At the top of today's program, Mr. Gregory reported that we are 'very close' to a deal to avoid default. The deal would consist of about $3 trillion in cuts over 10 years, no revenue increases, and a raising of the debt ceiling through 2012. There will also be the formation of a bipartisan super-committee that would make recommendations for further cutting of spending.
What is not in the agreement is a balanced budget amendment provision, which may be the sticking point for the Republican controlled House of Representatives and cause a collapse in any agreement because it is the House that has not been willing to compromise, even with its leader, John Boehner. Mr. Boehner to pass a bill in the House this week had to put in a balance budget amendment to placate Tea Party Republicans to get it passed.
During today's program, there was a lot of talk about leadership. David Plouffe, Senior Advisor to the President, has said that this debt crisis has harmed our economy, certainly an understatement and there really was much more that he could say. President Obama, for his leadership, has made concessions at every level to get the debt ceiling raised so when conservatives say that he's failed to lead, it's ridiculous because he's given Republicans more than he's given Democrats in these negotiations. It's Democrats who should be complaining that he hasn't lead because of these concessions, many of which go against the Democratic Party's core beliefs - such as cuts in Social Security and Medicare without raising any revenue.
During the round table, Congressman Raul Labrador (R-ID) commented that the media played a big part in this crisis, to which financial analyst Jim Cramer of CNBC took exception to this statement and explained that it was the President that caused the crisis saying that things may not get paid if we don't raise the debt ceiling. During the complete discussion, both of these individuals showed that they have little perspective on the various, realistic considerations that need to be taken into account when trying to solve the budget problems we face. Representative Labrador doesn't see any need for compromise as he believes that the 2010 mid-term election was a mandate for Republicans to enact legislation without it. As Repubican freshman should have learned, this is not the case. Mr. Cramer, for his two cents, is only loyal to the stock market. On his program leading up to the great recession of 2008, Mr. Cramer continually advocated the buying of toxic assets - he was never so wrong so frankly, his opinion carries little weight with this column. His comments about the President were spiteful and certainly not insightful. And when he says that if we don't act to resolve this, we'll (The U.S.) will lose huge. That's not insightful, it's banal.
Even with those huge concessions, there's no confidence that the House will vote and pass the bill that comes back from the Senate. When asked about invoking the 14th Amendment, which could be interpreted that the President can override all this and just raise the debt ceiling to get the bills paid, David Plouffe said that the Administration has looked at that and it will not go down that road. And he shouldn't because the language is vague enough that it could be interpreted in a number of ways. Some could argue that it would be an impeachable act, on which most certainly Republicans would start proceedings. Going into an election year under impeachment would be a heavy weight around the neck of his re-election campaign.
The credit rating is about confidence, confidence that the United States will pay it's bills. One way or another, the U.S. will pay it's bills but confidence has evaporated, no more clearly exemplified of the latest example that was noted on today's program (and before) that when asked by a soldier if the military would be paid on time, Admiral Mullen said that he didn't know. The reason that confidence is gone is because frankly, with one party unwilling to compromise on anything, a slash and burn approach, the American public has to wait until the very last minute for things to move forward. This debt ceiling debate is just the latest... Remember when there was a last minute deal to avoid a government shutdown? All of this last minute legislation has decimated the public's confidence in its government. Congress thinks they have until Tuesday to get this worked out, but the reality is that the market is dictating that today is, as Mr. Gregory said, the code-red day (before the markets open).
Given all this, and now with the repeated theme that government is broken, Mr. Gregory frivolously asked Mr. Plouffe if there would be a third political party, to which he couldn't comment. Presumably that third party would be the Tea Party so how would Mr. Plouffe know about that? A silly question by Mr. Gregory in that he asked the wrong person, who wouldn't be able to answer that.
In the joint interview with Senators Claire McCaskill (D-MO) and John Thune (R-SD), Mr. Thune said that he wasn't a fan of the super-committee idea, and we have to agree with him. For us, it creates a slippery slope to go down. Here's why. If for every crisis, fiscal or otherwise, you create a small super-committee (super meaning that it can not be questioned or that it's conclusions are fast-tracked) important decisions, it could theoretically do so without considering a differing majority view and then there's nothing you can do about it. That's the scary extreme, but in the mild reality, the idea of the super-committee shows everyone that Congress can not legislate properly. It's sad.
Mr. Thune, whose demeanor we appreciate, reinforced his party's standard talking points that, 'we spend too much, we need entitlement reform, broaden the tax base, etc.' As we've previously stated in this column, is that, yes maybe we spend too much, but we spend too much money on the wrong things. And broadening the tax base, making the tax system 'fair for everyone,' to use Congressman Labrador's words from today, means that people in this country who now make so little that they are unable to pay taxes, will have to pay taxes on what ever they make, "broadening the base." The basic takeaway from this is that it will, as with much of this economic policy, put more burden on the people who are least equipped to handle it.
Ms. McCaskill, on the other hand, reiterated the argument that we shouldn't give subsidies to oil corporations and then change Medicare in a voucher system. We would agree with this, but the problem with the Democrats isn't the more prudent position they take, it's the lack of political will and discipline to get their caucus on the same page in its entirety.
Overall, as long as we politically deny the fact that we need more tax revenue coming in to balance the budget, we'll never turn this around. Whether it be eliminating subsidies, broadening the base, increasing the rate for the top 1%, what ever it is - none of it is happening and something has to give. There is no way to cut enough money out of the budget to balance it. The compromise of spending cuts coupled with some increases in tax revenue is the essence of being American. If it seems reasonable, there's a pretty good chance that it is. Everyone can't eat all the steak, but we have to finish all the spinach.
Round Table: Former Governor of Michigan, Jennifer Granholm (D), Rep. Raul Labrador (R-ID), the host of CNBC's "Mad Money" Jim Cramer, and NBC's Tom Brokaw.
Sunday, July 31, 2011
Sunday, July 24, 2011
7.24.11: Is Government Broken? If Yes, Who Broke It?
Simply as a practical matter in these debt talks, entitlement reform should be taken off the table, not the discretionary spending but definitely Medicare, Medicaid, and Social Security. These latter three should be tackled separately so when Senator Coburn (R-OK) in today's interview keeps talking about entitlements, they should not be tied to the debt ceiling vote.
Two more important notions to keep in mind before we go any further, which are: 1) Social Security and Medicare are not entitlements. These are programs that as American individuals we pay into for all of our working lives and entitlements suggests that these are just 'given' to us, which they are not. Secondly, raising the debt ceiling accounts for money that the United States has already spent. We can argue about who spent what, but the fact remains that for all practical purposes, it must be raised.
In this debt debate, it has been pretty well clear that it has been President Obama who has been more willing to make concessions [read: compromises] to get a deal done. Also, we believe that Speaker Boehner has been willing, be it less so, to compromise as well. However, Speaker Boehner is completely beholden to the Tea Party Republican caucus in the house, and we agree with Doris Kearns-Goodwin when in today's panel she said that he is a different kind of leader, but completely disagree with freshman Congressman Adam Kinzinger (R-IL) that he's been a good one. As Ms. Goodwin stated, he is unwilling to demand followers, leveraging his power as the Speaker to get his part in line. That he can not get House Republicans to see a way to compromise is not leading.
Ultra business-friendly White House Chief of Staff, Bill Daley, stated that one of the keys is to take the uncertainty out of the market and the uncertainty that he is referring to, in the immediate sense, is whether or not the United States is going to default on its debts for the first time in its history. As we have stated before, we're not sure what will happen if the debt ceiling isn't raised (We're not one of those columns to think it knows everything about everything as former Senator Chuck Hagel mentioned during today's round table.), but any unprecedented act, especially one that is perceived negative, will have an adverse effect on the economy.
Last reported was that Speaker Boehner walked out of negotiations because the President 'moved the goal posts,' going from asking for $800 billion in revenue to $1.2 trillion in revenue. By the way, all of this revenue would be by closing corporate tax loopholes now, and then having the Bush Era Tax Cuts sunset for the richest 1% of the country in 2012. Mr. Daley, emphatically said that it wasn't true what Mr. Boehner said, 'he was in the room.' Even if the President did 'move the goal posts,' you're talking $40 billion a year more in revenue increases, which really isn't that much. When Speaker Boehner says that we can not raise taxes on job creators, it rings so hollow that it echoes to every corner of the country. The job creators to which he's referring are corporations who are sitting on cash with the lowest tax rate they've had in the past 50 years and are not investing the money that hence creates jobs. That statement means nothing.
Mr. Daily called a raising of the debt ceiling for the next six month a 'short-term gimmick,' which it is because it puts a beaten debt-ceiling argument back into play during the Presidential election, something that the President clearly doesn't want so it makes sense that he flatly rejects that.
Senator Tom Coburn (R-OK) said in the next segment that it was a ridiculous position to hold because that is what the compromise vote is going to look like. Even though we disagree with most all of Mr. Coburn's political positions, he is worthy of our respect because he has shown that he understands that to lead in this country, compromise is needed. He does see room for getting rid of some tax subsidies for ethanol and wind. Mr. Coburn is the Senator that made news for saying that he would not be beholden to Grover Norquist's tax pledge, to which Andrea Mitchell asked a most sensible question - how do 236 members of Congress sign a pledge before even coming into the chamber? Congress Adam Kinzinger should have had to answer that, but it probably would have been a rote answer - 'We can not raise taxes on job creators...etc.'
However, Congressman Kinzinger does believe we can reach a compromise. That is the general consensus - everyone says that - but where is the compromise to go with it? What the Tea Party Republican caucus doesn't understand that in a large, diverse country such as ours (As Ms. Goodwin reminded us), compromise is essential - democracy can not survive without it.
One example that was touched on by Chief Daley and then rebutted by Senator Coburn was the impass over the FAA, which as Mr. Daley said resulted in the layoff of 4000 airport workers on Friday. Democrats and Republicans couldn't come to an agreement. Mr. Coburn said, for the Republicans part, that there were subsidies and duplication of payments that were a complete waste of federal dollars. What went unmentioned was that Republicans wanted the stripping of collective bargaining rights on behalf of the workers. Because Democrats would not give in to that demand, a deal didn't get done, hence the aforementioned result.
So when it comes to the debt deal, Mr. Daley described an 'our way or the highway' approach when it comes to revenue on the part of the Republicans. That's a problem that both the Paul Ryan budget plan has and the Cut, Cap, and Balance bill both have. When those bills go over to the Senate, controlled by Democrats, there's no chance of them going back to the House because the House will reject them because of compromises edited in by Senate Democrats.
Mayor Corey Booker said that he agrees with Republicans in that we have a spending problem, and we do, but it's where the spending is going that is the problem. Tax cuts can not be the only answer - it is not a panacea because if it were, the economy would be booming by now. What creates economic growth is a solvent federal government and for that to happen, it needs to take in more money, not just cut spending. Bringing that down to a familial level, mothers and fathers get more than one job to sustain a level of existence for their kids. To feed them, they not only say to themselves, 'We have to lower our expenses," but also say, "We have to find a way to get more money coming in." It's a two-way street.
And actually, there's a third important notion that you need to keep in mind. Former Congressman Dick Armey's FreedomWorks that started the Tea Party movement has no interest in having the economy stabilize. His motivations are purely to drive Democrats out of control of any part of government for the long term and put forth a radically right agenda. Hence, compromise on the part of Tea Party Republicans is not an option. With any problem, it's always very helpful to identify that cause so when you say that governing is compromising, you now know what the cause is. Is our government broken? Ms. Goodwin said that there's no question it's broken. So who broke it? Tea Party Republicans did. Hopefully, for all of us, a default on our debt and the downgrading of the United States' credit rating will not be their legacy.
Round Table: Former Nebraska Senator Chuck Hagel (R); Illinois tea party freshman Rep. Adam Kinzinger (R); Mayor of Newark, Cory Booker (D); Presidential Historian Doris Kearns Goodwin; and NBC's Andrea Mitchell.
Two more important notions to keep in mind before we go any further, which are: 1) Social Security and Medicare are not entitlements. These are programs that as American individuals we pay into for all of our working lives and entitlements suggests that these are just 'given' to us, which they are not. Secondly, raising the debt ceiling accounts for money that the United States has already spent. We can argue about who spent what, but the fact remains that for all practical purposes, it must be raised.
In this debt debate, it has been pretty well clear that it has been President Obama who has been more willing to make concessions [read: compromises] to get a deal done. Also, we believe that Speaker Boehner has been willing, be it less so, to compromise as well. However, Speaker Boehner is completely beholden to the Tea Party Republican caucus in the house, and we agree with Doris Kearns-Goodwin when in today's panel she said that he is a different kind of leader, but completely disagree with freshman Congressman Adam Kinzinger (R-IL) that he's been a good one. As Ms. Goodwin stated, he is unwilling to demand followers, leveraging his power as the Speaker to get his part in line. That he can not get House Republicans to see a way to compromise is not leading.
Ultra business-friendly White House Chief of Staff, Bill Daley, stated that one of the keys is to take the uncertainty out of the market and the uncertainty that he is referring to, in the immediate sense, is whether or not the United States is going to default on its debts for the first time in its history. As we have stated before, we're not sure what will happen if the debt ceiling isn't raised (We're not one of those columns to think it knows everything about everything as former Senator Chuck Hagel mentioned during today's round table.), but any unprecedented act, especially one that is perceived negative, will have an adverse effect on the economy.
Last reported was that Speaker Boehner walked out of negotiations because the President 'moved the goal posts,' going from asking for $800 billion in revenue to $1.2 trillion in revenue. By the way, all of this revenue would be by closing corporate tax loopholes now, and then having the Bush Era Tax Cuts sunset for the richest 1% of the country in 2012. Mr. Daley, emphatically said that it wasn't true what Mr. Boehner said, 'he was in the room.' Even if the President did 'move the goal posts,' you're talking $40 billion a year more in revenue increases, which really isn't that much. When Speaker Boehner says that we can not raise taxes on job creators, it rings so hollow that it echoes to every corner of the country. The job creators to which he's referring are corporations who are sitting on cash with the lowest tax rate they've had in the past 50 years and are not investing the money that hence creates jobs. That statement means nothing.
Mr. Daily called a raising of the debt ceiling for the next six month a 'short-term gimmick,' which it is because it puts a beaten debt-ceiling argument back into play during the Presidential election, something that the President clearly doesn't want so it makes sense that he flatly rejects that.
Senator Tom Coburn (R-OK) said in the next segment that it was a ridiculous position to hold because that is what the compromise vote is going to look like. Even though we disagree with most all of Mr. Coburn's political positions, he is worthy of our respect because he has shown that he understands that to lead in this country, compromise is needed. He does see room for getting rid of some tax subsidies for ethanol and wind. Mr. Coburn is the Senator that made news for saying that he would not be beholden to Grover Norquist's tax pledge, to which Andrea Mitchell asked a most sensible question - how do 236 members of Congress sign a pledge before even coming into the chamber? Congress Adam Kinzinger should have had to answer that, but it probably would have been a rote answer - 'We can not raise taxes on job creators...etc.'
However, Congressman Kinzinger does believe we can reach a compromise. That is the general consensus - everyone says that - but where is the compromise to go with it? What the Tea Party Republican caucus doesn't understand that in a large, diverse country such as ours (As Ms. Goodwin reminded us), compromise is essential - democracy can not survive without it.
One example that was touched on by Chief Daley and then rebutted by Senator Coburn was the impass over the FAA, which as Mr. Daley said resulted in the layoff of 4000 airport workers on Friday. Democrats and Republicans couldn't come to an agreement. Mr. Coburn said, for the Republicans part, that there were subsidies and duplication of payments that were a complete waste of federal dollars. What went unmentioned was that Republicans wanted the stripping of collective bargaining rights on behalf of the workers. Because Democrats would not give in to that demand, a deal didn't get done, hence the aforementioned result.
So when it comes to the debt deal, Mr. Daley described an 'our way or the highway' approach when it comes to revenue on the part of the Republicans. That's a problem that both the Paul Ryan budget plan has and the Cut, Cap, and Balance bill both have. When those bills go over to the Senate, controlled by Democrats, there's no chance of them going back to the House because the House will reject them because of compromises edited in by Senate Democrats.
Mayor Corey Booker said that he agrees with Republicans in that we have a spending problem, and we do, but it's where the spending is going that is the problem. Tax cuts can not be the only answer - it is not a panacea because if it were, the economy would be booming by now. What creates economic growth is a solvent federal government and for that to happen, it needs to take in more money, not just cut spending. Bringing that down to a familial level, mothers and fathers get more than one job to sustain a level of existence for their kids. To feed them, they not only say to themselves, 'We have to lower our expenses," but also say, "We have to find a way to get more money coming in." It's a two-way street.
And actually, there's a third important notion that you need to keep in mind. Former Congressman Dick Armey's FreedomWorks that started the Tea Party movement has no interest in having the economy stabilize. His motivations are purely to drive Democrats out of control of any part of government for the long term and put forth a radically right agenda. Hence, compromise on the part of Tea Party Republicans is not an option. With any problem, it's always very helpful to identify that cause so when you say that governing is compromising, you now know what the cause is. Is our government broken? Ms. Goodwin said that there's no question it's broken. So who broke it? Tea Party Republicans did. Hopefully, for all of us, a default on our debt and the downgrading of the United States' credit rating will not be their legacy.
Round Table: Former Nebraska Senator Chuck Hagel (R); Illinois tea party freshman Rep. Adam Kinzinger (R); Mayor of Newark, Cory Booker (D); Presidential Historian Doris Kearns Goodwin; and NBC's Andrea Mitchell.
Sunday, July 17, 2011
7.17.11: Cut, Cap, and Balance, Catchy but Unrealistic
At the very top of today's program White House Budget Director Jack Lew said that the leaders in Congress all agree that we can not default on our debts. Hence, the disagreement lies within how to do it. Compromise, as CNBC's David Faber said during the round table, would be received very positively by our creditors and the market in general. However, compromise is not where we are politically, which arrives to the sum of what Honeywell CEO David Cote said that if we can not get together to get our fiscal house in order, it's just sad. Frankly, Republicans are not on the compromise page and Senator Jim DeMint (R-SC) said as much today.
First, Senator DeMint (R-SC) is not a credible voice in economic matters given his state's economic and educational record, near or at the bottom of both categories amongst the fifty states. What he did say was that their concession was to raise the debt ceiling - simply, with no closing of tax loopholes, a Democratic demand, to go along with the spending cuts that Republicans want.
The President has received a lot of criticism for not leading but he has been the sole individual to compromise the most giving into major concessions that Democrats do not want to see. The other reason that this agreement on the debt ceiling is looking more grim is that you have Republican Presidential candidates such as Michelle Bachmann who said that the debt ceiling doesn't matter and it's a political sales jobs by the President and the Treasury Secretary. Mr. Lew in his interview today said that she is selling a misnomer, and that if the United States defaults we will not be able to pay our bills. The facts are facts he said. Mr. Lew concluded with saying that leadership needs a partner. We believe that the President has one in House Speaker John Boehner, but doesn't have one in Eric Cantor, the House Majority Leader who is speaking for the Republican Tea Party caucus in the chamber. The result is that Mr. Boehner can not get the votes within his own caucus - that's where the hold up is.
What Senator DeMint kept on about is the new Republican tact of cut, cap, and balance which is their focus now. It's catchy but completely unrealistic. This plan is to cut spending now, cap it for the next ten years, and then enact a balanced budget amendment over that period. This sounds real nice but like many of these snappily titled plans, it's simply not practical and does not take into the reality the needs of the American people.
Marc Morial, during today's panel, stated that there are $1 trillion in tax loopholes that could be closed, that's over a ten-year period. If that is indeed the case, if you cut spending, which means cutting an innumerable amount of programs that Americans rely on, Pell grants for example, without tapping into that $1 trillion hanging out there, there is no way to balance the budget without decimating the economy.
And here's another question, if Republicans are going to bring this cut, cap, and balance approach to a vote in the House, what about the Ryan budget that they voted on? In that plan, raising the debt ceiling several times to reach its goals. So which one is it? The House under Republican control seems to be voting against bills that they once passed. Whether or not you think the Democrats' plan is right or wrong, they have been the more consistent in their approach, no doubt.
For the idea of a balanced budget amendment, consider this: All the Republicans touting this idea cite the fact that the states have balanced budget amendments so why can't the federal government have one? Well, when floods occur in Missouri or a hurricane in Florida or an oil spill in the Gulf or an earthquake in California, who do they call? The federal government because the states do not have the resources (i.e. the money) to deal with the problem. Where do we go when the Federal government needs the money in an emergency? Do we pass an emergency measure.. ok, then we keep renewing because the emergency continues and then the whole point of a balanced budget amendment is lost.. and now we're breaking our own law. All that, and not to forget, it won't pass in the Senate.
Last thing on the Senators - when Mr. Gregory asked about whether there should be congressional hearings on the scandal going on with News Corp., which owns Fox News here in the U.S., Senator Durbin said yes. Senator DeMint said that we should let law enforcement do its job. Actually, both answers are wrong. Mr. Durbin by saying yes, is already implying some sort of guilt on behalf of Rupert Murdoch's network here. Mr. Murdoch is not our favorite person, but due process is in order. Mr. DeMint's answer is only partly correct that we should, in fact, let law enforcement do it's job, but by instantly deflecting the answer, it wreaks of favoritism on his part in that he's not going to say anything bad about the news organization that backs his cause and gives Republicans an unfettered platform for their opinions. It panders and is cowardly.
____
Round table: Ohio Governor John Kasich (R); Chairman and CEO of Honeywell, David Cote; former mayor of New Orleans, now president of the National Urban League, Marc Morial; Chief Economist for Mesirow Financial Diane Swonk; and CNBC’s David Faber.
David Farber articulated the best point about the News Corp. scandal, which was for the first time Rupert Murdoch wasn't in front of the story. He was not able to put his spin on it in Britain, which he will try to reverse here in the United States. Mr. Kasich said that officials at Fox News here have told him that they are not touched by this scandal.
To the economic points, the panel seemed to come to the consensus that it is the 'uncertainty of demand' that has business leaders on the sideline as it were, Mr. Cote's main premise. But there isn't uncertainty of demand, we can tell you that people don't have enough money to buy more of the stuff that they already have. And why don't have that money, because business hasn't helped Americans on the back end. They haven't employed them enough to make these things for people in our countries who don't have them. They haven't created jobs here in this country, just elsewhere. We're pretty certain about this.
Mr. Kasich said that they cut out tax loopholes when he was in Congress in 1997 (Clinton years), to which Mr. Farber noted that all those loopholes are back. What he didn't clarify was that those loopholes were put back in place during the Bush years.
Where Mr. Cote is more correct is that it's scary as a business man because he looks at Congress and he doesn't know what to do because there is no consensus or compromise of any ideas that would essentially dictate how he would go about his business. Congress needs to put a plan forward, and then business will deal with it.
And one last note, something we caught in the conversation that just went by without comment. Mr. Kasich said that one of the ways to create jobs in this country is to educate our kids more specifically to the jobs that are needed. Realize that this is the rationale for educational cuts, especially in things such as art, music, and fitness, but it does not mean reinvestment in more math and science education. And teaching specifically to the job is not a good plan in the context of an overall education and the reason is that who is to say what the job of the future is. One could say that it was creativity matched with mathematical ability that created Google or Facebook.
Here's a suggestion, in grades 6 through 8, you evaluate students' aptitude and as they area about to reach high school, each student declares a focus area, but not to the exclusion of taking other subjects because they are all interconnected - sort of like college but less binding. They are high-schoolers after all. This way, it gives the student focus, perhaps a practical skill if say he/she wants to focus on more of a trade subject, welding for example because math isn't the strongest subject. Just a quick thought, but for Mr. Kasich on education, his rhetoric doesn't match his agenda.
First, Senator DeMint (R-SC) is not a credible voice in economic matters given his state's economic and educational record, near or at the bottom of both categories amongst the fifty states. What he did say was that their concession was to raise the debt ceiling - simply, with no closing of tax loopholes, a Democratic demand, to go along with the spending cuts that Republicans want.
The President has received a lot of criticism for not leading but he has been the sole individual to compromise the most giving into major concessions that Democrats do not want to see. The other reason that this agreement on the debt ceiling is looking more grim is that you have Republican Presidential candidates such as Michelle Bachmann who said that the debt ceiling doesn't matter and it's a political sales jobs by the President and the Treasury Secretary. Mr. Lew in his interview today said that she is selling a misnomer, and that if the United States defaults we will not be able to pay our bills. The facts are facts he said. Mr. Lew concluded with saying that leadership needs a partner. We believe that the President has one in House Speaker John Boehner, but doesn't have one in Eric Cantor, the House Majority Leader who is speaking for the Republican Tea Party caucus in the chamber. The result is that Mr. Boehner can not get the votes within his own caucus - that's where the hold up is.
What Senator DeMint kept on about is the new Republican tact of cut, cap, and balance which is their focus now. It's catchy but completely unrealistic. This plan is to cut spending now, cap it for the next ten years, and then enact a balanced budget amendment over that period. This sounds real nice but like many of these snappily titled plans, it's simply not practical and does not take into the reality the needs of the American people.
Marc Morial, during today's panel, stated that there are $1 trillion in tax loopholes that could be closed, that's over a ten-year period. If that is indeed the case, if you cut spending, which means cutting an innumerable amount of programs that Americans rely on, Pell grants for example, without tapping into that $1 trillion hanging out there, there is no way to balance the budget without decimating the economy.
And here's another question, if Republicans are going to bring this cut, cap, and balance approach to a vote in the House, what about the Ryan budget that they voted on? In that plan, raising the debt ceiling several times to reach its goals. So which one is it? The House under Republican control seems to be voting against bills that they once passed. Whether or not you think the Democrats' plan is right or wrong, they have been the more consistent in their approach, no doubt.
For the idea of a balanced budget amendment, consider this: All the Republicans touting this idea cite the fact that the states have balanced budget amendments so why can't the federal government have one? Well, when floods occur in Missouri or a hurricane in Florida or an oil spill in the Gulf or an earthquake in California, who do they call? The federal government because the states do not have the resources (i.e. the money) to deal with the problem. Where do we go when the Federal government needs the money in an emergency? Do we pass an emergency measure.. ok, then we keep renewing because the emergency continues and then the whole point of a balanced budget amendment is lost.. and now we're breaking our own law. All that, and not to forget, it won't pass in the Senate.
Last thing on the Senators - when Mr. Gregory asked about whether there should be congressional hearings on the scandal going on with News Corp., which owns Fox News here in the U.S., Senator Durbin said yes. Senator DeMint said that we should let law enforcement do its job. Actually, both answers are wrong. Mr. Durbin by saying yes, is already implying some sort of guilt on behalf of Rupert Murdoch's network here. Mr. Murdoch is not our favorite person, but due process is in order. Mr. DeMint's answer is only partly correct that we should, in fact, let law enforcement do it's job, but by instantly deflecting the answer, it wreaks of favoritism on his part in that he's not going to say anything bad about the news organization that backs his cause and gives Republicans an unfettered platform for their opinions. It panders and is cowardly.
____
Round table: Ohio Governor John Kasich (R); Chairman and CEO of Honeywell, David Cote; former mayor of New Orleans, now president of the National Urban League, Marc Morial; Chief Economist for Mesirow Financial Diane Swonk; and CNBC’s David Faber.
David Farber articulated the best point about the News Corp. scandal, which was for the first time Rupert Murdoch wasn't in front of the story. He was not able to put his spin on it in Britain, which he will try to reverse here in the United States. Mr. Kasich said that officials at Fox News here have told him that they are not touched by this scandal.
To the economic points, the panel seemed to come to the consensus that it is the 'uncertainty of demand' that has business leaders on the sideline as it were, Mr. Cote's main premise. But there isn't uncertainty of demand, we can tell you that people don't have enough money to buy more of the stuff that they already have. And why don't have that money, because business hasn't helped Americans on the back end. They haven't employed them enough to make these things for people in our countries who don't have them. They haven't created jobs here in this country, just elsewhere. We're pretty certain about this.
Mr. Kasich said that they cut out tax loopholes when he was in Congress in 1997 (Clinton years), to which Mr. Farber noted that all those loopholes are back. What he didn't clarify was that those loopholes were put back in place during the Bush years.
Where Mr. Cote is more correct is that it's scary as a business man because he looks at Congress and he doesn't know what to do because there is no consensus or compromise of any ideas that would essentially dictate how he would go about his business. Congress needs to put a plan forward, and then business will deal with it.
And one last note, something we caught in the conversation that just went by without comment. Mr. Kasich said that one of the ways to create jobs in this country is to educate our kids more specifically to the jobs that are needed. Realize that this is the rationale for educational cuts, especially in things such as art, music, and fitness, but it does not mean reinvestment in more math and science education. And teaching specifically to the job is not a good plan in the context of an overall education and the reason is that who is to say what the job of the future is. One could say that it was creativity matched with mathematical ability that created Google or Facebook.
Here's a suggestion, in grades 6 through 8, you evaluate students' aptitude and as they area about to reach high school, each student declares a focus area, but not to the exclusion of taking other subjects because they are all interconnected - sort of like college but less binding. They are high-schoolers after all. This way, it gives the student focus, perhaps a practical skill if say he/she wants to focus on more of a trade subject, welding for example because math isn't the strongest subject. Just a quick thought, but for Mr. Kasich on education, his rhetoric doesn't match his agenda.
Sunday, July 10, 2011
7.10.11: TIm Pawlenty Must Be Joking
We have to go right to the chase here for this week's program, which is the Tim Pawlenty interview. We'll get to Secretary Geithner in a minute as you could pretty much predict what he was going to say and how he was going to say it on the subject of the debt ceiling. However, he did explain the consequences in a comprehensible way, for which we have a clip, to pour over later.
Presidential candidate Tim Pawlenty (R-MN) must be joking. Beyond making news with his attack on fellow Minnesotan candidate Michelle Bachmann, what is more incredible is that he actually touted the fact that he set a record for the number of vetoes and shut down the Minnesota state government with his policies. It's insane that something so counterproductive is now seen as an accomplishment to his potential Republican constituents.
Where is the alternate universe, from where Tim Pawlenty gets this logic, because we're not seeing it. You're proud of the fact that the sum of your efforts brought down the ability for the state government to serve its people creating more hardship in the general society?
And the upside is?....
Mr. Pawlenty explained that he stuck to his conservative principles and showed courage in his actions. Conversely, and here's where the news was made, Mr. Pawlenty said that Michelle Bachmann's record in Congress of accomplishment is 'non-existent.' And just before that, in so many words, he believed that Mitt Romney could not be the nominee strictly on healthcare because Mr. Romney enacted a policy that is now considered the ultimate sacrilege amongst his party patrons.
But then he said that he distinguishes himself from the other because he is a successful leader, that it is not argument, it's fact (his words). Simply stated, a successful leader would not preside over the closure of his/her government. A successful leader gets two differing sides to come to reason, understand what the priorities of each side of the argument and then bring a compromise to everyone agrees upon. But we're in a climate where compromise is not an option for the Republicans and candidates have to play to that notion because they feel it strengthens their position with the base of the party. Given that, we still don't see how touting the fact that you shut down the government promotes good leadership qualities. Does that mean that Mr. Pawlenty will shut down the U.S. federal government if Democrats control the Congress?
He said that he breaks with his party in regard to the minimum wage, which Republicans would like to do away with. Mr. Pawlenty is all for defending the $7.25 per hour... thanks a lot. We said it before and we'll say it again... Tim Pawlenty's campaign for President of The United States is toast. He will not be the nominee. And when a Presidential candidates consistently repeats standard party talking points with no other in-depth explanation, people tune out, and in the case of Mr. Pawlenty, "Cut taxes, cut spending and lessen regulation." Blah Blah Blah...
The New York Times speculatively asked if Mr. Pawlenty will be the first one in and the first one out. This is a poor prediction given that Newt Gingrich is in the race. He'll be the first out, or should be. The Los Angeles Times said that Mr. Pawlenty is soft-spoken and bland. Mr. Pawlenty dismissed these assessments, but in the multimedia age don't underestimate the significance of these qualities, or lack thereof in the case of Tim Pawlenty. It just seems that Tim Pawlenty is trying to be someone he's not. He's like George Constanza in that everything he does seems counter-intuitive to everyone else.
He described himself as a hockey player, someone who is tough, but when questioned about Mitt Romney's healthcare plan at the debate, he didn't go for the kill and he repeated that same lame shying-away on today's program. The writer of this column played hockey, and a coach once said that if you're a nice person on the ice, you're in the wrong 'effing sport. Tim Pawlenty is in the wrong sport.
If all that wasn't enough, with regard to Libya, Mr. Pawlenty suggested that we send in special forces to target Khadafi, he cited the actions of Ronald Reagan in toppling governments. What the hell is Mr. Pawlenty talking about? Let's do something like Iran-Contra?! With all due respect, Mr. Reagan cut and run in Lebanon, bombed Libya from a far (like we're doing now), and Grenada... Please, was that really a war? And there is the aforementioned Nicaragua.
And lastly on Mr. Pawlenty, and here is where is really breaks with his party. With regard to homosexuality and whether or not it's genetic or a choice, Tim Pawlenty said that the science isn't clear on that. Yes, he mentioned science, an actual reference to science. There's a real break.
____
The one thing we know for sure about Treasury Secretary Timothy Geithner is that he would make a lousy politician, which makes one conclude that as Treasury Secretary he knows what he's talking about. What we mean by that is when the interview started, Mr. Geithner said that this is a great moment for the United States, but toward the end he used the word 'grave' to describe the situation.
And given that he is no politician, what would be the political motivation to lie to Congress and the American public about the severity of a default. His simple presence on the program itself, serves as a warning that we're playing with fire. He explains it in this clip which is the essence of why default (not raising the debt limit) is not an option.
Like substantial savings... defense. entitlements down the road
Republicans should not walk away now. Need both sides...
4 trillion - biggest deal possible. payroll tax cut - 1000, investi in future
revuneu increase? you have to have balnace.
which means yes
if no revenue, deep cuts in care for the edlerly...
nancy pelosi.. quote
balanced way
medicare cuts? will not debate it here.
Republicans special intest tax breakers
are uncomfortable raising revenues, even on the richest americans
smaller deal? very tough too.
August 2 - we're not going to default. everyone understands that. Boehner understands
more risky the more time we take
80 million checks a month.
effects our credit rating.
they will downgrade our credit rating.
failure is not an option.
This is catastrphic - hard deadline.
grave moment for the nation.
the economy has slowed - oil prices, terrible weather, japan,
predictions are it will get better in the second half.
twitter town hall
i think he's being too hard on himself there.
stimulus
healthcare
nothing has stemmed the tide...
congress - trade agreements, rebuild America, tax benefits for working families.
a long time still...
look at what reagan did to toppled a government.
not necessarily. what does that mean?
special forces... what the fuck is he talking about.
not for gay couples having the same rights as married couples.
science is in dispute - no current conclusion its genetic.
Eugene Robinson
Chuck Todd
chcuk - first time some one went hard at her.
gene - amazingly tough given commandment.
no republican candidate is cutting him any slack.
sarah palin?
chuck - wants to go out on her own terms...
stay on the margins
gene - unconventional.
gadfly
she can't get nominated.
rush limbaugh wouldn't get nominated.
going for the big deal.
speaker boehner couldn't get a deal on taxes within his own caucus.
eric cantor said no and it's no.
chuck - admin trying to be straight with the people.
Presidential candidate Tim Pawlenty (R-MN) must be joking. Beyond making news with his attack on fellow Minnesotan candidate Michelle Bachmann, what is more incredible is that he actually touted the fact that he set a record for the number of vetoes and shut down the Minnesota state government with his policies. It's insane that something so counterproductive is now seen as an accomplishment to his potential Republican constituents.
Where is the alternate universe, from where Tim Pawlenty gets this logic, because we're not seeing it. You're proud of the fact that the sum of your efforts brought down the ability for the state government to serve its people creating more hardship in the general society?
And the upside is?....
Mr. Pawlenty explained that he stuck to his conservative principles and showed courage in his actions. Conversely, and here's where the news was made, Mr. Pawlenty said that Michelle Bachmann's record in Congress of accomplishment is 'non-existent.' And just before that, in so many words, he believed that Mitt Romney could not be the nominee strictly on healthcare because Mr. Romney enacted a policy that is now considered the ultimate sacrilege amongst his party patrons.
But then he said that he distinguishes himself from the other because he is a successful leader, that it is not argument, it's fact (his words). Simply stated, a successful leader would not preside over the closure of his/her government. A successful leader gets two differing sides to come to reason, understand what the priorities of each side of the argument and then bring a compromise to everyone agrees upon. But we're in a climate where compromise is not an option for the Republicans and candidates have to play to that notion because they feel it strengthens their position with the base of the party. Given that, we still don't see how touting the fact that you shut down the government promotes good leadership qualities. Does that mean that Mr. Pawlenty will shut down the U.S. federal government if Democrats control the Congress?
He said that he breaks with his party in regard to the minimum wage, which Republicans would like to do away with. Mr. Pawlenty is all for defending the $7.25 per hour... thanks a lot. We said it before and we'll say it again... Tim Pawlenty's campaign for President of The United States is toast. He will not be the nominee. And when a Presidential candidates consistently repeats standard party talking points with no other in-depth explanation, people tune out, and in the case of Mr. Pawlenty, "Cut taxes, cut spending and lessen regulation." Blah Blah Blah...
The New York Times speculatively asked if Mr. Pawlenty will be the first one in and the first one out. This is a poor prediction given that Newt Gingrich is in the race. He'll be the first out, or should be. The Los Angeles Times said that Mr. Pawlenty is soft-spoken and bland. Mr. Pawlenty dismissed these assessments, but in the multimedia age don't underestimate the significance of these qualities, or lack thereof in the case of Tim Pawlenty. It just seems that Tim Pawlenty is trying to be someone he's not. He's like George Constanza in that everything he does seems counter-intuitive to everyone else.
He described himself as a hockey player, someone who is tough, but when questioned about Mitt Romney's healthcare plan at the debate, he didn't go for the kill and he repeated that same lame shying-away on today's program. The writer of this column played hockey, and a coach once said that if you're a nice person on the ice, you're in the wrong 'effing sport. Tim Pawlenty is in the wrong sport.
If all that wasn't enough, with regard to Libya, Mr. Pawlenty suggested that we send in special forces to target Khadafi, he cited the actions of Ronald Reagan in toppling governments. What the hell is Mr. Pawlenty talking about? Let's do something like Iran-Contra?! With all due respect, Mr. Reagan cut and run in Lebanon, bombed Libya from a far (like we're doing now), and Grenada... Please, was that really a war? And there is the aforementioned Nicaragua.
And lastly on Mr. Pawlenty, and here is where is really breaks with his party. With regard to homosexuality and whether or not it's genetic or a choice, Tim Pawlenty said that the science isn't clear on that. Yes, he mentioned science, an actual reference to science. There's a real break.
____
The one thing we know for sure about Treasury Secretary Timothy Geithner is that he would make a lousy politician, which makes one conclude that as Treasury Secretary he knows what he's talking about. What we mean by that is when the interview started, Mr. Geithner said that this is a great moment for the United States, but toward the end he used the word 'grave' to describe the situation.
And given that he is no politician, what would be the political motivation to lie to Congress and the American public about the severity of a default. His simple presence on the program itself, serves as a warning that we're playing with fire. He explains it in this clip which is the essence of why default (not raising the debt limit) is not an option.
Visit msnbc.com for breaking news, world news, and news about the economy
Like substantial savings... defense. entitlements down the road
Republicans should not walk away now. Need both sides...
4 trillion - biggest deal possible. payroll tax cut - 1000, investi in future
revuneu increase? you have to have balnace.
which means yes
if no revenue, deep cuts in care for the edlerly...
nancy pelosi.. quote
balanced way
medicare cuts? will not debate it here.
Republicans special intest tax breakers
are uncomfortable raising revenues, even on the richest americans
smaller deal? very tough too.
August 2 - we're not going to default. everyone understands that. Boehner understands
more risky the more time we take
80 million checks a month.
effects our credit rating.
they will downgrade our credit rating.
failure is not an option.
This is catastrphic - hard deadline.
grave moment for the nation.
the economy has slowed - oil prices, terrible weather, japan,
predictions are it will get better in the second half.
twitter town hall
i think he's being too hard on himself there.
stimulus
healthcare
nothing has stemmed the tide...
congress - trade agreements, rebuild America, tax benefits for working families.
a long time still...
look at what reagan did to toppled a government.
not necessarily. what does that mean?
special forces... what the fuck is he talking about.
not for gay couples having the same rights as married couples.
science is in dispute - no current conclusion its genetic.
Eugene Robinson
Chuck Todd
chcuk - first time some one went hard at her.
gene - amazingly tough given commandment.
no republican candidate is cutting him any slack.
sarah palin?
chuck - wants to go out on her own terms...
stay on the margins
gene - unconventional.
gadfly
she can't get nominated.
rush limbaugh wouldn't get nominated.
going for the big deal.
speaker boehner couldn't get a deal on taxes within his own caucus.
eric cantor said no and it's no.
chuck - admin trying to be straight with the people.
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