You are browsing the archive for Deficit.

The Party Line – July 29, 2011: Those Who Can’t Teach, “Compromise”

8:31 am in Uncategorized by Gregg Levine

I seriously cannot believe I am again writing a post with one eye on the wire, still waiting for a conclusion to the debt-ceiling debacle, looking for real news to read, instead of just thrice re-boiled tea leaves. But here I am—here we are—sweating out a crisis that is as malicious as it is manufactured, knowing that when a “resolution” comes, no matter which version/option/compromise we get, it will be both terrible and impermanent.

That’s not easy to think about, but it is quite easy to say. There are no smart options on the table. There are not even smart planks left to use as bargaining chips. America, with its economy gasping for air, is left having to choose from a trio of plans that are all (as best as we are allowed to glimpse them) comprised of draconian cuts to so-called discretionary spending, no serious attempts at increases in revenue, and seismic blows to the bedrock programs of our social safety net—and none of which do a single, solitary thing to stimulate job creation. The only resemblance to a life preserver here is that all the plans look like a big, fat zero.

That the federal budget deficit is not even our real problem is a message completely absent from the national “debate.” That there is a difference between the debt ceiling and the deficit has been lazily obscured or purposefully ignored. And, again, the interests and desires of vast majorities of the American people—that jobs are more important than deficits, that a higher percentage of taxes should be paid by the very wealthy, and that the military should be cut before Social Security and Medicare—are marginalized as “extreme,” “not serious,” “unreasonable,” or (horror of horrors) “not adult.” Read the rest of this entry →

The Party Line – July 22, 2011: Fixing a Hole

7:20 am in Uncategorized by Gregg Levine

Focusing on broad, long-term goals while ignoring obvious, near-term problems is order of the day, be it in the Fukushima reactors or deficit-obsessed DC.

I feel like I am saying this every week, but tear yourself away for a minute, if you can, from the daily deficit follies—I promise we’ll get back to them.

As I detailed last week, a study called the Near-Term Task Force Review listed a set of suggestions for ways the US nuclear power industry could improve safety in the wake of the meltdowns and continuing crisis in Japan’s Fukushima reactors. The recommendations were a mixed bag of mostly regulatory tweaks–nothing particularly bad, as far as they go–but obviously missing from the report was any program that would effectively improve the way spent fuel rods are stored.

Earlier this week, the task force officially presented its report to the Nuclear Regulatory Commission, and NRC chair Gregory Jaczko said the full commission should move to accept or reject the recommendations within 90 days, and implement any new rules within five years.

That sounds glacial, especially given the ongoing Japanese crisis and many US plants of similar design facing the possibility of similar problems, but even this cautious approach to some cautious recommendations was more-or-less opposed by three of the five commissioners. Read the rest of this entry →

Emancipation and (Self) Preservation

3:30 am in Uncategorized by Gregg Levine

It is perhaps ironic in the extreme to take to the internet to extol the virtues of contemplation, and to do so while discussing a story that, by the time you read this, will be over a full day old (a near-eternity in the blogosphere), but President Obama’s allusions to the Emancipation Proclamation (or more accurately, the release of a months-old talk where he praises Lincoln’s move as a marriage of principle and pragmatism) in the contextual crucible of the debt-ceiling debate, makes me wish we could really spend some time learning, relearning, and discussing the Proclamation and Lincoln’s actions in the context of his time and the lessons they might hold for action in ours.

It would be as fun as it would be enlightening for me (and a lot of others, I’d hope) to have a back-and-forth about what President Lincoln and his Emancipation Proclamation did and didn’t do—for slaves in Union and Confederate states, for the war effort on both sides of America’s Civil War, and for the future of the (as opposed to “these”) United States—because there is room for argument. And, it would be great if we could first pursue the pure knowledge and understanding before having to turn it into an ironclad metaphor for our current president and his very current “crisis” (another point open to interpretation). But Obama “went there”—first in a March talk with a group of students, and this weekend with the release of tape of that talk and another video alluding to the same issue—and so the metaphor, like a battle, is joined.

Because my preamble ramble is already closer to the pre-internet-age chat than I had intended, let me shorthand a lot of my thinking on Lincoln and the Emancipation Proclamation and say that while I feel comfortable in raising an eyebrow about just how few slaves were freed on its first day, January 1, 1863, and also feel comfortable in asserting that Lincoln understood the shrewd politics of the Proclamation’s exact language, a day of looking at recent scholarship on these issues also has me believing that “Emancipation,” such as it was proclaimed, did much to help the Union’s war effort by adding a second “cause” (the eventual abolition of slavery in addition to the opposition to southern secession) to the fight, by painting a stark moral contrast between the warring parties to European powers that had abolished slavery themselves, but still had other reasons to aid the Confederacy (such as Great Britain), and, quite notably, by allowing northern blacks and freed southern slaves to enlist and fight, swelling the ranks for the Union side.

All of this allowed Lincoln to attain his stated primary goal—the preservation of the Union—but it also (along with some very critical acts of Congress) laid the groundwork for the degradation of slavery in Northern slave states, the outlawing of slavery in US territories, and soon after, the passage of the 13th Amendment, outlawing slavery across all states. (It also helped blunt any thoughts of a challenge to Lincoln’s re-nomination from the abolitionist wing of the Republican Party in 1864, which is interesting even in today’s context, and an attractive grace note to my point here.)
Read the rest of this entry →

The Party Line – June 10, 2011
Hope Floats

8:19 am in Uncategorized by Gregg Levine

Watch this episode on YouTube

The Obama administration has a problem. As much Republican good will or corporate campaign cash as they expect to gain from their reinforcing of the deficit hysteria meme (which, let’s face it, will not be very much at all), even the most cynical of the president’s economic team realizes that all this budget cutting isn’t going to do squat for the current economy. Without something directly stimulative, the recovery likely stalls. Without some sort of jobs program, the unemployment picture continues to look grim. There is no “car” to worry about putting in reverse—it has been spinning its wheels for some time now, and, as most Americans see it, it never did drive out of that ditch.

Yes, with 2012 shaping up to be another “it’s the economy, stupid” election year, O & Co. has a problem—but with the same deficit hawks and scorched-earth partisans controlling Congress, what is a president obsessed with bipartisan-like process to do?

A natural place to look would be the deal the White House cut last December with House Republicans—and indeed, Obama went to that well earlier this week. During an appearance with German Chancellor Angela Merkel, the president floated the idea of extending a central part of that deal, the two-percent payroll tax cut for employees, for another year. Then, never failing to miss an opportunity to negotiate with itself, the White House later posited an employer-side payroll tax break (instead of the employee-side cut? in addition to? hard to say, but it is fairly easy to guess which would be favored by the GOP) as an incentive to business for some sort of job creation.

Payroll taxes, however, are not some sort of rainy-day fund the government puts aside when it can, there to use if it needs a new washing machine. . . or the economy is in a ditch. These payroll taxes—the ones Obama is offering to cut—go to fund Social Security and disability. The 2010 deal cost roughly $112 billion, and it figures extending the cut another year will cost the same. If the employer-side cut is comparable, and it is paired with an extension of the employee-side holiday, Social Security could be out close to $400 billion by the end of next year.
Read the rest of this entry →

The Party Line – April 15, 2011
Three Men in a Room

6:17 am in Uncategorized by Gregg Levine

Congratulations, America, your federal budget process is now as efficient as New York State’s!

Here is what your grand vision of liberal government looks like–at least for the rest of FY 2011 (PDF). For example, part of Title X aid to family planning was what became shorthanded as the debate to defund Planned Parenthood. (A rider with language that specifically targeted Planned Parenthood was given an up-or-down vote yesterday–part of the Boehner-Obama pact on the continuing resolution. It failed, but Republicans have another vote to use in campaigns against Dems in conservative states come 2012.) As you can see (you can click images to enlarge), Title X wasn’t eliminated, but it was cut by $27 million compared to the original budget request–taking it $10 million below its FY 2010 line.

Bet you won’t find mention of that in Wednesday’s totally awesome speech.

[To watch the video in a separate window, click here.]

The Party Line – February 18, 2011

8:59 am in Uncategorized by Gregg Levine

Hey liberals, hey progressives, when President Obama says, “Social Security is not the huge contributor to the deficit,” he’s not backing you, he’s frontin’ you.

(In case that’s not enough for you, here’s an archive of previous editions of The Party Line.)