Posts tagged with 'Steve Benen'
Weekly Audit: Republicans’ Budget Declares War on Medicare
Filed under: 
By Lindsay Beyerstein, Media Consortium blogger
The Republicans are poised to unveil a model budget on Tuesday that would effectively end Medicare by privatizing it, Steve Benen reports in the Washington Monthly. House Budget Committee Chair Paul Ryan (R-WI) is touting the budget as a strategy to reduce the national debt.
Ryan’s plan would turn Medicare from a single-payer system to a “premium support” system. “Premium support” is a euphemism for the government giving up to $15,000 per person, per year, to insurance companies to defray the cost of a health insurance policy.
As Benen points out, privatizing Medicare does nothing to contain health care costs. On the contrary, as insurance customers weary of double-digit premium increases can attest, private insurers have a miserable track record of containing costs. They excel at denying care and coverage, but that’s not the same thing.
The only way the government would save money under Ryan’s proposal is by paying a flat rate in vouchers. Medicare covers the full cost of medical treatments, but private insurers are typically much less generous. So, after paying into Medicare all their working lives, Americans currently 55 and younger would get vouchers for part of their health insurance and still have to pay out-of-pocket to approach the level of benefits that Medicare currently provides.
Taking aim at Medicaid
The poor are easy targets for Republican budget-slashing, Jamelle Bouie writes on TAPPED. Ryan’s proposal would also cut $1 trillion over the next 10 years from Medicaid, the joint federal-state health insurance program for the poor, by eliminating federal matching and providing all state funding through block grants. Most of this money would come from repealing the Affordable Care Act’s Medicaid expansion, which is slated to add 15 million people to Medicaid.
Block grants are cuts in disguise. Currently, Medicaid is an entitlement program, which means that states have to enroll everyone who is eligible, regardless of the state’s ability to pay. In return, the states get federal matching funds for each person in the program. Ryan and the Republicans want to change Medicaid into a block grant program where the federal government simply gives each state a lump sum to spend on Medicaid. The states want to use this new found “flexibility” to cut benefits, narrow eligibility criteria, and generally gut the program.
This is incredibly short-sighted. The current structure of Medicaid ensures extra federal funding for every new patient. So when unemployment rises and large numbers of new patients become eligible for Medicaid, the states get extra federal money for each of them. But with a block grant, the states would just have to stretch the existing block grants or find money from somewhere else in their budgets. Medicaid rolls surge during bad economic times, so a block grant system could make state budget crises even worse.
Ryan’s proposal has no chance of becoming law as long as Democrats control the Senate. The main purpose of the document is to lay out a platform for the 2012 elections.
Fake debt crisis
In The Nation, sociologist and activist Frances Fox Piven argues that the Republicans are hyping the debt threat to justify cuts to social programs:
Corporate America’s unprovoked assault on working people has been carried out by manufacturing a need for fiscal austerity. We are told that there is no more money for essential human services, for the care of children, or better public schools, or to help lower the cost of a college education. The fact is that big banks and large corporations are hoarding trillions in cash and using tax loopholes to bankrupt our communities.
She notes that Republican-backed tax cuts for the wealthy are a major contributor to the debt.
Jesus was a non-union carpenter?
Josh Harkinson of Mother Jones reports on the religious right’s crusade against unions. He notes that James Dobson of the socially conservative Family Research Council tweeted: “Pro-family voters should celebrate WI victory b/c public & private sector union bosses have marched lock-step w/liberal social agenda.”
Harkinson reports that the Family Research Council is backing the Republican incumbent, David Prosser, in today’s Wisconsin Supreme Court election–a battle that has become a proxy fight over Gov. Scott Walker’s anti-collective bargaining bill:
The FRC’s new political action committee, the Faith, Family, Freedom Fund, is airing ads on 34 Wisconsin radio stations in an effort to influence the April 5 judicial election that could ultimately decide the fate of the law. The ads target Wisconsin Assistant Attorney General JoAnne Kloppenburg, who’s running against a conservative incumbent, David Prosser, for a seat on the state Supreme Court. If elected, Kloppenburg would alter the balance on the court in favor of Democrats, giving them the ability to invalidate the recently enacted ban on public-employee collective bargaining. “Liberals see her as their best hope to advance their political agenda and strike down laws passed by a legislature and governor elected by the people,” say the ads. “A vote for Prosser is a vote to keep politics out of the Supreme Court.”
Roger Bybee of Working In These Times argues that recalling Republican state senators in Wisconsin is not enough to defend workers’ rights from Gov. Scott Walker’s anti-union onslaught.
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 Audit: Wolf in Sheep’s Clothing–The Myth of Fiscal Conservatism
By Lindsay Beyerstein, Media Consortium blogger
Fashionable pundits like to say that the Republican Party has shifted its focus from “social conservatism” (e.g., banning abortion, shoving gays back in the closet, teaching school children that humans and dinosaurs once walked the earth hand-in-claw) to fiscal conservatism (e.g., tax cuts for the rich, slashing social programs). But is that really true? Tim Murphy of Mother Jones argues that the old culture war issues never really went away. Rather, the Republicans have simply rephrased their social agenda in fiscal terms.
For example, Rep. Mike Pence (R-IN) is quite upfront about the fact that he hates Planned Parenthood because the group is the nation’s leading abortion provider. Yet, he seeks to de-fund the Planned Parenthood and the entire Title X Family Planning Program in the name of balancing the budget. Never mind that the federal money only goes toward birth control, not abortion, and research shows that every dollar spent on birth control saves $4 in Medicaid costs alone.
Steve Benen of the Washington Monthly surveys the current crop of GOP presidential hopefuls in Iowa and agrees that reports of the death of the culture war have been greatly exaggerated.
But the key takeaway here is that fiscal issues have largely been relegated to afterthought status. That’s just not what these right-wing activists — the ones who’ll largely dictate the outcome of the caucuses — are focused on. Indeed, even Ron Paul, after pandering to a home-school crowd last week, conceded, “I haven’t been asked too much about fiscal issues.”
Budget cuts
Sarah Babbage writes in TAPPED that Obama and the Democratic leadership in Congress seem poised to grant an additional $20 billion in spending cuts for FY 2011, in addition to the $10 billion in cuts they’ve already pledged for this fiscal year. Babbage notes that, after weeks of negotiations, we’re right back to the $30 billion in cuts the GOP initially demanded. She warns that these cuts will have a trivial impact on the $1.6 trillion deficit, but they could have a devastating effect on the fragile economy.
Taxes for thee, but not GE
General Electric raked in $14.2 billion in profits last year, $5.1 billion of which came from the United States, yet the company paid $0 in U.S. income tax, Tara Lohan notes in AlterNet. Despite its healthy bottom line, and its sweet tax situation, GE is asking 15,000 unionized U.S. workers to make major concessions at the bargaining table. GE wants union members to give up defined benefit pension programs in exchange for defined contribution programs.
As we discussed last week in The Audit, defined benefit plans guarantee that a retiree will get a set percentage of her working salary for the rest of her life; defined contribution plans pay the worker a share of the revenue from a pool of investments. As the fine print always says, investments can decrease in value. So, if the stock market crashes the day before you retire, you’re out of luck.
Generation Debt
Higher education is supposed to be a stepping stone to a better standard of living, but with unemployment hovering around 10%, many college graduates are struggling to find jobs to pay their student loans. Aliya Karim argues in Campus Progress that the government should compel colleges and universities to be more transparent about the realities of student loan debt:
The government should require colleges to provide information about graduation rates, college costs, and financial aid packages on college websites, enrollment forms, and guidebooks. This information should be easy to find and understand. Without such information available to them, students may not be aware that their future college has a graduation rate lower than 20 percent or that its graduates face close to $30,000 in debt.
The government has a lot of leverage over public and private schools because so much student debt is guaranteed by taxpayers. Greater transparency will enable students to make more informed choices, and give colleges with low graduation rates a greater incentive to clean up their act.
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 Audit: Massive Protest In Wisconsin Shows Walker’s Overreach
By Lindsay Beyerstein, Media Consortium blogger
About 100,000 people gathered in Madison, Wisconsin to protest Gov. Scott Walker’s new anti-collective bargaining law. The state Senate hurriedly passed the bill without a quorum last Wednesday. Roger Bybee of Working In These Times reports:
The rally featured 50 farmers on tractors roaring around the Capitol to show their support for public workers and union representatives from across the nation, stressing the importance of the Wisconsin struggle. Protesters were addressed by a lineup of fiery speakers including fillmaker Michael Moore, the Texas populist radio broadcaster Jim Hightower, TV host Laura Flanders, the Rev. Jesse Jackson, U.S. Rep. Dennis Kucinich, U.S. Rep. Tammy Baldwin, and The Progressive editor Matt Rothschild, among others.
The bill is law, but the fight is far from over. The Wisconsin Democratic Party says it already has 45% of the signatures it needs to recall 8 Republican state senators. So far, canvassers have collected 56,000 signatures, up from 14,000 last weekend. The surge in signature gathering is another sign that the Walker government’s abrupt push to pass the bill has energized the opposition. (more…)
Weekly Audit: Standoff Continues in Wisconsin
By Lindsay Beyerstein, Media Consortium blogger
The 14 Democratic state senators who fled Wisconsin to thwart the passage of a draconian anti-union have no plans to return.
On Sunday night, a Wall Street Journal blog reported that the senators planned to return soon. Steve Benen of the Washington Monthly found it odd that the piece didn’t contain any direct quotes from the exiled Democrats. The claim that the Democrats were planning to return rested on a paraphrase of State Sen. Mike Miller said about the Democrats coming back. Miller says the Journal misconstrued his remarks and that the Dems are only coming back “when collective bargaining is off the table.”
It would be an odd time for Democrats to return. Republican governor Scott Walker has offered them zero concessions. Furthermore, as Benen observes, Walker’s popularity is plummeting. The latest poll by the Wisconsin Research Institute puts the governor’s approval rating at 43%, with 53% disapproving. A majority of respondents had favorable opinions of state Senate Democrats, public employee unions, and teachers’ unions.
Benen writes:
The significance of these polls can’t be overstated — they stiffen Democratic spines, while making Republicans increasingly nervous about standing behind an unpopular governor with an unpopular plan.
In YES! Magazine, Amy B. Dean explains why every American should care about the situation in Wisconsin. The collective bargaining rights of public employees are the central issue in this standoff. Walker is testing a radical new approach to unions and several other Republican governors are poised to follow his model if he succeeds. It is naive to assume that the war on unions will end with the public sector.
Jobs gap
Writing at The Nation, Chris Hayes explains why Washington doesn’t care about jobs. Hayes argues that Washington elites are insulated from the toll of unemployment by class and geography. The jobless rate for workers with college degrees is only 4.2%, which is less than half of the official unemployment rate of 9% and a quarter of the 16.1% underemployment rate. (The underemployment rate counts both the jobless who are still looking for work and those who have given up and left the labor force.) Furthermore, Hayes notes, the unemployment rate in greater Washington, D.C. is only 5.7%, which is lower than that of any other major city in America. He writes:
What these two numbers add up to is a governing elite that is profoundly alienated from the lived experiences of the millions of Americans who are barely surviving the ravages of the Great Recession. As much as the pernicious influence of big money and the plutocrats’ pseudo-obsession with budget deficits, it is this social distance between decision-makers and citizens that explains the almost surreal detachment of the current Washington political conversation from the economic realities working-class, middle-class and poor people face.
Even as the overall unemployment rate falls, economic recovery proves elusive for many workers of color, Shani O. Hilton reports at Colorlines.com. The February jobs report shows that the economy added 192,000 jobs, with overall unemployment falling by a tenth of a percentage point, bringing joblessness to its lowest rate since 2009. However, the unemployment rates for black and Hispanic workers remained fixed in February, at 15.3% and 11.6%, respectively.
Hilton notes that even if the economy were to add 200,000 jobs a month, it would take three years to bring general employment up to pre-recession levels.
Public innovation
The stereotype is that the private sector drives innovation. However, as Monica Potts reports in The American Prospect, industry’s well-deserved reputation for innovation is built on a foundation of publicly funded basic research. Conservatives often argue that the private sector would pick up the slack if public funding for basic research were reduced. Potts argues that public funding for basic research is essential because companies will naturally gravitate towards research that has an immediate payoff, instead of investing in cultivating deeper scientific understanding through basic research.
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 Audit: Crashing the Koch’s Billionaire Caucus
By Lindsay Beyerstein, Media Consortium blogger
Oil barons Charles and David Koch held their annual billionaires’ summit in Palm Springs on Sunday, Nancy Goldstein reports in The Nation. Every year, the Kochs gather with fellow plutocrats, prominent pundits, and Republican legislators to plan their assault on government regulation and the welfare state. This is the first year that the low-profile gathering has attracted protesters.
The Kochs are best known for pumping millions into the ostensibly grassroots Tea Party movement. At TAPPED, Monica Potts points to Jane Mayer’s famous 2010 profile of the Koch brothers that made their name synonymous with vast right wing conspiracy. Her colleague Jamelle Bouie questions whether the Koch brothers really deserve their bogeyman status–no single cabal of funders can single-handedly sway public opinion, he argues.
That’s true, but $30 million can go a long way. That’s the amount the event’s organizers expect to raise for the GOP, according to Steve Benen of the Washington Monthly, who also notes the event was off-limits to the mainstream media.
David Dayen reports for Firedoglake that about 800 to 1,000 protesters rallied outside Sunday’s summit at the Rancho Las Palmas resort. Twenty-five protesters were arrested for trespassing. Police in full riot gear carted the protesters away. To add a surreal note to the proceedings, conservative provocateur Andrew Brietbart emerged from the summit on roller skates to argue with the protesters.
Several progressive organizations collaborated to draw the crowd including Common Cause, the California Courage Campaign, CREDO, MoveOn.org, 350.org, the California Nurses Association, and the United Domestic Workers of America. The Media Consortium’s own Jim Hightower was a featured speaker at the rally. (more…)
Weekly Pulse: On Health Care Repeal, House GOP Full of Sound and Fury
By Lindsay Beyerstein, Media Consortium blogger
House Republicans will hold a symbolic vote to overturn health care reform on January 12. The bill, which would repeal the Affordable Care Act (ACA) and set the nation’s health care laws back to the way they were last March, has no chance of becoming law. The GOP controls the House, but Democrats control the Senate. Senate Majority Leader Harry Reid announced that the Senate Democrats will block the bill.
Suzy Khimm of Mother Jones reports that the 2-page House bill carries no price tag. The Congressional Budget Office estimates that the ACA would save $143 billion dollars over the next decade. The GOP repeal bill contains no alternative plan. So, repealing the ACA would be tantamount to adding $143 billion to the deficit. So much for fiscal responsibility.
Why are the Republicans rushing to vote on a doomed bill without even bothering to hold hearings, or formulate a counter-proposal for the Congressional Budget Office to score? Kevin Drum of Mother Jones hazards a guess:
[Speaker John] Boehner [(R-OH)] knows two things: (a) he has to schedule a repeal vote because the tea partiers will go into open revolt if he doesn’t, and (b) it’s a dead letter with nothing more than symbolic value. So he’s scheduling a quick vote with no hearings and no CBO scoring just so he can say he’s done it, after which he can move on to other business he actually cares about. (more…)
Weekly Audit: GOP Plays Chicken with the Debt Ceiling
By Lindsay Beyerstein, Media Consortium blogger
Sen. Jim DeMint (R-SC) is calling for a “big showdown” over the upcoming vote to raise the nation’s debt ceiling to $14.3 trillion from $13.9 trillion. The debt ceiling is simply the maximum amount the government can borrow.
Congress routinely raises the debt ceiling every year. It’s common sense: Since the government has already pledged to increase spending, Congress must authorize additional borrowing. (Remember that the government is now forced to borrow billions of extra dollars to pay for tax cuts for the wealthy, which Republicans insisted on.) If the ceiling isn’t raised, the United States will be forced to default on its debts, with catastrophic consequences.
Why would default be catastrophic? The principle is the same for countries and consumers alike: If you have a good track record of paying your bills, lenders will lend you money at lower interest rates. If you don’t pay your bills on time, or default on your obligations altogether, lenders will demand higher interest rates. (more…)
Weekly Audit: A Progressive Deficit Fix?
by Lindsay Beyerstein, Media Consortium blogger
The co-chairs of the 18-member deficit commission issued a preliminary presentation two weeks ago that favored tax breaks for the wealthy and left open the possibility of deep cuts to Social Security, Medicare and other social programs. But there’s still time for the commission to radically reshape its message before it issues its final report.
Jan’s plan
That’s exactly what progressive Rep. Jan Schakowsky (D-IL) is trying to bring about. Schakowsky is a member of the commission and she has an alternative, progressive plan to rein in the deficit, as David Moberg reports for Working in These Times:
It would not go into effect until 2015 or after unemployment subsides, and it provides for $200 billion of job-creating investments during the next two years, in addition to reducing the deficit by $441 billion in 2015, nearly double Obama’s target. Slightly more than a third of Schakowsky’s proposed deficit reduction would come from new revenue (mostly tax changes hitting the wealthy and corporations but also from cap-and-trade carbon emission controls), 30 percent from ending or reforming tax expenditures (again, mainly benefiting rich taxpayers), a quarter from defense cuts, and 9 percent from mandatory programs (like offering a public option for health insurance and requiring Medicare to bargain over drug prices). Though Social Security does not contribute to the deficit, Schakowsky plans to secure future payouts without benefit cuts by increasing how much the wealthy pay into the retirement program.
A public option for health insurance would keep rising health care costs in check because insurers would have to compete with non-profit, government-administered insurance. Instead of cutting Social Security benefits for the needy, Schakowsky would simply eliminate the arbitrary payroll tax ceiling on high earners. Sounds like common sense, doesn’t it?
A coalition of progressive groups calling itself Our Fiscal Security unveiled its own alternative proposal for cutting the deficit on Monday, Luke Johnson reports for the Colorado Independent. Key planks of the platform include repealing the Bush tax cuts, reinstating the estate tax for married couples with assets greater than $4 million, and capping itemized deductions at 15%. Coalition members include Demos, the Century Foundation, and the Economic Policy Foundation.
Generation Recession
Young adults have the highest unemployment rate of any demographic. At the National Radio Project, Rina Palta examines the impact of joblessness on the nation’s 80 million “Millennials.” (Audio) Palta talks to young people who are weathering their first layoffs mere weeks or months after landing their first professional jobs.
Mark Kirk: Tax Cuts for the Rich “No Matter What”
The day before 2.5 million Americans stand to lose their unemployment benefits, Sen. Mark Kirk (R-IL) went on TV to insist that unemployment insurance is misguided and that the government must cut taxes for the rich “no matter what,” Julianne Escobedo Shepherd reports in AlterNet.
Oddly enough, Kirk fancies himself a moderate by Republican standards, according to Steve Benen of the Washington Monthly. Kirk believes that extending unemployment insurance would “just add to the deficit.” In fact, as Benen notes, extending unemployment benefits would be a very efficient way to infuse billions of dollars into the economy. Unemployed people will spend their extended benefits on food, gas, rent, and other necessities. That money doesn’t just disappear into the ether, it feeds local businesses, who in turn keep other Americans working.
The Republican Party line is that the rich need tax cuts because they create jobs. If tax cuts for the rich created jobs, we should already have a full employment economy. As the Bush tax cuts are set to expire, taxes for the rich are at all time lows and unemployment is at historic highs. It is crazy to assume that allowing these tax cuts to continue will magically produce jobs that have yet to materialize, or even bring back the jobs that have disappeared since the Bush tax cuts went into effect.
Ireland’s Billion Dollar Bailout
Over the weekend, the world’s financial institutions agreed to spend $90 billion to bail out Ireland. Tim Fernholz of TAPPED worries that this sum is too small to bring Ireland back from the brink of its sovereign debt crisis. He argues that the world financial community is making the same mistake it made in the 1990s when it forced debtor nations into fiscal austerity without forcing creditor nations to restructure their loans on more sustainable terms.
Once again, bondholders are being spared while Irish taxpayers are being expected to shoulder the heaviest burdens. The economic argument for saving the bondholders is that a bond is an ironclad promise, and that if you start expecting bondholders to accept less than 100% of what was promised to them (no matter how ill-advised they were to take that promise), the entire system will fall apart. It’s ironic that the promises that governments make to their citizens are endlessly renegotiable while bond deals are ironclad. Worldwide, citizens outnumber bondholders. Having citizens lose faith in their government seems far more dangerous than expecting bondholders to take a haircut.
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 Audit: Will Obama Save Homeowners From Wall Street’s Latest Fraud Scheme?
by Zach Carter, Media Consortium blogger
A massive foreclosure fraud scandal is rocking the U.S. mortgage market. Wall Street banks and their lawyers are fabricating documents, forging signatures and lying to judges—all to exploit troubled borrowers with enormous, illegal fees, and in some cases, improperly foreclose on borrowers who haven’t missed any payments.
The fraud is so widespread that it could put some big banks out of business and even spark another financial collapse. Fortunately, things haven’t fallen apart just yet. With strong leadership from President Barack Obama and Congress, the government can help keep troubled borrowers in their homes and prevent another meltdown. (more…)
Weekly Pulse: Steve King’s Suicide Pact, Sin Taxes, and the Avastin Controversy
by Lindsay Beyerstein, Media Consortium blogger
Rep. Steve King (R-IA) is urging Republicans to swear a “blood oath” to shut down the U.S. government until health care reform is repealed.
King is one of an growing number of Republicans who say that, if the GOP takes over congress this fall, they will hold up every appropriations bill until the Affordable Care Act is repealed, as Steve Benen reports in the Washington Monthly. Brian Beutler of TPM explains how this would actually work.
Blood oath or suicide pact?
Benen thinks the hardliners are crazy enough to actually follow through—They’ve done it before. In 1995, the Republicans shut down the federal government because then-president Bill Clinton refused to sign off on Congress’s radical plan to slash Medicare and other social spending. Several hundred thousand federal employees were furloughed because there was no money to pay their salaries and every aspect of the economy suffered, according to a report by the Congressional Research Service. (more…)
