off the roof. "Who do you work for? Who do you serve?" chanted the crowd as officers placed the lone holdout in a harness. He was hailed on twitter as a hero: "When David relieved himself off the roof, he was simply showing how trickle down economics works," wrote Dave Storup, an Occupy DC sympathizer. Schlosser said the D.C. building inspector's office had determined...

GOP vs. Job Creators

Republican opposition to extending the payroll tax misses the point.

In the ongoing battle over extending the payroll tax cuts that currently save the median American household about $1,000 a year, one salient point is commonly overlooked: The proposal that the Obama Administration and Congressional Democrats are championing also cuts in half the payroll tax for employers. Currently, employers are subjected to a payroll tax of 6.2 percent on every paycheck they write. The Democratic proposal would reduce that to 3.1 percent on the first $5 million in taxable payroll – that is, it would chiefly benefit small and middle-sized businesses. Yet every Senate Republican but one (Maine’s Susan Collins) voted against this proposal when it came to a vote on Thursday, complaining that it taxed job-creators by proposing to offset the tax cut by raising taxes on individuals and couples for that portion of their annual income in excess of $1 million. Never mind that that the Treasury Department has concluded that only 1 percent of those taxpayers are small...

God Help Us

Will Rick Perry’s blend of Christian-right, small-government, and pro-corporate fervor land him in the White House?

I n April, Rick Perry traveled to North Texas for a taping of televangelist James Robison’s TV show, Life Today . For six months, starting as soon as he was re-elected Texas governor in November 2010, Perry had been crisscrossing the country to promote his second book, Fed Up! , while testing the presidential waters with potential donors and conservative activists. His visit with Robison, a hellfire-breathing pastor known as “God’s hit man” (for “giving ’em so much hell nobody will ever want to go there”), had the potential to pay serious dividends. Robison had led the Christian-right campaign that helped lift Ronald Reagan to the White House in 1980, and he was re-emerging as the chief instigator of a national effort to mobilize evangelicals to defeat Barack Obama in 2012. With former Arkansas Governor Mike Huckabee—who left divinity school in 1976 to work for Robison—having forgone the race, the pastor was searching for a candidate the resurgent evangelical right could anoint. Perry...

Super-Duper Failure

As many of us have been hoping and praying, the Super Committee fell of its own weight, making room for a much better debate about where budget cutting fits into a recovery strategy (if at all), and how to raise taxes progressively in order to finance the investments and jobs that America needs. President Barack Obama was unwise to make this devil’s bargain in the first place; he has since moved on to emphasizing jobs and recovery. The Super Committee crack-up should be the last gasp of the “bipartisan” folly about deficit reduction as key to recovery—which the president himself gave a big boost with his appointment of the late Bowles-Simpson Commission. Now, mercifully, the Republicans stand exposed as the party that would ravage Social Security, Medicare, Medicaid, and other valued social outlays in order to spare the richest 1 percent any tax increases. Republicans have been in their own echo chamber for so long that they don’t quite grasp that most of the voters oppose this idea...

What to Read Before You Unwonk for the Weekend

Rejoice! Congress won at not ruining the Constitution today! The Super Committee won at doing nothing . NERD FIGHT. Round Two. Or three. This has been going on for a while. The Monkey Cage’s John Sides added his two cents to the Economics v. Campaigns election forecast debate, saying that it’s difficult to assess how effective campaigns are while we’re watching them unfold. Maybe it’s time to bench this topic and bring it back for round three after next November. Nate Silver also tried to find out which economic factors have been most consistent in predicting electoral outcomes. Turns out the ISM manufacturing index is a better predictor of whether an incumbent will re-win the White House than the change in unemployment rate or GDP. Yay data. As an addendum to the “Do Campaigns Matter” debate, the “Do Debates Matter” debate might also become a thing soon, followed inevitably by the, “Do the Party Elite matter” and “Do Superdelegates matter” debates that close every primary season. I’m...

Occupy Wall Street: Seattle Redux?

AP Photo/Mary Altaffer
As in the anti-WTO demonstrations in Seattle in 1999, today’s nationwide Occupy Wall Street actions come in many shapes and sizes. There’s the enraged confrontations we’ve seen around Wall Street itself. There are the pre-arranged arrests we’ve seen in the banking district of downtown Los Angeles. There are permitted rallies sponsored by unions, which, as evening falls, will shift their locales to bridges around the nation in an attempt to loop the rebuild-the-decaying-infrastructure issue into the mélange of progressive causes that OWS champions. There’s an action for every mood and strategy –- though some strategies make a lot more sense than others. This afternoon, activists from unions (most particularly, SEIU) will march across bridges in Chicago, D.C., Philadelphia, Pittsburgh, Seattle, Miami, Baltimore, Detroit, Milwaukee, Minneapolis, L.A., New York (the granddaddy of all urban bridges, the one-and-only Brooklyn), and damn-near any American city that has a creek, an overpass,...

Has Grover Norquist Made Himself Unnecessary?

You should read Tim Dickinson's long article in Rolling Stone about how the GOP became the party of the one percent. Essentially, the story is that while there was once a real substance to the idea of "fiscal conservatism"—that Republicans really did care about balancing the books and being good stewards of the public's tax dollars—the last 20 years have brought the Republican Party to a much different place. While they once saw taxes as simply the way to pay for the things government does -- they shouldn't be too high, since conservatives want limited government, but they shouldn't be so low that we run up deficits -- they now see them as an outright evil that really has nothing much at all to do with deficits. Deficits are a handy tool to use when there's a Democrat in the White House to force spending cuts, but not much more. Dickinson puts Dick Cheney at the center of this story, which one could quibble about, but there's something here that I think calls for some discussion: In...

Post Hoc Fallacy

Wednesday’s Washington Post deserves some kind of perverse award for advocacy journalism—in this case, for advocating the proposition that dire economic consequences will ensue if the congressional Super Committee fails to cut a deal for drastic deficit reduction. This is, of course, one side of an argument. Those on the other side, including myself, have argued that austerity in a deep recession makes no economic sense and that as a matter of politics, the Obama administration would be far better advised to let the automatic sequester formula take effect, knowing that it would have to be reopened because of Republicans’ horror of deep defense cuts and the expiration of the Bush tax cuts. Moreover, Social Security does not belong in this conversation, and Democrats are better off, substantively and politically, defending it against Republican proposed cuts rather than lumping it in with budget talks. But I digress. The Post has been an editorial champion of the Super Committee and...

Bending the Rules

Congress keeps finding new ways to attack farm-bill reform.

Yesterday, the House and Senate released their final appropriations bill for the current fiscal year. Like the House bill passed in June , the bill, which provides funding to the Department of Agriculture, cuts a number of programs. The National Sustainable Agriculture coalition discusses the programs most hurt in a detailed blog post. One of the areas most hurt is conservation: On the whole, programs that help preserve land were cut by almost $1 billion. But the most senseless provisions were, perhaps, the ones that prevent the USDA from finishing revisions to the rules that govern how meat markets work. The rules, which are enforced by a division of the USDA known as the Grain Inspection, Packers & Stockyards Administration, or GIPSA, regulate the markets through which chicken, hog, and cattle farmers interact with meatpacking companies. Food advocates have long described the ways in which power has consolidated among meatpackers so that a handful of companies control the...

Don't Save Republicans from Themselves

With the Super Committee near collapse, will the Democrats snatch defeat out of the jaws of victory? Republicans, by locking themselves into no new taxes at a time when two-thirds of Americans prefer to tax millionaires instead of cutting Social Security and Medicare, are in a nice pickle. Over the weekend, Republicans on the Super Committee proposed to trade about $300 billion in net revenue increases for more than $2 trillion in permanent tax cuts. Democrats, mercifully, did not take the bait. Some Republicans on the panel, such as Representative Jeb Hensarling of Texas, proposed a “two step” process, whereby the committee would agree on a target figure for revenue increases and leave the details to the tax-writing House Ways and Means Committee and the Senate Finance Committee. But the Texas Two-Step is another trap. Cuts in Social Security and Medicare would be negotiated first, and the details of tax hikes would come later—after Democrats had given up their leverage. Senator Dick...

Generation Y Bother

Young adults entering the workforce today think they'll be worse off than their parents—they're not wrong.

(AP Photo/John Minchillo)
The recession officially ended nearly two and a half years ago, in June 2009, but for the generation of young adults who’ve been trying to take their first steps into adulthood, its effects could shape the future for decades to come. Why is this recession different from other sharp downturns? The standard economic indicators fail to tell the whole story. Yes, unemployment rates for young people remain at the record-high levels they hit at the Great Recession’s peak in 2007, but this is typical for young workers, who tend to be the last group that recovers after a recession—and tend to feel its effects far after the economy has rebounded. The young baby boomers who bore the brunt of the 1981-1982 recession had lower earnings even 15 years after the economy recovered, and during that downturn, the economy only lost half as many jobs as during the Great Recession. For youth entering the workforce today, not only has the sour economy delayed their careers; they are entering a workforce...

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