Editore"s Note
Tilting at Windmills

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November 1, 2009

WE DON'T NEED A COMMISSION.... Policymakers should be focusing on economic growth, not deficit reduction. Some "centrists" haven't gotten the message.

Faced with anxiety in financial markets about the huge federal deficit and the potential for it to become an electoral liability for Democrats, the White House and Congressional leaders are weighing options for narrowing the gap, including a bipartisan commission that could force tax increases and spending cuts.

But even the idea of a panel to bridge the partisan divide has run into partisan objections. Many Democrats, including in the White House, are loath to cede such far-reaching decisions to a commission and doubt Republicans' willingness to compromise. And most Republicans remain adamantly opposed to tax increases, leaving the prospects for any bipartisan approach limited at best.

The proponents, however, are pressing for a Senate vote this month. "If we have the same process and the same people, we are going to get the same results," said Senator Evan Bayh, Democrat of Indiana, who recently met with Mr. Obama to discuss the idea. "The Democratic Party wants to spend more than we can afford; the Republican Party tends to want to cut taxes more than we can afford. So we are stuck."

First, there's no evidence to suggest there is "anxiety in financial markets" about the U.S. budget deficit. The opposite appears to be true.

Second, Evan Bayh recently voted to "reform" the estate tax, cutting taxes for the extraordinarily rich, at a cost of $750 billion over the next decade. To pay for it, he recommended ... nothing. The costs would simply all be added to the deficit. I hope he'll forgive my skepticism about his credibility on the subject of fiscal responsibility.

What's more, this notion that both parties are to blame -- Dems want to spend too much, Republicans want to cut taxes too much -- may feed into conventional wisdom, but it's both lazy and wrong. Republicans decided to spend hundreds of billions of dollars on wars in Iraq and Afghanistan, didn't even try to pay for it, and added the costs to the deficit. Republicans did the same thing boosting Medicare spending, adding all of the costs for Part D to the deficit, and with No Child Left Behind, adding all of the costs to the deficit.

GOP policymakers took the largest surplus ever and created the largest deficit ever. I know everyone is always supposed to believe at all times that "both sides are equally to blame," but reality should have some relevance here.

Nevertheless, less than a year into President Obama's first year, 10 members of the Senate Democratic caucus are looking to force the issue. It's not enough that the president's budget proposals already project deficit reductions, and it's not enough that health care reform would also reduce the deficit if it passes. These 10 want a "commission," along the lines of the commission to close military bases, which would apparently be tasked with cutting Medicare and Medicaid.

What's more, they may use the upcoming vote on raising the debt ceiling as a way to force a commitment on the issue.

Sigh.

Steve Benen 9:05 AM Permalink | Trackbacks | Comments (16)
 
Comments

Sigh. Same as it ever was. The kabuki dance continues, with no one willing to 'upset other members' of the Senatorial club by calling out those who would support maintaining the status quo, and actually do something about it.

So they'll talk about this (and any other subjects of import, really) to appear "intensely focused" on the "issue" and will walk away with Nothing Accomplished (TM) other than to reinforce the fact that they are the people's representatives only in title, but alas not in action.

Posted by: terraformer on November 1, 2009 at 9:11 AM | PERMALINK

I find the current health care plan weak and not really what "Health Care Reform" was originally all about. I don't know why Obama has elected to watch rather than lead the battle, it is indeed his battle to fight more than any other.

Maybe it is better to just bring the single-payer system to a vote and if it fails - Democrats can use the 2010 elections to clean out the Senate and the House of all the people that voted against it.

Nobody ever wanted this to be a giveaway to special interests and the insurance industry.

Posted by: Dean on November 1, 2009 at 9:35 AM | PERMALINK

I agree. Focus on economic growth, not deficit reduction. That's what Ronald Reagan did.

Posted by: Al on November 1, 2009 at 9:41 AM | PERMALINK

Senator Bayh, one for whom the moniker DINO aptly describes, in a state where the Democratic Party is DPINO (Democratic Party in name only), stands in an increasingly longer line behind the likes of Senator Liebermann. His advocacy of tax breaks for the rich, and his prevaricating waffling about "healthcare reform" is, to say the least, a disgrace. Please tell me, anyone, why a person who consistently votes on the other side of the aisle on both domestic and foreign policy issues should be supported in any way by the national party?

Despite being a resident of California, I am well aware of the politics in the State of Indiana (I lived there for 3o years). It is this part of the political process that chaps my hide: where a man in office asks his constituents to bow to "realities" because of his own underhanded compromises and concessions (not to mention outright corrupted behavior--re: his wife's connection to the healthcare industry).

And to think I (once) voted for his father...

Posted by: Chris C on November 1, 2009 at 9:42 AM | PERMALINK

"Nobody ever wanted this to be a giveaway to special interests and the insurance industry."

Are you sure about that, Dean.

Bayh's wife is Wellpoint. Disgusting Joe Lieberman's wife was hired a year ago as a health care lobbyist. The giveaway is well underway.
sigh, indeed.

Posted by: reduced on November 1, 2009 at 9:42 AM | PERMALINK

Disgusting Joe Lieberman's wife was hired a year ago as a health care lobbyist

Actually, she's been lobbying for and/or sitting on boards of insurance, HC and pharma companies for almost 25 years.

Posted by: shortstop on November 1, 2009 at 9:46 AM | PERMALINK

GOP policymakers took the largest surplus ever and created the largest deficit ever.

republicans always keep their eye on the ball - the goal is simple: make sure social security goes broke as soon as possible so they can gut the program. Ergo, trump up things to spend money on way beyond tax receipts so every year the social security trust fund receipts go to cover current expenditures. And because the unnecessary expenditures go to republican cronies, its a double bang for the plutocrats.

Posted by: pluege on November 1, 2009 at 9:58 AM | PERMALINK

Everybody's for deficit reduction until they find out what it takes to do it. Ask every one of these fraud Democrats which taxes they plan on raising and what spending they plan on cutting. Their answers will be illuminating -- by that I mean they'll be the Washington equivalent of Ralph Kramden's huminah-huminah-huminah.

Posted by: JMG on November 1, 2009 at 10:03 AM | PERMALINK

"deficit reduction" is the air force in the corporations' war aginst human beings in this country. they round up their thugs and puppets in Congress and load them up with moralistic propaganda that is absolutely ridiculous economics and start dropping the 'deficit' bombs all over the place on yer teevee and in yer Congress.

Pretty cool trick: they hollow out the entire economy of the country, hoard all the wealth, and then offer the strict painful necessities of life to the humans and the institutions they just robbed...

these monsters deserve to be in prison.

Posted by: neill on November 1, 2009 at 10:08 AM | PERMALINK

well josh, i'm not sure what yer story is about, but there aint nothing secret about seizing assets of the "mentally impaired" -- that's the definition of capitalism these days.

Posted by: neill on November 1, 2009 at 10:13 AM | PERMALINK

Sigh? No Steve, This goes to the following quote about Grayson. It is good you document the hypocrisy of Bayh, but stronger words need to be used to call out and highlight the incoherence of self proclaimed centrists.

Their policy proposals are a joke and they should be looked at as a joke. Respect for the office but no respect for them. They need to be discredited at every opportunity.

Posted by: AJS on November 1, 2009 at 10:30 AM | PERMALINK

If these guys ever introduce their deficit-reducing commission proposal, I hope that someone promptly introduces an amendment to name it the Herbert Hoover Commission.

Posted by: Joe Buck on November 1, 2009 at 11:10 AM | PERMALINK

Ur sayin' it wrong. It's not economic growth they should be focusing on, it's full employment. Big difference.

Posted by: Bil on November 1, 2009 at 11:14 AM | PERMALINK

we must continue to appease the corporatists or they won't allow even our little, pathetic incremental improvements to get thru the senate

Posted by: sue on November 1, 2009 at 11:20 AM | PERMALINK

Sure there is anxiety in the financial markets about the size of out national debt...why do you think the dollar is at an all-time low?

Doesn't make a difference how well your domestic financial markets are doing if you get reamed everytime you try to spend your currency outside your own country.


Posted by: mfw13 on November 1, 2009 at 2:27 PM | PERMALINK

This isn't some random commission. If you read the article it is clear that this is the Conrad-Gregg commission plan.

"The Budget Committee will hold hearings in mid-November on the Conrad-Gregg proposal and other ideas from lawmakers and budget analysts for attacking deficits that are the largest since the end of World War II."

Given that Conrad is Chairman and Gregg is Ranking Member you can bet C-G will be the end product out of Committee. Conrad-Gregg presents itself as 'bi-partisan' but really isn't at all.

Under C-G the Commission will be composed of 8 Republicans and 8 Democrats. But two of the latter have to be from the Administration. Meaning only six Congressional Dems of whom Conrad and Cooper (author of the largely parallel Cooper-Wolf proposal) are locks. Approval of the proposal requires 12 votes but if we assume that 8 Reps plus Conrad and Cooper are locks then the 'reformers' are starting from 10 votes. Meaning if they get buy-in from the two Admin Reps Reid and Pelosi are locked into a bill that allows only an up or down vote with no input from the committees and no amendments.

The whole thing is a sham, just an institutionalization of Baucus's attempts to do much the same thing with the Gang of Six, lock out progressives and insist that a Center-Right-Far Right 'bi-partisan' proposal is all or nothing. Where nothing will be presented as just being in denial.

If you read the actual documents put out by Conrad and Gregg pushing C-G you see nothing about raising taxes or cutting defense spending or any other means of addressing budget deficits other than Social Security and Medicare.

As I said to a policy list-serv "They are not even putting old wine in new bottles, they are just dusting off the old bottles."

Same shit, different day. Nobody should believe that any of this is being offered in good faith.

Posted by: Bruce Webb on November 1, 2009 at 2:50 PM | PERMALINK
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