Thursday Reads: War on Women, the Fiscal Cliff, and Austerity Arriving in the USA
Posted: January 3, 2013 | Author: bostonboomer | Filed under: Fiscal Cliff, morning reads, Psychopaths in charge, Reproductive Rights, Republican politics, Social Security, U.S. Economy, U.S. Politics, War on Women, Women's Rights | Tags: abortion restrictions, austerity, Catfood Commission, Greece, Simpson-Bowles | 42 CommentsGood Morning!!
Brrrrrrrrrr! All of a sudden winter has arrived! Can you believe it’s 4 degrees outside my house? With a wind chill factor of 6 below 0. My furnace can’t keep up in this kind of weather, so I have to bundle up. So what else is in the news this morning? Let’s see….
Today the new Congress gets sworn in and there are a record number of women in the new Senate. From ABC News: Meet the New Class: The Senate Swears in a Historic 20 Female Senators
Today the Senate will make history, swearing in a record-breaking 20 female senators – 4 Republicans and 16 Democrats – in office….
“I can’t tell you the joy that I feel in my heart to look at these 20 gifted and talented women from two different parties, different zip codes to fill this room,” Sen. Barbara Mikulksi, D-Md., said while surrounded by the group of women senators. “In all of American history only 16 women had served. Now there are 20 of us.”
Senator-elect Deb Fischer, R-Neb., becomes today the first women to be elected as a senator in Nebraska.
“It was an historic election,” Fischer said, “But what was really fun about it were the number of mothers and fathers who brought their daughters up to me during the campaign and said, “Can we get a picture? Can we get a picture?’ Because people realize it and — things do change, things do change.”
There’s a group photo at the link.
Still, the war on women continues. HuffPo reports: House GOP Lets Violence Against Women Act Passed By Senate Die Without A Vote.
Despite a late-stage intervention by Vice President Joe Biden, House Republican leaders failed to advance the Senate’s 2012 reauthorization of the Violence Against Women Act, an embattled bill that would have extended domestic violence protections to 30 million LGBT individuals, undocumented immigrants and Native American women.
“The House leadership would not bring it up, just like they wouldn’t bring up funding for Sandy [hurricane damage] last night,” said Sen. Patty Murray (D-Wash.), a key backer of the Senate version of the bill, in an interview with HuffPost. “I think they are still so kowtowing to the extreme on the right that they’re not even listening to the moderates, and particularly the women, in their caucus who are saying they support this.”
The Senate bill passed way back in April.
In April, the Senate with bipartisan support passed a version of VAWA that extended protections to three groups of domestic violence victims who had not been covered by the original law, but House Republicans refused to support the legislation with those provisions, saying the measures were politically driven. Instead, they passed their own VAWA bill without the additional protections. In recent weeks, however, even some House Republicans who voted for the pared-down House bill have said they would now support the broader Senate bill — and predicted it would pass if Republican leaders let it come to the floor for a vote.
“I absolutely would support the Senate bill,” Rep. Tom Cole (R-Okla.) told HuffPost in late December, speculating that other House Republicans, namely GOP congresswomen, “are very supportive of that.”
Asked if he thought the Senate bill would pass in the House if it came up for a vote, Cole replied, “My judgment is yes.”
Too little, too late, Congressman. So Boehner managed to screw women yesterday too though it was the refusal to vote on Sandy relief that got all the media attention.
In India police have filed murder charges against five men in the horrific gang rape in New Delhi.
Authorities filed rape and murder charges Thursday against five men accused of the gang rape of a 23-year-old university student on a New Delhi bus, a crime that horrified Indians and provoked a national debate about the treatment of women.
Police said they plan to push for the death penalty in the case, as government officials promised new measures to protect women in the nation’s capital.
Prosecutor Rajiv Mohan filed a case of rape, tampering with evidence, kidnapping, murder and other charges against the men in a new fast-track court in south Delhi inaugurated only the day before to deal specifically with crimes against women. Mohan asked for a closed trial and a hearing was set for Saturday.
The men charged are Ram Singh, 33, the bus driver; his brother Mukesh Singh, 26, who cleans buses for the same company; Pavan Gupta, 19, a fruit vendor; Akshay Singh, 24, a bus washer; and Vinay Sharma, 20, a fitness trainer.
A sixth suspect was listed as 17 and was expected to be tried in a juvenile court, where the maximum sentence would be three years in a reform facility.
Read more at the link. The New Yorker has a good article on the New Delhi story by Basharat Peer: After a Rape and Murder, Fury in Delhi. Please go read the whole thing if you can.
Back in the USA, Republican state legislatures are up to their old tricks. Irin Carmon reports in Salon: Michigan, Virginia pass backdoor abortion restrictions.
In Michigan, Rick Snyder signed a bill passed by the lame-duck Senate — the same one whose anti-union legislating dominated headlines in recent weeks — requiring clinics that perform more than 120 abortions a year to become surgical outpatient facilities, a level of licensing intended to be onerous and put clinics out of business. He also approved a bill that purports to screen for women being coerced into abortions.
Snyder did veto another bill limiting insurance coverage in private employee plans, which would have required purchase of a separate abortion rider. He objected to that on the grounds that rape victims would have to pay out of pocket if they didn’t buy the rider, and because, “As a practical matter, I believe this type of policy is an overreach of government into the private market.” Overreach of government into other realms, of course, is another matter entirely. (According to Michigan resident Emily Magner, one legislator interrupted her to cry, “THIS ISN’T ABOUT WOMEN! THIS IS ABOUT PROTECTING FETUSES!”)
Virginia’s similar, hospital-level restrictions on clinics were somewhat overshadowed by the ultrasound requirements for women seeking abortions. Under threat of forever having the word “transvaginal” attached to his name, Gov. Bob McDonnell tried to split the difference on the ultrasound legislation, but in the final days of the year signed off on the clinic regulations. This followed months of conflict between the Board of Health and Virginia Attorney General Ken Cuccinelli over whether existing clinics would be grandfathered into the legislation. The governor’s office called the regulations “common-sense”; NARAL Pro-Choice Virginia said in a statement, “After two years of shocking backroom deals and bullying public health servants, Governor Bob McDonnell is clearly proving his disregard of Virginians’ opinions about women’s health care.”
Clinic regulations are the most insidious of abortion restrictions, because they’re harder for the layperson to understand and tend to incite less outrage as a result. And opposition to them tends to fall into antiabortion narratives about back-alley butchers resisting safety standards. But research has suggested that they also tend to be the most effective: It’s difficult to talk a woman out of having an abortion, but if you make access near impossible, you might take the choice off the table altogether.
On the “Fiscal Bunny Slope,” as Dakinikat refers to it, TPM reports that Simpson and Bowles of the famous Catfood Commission didn’t like the deal hammered out by the Senate and passed by the House. It seems it doesn’t cause enough suffering for the poor and elderly to satisfy them. Here’s their statement:
“The deal approved today is truly a missed opportunity to do something big to reduce our long term fiscal problems, but it is a small step forward in our efforts to reduce the federal deficit. It follows on the $1 trillion reduction in spending that was done in last year’s Budget Control Act. While both steps advance the efforts to put our fiscal house in order, neither one nor the combination of the two come close to solving our Nation’s debt and deficit problems. Our leaders must now have the courage to reform our tax code and entitlement programs such that we stabilize our debt and put it on a downward path as a percent of the economy.
Washington missed this magic moment to do something big to reduce the deficit, reform our tax code, and fix our entitlement programs. We have all known for over a year that this fiscal cliff was coming. In fact Washington politicians set it up to force themselves to seriously deal with our Nation’s long term fiscal problems. Yet even after taking the Country to the brink of economic disaster, Washington still could not forge a common sense bipartisan consensus on a plan that stabilizes the debt.
It is now more critical than ever that policymakers return to negotiations that will build on the terms of this agreement and the spending cuts in the Budget Control Act. These future negotiations will need to make the far more difficult reforms that bring spending further under control, make our entitlement programs sustainable and solvent, and reform our tax code to both promote growth and produce revenue. We take some encouragement from the statements by the President and leaders in Congress that they recognize more work needs to be done. In order to reach an agreement, it will be absolutely necessary for both sides to move beyond their comfort zone and reach a principled agreement on a comprehensive plan which puts the debt on a clear downward path relative to the economy.”
Don’t you love the way they call for “courage” from rich Congresspeople and then tell them to cut the sole income of millions of elderly and disabled people? What about calling for the real courage it would take for them to raise the cap on Social Security contributions so that rich people could pay a little more into the system? I doubt if many of them turn down the paltry extra income they get from it.
I’m running out of space, but I have some more fiscal cliff reads for you that I’ll pass on in link dump fashion.
Paul Krugman: That Bad Ceiling Feeling
Noam Scheiber: The House Comes Around on the Cliff. Why Am I Not Reassured?
Washington Post: U.S. markets surge after Congress approves ‘cliff’ deal
George Zornick at The Nation: While Congress Plays Deficit Games, Jobs Crisis Goes Unaddressed
Joan Walsh: Biggest Fiscal Cliff Lessions
Jonathan Chait: The Big Lebowski Explains the Fiscal Cliff
Truthout: Debt Versus Democracy: A Battle for the Future
Joe Conason: The GOP Clown Car Crashes, Again
I’ll end with a couple of articles on the European-style austerity that we’re heading for right now.
Brad Plummer at the Washington Post: U.S. now on pace for European levels of austerity in 2013
For years now, economists like Paul Krugman have been criticizing countries in Europe for engaging in too much austerity during the downturn — that is, enacting tax increases and spending cuts while their economies were still weak.
But after this week’s fiscal cliff deal, the United States is now on pace to engage in about as much fiscal consolidation in 2013 as many European nations have been doing in recent years — and more than countries like Britain and Spain.
A back-of-the-envelope calculation suggests Congress has enacted around $336 billion in tax hikes and spending cuts for the coming year, an austerity package whose total size comes to about 2.1 percent of GDP. (That’s merely the size of the cuts and taxes; it’s not necessarily the effect on growth.)
This includes the expiration of the payroll tax cut, which will raise about $125 billion this year. It includes $68 billion in scheduled cuts to discretionary spending from the 2011 Budget Control Act. It includes $24 billion in new Obamacare taxes and $27 billion in new high-income taxes. And it includes about $92 billion from the now-delayed sequester cuts — assuming that these either take effect or are swapped with other cuts.
Check out the graph at the link. And in Greece, the Guardian reports: Euros discarded as impoverished Greeks resort to bartering
It’s been a busy day at the market in downtown Volos. Angeliki Ioanitou has sold a decent quantity of olive oil and soap, while her friend Maria has done good business with her fresh pies.
But not a single euro has changed hands – none of the customers on this drizzly Saturday morning has bothered carrying money at all. For many, browsing through the racks of second-hand clothes, electrical appliances and homemade jams, the need to survive means money has been usurped.
“It’s all about exchange and solidarity, helping one another out in these very hard times,” enthused Ioanitou, her hair tucked under a floppy felt cap. “You could say a lot of us have dreams of a utopia without the euro.”
In this bustling port city at the foot of Mount Pelion, in the heart of Greece’s most fertile plain, locals have come up with a novel way of dealing with austerity – adopting their own alternative currency, known as the Tem. As the country struggles with its worst crisis in modern times, with Greeks losing up to 40% of their disposable income as a result of policies imposed in exchange for international aid, the system has been a huge success. Organisers say some 1,300 people have signed up to the informal bartering network.
For users such as Ioanitou, the currency – a form of community banking monitored exclusively online – is not only an effective antidote to wage cuts and soaring taxes but the “best kind of shopping therapy”. “One Tem is the equivalent of one euro. My oil and soap came to 70 Tem and with that I bought oranges, pies, napkins, cleaning products and Christmas decorations,” said the mother-of-five. “I’ve got 30 Tem left over. For women, who are worst affected by unemployment, and don’t have kafeneia [coffeehouses] to go to like men, it’s like belonging to a hugely supportive association.”
Much more at the link.
So….what’s on your reading and blogging list today. I look forward to clicking on your links.
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Maybe the deal isn’t as bad as I thought.
Posted: January 1, 2013 | Author: bostonboomer | Filed under: 2012 presidential campaign, Barack Obama, Congress, Fiscal Cliff, Medicaid, Medicare, Mitt Romney, Social Security, U.S. Economy, U.S. Politics | Tags: "please proceed governor", 2012 presidential debates, Chained CPI | 47 CommentsSo I went and watched a silly movie (and thoroughly enjoyed it). I calmed down and decided to get back online for a bit. I read some reactions to the fiscal cliff deal from a different perspective, and now I think maybe I was wrong. Sure it’s a lousy deal, but it’s not over yet and at Obama did manage to preserve the social safety net programs, extend unemployment benefits, hold onto the earned income tax credit and child credits, and got some minimal revenue increases.
Look, I’m poor, but I’m not on unemployment. I was willing to go “off the cliff” in order to force the Republicans’ hand. But there are millions of poor and working class people out there would would really suffer if they lose their unemployment and those tax givebacks. Now those have been extended for a year at least. Yes, there will be another fight in two months, but there was going to be a battle royal in two months anyway. Now they will kill two birds with one stone–the debt limit and the sequester will be wrapped up in one fight.
Have I drunk the Koolaid? No, but I admit I really do want to hang onto some hope for the future. So beat me up in the comments all you want. I’m going to hold off judging this deal for two more months. Then if Obama completely sells out the poor and elderly, I’ll admit I made a big mistake. But for now, I’m willing to give Obama a chance.
My changed perspective came from reading a couple of diaries at DailyKos (so shoot me!) and then rereading pieces by Paul Krugman and Noam Scheiber. First up, a Kos diary by ban nock: “Obama’s Deal From a poor Person’s Perspective.”
As usual Obama looked out for us fairly well. All you folks in the financial industry who are weeping and wailing can just pound sand, cash in some stock options, sell your Lincoln, cry me a river.
The biggest thing is earned income tax credit and medicaid, neither of which were touched. Looks like we lost 2% on Social Security contributions but that is more than made up by the earned income credit (EIC)
I should do more to define poor. By poor I mean lower than median income down to, well, to really really poor. Median is around 40K.
The earned income credit is the thing that pulls the greatest number of people out of poverty in the USA. It’s an alternative to raising minimum wages.
You take your adjusted gross income and if you’re a family with a coupla kids making between $13K and $22K Uncle Sam is going to either reduce your taxes by around $5K or reduce them as much as possible and send you a fat check for the remainder. How cool is that? Chart to figure what you get here. http://www.irs.gov/… What is Adjusted Gross Income? That’s how much money you make, but it could come down for things like IRA contributions.
And then, as ban nock points out, there’s unemployment, which is the only thing between millions of Americans and abject poverty.
Now when I first read ban nock’s diary, I was somewhat skeptical. My point of view was that Obama is just warming up for the big kill, “entitlement reform.” But wait a minute. The Republicans were screaming for that in 2011 and again in this last fight. But they didn’t get it. In fact Harry Reid even took the Chained CPI off the table and Obama and Biden didn’t put it back on.
Then I moved on to this diary by Alexander Dukes AKA “Game Guru”: “Umm… We’re playing chess, not checkers. And we’re winning.” You really need to read the whole thing, but the gist is that Obama has been dealing with people who are utterly intractable–they’re actually buttfuck crazy!–so what Obama has done is to keep kicking the can down the road while each time getting something for nothing and at the same time preserving the social programs most needed by the poor and unemployed. Here’s an
First off, lets establish that we’re playing chess, not checkers. Our objective is not to win more battles than the Republicans, its to win the war. In this case its a war against the Republican objective to effectively dismantle Medicare, Social Security, Obamacare, the EPA and every other part of the government that doesn’t leave the people to the whims of the 1 percent. This is chess, so we can afford to lose a few pieces so that we draw our opponent in for the final blow. With every turn we attempt to move toward our ultimate goal, even if that means we take some blows along the way. Chess is a thinking man’s game, it takes a long time to play. Similarly, in these budget fights, Obama’s thinking about the long haul.
Lets examine the President’s strategy: In the first budget fight, Republicans wanted to extend the Bush tax cuts for everyone. The Democrats wanted to extend unemployment benefits and renew the START treaty. There was a great deal of debate… and something happened. What did we end up with? We got START, the unemployment extension, and what else…. what else… oh yeah, DADT was repealed! All for maintaining the tax status quo at the time. Essentially, we offered nothing, and the Republicans got nothing.
Okay, so we gave up the hope for more revenue from taxing the rich, but as Republicans keep pointing out, that new revenue won’t even keep the government going for very long. It’s mostly a symbolic effort to restore some fairness to the tax system.
After that was the debt ceiling fight. Well, Obama almost got to a deal back in 2011, but to no avail. So to raise the debt ceiling congress created the sequester. Nothing for nothing there. Not a bad or good deal, because there wasn’t really a deal at all. But in the sense that there was a deal, both sides agreed to a lame duck rematch, betting that their side would win the election and have the leverage in the sequester fight. Obama won the election, so he had the leverage.
Again, Republicans basically got nothing–just a fake deadline that everyone knew all along was just kicking the can down the road.
Lets discuss what happened (and is still happening) today. Yesterday, Mitch McConnell and Obama reached a deal that did 3 main things: It ends the Bush tax cuts for those making over $400K, it raised the estate tax for those with estates greater than 5 million, and extends unemployment benefits for another year. For this, the Republicans gained… nothing.
That’s right, nothing. Yes, the sequester is extended for only 60 days, but that bumps right up against the debt ceiling… something the Republicans were going to fight over anyway. The media common wisdom is that the Republicans gained “leverage” in this deal. How so? Obama just combined two potential clusterf*cks into one! He gained a years worth of unemployment benefits, tax hikes on the 1%, and an estate tax hike; all for making his job easier in the long term.
Next time Obama may have to cave on the Chained CPI, which would be horrible, but better than privatization of Social Security. But maybe he won’t have to give that up, who knows? All we know for now is that Social Security hasn’t been changed yet.
Obama wanted the debt limited to be raised with the elimination of the sequester. This is essentially raising the limit along with eliminating the sequester, only now he’s getting more of what he wants when the debate starts because he’s already got the tax hikes and the unemployment extension!
Not only that, but now he has two major speeches between now and then to set the debate squarely in his favor.
It makes sense to me. Frankly, I buy it for now. And you know why I’m willing to string Obama along for another two months? Because of what happened in his second debate with Mitt Romney:
Please proceed, Governor.
Please proceed, Speaker.
Maybe I’m nuts, but maybe I’m not. I’m going to wait two months and find out. Now let’s look at what Krugman had to say about the upside of the deal:
To make sense of what just happened, we need to ask what is really at stake, and how much difference the budget deal makes in the larger picture.
So, what are the two sides really fighting about? Surely the answer is, the future of the welfare state. Progressives want to maintain the achievements of the New Deal and the Great Society, and also implement and improve Obamacare so that we become a normal advanced country that guarantees essential health care to all its citizens. The right wants to roll the clock back to 1930, if not to the 19th century.
There are two ways progressives can lose this fight. One is direct defeat on the question of social insurance, with Congress actually voting to privatize and eventually phase out key programs — or with Democratic politicians themselves giving away their political birthright in the name of a mess of pottage Grand Bargain. The other is for conservatives to successfully starve the beast — to drive revenue so low through tax cuts that the social insurance programs can’t be sustained.
The good news for progressives is that danger #1 has been averted, at least so far — and not without a lot of anxiety first.
Romney lost, so nothing like the Ryan plan is on the table until President Santorum takes office, or something. Meanwhile, in 2011 Obama was willing to raise the Medicare age, in 2012 to cut Social Security benefits; but luckily the extremists of the right scuttled both deals. There are no cuts in benefits in this deal.
And Scheiber’s take on the upside:
I think a reasonable person can defend the bill on its own terms. The fact is that nudging up the tax threshold to $450,000 only sacrifices $100-200 billion in revenue over the next decade (against the $700-800 billion the administration would have secured with its original threshold), while allowing unemployment benefits to lapse would cause real pain to both the 2 million people directly affected and, indirectly, to the economy. Yes, Obama could have gotten the latter without giving up the former had he just waited another few days—at which point what the GOP considers a tax increase suddenly becomes a tax cut. But these things are always easier to pull the trigger on when you, er, don’t actually have to pull the trigger. I can’t begrudge Obama his wanting to avoid some downside risk for only a marginally better deal.
In other words, we are dealing with insane people–the Republicans in the House and Senate–and so far we haven’t given away the real farm, the social safety net. Unfortunately we don’t have enough revenue for a real stimulus either, but we go back to the table in two months and the Republicans are scoring that as a win for them.
But what if it’s not? What if dealing both issues at once–the debt ceiling and the sequester–and sooner, is an advantage for Democrats and the White House? We can’t know for sure until the next fight. But Obama did get a year of unemployment, those tax givebacks, and some symbolic concessions from the super-rich. And he does have the State of the Union and Inauguration speeches to call out the Republicans and make his case.
So that’s why I’m going to give this deal a chance for now. It’s not a great deal, but the important stuff has been protected for the time being. Now go ahead and hammer me in the comments, I don’t mind.
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New Year’s Day Reads: The Lousy Deal
Posted: January 1, 2013 | Author: bostonboomer | Filed under: Fiscal Cliff, morning reads, U.S. Economy, U.S. Politics | Tags: 2013, Barack Obama, Joe Biden, John Boehner, Mitch McConnell, The Lousy Deal | 35 CommentsGood Morning and Happy New Year!!!
Sorry to be late with this post. I got so discouraged last night with our dysfunctional government that I went to bed completely disgusted. After a good night’s sleep, I’m feeling slightly more optimistic, if not truly hopeful. If I have any hope, it’s that perhaps the American people will rise up and let the president and Congress know what a horrible job they are doing.
So, what’s happening this morning? We officially went over the fiscal cliff at midnight even though the Senate approved a half-baked, crappy “deal.” Politico reports:
Congress lost a mad, New Year’s Eve dash to beat the fiscal cliff deadline, cinching a deal with President Barack Obama to raise taxes on the wealthy and temporarily freeze deep spending cuts but failing to get it through both chambers before midnight.
So over the cliff the country went — though perhaps for only a day or two and, assuming no snags, without incurring the double whammy of another recession and higher unemployment.The measure, which would raise tax rates for families making more than $450,000 and delay deep across-the-board spending cuts for two months, cleared the Senate by an overwhelming 89-8 vote shortly after 2 a.m. The Republican-controlled House could take up the pact in a rare New Year’s Day session, though the timing of that chamber’s vote was not clear.
The $620 billion agreement was a major breakthrough in a partisan standoff that has dragged on for months, spooking Wall Street and threatening to hobble the economic recovery. It turned back the GOP’s two-decade-long refusal to raise tax rates, delivering a major win for the president.
The bill also canceled pay raises for members of Congress and averted an expected hike in the price of milk by extending expiring dairy policy.
Wow, they cancelled their own pay raises? That was big of them–not. They probably did that out of fear of an angry populace. And of course, we still have to watch the shameful spectacle of the tea party House wrangling over a deal that basically give them everything they wanted and more than they ever dreamed of.
From TPM, the Senators who voted against the deal:
The eight senators voting no were Michael Bennet (D-CO), Tom Carper (D-DE), Charles Grassley (R-IA), Tom Harkin (D-IA), Mike Lee (R-UT), Rand Paul (R-KY), Marco Rubio (R-FL), and Richard Shelby (R-AL).
Robert Reich calls it “A Lousy Deal on the Edge of the Fiscal Cliff.” I’m thinking that could be the new logo for this administration–“The Lousy Deal” as opposed to Roosevelt’s “New Deal.” Reich writes:
Details of the agreement reached by the president and congressional Republicans are still forthcoming, but from the look of it, Obama gave ground where he need not have.
What else is new?
Yes, the deal finally gets Republicans to accept a tax increase on the wealthy, but this is an inside-the-Beltway symbolic victory. If anyone believes this will make the GOP more amenable to future tax increases, they don’t know how rabidly extremist the GOP has become.
The deal also extends unemployment insurance for more than 2 million long-term unemployed. That’s important.
But I can’t help believe the president could have done better than this. After all, public opinion is overwhelmingly on his side. Republicans would have been blamed had no deal been achieved.
More importantly, the fiscal cliff is on the president’s side as well. If we go over it, he and the Democrats in the next Congress that starts later this week can quickly offer legislation that grants a middle-class tax cut and restores most military spending. Even rabid Republicans would be hard-pressed not to sign on.
I hate to say it, but it really looks like Obama pushed for this so he could give more away that he would have had to if we had just gone over the cliff without all the fake deal making.
Noam Scheiber writes at The New Republic: Democrats’ Cliff Compromise Is Bad; But the Strategic Consequences Are Disastrous.
I think the president made a huge mistake by negotiating over what he’d previously said was non-negotiable (namely, the expiration of the Bush tax cuts on income over $250,000). Then the White House compounded that mistake by sending Biden to “close” the deal when Harry Reid appeared to give up on it. As a practical matter, this signaled to Republicans that the White House wouldn’t walk away from the bargaining table, allowing the GOP to keep extracting concessions into the absolute final hours before the deadline….
I think a reasonable person can defend the bill on its own terms. The fact is that nudging up the tax threshold to $450,000 only sacrifices $100-200 billion in revenue over the next decade (against the $700-800 billion the administration would have secured with its original threshold), while allowing unemployment benefits to lapse would cause real pain to both the 2 million people directly affected and, indirectly, to the economy. Yes, Obama could have gotten the latter without giving up the former had he just waited another few days—at which point what the GOP considers a tax increase suddenly becomes a tax cut. But these things are always easier to pull the trigger on when you, er, don’t actually have to pull the trigger. I can’t begrudge Obama his wanting to avoid some downside risk for only a marginally better deal.
My far bigger gripe with the whole fiscal-cliff exercise has always been the strategic dimension—how it affects the next showdown with the GOP, and the one after that. Coming into the negotiation, Obama had two big problems: First, no matter how tough he talked, Republicans always assumed he’d blink in the end, for the simple reason that he pretty much always had. (This is one of the major themes of my book about his first term.) Second, despite the results of the most recent election, in which Obama won a fairly commanding victory on a platform of raising taxes on wealthy people, the GOP continued to believe that public opinion was mostly on its side. House Republicans cited the preservation of their majority—never mind that their own candidates received fewer total votes than House Democratic candidates—and polls showing most Americans still think government is too big.
No kidding. And I disagree that we shouldn’t begrudge Obama for not sticking to his promise to hold the line at $250,000. As I’ve written previously, Obama should not be involved in negotiations, because he either wants to lose to the Republicans or his need to please the people who hate him is just too strong. I don’t know which is the real problem, and it really doesn’t matter for practical purposes. He’s just a horrible negotiator, period. Now we have to watch another repulsive display of childish squabbling in a couple of months. Is this going to be the extent of what happens in Obama’s second term? With this incompetent, useless Congress, it’s entirely possible.
And of course we still have to wait and see what Boehner and his gang do.
In a joint statement late Monday, House GOP leaders promised to keep their commitment to act on the measure if it passes the Senate. But they say they won’t decide whether to accept the measure or to amend it and send it back to the Senate until lawmakers and their constituents have a chance to review the legislation.
Give me a frickin’ break! I’m going to end here, because there doesn’t seem to be much other news. What are you reading today. I look forward to clicking on your links.
Whatever else happens, I hope everyone has a great day today and a very happy new year in spite of the idiocy in Washington DC!!
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Thursday Reads: Fiscal Cliff Crashes into Debt Ceiling, Villagers Blame Old People….And Other News
Posted: December 27, 2012 | Author: bostonboomer | Filed under: 2012 presidential campaign, Barack Obama, Fiscal Cliff, morning reads, Surreality, U.S. Economy, U.S. Politics, We are so F'd | Tags: Chained CPI, Charles Pierce, Debt Ceiling, fiscal cliff, John Boehner, Mitt Romney, Piers Morgan, Social Security, Tagg Romney, Tim Geithner | 26 CommentsGood Morning!!
The storm has moved into New England, but it’s mostly rain up here–very hard, windy, noisy rain. I’m very grateful it isn’t snow, but I feel for all the people down south of me who are getting hit harder. Take care, everyone!!
Yesterday Tim Geithner announced that the U.S. will hit the debt ceiling on December 31. He sent a letter (pdf) (also posted on the Treasury Department website)to Harry Reid with cc’s to other Congresscritters informing them that the Treasury can fiddle around and keep things going for at the most two months before the U.S. defaults on its debts for the first time in history.
Meanwhile, no negotiations on the “fiscal cliff” took place yesterday. John Boehner appears to have abdicated all responsibility and has announced that it’s up the the Senate to act; but Senators are in no hurry to rush back to Washington DC and clean up the House Republicans’ mess.
U.S. House of Representatives Speaker John Boehner on Wednesday urged the Senate to pass its version of legislation to avert the “fiscal cliff,” in a sign that congressional efforts to avoid a budget crisis are coming back to life days ahead of the year-end deadline.
In a statement issued by Boehner and his top lieutenants, the Republican leadership team said “the Senate must act first” to revive efforts to avert the $600 billion in automatic tax hikes and spending cuts due to be triggered on Jan. 1.
They promised that the House would weigh whatever legislation the Senate produced.
What are we paying these incompetent idiots for anyway? But of course no one is talking about cutting Congresspeople’s salaries–the pressure is all on Social Security recipients. Yesterday, Ruth Markus wrote a column in support of cutting benefits because seniors and disabled people (including disabled veterans) are getting too much money (the average SS check is $1,200 per month). She thinks everyone should gratefully embrace the Chained CPI.
Here’s how the CPI works. When taxes are being calculated, brackets, standard deductions, personal exemptions and the like are ratcheted up with inflation, protecting taxpayers from being forced to pay higher taxes for what is essentially the same amount of income they had previously.
Benefits — everything from Social Security to veterans’ benefits to federal pensions — are similarly adjusted upward to protect beneficiaries’ buying power from being relentlessly eroded.
Such indexing makes eminent sense. The difficulty — and the money-saving opportunity — arises because, in the view of most economists, the current method of calculating changes in the CPI overstates the inflation rate.
It fails to account for what economists call upper-level substitution bias, and what my mother would call plain common sense: If the price rises for a certain commodity in the basket of goods used to measure inflation, consumers will choose a cheaper alternative. In my house, when the price of beef soars, we substitute chicken.
The CPI doesn’t and, as a result, taxpayers are undercharged and beneficiaries are overpaid — a lot. The overestimate is small — less than 0.3 percentage points annually but, much like compound interest, it adds up over time.
What Marcus doesn’t seem to understand is that when your income is that low, beef and chicken are are both too expensive and you substitute peanut butter and dried beans. Except that peanut butter prices have skyrocketed–what’s the next step down, cat food?
Two economists responded to Markus. Dean Baker at the CEPR: Ruth Marcus Is Outraged by Overly Generous Social Security Checks.
Well, who can blame her? After all, we have tens of millions of seniors living high on Social Security checks averaging a bit over $1,200 a month at a time when folks like the CEOs in the Campaign to Fix the Debt are supposed to subsist on paychecks that typically come to $10 million to $20 million a year.
Anyhow, her main trick for cutting benefits is to adopt the chained consumer price index as the basis for the annual cost of living adjustment. This would have the effect of reducing benefits by 0.3 percentage points for each year of retirement. This means a beneficiary would see a 3 percent cut in benefits after 10 years, a 6 percent cut after 20 years and a 9 percent cut after 30 years. This is real money. Since Social Security is more than half the income for almost 70 percent of retirees and more than 90 percent of the income for 40 percent of retirees, the hit to the affected population would be considerably larger than the hit to the top 2 percent from ending the Bush era tax cuts.
But Marcus insists this cut must be done first and foremost in the name of accuracy, since the chained CPI is supposed to provide a better measure of the cost of living. She notes but quickly dismisses the evidence from the Bureau of Labor Statistics (BLS) consumer price index for the elderly (CPI-E), which shows that the rate of inflation seen by the elderly is somewhat higher than the overall rate of inflation.
Read Baker’s upteenth explanation of why the Chained CPI doesn’t accurately reflect spending for seniors at the link. He argues for continuing development of a CPI that takes into account that seniors spend greater proportions of their income on health care and basic necessities that can’t necessarily be replaced with cheaper substitutes.
Next, Jared Bernstein says he’s “convinced the Chained CPI is coming” and it is a benefit cut. He agrees with Baker that an elderly CPI would be a good thing, but says that Markus’ argument we should cut benefits now and deal with the injustices later makes no sense.
…as Dean notes, it would make a lot of sense to invest in a chained-weighted CPI that accounts for the notably different buying patterns of the elderly. Ruth Marcus critiques this point today but for reasons that don’t make sense to me. For example, she criticizes an elderly price index that would more heavily weight health care spending because “the burden of higher health costs falls unevenly among the elderly. Average costs are skewed upward by a minority who face very high out-of-pocket expenses…”
But a) all the commonly used price indexes use average costs and are thus “skewed” up and down when the underlying distribution is uneven, and b) there’s little question that the ‘old’ elderly—the ones most hurt by the switch to the chain-weighted measure—face high out-of-pocket medical costs.
Marcus goes on to endorse, as do we at CBPP, [immediately switching to the Chained CPI but protecting “vulnerable people from the impact”] and this is clearly the administration’s view as well—in fact, they’ve built in offsetting benefits to the poor, old elderly into their plan. That’s very important and salutary and one reason why I nervously support the switch.
But I’m more concerned than Ruth appears to be with the possibility that the current politics get us the chained CPI without the necessary protections.
It certainly looks like President Obama will go down in history as the Democrat who cut the New Deal off at the knees unless he suddenly realizes his legacy matters to him. Remember way back when Social Security was “off the table” because it doesn’t contribute to the deficit? Oh wait–that was only two weeks ago.
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Saturday Reads: The Gun Lobby and Bad-Faith Negotiations
Posted: December 22, 2012 | Author: bostonboomer | Filed under: Barack Obama, morning reads, U.S. Economy, U.S. Politics | Tags: fiscal cliff, Jonathan Chait, Mark Ames, National Rifle Association, NRA, school shootings, Social Security, Wayne LaPierre | 25 CommentsGood Morning!!
I had a tough time sleeping last night. The past couple of days’ political events have been so surreal that it feels like there’s a disturbance in the force, so to speak. I couldn’t stop thinking about that bizarre NRA press conference yesterday and the way Wayne LaPierre talked about the need for more guns in our schools while at the same time a man in Pennsylvania was “randomly” shooting and killing people and grieving families were holding funerals for first graders and school teachers and administrators in Connecticut.
If only we had a responsible mainstream media. But that’s not going to happen either. Early this morning I heard CNN reporting on Americans who are rushing out to buy more guns because they’re afraid there will suddenly be gun control laws to stop them. A man in Georgia was who was interviewed was remarking on the high cost of AR-15’s right now, because so many people want to stock up on them. He was at the store because he had long wanted one of these and was no afraid he soon wouldn’t be able to get one. The interviewer asked if he would pay the high price, and he said, “I probably will.”
Here are some more intelligent reactions to Wayne LaPierre’s so-called press conference, at which the press couldn’t ask questions.
The New York Daily News: NRA’s Wayne LaPierre was America’s mad gunman in first comments after Newtown school massacre
A week after a gunman armed with an assault rifle murdered 20 children and six adults at Sandy Hook Elementary School in Connecticut, and ever so shortly after the bells there tolled for the dead, LaPierre lashed out at everyone and everything but the weapons that were used to kill.
Still worse, in his arrogance and in his sense that terrible forces are out to get him, LaPierre was callous to the raw agony of the families of the slain. The hell with them — he made clear that he will fight to maintain the easy availability of assault weaponry of the kind that killed their kids.
He flayed the news media for supposedly perpetuating a culture of violence and ignorance.He blamed video games and movies for murder, as if big-screen or small-screen entertainment matters more than easily obtained machines of death.
He mocked anyone with a single new idea to prevent deadly weapons from falling into the hands of those intent on mayhem.
And, exhibiting a level of insanity that qualifies people for commitment as a danger to themselves or others, he called for stationing armed cops at every school in the United States.
The Atlantic: The Most Paranoid, Fear-Mongering Lines in Wayne LaPierre’s Call to Expand the Gun Market to Schools
Anyone expecting the NRA to be chastened at all by the shooting in Newtown, Conn., was quickly disabused of that expectation as Wayne LaPierre, CEO of the gun industry and enthusiast lobbying group, delivered a blistering speech effectively arguing today for a major expansion of the market for the product his group represents.
It was an extraordinarily tone deaf performance, but it followed a well-worn script for product sales: Provoke anxiety — and pitch your product as the one and only solution to it.
Read the examples at the link.
Dan Bigman at Fortune: What The NRA’s Wayne Lapierre Gets Paid To Defend Guns
If you’re a transparency fanatic like me, you appreciate knowing what kind of skin public people have in the game during episodes like this. So what did the NRA pay Lapierre to say that the best way to stop school shootings is to have the government put every mentally ill person in the nation on a watch list and arm school personnel to defend schools like banks?
Just under a million bucks.
That’s according to the most recent NRA filings with the IRS.
The numbers are a bit out of date. The last filing of a Form 990 from the NRA was in 2010. Still, if you’re interested in the numbers behind America’s most powerful gun lobby, it makes for interesting reading.
The organization’s mission is simply stated, right at the top: “To protect and defend the U.S. Constitution.” To accomplish this, in 2010 the NRA reported that it had 781 full time employees, 125,000 volunteers and generated revenues of $22.5 million.
BTW, as Lawrence O’Donnell pointed out last night, banks don’t use armed guards anymore, because they don’t prevent bank robberies. But LaPierre is living in the past as he showed with his pop culture references to decades-old video games and movies.
Here’s O’Donnell’s rant. It’s pretty long, but well worth watching in full.
It’s not a response to the press conference, but Mark Ames posted a great piece on the history of the NRA a couple of days ago: FROM “OPERATION WETBACK” TO NEWTOWN: TRACING THE HICK FASCISM OF THE NRA. Ames is the author of Going Postal, a book on workplace and school shooters. His article can’t be easily excerpted from, but I highly recommend you go an read it at the link.
On a slightly more positive note, here’s an article in New York Magazine about a former school principal who has been studying school shootings ever since one happened at his own school: School-Shooting Specialist Bill Bond on Why Lockdowns Save Lives
Bill Bond, specialist for school safety at the National Association of Secondary School Principals, has spent more than a decade speaking and consulting on school violence. Here, he tells assistant editor Eric Benson about lockdown procedures and the deadly shooting he witnessed himself.
Along with Columbine, my school is the reason lockdown procedures came into being. I was principal of Heath High School in Paducah, Kentucky, and we had eight shot in the lobby; three girls were killed. Back then, we had a crisis plan for the school, but what we were thinking about was a school intruder — an irate person, a mad parent, someone like that. We weren’t thinking about guns at all.
A lockdown means that all students get to the nearest classroom, regardless of whether it’s theirs or not, as quickly as possible. You lock the doors. You pull the shades. You turn the light out. You have the kids move to the back corner of the room, away from the door and windows. And you get the kids to be as quiet as possible. You want them to be quiet, because shooters react to sound and movement. If there’s someone screaming and hollering or running around, the shooter is much, much more likely to try to enter that door.
It sounds like that’s exactly what the teachers did at Sandy Hook School. Read much more at the link.
The other big story of the day is the so-called “fiscal cliff” and the way the Villagers–politicians and media–have turned this giant clusterfuck waiting to happen into an even huger and more horrible clusterfuck.
Last night Jonathan Chait posted the perfect response to the insanity of the “negotiations” between Speaker Boehner and President Obama: Obama Waking Up From Dream of Grand Bargain
In recent weeks, Obama seems to have concluded that Republicans have come around, and that it is time to sit down and hash out a deal like reasonable people. He moved his position more than halfway toward Boehner’s. Democrats in Congress are, incredibly, discussing the option of compromising even more.
But reasonable compromise to avert the fiscal cliff is impossible. Republicans, as a whole, don’t even seem capable of linear thinking about the budget. They don’t know what they actually want on spending. They don’t understand why Obama wants more revenue or what role this would play in the broader fiscal picture. They don’t even seem capable of politically organizing in a way that maximizes their fanatic principles. The House Republican caucus is simply a teeming pit of revanchist anger.
Chait is hopeful that Obama’s latest remarks on the mess in which he outlined a smaller proposed solution to the standoff may be a sign that the president has once again let go of his fantasies of postpartisan cooperation.
Obama’s remarks today indicate an apparent acceptance of the dynamic and a desire to at least steer the process toward minimizing the economic harm that would result if the contractionary policies scheduled for next year take effect. Obama is again demanding a tax cut for income under $250,000 a year, along with canceling out some of the more punitive spending cuts. He can get that if he holds absolutely firm on his income threshold. Unfortunately, his offer to Boehner confused the matter. Obama offered to lift the tax hike level to $400,000 a year. Now, he was proposing to make up the revenue through reducing tax exemptions, so he really changed only the delivery system for higher taxes rather than the end result, but this fact has gotten confused in the reporting, and Obama needs to re-solidify it. (In his press conference, he didn’t.)
The president also needs to learn about the uselessness of the corporate media.
Roll Call had an interesting insider report on the goings on during the GOP battle over Boehner’s Plan B on Thursday night.
Even his allies admit that Boehner’s stunning failure to find the votes for his “plan B” tax legislation was a major blow to his credibility, provoking befuddlement and even outrage from fellow Republicans.
But there is also considerable anger in the GOP conference directed at the conservative lawmakers that forced Boehner’s shocking defeat.
That fractured reaction — coupled with the lack of a plausible challenger — mean Boehner is unlikely to face any significant challenge to his position as speaker in the near term.
“These are people that, they don’t have a leader amongst them, and they don’t want to be led,” said a GOP member and Boehner loyalist. “He had probably 200 people lined up for him, for his position. And those 200 are pretty dad gum loyal to the speaker and pretty angry at that group.”
Read lots more at the link.
Finally, Rob Urie, who describes himself as an “artist and political economist,” writes at Counterpunch on why Obama and other Democrats are determined to cut Social Security even though it is political suicide and Republicans will use it against them in successive elections–and why we might fight back: Democrats, Social Security and the Fiscal Cliff
Why cut Social Security? The program is currently solvent, is expected to remain solvent for decades to come, and projected shortfalls in the future could be better addressed by raising the incomes of the people who pay into the program, not by cutting payments to those who depend on them. What is to be gained by ‘solving’ a problem that isn’t?
If cutting Social Security isn’t necessary, why then is it being proposed? Barack Obama provided copious evidence in prior proposals, television interviews and speeches that doing so is his intent. Congressional democrats and labor leaders quickly acceded to his proposal to do so, with House Speaker Nancy Pelosi going so far as to actively lie that proposed cuts will ‘strengthen’ the program. And given the cuts will eventually put tens of millions of Americans into dire poverty from a program they paid into for all of their working lives, what rationale could possibly justify doing so?
The reason I ask is a coalition of democrats, labor, liberals and progressives just re-elected Mr. Obama and democrats in Congress to what—cut Social Security? Mr. Obama created the ‘fiscal cliff’ to first push his stacked (in favor of cutting social insurance programs) ‘deficit commission’ to develop a plan to cut government spending and second, to force the issue to be revisited immediately after the election if no plan was agreed to. And Republican threats to refuse to raise the debt ceiling for leverage to ‘force’ spending cuts are idiotic—George W. Bush and congressional Republicans just led the largest increase in government spending in modern history. And that is not a difficult point to make. (And had it been on beneficial programs, it would have been laudable).
Ultimately the entire ‘debate’ is nonsense—the U.S. doesn’t fund spending directly from taxes. As the Federal Reserve is in the process of demonstrating with its QE (Quantitative Easing) programs, it can buy an unlimited quantity of government debt with money it ‘creates’ –the ‘debt limit’ is an arbitrary misdirection.
None of this is news to any of us who went into this with our eyes open about Mr. Obama, but it’s a very good summary of what’s happening and well worth reading in full. And remember, George W. Bush did his darndest to privatize Social Security and failed miserably. Perhaps Obama will succeed, but I believe can be tripped up too. The Republican hatred of anything Obama wants will probably help–after all Social Security wasn’t even addressed in Boehner’s “Plan B” proposal.
Fortunately or unfortunately, the politicians have left for their luxury vacations (leaving unemployed people to wonder whether they’ll have any money at all after Dec. 31); so I guess we can relax for the moment and try to enjoy some peace and quiet for the next week.
I’ve focused on only two issues in this post, so I look forward to seeing what everyone else is reading and thinking about. What’s on your list for today?
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