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Weekly Audit: Attack of the Imaginary Budget Demons
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By Zach Carter, Media Consortium Blogger
On Feb. 1, President Barack Obama unveiled his 2011 budget proposal. While conservative pundits reacted with predictable, yet preposterous, wailing about the federal budget deficit, the short-term U.S. budget outlook is just fine. If anything, Obama’s budget doesn’t dedicate nearly enough funding to create jobs.
As John Nichols notes for The Nation, Obama budgets just $100 billion for jobs in fiscal 2011. The amount is nowhere near enough to make a significant dent in the epic unemployment rate. The government’s fiscal 2011 calendar begins in October of this year, and by that time, the stimulus package Obama pushed through in February of 2009 will have been exhausted, leaving the labor market without serious support from the federal government.
The free market isn’t going to take care of the jobs shortage on its own. While the unemployment rate fell from 10.0% to 9.7% during January, the “improvement” is really just a statistical mirage—the economy actually lost 20,000 jobs during the month.
If we had pushed through a bigger, or as Nichols notes, a better stimulus package in the first place, we might not be facing the same situation today. Part of the problem is that Obama redirected about $326 billion of the $787 billion bill away from direct job-creation efforts toward a set of tax cuts intended to appease Republican senators.
Tax cuts do not equal job growth
But as Art Levine emphasizes for Working In These Times, the $100 billion that Obama sets aside for job creation in 2011 appears once again to take the form of relatively inefficient tax cuts. Giving money to businesses, even small businesses, isn’t really going to make them start hiring unless there’s a real demand for what those businesses produce. When everybody is broke and out of work, that demand doesn’t exist, since people don’t have money to spend.
If the government wants to create jobs, it has to do it directly by hiring people to help rebuild the nation’s infrastructure through institutions such as schools, transportation and green energy. Just as important, the federal government can provide funding to state and local governments to make sure that jobs that serve our communities—teachers, cops, etc.—don’t disappear.
Sure, these things cost money. But the short-term budget deficit is nowhere near the current deficits of many European nations, or the deficits the U.S. ran during World War II. The budget deficit only matters to economics insofar as it raises concerns that the government will not be able to pay back its debt. But despite caterwauling from the right, investors just aren’t worried about a U.S. debt default. If they were, they would demand very high interest rates on Treasury bonds, and Treasury rates are at their lowest levels in decades.
If policymakers want to keep the jobs bill from running the deficit higher, they could always raise taxes on somebody. Financial speculation on Wall Street seems like a good place to start, but just about any tax on the wealthy would work fine. Rich people don’t get hammered by recessions. After all, they’re rich.
Overzealous tax cuts hurt communities
In a piece for AlterNet, David Sirota details the budgetary disaster that has already befallen the city of Colorado Springs, CO., a conservative enclave where anti-tax extremists have managed to slash just about every basic government service imaginable. Rather than impose some modest taxes on the wealthy, Colorado Springs is going to lay off cops and firefighters, let its parks go to waste, shut-down rec centers and museums and even allow its streetlights to go out. This is the Republican plan for fiscal responsibility.
But several state governments recognize that shredding the social fabric just isn’t a good idea. In Oregon, Sirota notes, voters just approved two ballot initiatives to raise taxes on corporations and wealthy individuals rather than allow their state to slide into social decay.
How to deal with a deficit
There are two ways to increase a budget deficit: You can either increase spending, or cut taxes. If you want to decrease the budget deficit, you can either cut spending, or raise taxes. As Kevin Drum notes for Mother Jones, Republicans both increased spending and cut taxes during the George W. Bush presidency. Now those same so-called fiscal conservatives are feigning outrage over the prospect of the government actually spending some money to put people back to work. These are not serious economic arguments—conservative politicians are just hoping to gut progressive policy priorities.
But while the attacks don’t hold any water, conservative media outlets are latching on to them, and Obama isn’t pushing back.
What caused the current crisis
Writing for The American Prospect, Robert Kuttner notes Obama’s recent support for a proposal from right-wing deficit hawks to create a commission to evaluate the causes of our so-called fiscal crisis. But we already know what put us in the current fiscal situation: Rising health care costs, a brutal recession, and the Bush era. The commission is being pushed by radical conservatives for a reason—it’s part of an effort to gut Social Security. It’s bad economics, bad public policy and it badly misreads the real source of public discontent. Kuttner explains:
“Public concern about deficits is really a proxy for broader unease that government is not delivering enough practical help . . . . The president should be helping citizens sort this out, not caving in to the fear-mongers.”
Fortunately, as Steve Benen notes for The Washington Monthly, Senate leaders appear committed to passing at least some kind of legislation to help put people back to work.
Whatever right-wing pundits say, the U.S. fiscal crisis remains a totally theoretical problem. Someday, if the U.S. budget does not come down, it is conceivable that investors would be reluctant to purchase U.S. debt. For now, that is simply not the case. But the crisis in the job market is very real and requires direct action. Put simply, the deficit is no excuse for inaction.
This post features links to the best independent, progressive reporting about the economy by members of The Media Consortium. It is free to reprint. Visit the Audit for a complete list of articles on economic issues, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Mulch, The Pulse and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Mulch: What’s Missing from the New Clean Energy Agenda?
By Sarah Laskow, Media Consortium Blogger
Nuclear power, biofuels, clean coal: These are the Obama administration’s answers to climate change. The 2011 budget, released this week, promised new loans for the construction of nuclear power plants, and on Wednesday the Environmental Protection Agency (EPA), White House, and other departments detailed steps to encourage ethanol and clean coal production.
These initiatives may garner support from conservatives, but their ascendancy comes at a price. Support for renewable fuel sources, like wind and solar, has dwindled. President Barack Obama did encourage Senate Democrats to pass a climate change bill, but some moderates are bucking the cap-and-trade provisions that could tamp down carbon emissions. Those moderates are pushing for legislation that leaves carbon caps out entirely. (more…)
Weekly Pulse: Who are Landrieu’s Alleged Phone Tamperers?
By Lindsay Beyerstein, Media Consortium Blogger
The four young men arrested last week for allegedly attempting to tamper with the phones at the office of Sen. Mary Landrieu (D-LA) have ties to Republican politicians, conservative think tanks, radical campus activists, and even the intelligence community.
It appears that Landrieu was targeted, at least indirectly, because of her stance on health care reform. Two of the men posed as telephone repairmen while a third taped them with his cell phone. A fourth alleged accomplice was arrested in a car a few blocks away. (more…)
Weekly Audit: Don’t Let Citizens United Wreck Our Economy
By Zach Carter, Media Consortium Blogger
In a landmark decision last week, the Supreme Court ruled that corporations could spend unlimited funds to influence American elections, overturning a century of legal precedent. The Court’s ruling in Citizens United v. FEC undermines the integrity of the U.S. government, as President Barack Obama emphasized at his State of the Union address. But the decision also deals a damaging blow to the U.S. economy by encouraging lawmakers to write economic rules that benefit specific companies at the expense of everyone else.
The editors of The Nation lay out the High Court’s hubris in no uncertain terms:
The Citizens United campaign finance decision by Chief Justice John Roberts and a Supreme Court majority of conservative judicial activists is a dramatic assault on American democracy, overturning more than a century of precedent in order to give corporations the ultimate authority over elections and governing. This decision tips the balance against active citizenship and the rule of law by making it possible for the nation’s most powerful economic interests to manipulate not just individual politicians and electoral contests but political discourse itself. (more…)
Weekly Mulch: Climate Change On Obama’s Back Burner
By Sarah Laskow, Media Consortium Blogger
In his first State of the Union address, President Barack Obama touched on climate issues only briefly. He called on the Senate to pass a climate bill, but did not give Congress a deadline or promise to veto weak legislation. Nor did he mention the Copenhagen climate conference, where international negotiators struggled to produce an agreement on limiting global carbon emissions.
The Obama administration’s attitude towards climate change still represents a remarkable shift from the Bush years, when global warming was treated as little more than a fairy tale. But in the past year, Congressional squabbling has stalled climate legislation, and international negotiators nearly gridlocked in talks over carbon admissions at the multinational Copenhagen conference. Without strong leadership from the president, work to prevent this looming environmental crisis will stall. (more…)
Weekly Pulse: Did Wiretappers Target Landrieu Over Health Care Deal?
By Lindsay Beyerstein, Media Consortium Blogger
The conservative videographer who donned a pimp suit to embarrass the anti-poverty group ACORN was arrested in New Orleans, LA for allegedly conspiring to bug the office of Democratic Sen. Mary Landrieu.
It’s not clear why Landrieu was targeted, but many suspect that she was singled out because she played a pivotal role in advancing health care reform.
Filmmaker James O’Keefe and three other men have been charged with been charged with entering federal property under false pretenses for the purpose of committing a felony, according to Justin Elliott of TPM Muckraker. At RH Reality Check, Rachel Larris notes that, if convicted, the four could face up to 10 years in prison.
Like chum in the conservative shark tank
Landrieu, a conservative Democrat, negotiated an extra $100 million in Medicaid funds for Louisiana in exchange for allowing the health care bill to come to the senate floor. Accepting health care for the poor in the interest of health reform was like chum in the conservative shark tank.
Rush Limbaugh called her the most expensive prostitute of all time. “She may be easy, but she’s not cheap,” crowed Glenn Beck. It got so bad that Democrats call on Sen. David Vitter (R-LA) was called upon to denounce the chorus of conservatives attacking his fellow Louisiana senator as a prostitute. (Correction: Vitter did not call Landrieu a prostitute.)
O’Keefe must have realized that an exposé of Mary Landrieu would be a hot commodity.
“This is Watergate meets YouTube,” said Mother Jones Washington Bureau Chief David Corn said on MSNBC’s Hardball last night.
Visit msnbc.com for breaking news, world news, and news about the economy
Health care reform in limbo
The arrests could not have come at a better time for the Democrats. Health care reform is in limbo as congressional leaders plan their next move after losing their filibuster-proof majority. The bugging scandal is deflecting attention from tense internal negotiations.
Brian Beutler of TPMDC reports that the House Democrats are converging on a strategy to get reform done: The House will pass the Senate bill and the Senate will fix it through budget reconciliation.
The Republican counter-strategy
While the Democrats agonize over what to do next, that senate Republicans are honing strategies to thwart any Democratic attempt to pass health care reform through budget reconciliation, as Dave Weigel reports in the Washington Independent. The reconciliation process allows both sides to vote on unlimited number of amendments. GOP leadership is hinting that if Dems take the reconciliation route, they will be forced to vote on every politically embarrassing amendment the opposition can dream up.
The stakes are high. In the American Prospect, Paul Starr reminds progressives that there’s till a lot worth fighting for, even without a public option. For all its faults, the Senate bill would still cover 30 million uninsured Americans, expand Medicaid, end discrimination based on preexisting conditions, and set up exchanges designed to keep rising insurance premiums in check.
A memo for reform
Finally, our sources tell us that Steve Benen of the Washington Monthly is making quite a stir on Capitol Hill with his memo advising the House Democratic caucus on the need to forge ahead with health care reform. In 1994, conservative commentator William Kristol wrote a health care memo to Republicans that became the backbone of their anti-reform strategy, even up to the present day. Benen hopes his memo will be a useful counterweight for Democrats. Benen warns the Democrats that it’s far riskier to fail than to pass reform that doesn’t please everyone.
This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Audit: Just Who is Obama fighting for?
By Zach Carter, Media Consortium Blogger
Progressives have waited a year for President Barack Obama to roll up his sleeves and fight for serious financial reform. Last week, he finally jumped in the ring, telling weak-kneed Senators to stand up to Wall Street and endorsing a critical ban on risky securities trading.
But while it was good to see Obama start throwing financial punches against the banks, this week he also started throwing them at workers. His recent rhetoric on implementing a spending freeze to reduce the deficit is an economic catastrophe in the making. It indicates that Obama is willing to sacrifice jobs to try and win over Republicans. (more…)
Weekly Mulch: Murkowski Vs. the EPA
By Sarah Laskow, Media Consortium Blogger
On Thursday afternoon, Sen. Lisa Murkowski (R-AK) pulled out a rarely-used Congressional tool in an attempt to keep the Environmental Protection Agency (EPA) from regulating carbon and other greenhouse gasses. Sen. Murkowski offered a “resolution of disapproval” of the EPA’s impending action, which would limit companies’ carbon emissions.
The resolution would overturn the EPA’s finding that carbon dioxide is harmful to the public health. Three Democrats—Sen. Ben Nelson (D-NE), Sen. Blanche Lincoln (D-AR), and Sen. Mary Landrieu (D-LA)—joined Sen. Murkowski and 35 Republicans in sponsoring the resolution.
“Ms. Murkowski’s Mischief‘”
“This command and control approach is our worst option for reducing the gasses associated with climate change,” said Sen. Murkowski on the floor of the Senate yesterday. She called the EPA’s actions “backdoor climate regulations with no input from Congress” and said they would damage the country’s flailing economy.
The EPA first announced in April 2009 that carbon dioxide and other greenhouse gasses posed a threat to the public health. The agency formalized that finding last month, giving itself the power to regulate emissions of greenhouse gasses under the Clean Air Act. In March 2010, for instance, the agency is expected to announce carbon emissions rules for the auto industry that would match California’s higher standards. Sen. Murkowski’s resolution would derail that process.
Sen. Murkowski argued that she wants to give Congress room to come up with a legislative solution to climate change, but her critics see a more dangerous tilt to her resolution. “It’s a radical attempt by the legislative branch to interfere with executive branch scientists,” writes David Roberts at Grist.
Responding to “Ms. Murskowski’s mischief” on the Senate floor yesterday, Sen. Barbara Boxer (D-CA) called the resolution an “unprecedented effort to overturn scientific decision” and “a direct assault on the health of the American people.”
Resolution of disapproval
What is a “resolution of disapproval?” Grist’s Roberts called it “the nuclear option.”
“It would rescind the EPA’s endangerment finding entirely and thereby eliminate its authority over both mobile and stationary sources,” Roberts explains. “Furthermore, the administration would be prohibited from passing a regulation “substantially the same” as the one overruled, so the constraint on the EPA would effectively be permanent.”
This type of resolution was created by the Clinton-era Congressional Reform Act. The resolution has one big advantage: It cannot be filibustered. Passage requires only a majority in both houses of Congress. Members have tried using it in the past to delay the Dubai Ports World deal, derail FCC regulations on new media, and stop the flow of bailout funds.
Kate Sheppard at Mother Jones has been following Sen. Murkowski’s actions closely. She reports that “Senate supporters of climate action say Murkowski could obtain the votes of moderate Democrats from coal, oil, and manufacturing states. However, a resolution would still need to be approved by the House and signed by the president—both long shots, to put it mildly. ‘I think we’re a little worried about [Murkowski’s resolution] winning. I’m not sure we’re worried about it becoming law,’ a Senate Democratic staffer says.”
But Grist’s Roberts argues that passage in the Senate alone would be a problem. “Even if blocked by the House or vetoed by the president, such a public, bipartisan slap at the administration would be highly embarrassing and demoralizing,” Roberts writes. “It would mean at least ten conservative Democrats washing their hands of the administration’s initiative.”
Climate change and Congress
Sen. Murkowski insists that she’s still ready to work with her colleagues on climate change and that it’s better to approach the problem of climate change via legislation, not regulation.
But no one in Washington believes that climate change legislation is going to pass—even come to the Senate floor—any time soon. The issue was already in line behind health care, and the election of Republican candidate Scott Brown to Sen. Ted Kennedy’s Massachusetts seat this week means that none of the bills that the Senate is working on are likely to come to a vote this year.
“There was hope that the [climate] bill would come to the floor in the spring,” writes Steve Benen at Washington Monthly. “Regrettably, a narrow majority of Massachusetts voters have made it significantly more likely that Congress won’t address the problem at all. Proponents focused on solutions have vowed to “persist,” but Massachusetts has made a difficult situation considerably worse.”
The role of special interests
Sen. Murkowski has come under criticism for allowing Bush-era EPA administrators, now lobbyists representing clients on climate change issues, to help her craft an earlier amendment cracking down on the EPA. Yesterday, she said that those criticisms are “categorically false.”
But as JP Leous reports at Care2, Sen. Murkowski does receive substantial backing from energy industries that oppose climate change legislation and regulation.
“According to OpenSecrets.org Sen. Murkowski has received hundreds of thousands of dollars from polluting companies, and some of her biggest campaign contributors in recent years include firms with fossil-fueled motives like Exxon Mobil Corp,” Leous writes “Add those dots into the mix and a different picture emerges — and it starts to look like a person who is poised to introduce legislation next week attacking the Clean Air Act.”
On the Senate floor yesterday, Sen. Boxer charged, “Why would the Senate get in the business of repealing science? Because that’s what the special interests want to have happen now. Because they’re desperate.”
The Democratic Senators who co-sponsored the resolution also come from energy producing states where companies object to the new EPA regulations.
If at first you don’t succeed…
If Sen. Murkowski’s resolution does pass the Senate, there’s little chance it will pass the House as well. But this isn’t the only option that regulation opponents are looking at to fight the EPA. The Chamber of Commerce and other groups are planning to challenge the regulatory action in court, as Mother Jones’ Sheppard reports.
Last week, these opponents met to discuss their strategy. What’s interesting, Sheppard says, is that “the group was apparently divided on the best course of action. The Hill observes that “two camps have emerged.” One wants to challenge whatever rules the EPA issues, while another wants to question the science of global warming itself.”
We’re back to that old saw? With legislation off the table, the fight over climate change, for now, is in the regulatory arena.
This post features links to the best independent, progressive reporting about the environment by members of The Media Consortium. It is free to reprint. Visit the Mulch for a complete list of articles on environmental issues, or follow us on Twitter. And for the best progressive reporting on critical economy, health care and immigration issues, check out The Audit, The Pulse, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
Weekly Diaspora: Does Coakley’s Loss Spell Trouble for Immigration Reform?
By Nezua, Media Consortium Blogger
Professional pundits and Democratic politicians are in a frenzy over what Martha Coakley’s senate seat loss to Republican Scott Brown might mean for American politics.
Immigration reform in jeopardy
As Harold Meyerson of the American Prospect reports, the loss of one seat probably won’t derail heath care reform, but it does make the chances of passing immigration reform slimmer. Meyerson writes that immigration reform is “necessary to restore our economic vitality and political equality,” and actually passing reform would benefit the Democratic faction. Unfortunately, that means that immigration reform will require 60 votes in order to pass the senate. (more…)
Weekly Pulse: What Does Coakley’s Defeat Mean for Health Care Reform?
By Lindsay Beyerstein, Media Consortium Blogger
Last night, Republican Scott Brown defeated Democrat Martha Coakley in the special election to fill Teddy Kennedy’s senate seat in Massachusetts. Coakley’s loss puts health care reform in jeopardy.
With Coakley’s defeat, the Democrats lose their filibuster-proof 60-seat majority in the Senate. However, as Paul Waldman explains in The American Prospect, Coakley’s loss is not the end for health care reform.
Remember, the Senate already passed its health care reform bill in December. Now, the House has to pass its version of the bill. The original plan was for House and Senate leaders to blend the two bills together in conference to create a final piece of legislation (AKA a conference report) that both houses would vote on. Once the Democrats are down to 59 votes, the Republicans can filibuster the conference report and kill health care reform.
But if the House passes the same bill the Senate just passed, there’s no need to reconcile the two bills. This so-called “ping pong” approach may be the best way to salvage health care reform. Some of the flaws in the Senate bill could still be fixed later through budget reconciliation. It would be an uphill battle, but nothing compared to starting health care reform from scratch.
The second option would be to get the bill done before Scott Brown is sworn in. According to Waldman, there could be a vote within 10 days. The House and Senate have already drafted some compromise legislation, which Waldman thinks is superior to the straight Senate bill. If that language were sent to the Congressional Budget Office immediately, the Senate could vote before Brown is sworn in.
Sen. Majority Leader Harry Reid (D-NV) said in a statement last night that Brown won’t be sworn in until the election results are certified, a process that could take two weeks. Historically, the winners of special Senate elections have taken over from their interim predecessors within a couple of days. If the Republicans were in this position, they’d use every procedural means at their disposal to drag out the process. The question is whether the Democrats have the fortitude to make the system work for them.
Remember how the Republicans did everything in their power to hold up the Senate health care vote, including forcing the clerk to read the 767-page bill aloud? They were trying to delay the vote until after the Massachusetts special election. If it’s okay for the GOP to stall, the Democrats should be allowed to drag their feet on swearing in Brown.
Also, remember how the Republicans fought to keep Al Franken from being seated after he defeated Norm Coleman? For his part, Franken says he’s determined to pass health care reform one way or another, according to Rachel Slajda of Talking Points Memo.
Incongruously, some Democrats are arguing that rushing to a vote would be a violation of some vague democratic principle. Sen. Jim Webb (D-VA) wasted no time in proclaiming that there should be no vote before Brown was sworn in. Rep. Barney Frank (D-MA), of all people, averred last night that the Democrats should respect the democratic process and start acting like they have 59 votes while they still have 60.
All this talk of “respecting the process” is hand waving disguised as civics. According to the process, Scott Brown isn’t the senator from Massachusetts yet. According to the process, you have the votes until you don’t.
Talk about moving the goalposts. It’s bad enough that we need 60 votes to pass a bill on any given day. Now, they’d have us believe that we also need 60 votes next week. Webb and Frank are arguing that Brown’s victory obliges Democrats to behave as if Brown were already the Senator from Massachusetts. Of course, if Webb won’t play ball, it’s a moot point. The whole fast-track strategy is predicated on 60 votes. Steve Benen of the Washington Monthly thinks that Webb effectively took the fast-track option off the table with his strongly worded statement.
Katrina vanden Huevel of The Nation argues that this historic upset should be a wake up call to President Barack Obama to embrace populism with renewed fervor. I would add that Obama was elected on a platform of hope and change. There is no better way to fulfill a promise of change than to reshape the nation’s health care system and provide insurance for millions of Americans.
Ping pong, anyone?
This post features links to the best independent, progressive reporting about health care by members of The Media Consortium. It is free to reprint. Visit the Pulse for a complete list of articles on health care reform, or follow us on Twitter. And for the best progressive reporting on critical economy, environment, health care and immigration issues, check out The Audit, The Mulch, and The Diaspora. This is a project of The Media Consortium, a network of leading independent media outlets.
