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Alan Greenspan To GOP: Let Bush Tax Cuts Lapse

by on Friday, July 16, 2010 at 2:59 pm EDT in Politics

International Monetary Fund Photograph/Stephen Jaffe

The former Fed Chairman, Alan Greenspan, is now rebuking the popular GOP Supply-Side talking point (as trumpeted recently by Mitch McConnell) that tax cuts increase revenues, and therefore help reduce deficits:

They should follow the law and let [Bush’s tax cuts] lapse,” Greenspan said in an interview on Bloomberg Television’s “Conversations with Judy Woodruff,” citing a need for the tax revenue to reduce the federal budget deficit. […]

Greenspan, in a telephone conversation after his Bloomberg TV interview was taped, said his position is that all the expiring Bush tax cuts should end, for middle-class and high- income families alike.

Ending the cuts “probably will” slow growth, Greenspan, 84, said in the TV interview. The risk posed by inaction on the deficit is greater, he said.

“Unless we start to come to grips with this long-term outlook, we are going to have major problems,” said Greenspan, who led the U.S. central bank from 1987 to 2006. “I think we misunderstand the momentum of this deficit going forward.”

Here, he more or less lays responsibility for the huge deficit problems we now face at the doorsteps of the Bush Administration:

Greenspan said reducing the deficit is “going to be far more difficult than anybody imagines” after “a decade of major increases in federal spending and major tax cuts.”

Ironic, this coming from the guy who foolhardily endorsed Bush’s 2001 tax cuts, thereby helping to lay the ground work for the massive deficit expansion.

Regardless, this will hopefully take some of the wind out of the GOP/Tea Party sails — these self-proclaimed ‘fiscal warriors’.  After all, they have championed two grotesquely incompatible positions:  debt reduction AND tax cuts.

Tax cuts have long been the cornerstone of the Republican platform due to their obvious political popularity.  But the GOP has recently made debt reduction their ‘call to action’.  After they bequeathed a tumultuous economic disaster to an incoming President Obama, the GOP knew he would be forced — as was called for by every credible economist in the world — to increase federal spending to keep the country from spiraling into a full blown depression.  It gave the GOP a quick recipe for attack: “Obama is just another big spending ‘socialist’ Democrat, intent on creating runaway deficits”.  They hoped to shift at least some of the blame for the staggering deficits they created onto him.  Disingenuous?–obviously, but they knew their low-information (propaganda devouring) base would swallow it, hook, line and sinker, and they did.

But a week ago their credibility as self-proclaimed ‘deficit hawks’ was called into question by none other than Chris Wallace (their own mascot) on The Fox News Channel (their home field).  And the ensuing fallout continues to reverberate across the main stream media and blogosphere.

The Washington Post recently posed the following question to the GOP:

The issue is whether the tax cuts for the wealthiest Americans should be extended, adding another $678 billion to the deficit over the next decade. The tax cuts, it’s worth remembering, passed originally in 2001 with the argument that the surplus was so large that rates could be cut with budgetary room to spare. Now that the fiscal picture has deteriorated so badly, the questions remains: How are you going to pay the $678 billion? And if you don’t, how are you going to justify the added damage to an already grim fiscal outlook?

If the GOP hopes to have any chance at recasting themselves as ‘deficit hawks’ to anyone left of their wing-nut base, they will have to address this glaring contradiction.  They cannot continue to defend tax cuts for the rich, and still claim they intend to be fiscally prudent next time around.

UPDATE:

According to the CBO (as reported by Financial Times):

The Joint Committee on Taxation confirms that extending George W. Bush’s tax cuts “would increase the federal budget deficit by cumulative $2.567 trillion between 2011 and 2020.”  It adds:

But that would also deepen a growing structural deficit caused by the cost of providing healthcare and social security to an ageing population.

The Congressional Budget Office projects that the national debt will balloon to 87 per cent of gross domestic product by 2020 and 185 per cent by 2035 if the tax cuts are extended and discretionary spending grows in line with the economy.

The Republicans want to extend all the cuts, while most Democrats support proposals by Barack Obama, president, to extend them only for households with incomes below $250,000, lowering the cost to $2.154 Trillion.

Democrats have accused the Republicans of hypocrisy when they block spending on economic stimulus in the name of cutting the deficit.

It’s obviously time to roll back ALL of Bush’s tax cuts.  President Obama, show some leadership on this!

Is The Coffee Party Shilling For The DNC?

by on Friday, March 5, 2010 at 4:46 pm EDT in Politics

I was intrigued by the news that a counter-Tea Party movement was formulating on the Left, calling itself the Coffee Party. I envisioned a group perhaps better educated than the misguided Tea Partiers, though driven by a comparable populist anger. After all, many on the Left feel royally duped by their supposed change-agent, President Barack Obama.

He has broken A LOT of promises — ones which were VERY IMPORTANT to his once energized supporters, leaving them thoroughly demoralized. Here are just a few of Obama’s broken promises:

  • He would not come to Washington and cut back door deals with entrenched interests — there would be complete transparency during health care negotiations (on C-SPAN), and everyone would get a seat at the table.  Nope.
  • He would not allow lobbyists nor those with conflicts of interests to serve in his administration.
  • A public option would be a key component of any health care bill, and he promised not to mandate that Americans purchase health insurance from ‘for profit’ health insurance companies.  He then did the very opposite once elected.
  • Americans would be able to buy their medicines from other developed countries if the drugs are safe and priced lower than in the U.S., and he’d allow Medicare to negotiate for cheaper drug prices.  Nope, instead he cut a back door deal with the Pharmaceutical Industry agreeing to ban it.
  • As President, he would recognize the Armenian Genocide (he used very strong language on this matter).  However, once elected he refused to acknowledge it as genocide (when asked by reporters) in Turkey, and he then proceeded to lobby Congress this week to deny a vote on Resolution 252 that would have made such an acknowledgment.
  • He would close Guantanamo Bay immediately, and to restore habeas corpus.  Nope, he plans to keep suspects imprisoned indefinitely without trial, and Guantanamo Bay remains open for business.
  • He would reject the Military Commissions Act, which allowed the U.S. to circumvent Geneva Conventions in the handling of detainees.  Nope.
  • In the spirit of transparency he would amend executive orders to ensure that communications about regulatory policymaking between persons outside government and all White House staff are disclosed to the public.  Nope.

So naturally, I would have expected to see some of this mentioned on the site of this new ‘grass routes movement’ calling itself the Coffee Party. On the contrary, they don’t seem to advocate for a single issue or policy proposal; the group seems completely void of substance.

Take the Coffee Party’s Mission Statement:

The Coffee Party Movement gives voice to Americans who want to see cooperation in government. We recognize that the federal government is not the enemy of the people, but the expression of our collective will, and that we must participate in the democratic process in order to address the challenges that we face as Americans. As voters and grassroots volunteers, we will support leaders who work toward positive solutions, and hold accountable those who obstruct them.

“Cooperation”?! That sounds A LOT like “BI-PARTISANSHIP” to me. You know, the term Obama uses as a means to promote corporatist (anti-populist) policies under the cover of “a need to compromise with Republicans or ‘Centrists’.” Let’s face it, President Obama has rhetorically opted for bi-partisanship as a means to crush meaningful change since the very first day he took office. And yet this Coffee Party is ironically parroting Obama’s key talking point in their ‘grass routes’ mission statement? Could this group be shilling for Obama’s political arm — the now crumbling Organizing For America?

There’s nothing in that Coffee Party’s mission statement that suggests a move towards populism or an effort to pull Obama further to the Left (back towards the promises he ran on). Wouldn’t that be the equivalent to what the Tea Party is trying to accomplish from their end? Aren’t Tea Partiers, as delusional as they may be, trying to pull Republican politicians towards populist policies important to them?

Whereas Tea Partiers seem disenchanted with both the Republican party and the government, Coffee Partiers seem contented with the Democratic Party and the government. The only issue that seems to resonate with the Coffee Party is Republican obstructionism. In fact, I couldn’t find a single criticism of the President, nor a mention of Democratic betrayals on their entire site. Some ‘grass routes’ movement!

The group asks every Coffee Party member to sign the following Civility Pledge:

As a member or supporter of the Coffee Party, I pledge to conduct myself in a way that is civil, honest, and respectful toward people with whom I disagree. I value people from different cultures, I value people with different ideas, and I value and cherish the democratic process.

It appears this group is more interested in making a statement about the ugliness they see at Tea Party gatherings than they are in actually promoting policies that might improve Americans’ lives. Their elected Democratic representatives (who control all branches of government) have been selling them out for one year now by putting entrenched interests above their own, and Coffee Partiers don’t have a single thing to complain about with regards to their own party?

Watch this video (off their home page) which the Coffee Party is using to sell themselves, and then tell me if you believe these people are issue-driven:

If this were a Tea Party video, you’d hear a lot of passionate — admittedly crazy-sounding — angst about how their party and government is disappointing them. Tea Partiers joined together as a ‘grass routes movement’, because they feel very strongly about specific issues. The Coffee Party doesn’t seem to stand for anything, beyond getting together to sip lattes.

Surely they must have a strong feeling about some issue of importance to Americans (in the midst of two wars, a horrific recession, and a government that is no longer responsive to the people)? Issues drive movements, not Kumbaya gathering. It’s as if the DNC itself has choreographed a “grass routes movement” void of the populist fervor that once drove Organizing For America.

War Of Words: Why Failed Theories, Like Reaganomics, Continue To Linger

by on Tuesday, December 1, 2009 at 2:55 pm EDT in Politics

The Republicans have long engaged in historic revisionism as a means of covering up a long record of failed policies and blunders.  Some of their most disastrous ideological experiments over the years, like Reaganomics, have been successfully re-framed into mythological successes.  Democrats have no one to blame for this, but themselves.  They’ve done next to nothing in setting the record straight on their own accomplishments, much less in casting Republican failures in stone.  Though the Democrats have a far superior governing record, many Americans today would never know it.

Democrats have lacked a coherent rhetorical strategy in defining their opposition.  The Republican Party’s two core ideological imperatives: Supply-Side economic policies, and neo-con foreign policies should now both ring synonymous with ‘abysmal failure’ in the American psyche.  The calamity inflicted upon this country over the last eight years by a Republican President and a Republican Congress is — politically speaking — something akin to a perfectly lobbed volleyball — set up for a game-winning spike — only to find no Democrat there to slam it home.  Democrats contend they are looking forward, not backwards.

The problem is there is a missed lesson here.  By neglecting to set the record straight (i.e. targeting failed Republican strategies) our country is bound to repeat these mistakes.  They are granting Republicans an opportunity to re-impose their failed policies on us at a later time.  Democrats MUST provide a ‘moral’ to the end of this failed Republican ‘story’.  They need to put together simple, memorable, talking points to brand the opposition in a way that conjures up their failures.  Not only would this help to provide some governing longevity for the Left, it would more importantly force Republicans to come up with new (and hopefully better) ideas.

Republicans are famous for spinning themselves away from their failures.  They are a well-oiled misinformation machine (lie, spin, repeat; lie spin, repeat; everyone on message — from Fox News to Talk Radio to political pundits).  Their greatest political achievement to date has been to sell main stream America on one of the most disingenuous branding campaigns in modern history: namely, that Republicans advocate for fiscally-sound policies (i.e. “fiscal conservatism”), and Democrats are fiscal misfits (i.e. “tax and spend liberals”).  This branding effort was so successful that Democrats were eventually forced to distance themselves from the ‘liberal’ tag in favor of the new ‘progressive’ tag.

But when you look at the historic record — and actually compare the fiscal performances (as measured by the increases in national debt) of the last five U.S. Presidents — you see these stereotypes are clearly unfounded:

Democrats (in blue), Republicans (in red)


President

Years As
President

National Debt
at Inauguration

National Debt
at End of
Presidency

% Increase in Debt
Over Entire Presidency

% Increase in Debt
Per Each 4-Year Term
Jimmy Carter 4 $706 billion $994 billion 41% 41%
Ronald Reagan 8 $994 billion $2867 billion 189% 94.5%
George H.W. Bush 4 $2867 billion $4351 billion 52% 52%
Bill Clinton 8 $4351 billion $5769 billion 33% 16.5%
George W. Bush 8 $5769 billion $10413 billion 81% 40.5%


Over the last 30+ years, Democrats have clearly demonstrated sounder fiscal policies than Republicans.  In fact, Republicans have proven to be so fiscally irresponsible (Ronald Reagan, in particular ) that they can almost resoundingly be blamed for the lion’s share of our entire national debt.

The two Democratic Presidents (Carter and Clinton) created $1.706 trillion in national debt over a 12 year period, or $142 billion in debt added per year, on average.

The three Republican Presidents (Reagan, and the two Bushes) created $8.001 trillion in national debt — 80% of our entire national debt — over a 20 year period, or $400.1 billion in debt added per year, on average.

On average, Republican Presidents add between two to three times more debt per year than Democratic Presidents.

The evidence is a resounding indictment of the Republican Party’s prized economic theory — Supply-Side Economics, AKA “Trickle Down Theory,” AKA  “Reaganomics.”  And yet, there’s been no concerted effort by the Left to vocalize this fact to the public; to ensure this failed theory gets its proper cremation — its ashes tossed to the wind.

Ushered in by Ronald Reagan in 1980 to stimulate the broken economy, and abandoned by George H.W. Bush during his Presidency (he astutely labeled it “Voodoo economics” ), Supply-Side policies were given a new lease on life eight years later by George W. Bush (who pushed trillions in tax cuts for the wealthiest Americans at a time of increased federal spending).  And once again — second time around now — it resulted in MASSIVE, STAGGERING, UNMANAGEABLE DEBT!

And yet, ‘Conservatism’ as a brand, and ‘Reagonomics’ as a theory, are still somehow portrayed by the media as the the ultimate in fiscal responsibility — a depiction which barely gets challenged, even by Democrats.  Consider this: when you hear Republican pundits and politicians refer to themselves as “Reagan Republicans” how often do you hear the Democrats or media pundits call Reagan out as the fiscal disaster he actually was — a President who tripled our national debt in eight years?  It never happens.  Democrats sheepishly cede the Reagan point, as if they themselves have bought into it.  In doing this, they have given the Republicans a mythical figurehead — one they can reliably rally around, even after a disastrous calamity, like George W. Bush’s tenure.

Why didn’t the Democrats chisel out the epitaph onto the ‘Reaganomics’ hedge stone years ago?  Reagan’s tripling of the national debt should have been a key talking point after his Presidency — repeated over and over again — until it became figuratively branded onto the hide of the Republican elephant; until the real Ronald Reagan (instead of the mythical one) was etched forever into the public consciousness.  This may very well have prevented George W. Bush from vigorously reinstating the very same failed economic policies, some twelve years later.

When Paul O’Neil, George W. Bush’s Treasury Secretary, argued against a second round of tax cuts for the wealthy (the first round had been over $1 trillion dollars, ultimately added onto the national debt), Dick Cheney was quoted as having responded:

“You know, Paul, Reagan proved that deficits don’t matter. We won the mid-term elections, this is our due.”

Cheney was, essentially, correct in pointing out that Reagan paid no political price (not even after the fact) for running huge deficits.  Reagan proved to Dick Cheney that there would be little if any political backlash (as engineered by the opposition) for writing such fiscally irresponsible — though politically popular — economic policies.

In fact, it could be said that Ronald Reagan paid no price for any of his Presidential failures.  Here was a President who deployed American troops into a Lebanese Civil War against the advice of most of his military leaders.  Then on October 23, 1983, the U.S. Marine barracks in Lebanon was bombed, and 243 U.S. servicemen immediately lost their lives.  Within a few months after that, Reagan ordered all U.S. troops to make a hasty retreat.  (Note: can you even imagine how the neo-cons would portray a Democratic President who ordered troops to flee under fire?  He’d be caricatured as spinelessly weak on defense; one who humiliated the country by choosing flight over fight, in a way that displayed cowardice and could only embolden the enemy).  And yet, Jimmy Carter is the one who is ostracized to this day by the Right as weak on defense, because 53 American embassy workers were taken hostage during the Iranian revolution; never mind the fact Carter eventually secured their safe release!

Furthermore, Reagan illegally sold arms to Iran (the same regime that had just taken our 53 embassy workers hostage), laundered the money, and diverted it to the Contra terrorist group in Nicaragua.  Each of these covert operations were felonious — in clear violation of U.S. law.  The scandal resulted in 14 indictments and 11 convictions of high-ranking members of his administration.  Not only did Reagan’s administration violate numerous U.S. criminal laws, but also international laws — as ruled by the International Court of Justice

And yet Republicans routinely tout Reagan’s Presidency as one defined by fiscal responsibility, strength, fearlessness, and of high-moral clarity.  They successfully changed the name of Washington-National Airport to Ronald Reagan Airport, and then named a newly constructed federal building in our nation’s capitol after him — the most expensive building ever constructed at the time.  The Ronald Reagan Building today remains the second largest federal building, in size, after the Pentagon.

Somehow Republicans have managed to elevate this leader — a leader who had failed so dramatically on every front — to a near mythical status.  Count the number of times Republican politicians, conservative talk show hosts, Fox News pundits, Joe Scarborough, George Will, etc. evoke Ronald Reagan as the very pinnacle of conservative greatness.

The Right is already laying the groundwork to shift the blame for much of the calamity they themselves unleashed over the last eight years.  On April 15, 2009 — not even three months into Barack Obama’s first term — Republicans took to the streets in their so called ‘Tea Parties,’ laying blame for all our country’s fiscal woes at his feet.  Their vitriol bypassed their beloved George W. Bush — and instead leveled its scope directly at Obama, whom they claimed stole their country, destroyed its fiscal health, and ruined their children’s futures — all within two plus months of being sworn in.  They hope to conflate Obama’s spending to clean up Bush’s catastrophic messes with Bush’s actual catastrophic messes so that one day, they might be able to peg the Bush disaster, at least in dollar terms, on Obama.  And when confronted about George W. Bush actually deserving these honors, these Tea Partiers — while waving signs of President Obama donning a Hitler mustache — claim they are actually apolitical; just frustrated ‘fiscal conservatives,’  and add, “Bush was not a true conservative.”

This is a blatant attempt by the Republican Party to salvage its ‘fiscal conservative’ brand, after their fiscal ‘train wreck’ policies over the last eight years.  The fact of the matter is Republicans and Conservatives alike supported each and every one of Bush’s spending bills and ‘trickle down’ tax cuts for the rich.  In fact they STILL advocate for the EXACT same failed policies whenever they’re asked what policies should be implemented.  It’s all “tax cuts,” “stay in Iraq and Afghanistan,” “attack Iran,” and kill “Obama care.”

Democrats can no longer afford to let dishonest Republican rhetoric go uncontested.  The Left needs to control the narrative on the Bush years, to ensure the truth doesn’t slowly get propagandized into another work of fiction.   The Left must formulate a rhetorical strategy that targets key failed Republican ideologies: namely, supply-side economics and neo-con ideology.  These are the ideologies that created the Bush disaster, and these ideologies are still fanatically embraced by everyone on the right (outside of Ron Paul): Republicans, ‘Tea Partiers,’ and ‘Conservatives.’

Labeling and setting the record straight on failed economic theories and foreign policies is crucial to our country’s future.  As our economy continues to tank, and the Left continues to become disenchanted with President Obama as a change agent, I fear Republicans may actually get a chance at returning to power in 2012.  There will never be a more perfect time to define the opposition by its failed ideologies.  The Left must win the war of words, or else …

MUST WATCH: Sarah Palin Supporters Reveal Their Ignorance On Every Issue

by on Monday, November 23, 2009 at 2:06 pm EDT in Politics

For those of you who — like me — have been mystified by the huge crowds flocking to tea parties, anti-health care reform rallies, nut-job Sarah Palin events, etc. this video will shed some light on things.  On November 20th, Chase Whiteside and Erick Stoll attended a Sarah Palin book signing event at Borders bookstore […]

Stupak-Pitts: A ‘Poison Pill’ Devised To Abort Health Care Reform

by on Wednesday, November 11, 2009 at 8:55 pm EDT in Healthcare, Politics

How did we ever get to this point — to the Stupak-Pitts amendment — which now threatens to smother meaningful health care reform in its crib?  Let’s start with the underlying agendas of the opposition, and how their failed tactics brought us to the divisive issue at hand. The GOP agenda, in a nutshell, has […]

Paul Krugman Warns About The Right-Wing’s Hold On GOP

by on Monday, November 9, 2009 at 2:26 pm EDT in Politics

Krugman makes some interesting points in his NY Times column about the Right-Wing’s new hold over the GOP. First, he addresses the anti-health care reform rally last week in front of our nation’s capitol, and some of the now-all-too-common ‘grotesque’ visuals and rhetoric (i.e. “large signs showing piles of bodies at Dachau with the caption […]

Talk Radio Inflates 4,000 Attendees At GOP Anti-Health Care Reform Rally To ‘Millions’

by on Friday, November 6, 2009 at 10:46 am EDT in Politics

The audacity of this lie has got to make you laugh.  Remember how Fox News ‘personalities’ inflated the 60,000-70,000 attendees (as reported by the Washington DC Fire Department) at the 9/12 March as ‘millions’?  Well, the far-right have really outdone themselves this time.  Think Progress reveals : On G. Gordon Liddy’s radio show today, producer […]