1+1=2, water is wet, and default is bad

Some good news for those in the reality-based community following the debt ceiling discussions in Washington: House Republican leaders are getting their head-in-the-sand brethren prepared to do the responsible thing and vote for a debt ceiling increase.  Amid reports of continuing private negotiating sessions—which, frankly, is how the negotiating should be done—Budget Committee chairman Paul Ryan explained to the Republican conference the realities of what would happen if the U.S. government were to default on its loan payments, and it appears to have worked with some of them:

“He said if we pass Aug. 2, it would be like ‘Star Wars,'” said Rep. Scott DesJarlais, a freshman from Tennessee. “I don’t think the people who are railing against raising the debt ceiling fully understand that.”

I don’t think there’s anything wrong with not wanting to raise the debt ceiling, with wishing it weren’t necessary; but there’s everything wrong with refusing to do it, with denying the overwhelming evidence that it will lead to serious economic problems for most of the country, because you’re trying to prove the validity of a discredited economic theory.  Extremists have co-opted the once-proud name of “Republican Party” to pursue their radical ends with some cover of respectability, and every one of us who didn’t do enough to shine the light of reason on their goals and tactics must take part of the blame for their current power.

Paul Krugman put some perspective on this in a column this week:

A number of commentators seem shocked at how unreasonable Republicans are being. “Has the G.O.P. gone insane?” they ask.

Why, yes, it has. But this isn’t something that just happened, it’s the culmination of a process that has been going on for decades.

(snip)

As The Times’s Nate Silver points out, the president has offered deals that are far to the right of what the average American voter prefers — in fact, if anything, they’re a bit to the right of what the average Republican voter prefers!

Yet Republicans are saying no. Indeed, they’re threatening to force a U.S. default, and create an economic crisis, unless they get a completely one-sided deal. And this was entirely predictable.

(snip)

Supply-side voodoo — which claims that tax cuts pay for themselves and/or that any rise in taxes would lead to economic collapse — has been a powerful force within the G.O.P. ever since Ronald Reagan embraced the concept of the Laffer curve. But the voodoo used to be contained. Reagan himself enacted significant tax increases, offsetting to a considerable extent his initial cuts.

(snip)

Recently, however, all restraint has vanished — indeed, it has been driven out of the party. Last year Mitch McConnell, the Senate minority leader, asserted that the Bush tax cuts actually increased revenue — a claim completely at odds with the evidence — and also declared that this was “the view of virtually every Republican on that subject.”

(snip)

…those within the G.O.P. who had misgivings about the embrace of tax-cut fanaticism might have made a stronger stand if there had been any indication that such fanaticism came with a price, if outsiders had been willing to condemn those who took irresponsible positions.

(snip)

…there has been no pressure on the G.O.P. to show any kind of responsibility, or even rationality — and sure enough, it has gone off the deep end. If you’re surprised, that means that you were part of the problem.

I hope the report of House leadership having a “come to Jesus” meeting with the GOP conference is a sign that there is still some responsibility and rationality there that can be accessed to do what’s right for everyone.

“You can’t blame the wreck on the train”

I only wish I had more time during the day to ponder all the developments in the “negotiation” in Washington, D.C. over raising the national debt ceiling, an issue that’s become wedded to an effort to cut government spending.  And that’s a fine issue…if only more Congresses had spent more time thinking about cutting, or at least holding the line.  Loren Steffy, one of the few bright spots at Houston’s Leading Information Source, observes that these are really two different issues and he makes a frightening case for the consequences we might all suffer if today’s Congress doesn’t pay the bills rung up in the past.

Since we last spoke on this matter, the Republican leader in the U.S. Senate has finally had something to say.  After letting the speaker of the House and the House majority leader carry the fight against President Obama, Sen. Mitch McConnell offered a surprise solution to the impasse: give all the responsibility for raising the debt ceiling to the president, so the country won’t face an actual default but Republicans won’t have to take a record vote for higher taxes or a higher debt ceiling.  Maybe he thinks he’s being clever, but he’s getting killed by “conservatives” who think he’s given up the sacred fight.

See, it’s really hard to trust labels.  The Tea Party people, at least those who really drank the kool-aid, they say they’re conservative.  But there are plenty of people who’ve been known as strong conservatives for quite a while (in just the past week I’ve cited David Brooks, Kathleen Parker and David Gergen, for example) who think the GOP in Congress may be going too far this time.  Today I’ll add Steve Bell, who believes there will be a deal and no default, but that Republicans are spending so much energy protecting tax cuts for the richest Americans that the voters are going to smack ’em up-side their heads in November 2012 (I paraphrase).  Gallup’s latest poll finds, not surprisingly, that Americans would prefer to fix the problem with only cuts in spending, although they weren’t asked to identify which cuts they supported, but most of the country favors a mix of spending cuts and tax hikes.  Perhaps because they’re smart enough to realize that the problem is too big to fix with just one or the other.

Now Moody’s is putting American government bonds on review for a possible downgrade, and even the Chinese—the Communist Chinese!—are urging the U.S. government to be responsible and think about protecting investors all over the world.

So I was thinking about all of that, and I remembered the words to a Terri Sharp song I heard performed by Don McLean:

When the gates are all down and the signals are flashing,

The whistle is screaming in vain,

And you stay on the tracks, ignoring the facts,

Well you can’t blame the wreck on the train

T-minus three weeks and counting…

There’s just the faintest whiff of default in the air in Washington, D.C., so the frequency of budget meetings is on the rise.  Late last week President Obama and Speaker Boehner sounded confident they could make a deal  that would reduceBoehner government spending by $4 trillion over ten years, but Boehner has backed off from what The New York Times characterizes as “a transformative proposal, with the potential to improve the ugly deficit picture by shrinking the size of government, overhauling the tax code and instituting consensus changes to shore up Medicare and even Social Security. It was a once-in-a-decade opening.” 

Why?  According to the Times’ analysis Boehner faced the realities of preserving his own power as speaker versus trying to get his own party to accept compromise on taxes; he also may be passing on a rare chance to get Democrats to compromise on major entitlements.

Kathleen Parker is another conservative voice making the case that Congressional Republicans may be pushing their advantage too far, turning their noses up at serious concessions from Democrats while making no progress on solving the immediate issue of the debt limit:

Few honest brokers think that we can prevent a financial catastrophe without both cuts and revenue increases, but there are surely ways to get there from here without necessarily punishing the poor or the wealthy.

(snip)

Meanwhile, not raising the debt ceiling is fraught with peril. Even prolonging raising the ceiling is potentially hazardous before a default happens, as investors take preventive actions that could distort the money markets.

Republicans have made enormous advances toward government reforms that were viewed as unachievable a year ago. Voting no may have become the aphrodisiac of small-government conservatives, but it is not necessarily an act of bravery or wisdom.

Sometimes it’s just stubborn.

If Parker’s suggestion of possible pig-headedness by Republicans is too harsh, Obamaconsider the perspective offered today by David Gergen: with Obama’s indication today that he won’t accept any short-term agreement, all of the players have now painted themselves into their separate corners, and we all will pay the price if they don’t find their ways out:

Republican and Democratic leaders on Capitol Hill, fortunately, agree that it is essential to avoid a default on the debt. They are right. But to get there, each side is going to have to give a little.  It is impossible to imagine either side doing what it would take to reach a $4 trillion deal; the GOP won’t ever agree to tax increases of as much as $800 billion to $1 trillion, nor will Democrats agree to major entitlement cuts. They especially won’t do it in the rush of last-minute negotiations over the next few days.

But in the name of fiscal sanity, they may be willing to agree to a much more modest set of compromises—something that prevents default, allows dust to settle, gives them a chance to build up support back home and keeps negotiating over a longer period of time.

Props to the GOP for getting Democrats to agree to so much of what Republicans want; please don’t get carried away and push for “too much” and not get the debt ceiling resolution that’s needed right away.

Tick…tick…tick…

Grand Old Party, or Grumpy Old Protesters

President Obama hosts another Big Budget Meeting tomorrow at the White House with a deadline looming for raising the nation’s debt ceiling to keep the country from defaulting on its loan payments, and both political parties are acting as if they’re serious now.  (Now?  Yeah, now…finally, now.)  Republicans, who’ve been spurred in part if not entirely by tea party pressure, have been very tough in the negotiations, demanding that Democrats agree to trillions of dollars in spending cuts and no tax increases in return for the votes to increase the debt ceiling.  Sounds like the Republicans have won this round, doesn’t it?

Columnist David Brooks makes a very good case that the GOP has wrought amazing concessions from Democrats on the economy, spending cuts and debt reduction, and that if it takes what’s been offered it will be good for the country, set a new starting point for future negotiations on more cuts, and be a significant political victory for Republicans to campaign on in 2012.  But he also warns that if they don’t agree soon, people will have good reason to wonder if the GOP has ceased to be a political party capable of governing and turned finally into a mere protest movement that has a “no tax hike” fetish—even when the effective tax rate in this country is now the lowest it’s been since 1950!  The long-time conservative idea man is worried that no-tax-hike-ers threaten the future of his party:

The members of this movement do not accept the logic of compromise, no matter how sweet the terms…The members of this movement do not accept the legitimacy of scholars and intellectual authorities…The members of this movement have no sense of moral decency…The members of this movement have no economic theory worthy of the name.

(snip)

If the debt ceiling talks fail, independents voters will see that Democrats were willing to compromise but Republicans were not. If responsible Republicans don’t take control, independents will conclude that Republican fanaticism caused this default. They will conclude that Republicans are not fit to govern.

And they will be right.

That makes sense to me, and I hope it makes sense to everyone, even the very fanatics that Brooks warns about.  The New Republic’s Jonathan Chait praises Brooks’ column for its emperor-has-no-clothes statement about GOP radicalism, and assigning all of the blame to “Republicans” who would stand in the way of shrinking government, who would cripple the economy and emasculate the recovery, just to make a point.  Something for all of us to keep in mind, as the clock tick-tick-ticks down to possible, and completely avoidable, national default.

A pleasant Fourth of July diversion

What else but a civics test—the perfect thing to start some fireworks of your own!  Here’s the note a friend forwarded me:

Are you more knowledgeable than the average citizen? The average score for 2,508 Americans taking the test was 49%; college educators scored 55%. Can you do better? Questions were drawn from past ISI surveys, as well as other nationally recognized exams.

This can be quite humbling.   http://www.americancivicliteracy.org/resources/quiz.aspx

Happy holiday…