Tag Paul Ryan

Pas de trois, denouement, house lights up

Pat Ryan 3 Comments

With fewer than 12 hours to spare (a lifetime, apparently, in the ways of Washington) the president has signed into law the combination debt ceiling increase/spending-and-deficit reduction compromise approved by both houses of Congress.  There, now don’t you feel much better about everything?  I mean, it only took a few months of bluster and pontificating, and a little threat to keep the nation from paying its bills on time, to get our government to pass a simple debt ceiling increase and take a small step in the direction of fiscal responsibility.

The last act of this tired drama was predictable: the loudest of the antagonists made a great flowery show of establishing their innate human goodness while talking past one another directly to those in the wings who were already persuaded of the rightness of their case…they executed the thrust and parry of choreographed stage fights which held no real threat of damage since the outcomes were predetermined…when time wound down minor characters took center stage to deliver the resolution then ceded the spotlight once again to the stars, who declaimed the lessons of the play and bid us all a good night.

Now the treasury has cash to pay the bills, and Congress is faced with continuing negotiations to find ways to cut spending and/or increase revenue (I’m hoping for the “and”) to get the government closer to living within its means.  They got there by compromising, which means no one is happy with the product:

Some in both houses are unhappy that there were no tax increases to spread the pain; some are unhappy there weren’t even more cuts to get closer to a final solution in one fell swoop; Democrats are unhappy that GOP priorities suffered few hits (but pleased that the cuts are not as severe as in earlier proposal by Rep. Paul Ryan); Republicans are unhappy about potential cuts to the Pentagon budget if future negotiations are not successful; and Tea Partiers are unhappy because there are no significant spending cuts right now and promised future cuts are contingent on the approval of future Congresses.

The proponents of restraint in government spending should see this as a great victory for their cause: it’s not everything they wanted all at once, but they got the president and Congressional Democrats to give more than would have been considered realistic just a few months ago.  That many of them do not—that they feel any compromise was an unforgiveable moral failure—is cause for concern, and the proponents of responsible behavior by grown adults in elected positions of responsibility should see this as a nightmarish premonition of things to come, if not in the budget talks later this year than the next time a debt ceiling needs to be increased.

Now, for those who have the stomach for it, we face the prospect of watching a new select committee of members from both houses and both parties work to find ways to reduce the deficit, and watching both houses debate and vote on a balanced budget amendment—all by end of the year!

How will cuts in federal government spending impact an economy still struggling to recover from recession and build new jobs?  Can we do something about overhauling tax code and/or entitlements, the real answers to a healthier federal budget?  I’m much less concerned right now with who won or lost the latest political fight than I am with a more pertinent matter: how does this deal help the country?

A tour de farce plays on!

Pat Ryan 2 Comments

Step by step, inch by inch, the passionless play proceeds: the House speaker proposes a new combination budget-cutting and debt ceiling-raising plan, then stands back when independent analysis shows it won’t generate the savings he promised, before the Congressional Budget Office gives good grades to the Senate majority leader’s plan (which saves little more than the speaker’s proposal).  Democrats are offering more than anyone would have expected, while some Republicans are revolting against their leadership for even thinking about going along with them, for not demanding more and more.  Who will be standing when the music stops next?

While I still expect that sanity will prevail and an agreement will be reached to prevent a crisis, nobody in Washington is doing anything about anything else and we look like a bunch of doofuses to the rest of the world as our nation moves closer to default.  So what, you ask—what the hell happens to you and me if they don’t raise the debt ceiling?

Q: Won’t refusing to raise the debt limit cut the deficit?

A. No.

Q: Do you mean that Congress can pass a budget that requires borrowing, and then argue later about whether to approve that borrowing?

A. That’s right.

Q. So, what happens to government spending if the debt limit is not raised? Will the United States default?

A. The United States will not have enough money to pay all of its bills… The possibilities range from “prioritizing” some payments and paying them first to paying bills in the order in which they were received.

The Bipartisan Policy Center analysis notes that if the government were to choose to pay the interest on its debt, Social Security benefits, Medicaid and Medicare payments, defense contractors and unemployment benefits, it could not have enough left to pay for the salaries of federal workers and members of the military, Pell grants for college, highway construction or tax refunds, among other things.

It doesn’t stop there: a default means some combination of government bondholders don’t get paid, government contractors and vendors don’t get paid, government employees don’t get paid, government benefits recipients don’t get paid, and people who don’t get paid have less money to spend so the economy slows down; government creditors demand higher interest rates on future loans and that leads to higher interest rates for we consumers on credit cards and mortgages; cities and states don’t get federal program payments and their own cash flow problems become worse.  Just the threat of default is starting to make the markets nervous.

Our country’s government spends way more than it takes in, and that needs to be corrected.  But as hard as it seems right now to make the choices that will lead to a stronger economy in the long term—and this isn’t going to be all fixed in your first six months in Washington, Mr. and Mrs. first-term Congressmember—it will only be harder if all the problems caused by a default are dumped on top of the ones we already face.  And even if there’s no default, the political playacting that both parties are consumed with right now may make financial markets skittish enough about the future that the credit rating of our country’s debt might be lowered anyway, leading to higher interest rates, etc., etc.

I’ve said this before: first, Congress needs to live up to its responsibility to prevent this totally preventable problem of potential default, then it and the administration can turn full focus on the screwed up federal budget mess that threatens our long-term financial health and security.  By the way, there’s a special tactical unit now on its way to the Capitol to help with that.

Places, please, for the big finish!

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

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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.

Beware of those peddling politics for dummies

Pat Ryan 6 Comments

The chattering classes say Republicans are in trouble because of House Budget Committee Chairman Paul Ryan’s proposed changes to Medicare.  They say that because, across the land, there has not been a rousing call for its adoption by acclamation, and therefore we can ascertain that the proposers are on the outs with the American people.  In fact some people do object, and for a number of reasons, but I don’t know how much trouble the whole GOP is in over this issue, since I try not to make the sweeping generalization my first conclusion or give myself credit for being able to see the future or into the minds of others.

But I think that what’s happening right now on this subject is a good thing.  We need to talk about details if we’re going to find a way out of our federal budget mess.  No one has wanted to talk specifics because, well, talking about paying more and spending less is not fun.  But beyond that, few in power dare to address specifics for fear that the short attention span American voter and the heat-before-light American news media will fixate only on the fact that someone proposed something and rain down ridicule and ignominy upon them until the end of days (no, not until October 21, for much longer than that).  Any open discussion or real give and take on a serious issue becomes more and more unlikely as it becomes more and more clear that the discussion will be intentionally twisted into a negative campaign ad.

We have to talk specifics on this, but that doesn’t mean that we have to do everything that is proposed, or that every unadopted proposal is a failure.  Ryan’s plan may never become law, but it already served the purpose of getting us talking about details.  Now we need to keep talking, not recoil from the negative reaction to the first serious plan and never say anything ever again.

The budget crunches in this country are real and can’t be solved just with accounting tricks; it’s going to mean painful cuts in programs that people need as well as ones they want.  For example: here in Texas our state law requires a balanced budget and there’s only so much money available this time around—tens of billions of dollars less than the current budget.  Absent a multi-billion dollar windfall of biblical proportions, the only way out means someone’s ox gets gored…or likely in this case, everyone’s oxen.  As Patricia Kilday Hart made the point in a recent column, the discussion is about what gets defined as an “essential” government program.  In order not to reach into the state’s savings account this time, there are budget plans that make some changes:

It cuts state Child Protective Services “intake” offices so severely that officials predict 85,000 calls about abused children will not be answered.

It shortchanges school districts for the 80,000 new students expected to show up at the front doors of public schools next year.

It cuts Medicaid reimbursement rates to nursing homes so drastically that the industry predicts 75 percent of the nursing homes in Texas will shut their doors, leaving 60,000 elderly Texans without care and 47,000 employees without jobs.

The polls have been showing for a while that people want the budget fixed, they just don’t want the fix to hurt them.  Well, “they” are going to have to get over that or “we” will get nowhere…except closer to the edge as the wind picks up a little bit.

You hate to see a grown legislator cry

Pat Ryan 8 Comments

It’s not a pleasant sight, but we should get used to it because it’s not over: across the country, and soon in Washington, D.C., elected representatives are finally struggling with making actual budget cuts.

Here in Texas we face the same problem as everyone else: not enough money to pay for everything we want.  Fact is, we’re $23 billion short of what we’d need to fund the last budget with no increases in anything—or in other words, we need to cut the last budget by more than 12%—and the Texas Constitution doesn’t permit deficit spending.  So our legislature is in the midst of that “adult conversation” we’ve heard so much about, making tough decisions about what to keep and what to cut.

No one’s really in favor of cutting state funding of public education by $8 billion (or in favor of what Tom the Dancing Bug down there is imagining), or short-sheeting projected growth in Medicaid caseloads by $4 billion, or running TDB onbombing schoolsthe risk of nursing homes closing because of the proposed cut in Medicaid reimbursement rates.  But all of that’s in the budget approved yesterday by the state House of Representatives, and that’s after getting the governor to agree to use $3.1 billion dollars from the savings account.

Republican leaders in the Texas House, who are still talking about finding some “non-tax revenue” source to ease the cuts, passed this budget because they believe the voters made it clear in November that they’re opposed to raising any taxes, and so far there’s been no groundswell of Texans begging to pay higher taxes to prevent these cuts…although there’s been plenty of complaints about what’s proposed to be cut.

Rep. Harold Dutton, D-Houston, likened the situation to entering a burning house and finding schoolchildren in one room and elderly people in another.

“I finally figured out that I couldn’t save anybody in this fire,” Dutton said, asking why lawmakers chose not to put out the fire by addressing the state’s underlying fiscal problems.

The same kind of tough decisions need to be made in Washington, and just like in Texas there’s no way to make real change without pain—a lot if it.  Most of the federal budget is tied up in Social Security, Medicare and Medicaid, and defense spending.  The deficit commission concluded that everything has to be on the table for discussion, and a small group of senators has been negotiating quietly to come up with a plan.

Tomorrow, House Budget Committee chairman Paul Ryan of Wisconsin releases his plan, and I hope that kicks off some serious discussion about our options for resolving the government’s financial problem.  I hope, but frankly I’m not overly optimistic about Congress solving the problem: you see, tomorrow another group of worthies meets at the White House to see if they can keep the government from shutting down on Friday, because Congress has repeatedly failed in its responsibility to pass a budget for the year that started October 1 of LAST YEAR!

C’mon, guys; cut the crap and get serious, wouldya?