Tag Mitch McConnell

The Washington kabuki

Pat Ryan 3 Comments

It’s playing out just as any predictable, poorly-written melodrama might, these “negotiations” to raise the federal debt ceiling and avert a national economic emergency, particularly when the play is performed by such transparent and ham-handed actors.

As expected, yesterday the Senate refused to go along with the House bill to cut government spending and pass a balanced budget amendment to the Constitution (which even National Review’s Rich Lowry is against); it was thought this might provide the cover for enough Republicans to be able to say that they had done their best to comply with Tea Party demands but now had to vote for a debt ceiling hike to avert a crisis, but we haven’t seen that start so far.  Then, Speaker Boehner dramatically announced he was “abandoning” his negotiations with President Obama and laid all the blame on him for not giving in to the no-tax-hike meme…before he announced he would continue negotiating.  Obama says Boehner’s rejected a plan with less tax increases than what the Gang of Six proposed earlier in the week, and he’s called for more negotiations this weekend, while Senate leaders are trying to revive the scheme to let the president raise the debt ceiling without members of Congress having to cast an approving and politically-dicey vote.

Politically dicey?  Yes, for the many Republicans in the House more worried about getting a Tea Party-ish challenger in next year’s primary election than they are about the United States defaulting on its debts.  How’s that for statesmanship?

(Check out the letter Boehner sent to House Republicans on Friday, and expect to see/hear the verbiage again in campaign ads.)

So they talk this weekend, and come out of the talks to stand in front of the microphones and say predictable things.  I feel pretty confident they will come up with some way to beat the deadline and raise the debt ceiling to prevent default, even if they don’t tie it to spending cuts or increased revenue (which isn’t necessary—these are separate albeit related issues).  But I wish they would take advantage of the opportunity now to take some action on spending and revenue, because that’s going to have to be addressed and sooner would be better than later.  David Brooks thinks so, too, arguing that “Standing still is not an option.”

Doing nothing could lead to default and the end of American economic supremacy. The compromise put together by Harry Reid, the Senate majority leader, and Mitch McConnell, the Republican minority leader, that’s been floating around is a ploy to evade responsibility. Punting with some small package would spook the markets and reflect dishonor on yourself.

(snip)

You do it because you know the political climate will be worse for a deal in 2013. If you’re a Republican, you know Obama might win re-election, and even if the G.O.P. swept everything, you know your party wouldn’t have the guts to cut entitlements unilaterally (that’s why the cut, cap and balance bill didn’t mention the specific programs that would face the ax). If you’re a Democrat, you know Obama might lose, and, even if he doesn’t, the Senate will likely tilt rightward.

Mostly you do it because you want to live in a country than can govern itself.

(snip)

…this is the next step in the journey toward economic health.

Gang of Six comes to the table with a plan, and some hope

Pat Ryan 2 Comments

A plan, a plan!  We have a plan, we just aren’t telling you what it is, not just yet.

And just because you and I don’t know what’s in it doesn’t mean that this budget plan from the Group of Six might not be a solid foundation for building a way to get the nation’s budget out of the ditch, and maybe get support for a debt ceiling increase before the government defaults on its loans in two weeks.

Today, a bipartisan group (or Gang) of six senators that has been meeting privately for months looking for a way out of the federal budget quicksand briefed Senate colleagues on a plan to cut about $4 trillion dollars from the budget deficit over the next 10 years.  The plan is said to be similar to the one presented by the president’s deficit study commission, and calls for spending cuts and tax increases (yeah, I said it—tax increases).  A number of Republicans and Democrats came out of the meeting with positive things to say about this effort.

President Obama praised the plan, noting that it’s “consistent” with the approach he’s been pushing in recent negotiations.  Now, that may be all it takes to doom the plan in the eyes of Obama-haters, but there’s still hope.  This plan will be there waiting for both houses to pick up after the GOP’s “Cut, Cap and Balance” plan fails to win approval; it wouldn’t be ready to be implemented right away, but could show enough good faith for enough Republicans to do what has to be done right away—raise the debt ceiling by August 2 to prevent government default and all the consequences that will bring to the economy, and to you and me.

Just for good measure, on that proposal for a balanced budget amendment: Dahlia Lithwick and Doug Kendall make an interesting case that amending the Constitution to require a balanced budget, in the way that Tea Party members are proposing to do, would actually “crash headlong into the very constitutional principles the Tea Party purports to cherish” and that if successful could hamstring the nation’s ability to defend itself.  Here’s hoping they’re still capable of seeing the irony of this situation.

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

Pat Ryan Leave a comment

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”

Pat Ryan Leave a comment

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