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by SJGulitti

The Intellectual Dishonesty of William Kristol

10:02 am in Uncategorized by SJGulitti

No American with a basic understanding of this country’s military history could not have been anything but taken aback by William Kristol’s intellectually dishonest criticism of this statement in President Obama’s second inaugural speech: “But we are also heirs to those who won the peace and not just the war, who turned sworn enemies into the surest of friends, and we must carry those lessons into this time as well.” Kristol, the public face of the Neoconservatives, who like most of his likeminded peers, is lacking in military experience, regularly advocates a muscular use of American military power abroad. Thus few would be surprised that he might construct his own historically inaccurate critique of the president’s remarks: “Two points: First, our forebears were only able to “win the peace” because they first crushed our enemies in war. But under President Obama we’re not committed to winning our wars. We’re committed to ending them. Does Obama really think we’re going to win the peace after not winning the war? Second, think about the formulation-”and not just.” Surely President Obama should have said this: “we are also heirs to those who won the peace as well as the war…” But he didn’t say that. The formulation Obama chose-”and not just the war”-suggests that Obama believes that it’s no big deal to win a war, and the greater achievement is winning the peace. With respect to World War II, this view is ludicrous. With respect to today’s world, this view is dangerous.”

First and foremost the very notion that our forbearers regularly “crushed our enemies in war” doesn’t correspond too closely with accepted history. The truth is that the majority of wars fought by America were settled with negotiated peace treaties that left our defeated enemies more or less intact as nation states. In the American Revolution, where victory was anything but certain, it was the introduction of French forces, especially naval, combined with significant material aid from Britain’s European adversaries that turned the tide in favor of the American cause and which led to the British surrender at Yorktown. Moreover, it was a vote taken in the House of Commons in April 1782 that provided the impetus to finally end the politically unpopular war in the colonies rather than any crushing defeat of British military forces in North America. Even in defeat, Britain with the rest of its empire intact could hardly be seen as having been crushed. Following the American Revolution two wars with the piratical Barbary States in North Africa were ultimately settled through negotiation. The final military measures which lead to the long term demise of pirate activity in North Africa was a function of British, not American, naval action. The Quasi-Naval War with France from 1798 to 1800 ended in a negotiated settlement which left Napoleon Bonaparte anything but “crushed.” The War of 1812 devolved into a stalemate where Washington D.C. was burned, American invasions of Canada failed and the new American Navy won impressive victories at sea and on the Great Lakes. The negotiated settlement that ended the War of 1812 happened to fall between two important military victories for the British. In 1805 Horatio Nelson defeated the French and Spanish navies at Trafalgar thereby assuring British naval supremacy and in 1815 Wellington would defeat Napoleon at Waterloo thereby eliminating Britain’s chief land rival in Europe. Again with Britain militarily ascendant and its empire intact, no one but a fool would claim that the Americans had “crushed” the British.

The War with Mexico comes closer to Kristol’s idea of America crushing an enemy but even then we forgave or alleviated the defeated Mexican government’s $30 Million dollars in owed reparations. In the American Civil War Union forces definitely crushed the small government states’ rights advocates of the Confederacy and in all of the Indian Wars that preceded it and took place thereafter the American Army certainly crushed the Native Americans in ways that many of us would find questionable today. In the Spanish-American War we defeated obsolete Spanish naval squadrons in the Caribbean and in the Pacific but our ultimate victories in Cuba and the Philippines were greatly aided by long running and deep seated indigenous insurgencies in both theaters and which saw Filipino’s not Americans doing almost all of the fighting ashore. While Spain lost its feeble grip on its overseas possessions Spain itself was never invaded nor was its more modern home fleet ever challenged at sea. Again, based on history, it’s hard to see the negotiated outcome of the Spanish-American Wars as one in which the enemy was crushed.

In World War I the entrance of the United States into the conflict finally tipped the balance in the favor of the Allies but Germany’s war machine had run up against so many failures to break through the stalemate on the Western Front that continuing was no longer tenable. Beset by internal dissent at home and a breakdown in trust between the Army and the ruling autocrats an armistice was sought. Germany itself was never invaded and German arms had put Czarist Russia out of the war, thrown back the Italians on their southern flank, defeated the Romanians and with the Turks, stymied the British and French in Asia Minor. With the British and French forces doing most of the fighting and dying it is again, hard to conceive of the Germans having been essentially “crushed” by America alone. Kristol’s image of America crushing its enemies certainly obtains a high degree of historical accuracy when analyzing World War II in the Pacific, particularly if you downplay British Commonwealth operations in Burma and the war in China. America along with Britain and Russia certainly crushed Nazi Germany and beat the Italians into submission in Europe. But while British and American bombers pulverized Germany from the air and their navies chased the Germans from the sea, one can’t ignore the fact that 80% of all of the German soldiers who perished in WWII were killed by a Russian. That said it would be intellectually as well as historically dishonest to claim that America alone or even largely crushed the European Fascists. In the immediate postwar period, the Korean War ended in a stalemate, settled in negotiated armistice. Despite the fact that every major city, village and town in North Korea was heavily bombed, one could hardly say the Communist regime in North Korea had been crushed, certainly not when they’re toying with nuclear weapons today as I write this post. The only parties crushed in the Vietnam War were our allies the South Vietnamese and the Cambodians. George H. W. Bush showed definite restraint in refraining from invading Iraq after dislodging Saddam Hussein’s forces from Kuwait even though we decisively won the First Gulf War. While we seriously degraded Saddam Hussein’s forces in 1991 we didn’t crush his Baathist regime until the Second Gulf War. In Afghanistan we routed the Taliban out of the country and into Pakistan ten years ago on George W. Bush’s watch but based on the continued threat posed by them one could not contend that they’ve been crushed. Retiring theater commander General John Allen has recently said that the Pakistan based Taliban remains the single most significant operational threat facing American forces and the long term stability of Afghanistan.

Likewise Kristol is historically far afield when he tries to portray Obama as being uniquely “not committed to winning our wars.” Dwight D. Eisenhower, a national war hero, traveled to the Korea just weeks before his inauguration, determined the war unwinnable and then came home to set in motion the military and diplomatic actions that would lead to an armistice. That settlement would leave a badly battered Communist regime in power in the north. Richard Nixon and Henry Kissinger telegraphed to the diplomatic community at the time that they had no intention of trying to win the war in Vietnam when they said that their goal was to affect “a decent interval” within which military operations could be turned over to the government of South Vietnam. The ultimate political goal, citing Stanley Karnow, author of “Vietnam: A History” was to create enough space for America to disengage from the conflict leaving its ally in Saigon to fend for itself thereby absorbing alone any defeat that might follow. George Veith in a more recent book on the fall of South Vietnam titled “Black April” detailed the many factors that contributed to the fall of the Saigon government. Among those factors was Nixon’s failure to honor the pledge to intervene with massive air and naval support and how the drastic reduction in material aid would result in southern forces losing air mobility due to a shortage of spare parts and fuel. In 1983 Ronald Reagan was quick to pull American Marines out of Lebanon after their barracks were bombed and showed little interest in trying to forge a victory in that country choosing instead to cut his losses and change direction.

Kristol’s notion that it was only by crushing our adversaries that we were able to “win the peace’ is also to be seen to be anything but accurate in historical hindsight. While we had little to worry about from Mexico after 1848 the westward expansion resulting from our victory only served to fuel the slavery / states’ rights controversy that would eventually boil over into the American Civil War. The Federal victory over the Confederacy far from eliminated problems of race and discrimination in the southern states. The crushing of Indian tribes east of the Mississippi did little to convince those to the west to surrender without a fight. Our victory over Spain in the Philippines in 1901 was followed by an insurrection against occupying American forces that didn’t end until 1913. Few would consider the peace won in 1918 to be anything but a setting of the stage for a more horrific war in 1939. One could hardly see the Iraq affair as anything but a misadventure in which no one apparently has won the peace, not unless your idea of peace comes with regular car bombings and domestic terror or one in which the power of our arch enemy in the region, Iran, has been greatly enhanced. With regard to Afghanistan the jury of history is still out but the prospects for a lasting peace there are far from bright.

Nothing in the foregoing is meant to downplay the triumphs of American arms or the sacrifice of American fighting forces from the founding of the country to the present. Nor is it meant to give short shrift to the benefits that many in this world have derived from those sacrifices and triumphs which have done so much to further the cause of democracy and freedom through the ages. Those who know American military history are well aware of those achievements and there is nothing new in the way of knowledge for them to gain in paying serious attention to William Kristol. Kristol is best viewed as a man who is forlornly pushing a much discredited Neoconservative agenda that has been seen to have largely failed. Anyone who is in search of a good overview of American military history has more than enough in the way of good scholarly research from which to choose and suffice it to say the writings of Bill Kristol wouldn’t be listed among them.

What is at issue here is either a deliberate misuse of history for the purpose of furthering a now discredited political agenda or a willingness to engage in intellectual dishonesty in a continuing campaign of perpetrating lies and falsehoods related to the actions and character of the president. This sort of behavior needs to be called out so as to prevent these ill-conceived ideas from gaining any further currency in the nation’s political discourse. It goes without saying that neither of the aforementioned motives does anything to advance the cause of freedom and the esthablishment of democracies. Kristol’s commentary can only be seen for what it ultimately is, the musings of a malcontent whose chief political accomplishment to date was to advocate for a war that is considered, thus far, to be America’s greatest foreign policy disaster. Kristol is a man who continues to be adversely obsessed with the political success of Barack Obama, unable or unwilling to see the president as anything but a political bogeyman. Kristol continues to advocate for a type of foreign policy that is unsustainable in the current fiscal and political environment. The American people, as a whole, are war weary and defense budgets are being cut back around the world with few exceptions. Of late the Neoconservatives can add yet another failure to their track record and that would be their role in the failed presidential campaign of Mitt Romney where they dominated his foreign policy staff. As one would recall, beyond Romney’s ill-advised comments about the 47%, his trips abroad and his positions on foreign policy turned out to be among those most damaging to his prospects for electoral success. That said is it any wonder as to why Bill Kristol and the Neoconservatives continue to fade in importance on the political scene both here and abroad. Is there any reason for the informed among us to pay them any mind? I think the answer to that question is more than obvious at this point in time.

Steven J. Gulitti

February 25, 2013

Tags: American Military History, Barack Obama, Neoconservatives, War Policy, William Kristol
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by SJGulitti

A Solidly Republican House Crashes Down on Grover Norquist

6:54 am in Uncategorized by SJGulitti

At this point all I can do is laugh when I think about how some of my friends on the far right were naive as to think that sensible Republicans in Congress had failed to heed the message of the 2012 election and the current political realities borne therefrom. The latest development in the fiscal cliff drama show to what degree some on the right have regained their senses and moved back to the center, in the direction of much needed compromise. Quoting political commentator Jennifer Steinhauer: “Ending a climactic fiscal showdown in the final hours of the 112th Congress, the House late Tuesday passed and sent to President Obama legislation to avert big income tax increases on most Americans and prevent large cuts in spending for the Pentagon and other government programs. The measure, brought to the House floor less than 24 hours after its passage in the Senate, was approved 257 to 167, with 85 Republicans joining 172 Democrats in voting to allow income taxes to rise for the first time in two decades, in this case for the highest-earning Americans…The decision by Republican leaders to allow the vote came despite widespread scorn among House Republicans for the bill, passed overwhelmingly by the Senate in the early hours of New Year’s Day. They were unhappy that it did not include significant spending cuts in health and other social programs, which they say are essential to any long-term solution to the nation’s debt.” Clearly and unequivocally the resolution of the fiscal cliff represents a major defeat for Grover Norquist and his Tea Party allies as well as a significant victory for president Obama.

And what of those Republican Congressman who voted to let tax rates rise? Remember how often we’ve been told that almost every Republican in the House had signed Grover Norquist’s “No Tax Pledge.” Quoting Politico’s Alexander Burns and Maggie Habberman: “…given the lopsided Senate vote in favor of the tax-hiking measure, as well as the 85 GOP House members who voted yes, members of the GOP have violated the party’s no-new-taxes orthodoxy for the first time in two decades. It’s a significant concession in the aftermath of Mitt Romney’s November defeat and a potentially existential moment for a party that has prided itself on a defiant and dogmatic dislike of tax increases. What remains to be seen is whether that is merely a tactical retreat — bowing to the unique circumstances of the fiscal cliff — or a more meaningful cave-in on the part of Republicans who believe that their anti-tax platform has become politically unsustainable, particularly after a presidential cycle in which the party found itself caricatured as the puppets of the rich and powerful.” Perhaps it was the fact that a large majority of Republican Senators had voted for a tax hike that finally drove home the political reality to the 85 Republican Congressional legislators who decided to follow suit. Why even such staunch conservatives as Congressman Paul Ryan and Senators Patrick J. Toomey and Tom Coburn voted in favor of raising taxes. The fact that, in the face of a growing fiscal crisis, that Republicans voted to raise revenue via tax hikes, should come as no surprise as 2012 election exit polling showed 75% of the voters supported said increases, including a large minority of those who voted for Mitt Romney. Fox News contributor and prominent conservative commentator Charles Krauthammer opined: “This is a complete surrender on everything” and “a rout.” Not surprisingly, Norquist himself appeared on the cable circuit claiming to Anderson Cooper, among others, that the “deal was technically not a pledge violation”, but then what would you expect to hear from a guy who just went off of his own political cliff.

Many on the right have been seen to try to spin this defeat as a tactical maneuver that takes taxes off the table thereby enabling the G.O.P. to be more hard-nosed in dealing with the debt ceiling / spending cuts debate that we’ll be revisiting in a few months. But this too may amount to nothing but wishful thinking. Again quoting Burns and Habberman: “The president’s party, meanwhile, has no intention of easing up on a GOP they believe is in serious disarray. And while Republicans take heart from the hope that they’ll have more leverage in the next showdown, emboldened Democrats say the demand for “balanced” deficit reduction — meaning both spending cuts and new taxes — remains a challenge for their foes. Democratic pollster Geoff Garin, who advised the pro-Obama super PAC Priorities USA, called the fiscal cliff deal “a band-aid on a serious wound” for Republicans. “The sane wing of the Republican Party recognized the GOP was playing a losing hand badly on taxes in a way that was deeply damaging to the Republican brand,” Garin said. “The Republicans will find themselves in a similar mess going forward if they insist on entitlement cuts while resisting new revenues from closing loopholes and tax breaks for those at the top.”

In the final analysis, when the spin and the political posturing is put aside there is one simple fact that comes through as the dust settles in the aftermath of the fiscal cliff and that is that Barack Obama has just cashed in on some major political capital and the sensible conservatives knew he had it to use and fully intended to use it. Obama ran, in part, on solving the fiscal crisis by raising taxes on the richest among us and won. America had two clear choices to pick from and they didn’t pick the conservative version. Much has been made of the fact that the G.O.P. had held onto the House but they only did so as a result of redistricting. In terms of absolute votes cast for those running for Congress, across the nation as a whole, “Democratic candidates for Congress won 1.1 million more votes than Republicans, according to a tally of the popular vote kept by David Wasserman, the House editor of The Cook Political Report.” The Republican leadership in Congress knows that winning as a result of map making means a lot less politically than does winning by popular appeal and presently the G.O.P. ranks near the low end of its historic popularity. More importantly, the American people have demanded compromise and they indicated that they are clearly fed up with Tea Party obstruction on Capitol Hill. This had to be a motivating factor for Republicans as it is they, not Obama and the Democrats who would have been blamed for the country’s sliding back into a recession. In the end President Obama wound up giving less in the way of concessions than he would have just two weeks ago when he bargained with John Boehner in search of a deal and dramatically less than he would have back in 2011 when he and the Speaker were on the verge of a “Grand Bargain.” Such is the measure of the political shift that has taken place since the Tea Party victories in 2010 and Obama’s re-election this past November.

Steven J. Gulitti
1/2/2013

Sources:
Jennifer Steinhauer: “Divided House Passes Tax Deal in End to Latest Fiscal Standoff”; http://www.nytimes.com/2013/01/02/us/politics/house-takes-on-fiscal-cliff.html?pagewanted=2&_r=0&ref=todayspaper

“John Boehner, Eric Cantor Split On Fiscal Cliff Deal”; http://www.huffingtonpost.com/2013/01/02/john-boehner-eric-cantor_n_2395593.html?utm_source=DailyBrief&utm_campaign=010213&utm_medium=email&utm_content=FeatureTitle&utm_term=Daily%20Brief

Mike Allen and Jim VandeHei: “BEHIND THE CURTAIN — Why the GOP caved: The politics are horrible on the backside of the cliff”; http://www.politico.com/playbook/

“Tea party backers swallow a bitter pill in ‘cliff’ bill”; http://www.washingtonpost.com/politics/cliff-bill-is-a-bitter-pill-for-houses-tea-party-adherents-to-swallow/2013/01/01/5345286e-544d-11e2-8e84-e933f677fe68_story.html

“GOP anti-tax policy goes over the cliff”; http://www.politico.com/story/2013/01/gop-anti-tax-policy-goes-over-the-cliff-85657.html

Charles Krauthammer: “Cliff deal a ‘rout”; http://www.politico.com/story/2013/01/krauthammer-cliff-deal-surrender-85656.html?ml=po_r

“Why President Obama, Mitch McConnell took the deal”; http://www.politico.com/story/2013/01/why-mcconnell-obama-took-the-deal-85655.html#ixzz2Gr6BLtPZ

“Obama hails tax bill, warns GOP not to pick fight on debt ceiling”; http://thehill.com/homenews/administration/275123-obama-hail-cliff-deal-but-warns-gop-on-debt-ceiling

“How Maps Helped Republicans Keep an Edge in the House”; http://www.nytimes.com/2012/12/15/us/po

Tags: 2012 Elections, Barack Obama, Charles Krauthammer, Deficit Talks, Eric Cantor, Fiscal Cliff, Grover Norquist, John Boehner, Mitch McConnell, Patrick J. Toomey, Paul Ryan, tax policy, Tea Party Movement, Tom Coburn
3 Comments »

by SJGulitti

The Growing Revolt Against Grover Norquist

1:57 pm in Uncategorized by SJGulitti

Grover Norquist - Caricature

Grover Norquist - Caricature

Two weeks ago I penned a short piece titled “Grover Norquist Collateral Casualty of 2012?” where I broached the question of whether or not Norquist would become a casualty as a result of the coming fiscal cliff negotiations and where I said, “…look for Grover Norquist to politically take a major hit in the resolution of the fiscal cliff crisis.” The way things are playing out I think that we can pretty much assume that Norquist is already taking on water and his support and influence seems to be fading with each passing day. Let’s review a few recent developments, staring with this:”Grover Norquist: Washington Enemy No. 1 :The man who enforces the no-new-taxes pledge is under fire like never before. Why he still expects Republicans will hold the line”; To wit: “Republicans are facing an avalanche of pressure from the White House, the media and even many on Wall Street to abandon their antitax principles to avoid a “fiscal cliff…The pressure on Republicans to repudiate this oath has never been as intense as it is now. Mr. Obama is claiming a voter mandate to raise taxes, while the media and liberals are declaring that the days of “Norquistism,” as they derisively call it, are over. A New York Times story this week claimed that more Republicans are ready to violate the pledge. After the 2011 debt-ceiling debacle, the election losses and the prospect of getting blamed for going over the fiscal cliff, the conventional wisdom is that the GOP has no choice but to fold…I remind Mr. Norquist that the election exit polls show that voters, for the first time in two decades, favor higher taxes on the rich.”

In the Senate, several prominent Republicans have already broken ranks with Norquist publicly, Lindsey Graham (R-SC): “When you’re $16 trillion in debt, the only pledge we should be making to each other is to avoid becoming Greece, and Republicans — Republicans should put revenue on the table…We’re this far in debt. We don’t generate enough revenue. Capping deductions will help generate revenue. Raising tax rates will hurt job creation…So I agree with Grover, we shouldn’t raise rates. But, I think Grover is wrong when it comes to [saying] we can’t cap deductions and buy down debt…I want to buy down debt and cut rates to create jobs, but I will violate the pledge, long story short, for the good of the country, only if Democrats will do entitlement reform.” Tom Coburn (R-OK): “I’m all for the very wealthy paying more taxes…Senate Republicans — and many House Republicans — have repeatedly rejected Mr. Norquist’s strict interpretation of his own pledge, a reading that requires them to defend every loophole and spending program hidden in the tax code…As a result, rather than forcing Republicans to bow to him, Mr. Norquist is the one who is increasingly isolated politically.” John McCain (R-AZ) said Sunday, “that he would support limiting deductions.” Saxby Chambliss (R-GA) who said last week that “the pledge is outdated and unhelpful for reducing the national debt…I care more about my country than I do about a 20-year-old pledge.” Bob Corker (R-TN): “I’m not obligated on the pledge…I made Tennesseans aware, I was just elected, the only thing I’m honoring is the oath I take when I serve, when I’m sworn in this January.” The senior Republican Senator from Tennessee, Lamar Alexander said that the only oath he’s taken is his oath of office.” Regarding taxes Alexander said’ “I think Republicans have done plenty of talking about revenues on the table…We’re ready. It’s time for the president to step up.”

Of even greater significance is the fact that the defections have now moved beyond the Senate, where Republicans are in the minority, to the Republican controlled House of Representatives. Even fiscal hawk Eric Cantor (R-VA) has publicly distanced himself from Norquist, “When I go to the constituents that have reelected me, it is not about that pledge…It really is about trying to solve problems.” While Cantor, like Graham isn’t a fan of raising the tax rates he is unequivocally in favor of increasing revenues and he doesn’t necessarily tie that to matching adjustments in deductions as required by the Norquist pledge. Peter King (R-NY) said, “everything should be on the table in negotiations to avert the “fiscal cliff.” Jeff Flake (R-AZ): “The only pledge I’d sign is a pledge to sign no more pledges…We’ve got to ensure that we go back and represent our constituents in a way — I believe in limited government, economic freedom, individual responsibility. I don’t want higher taxes. But no more pledges.” Quoting the political magazine “The Hill” on the comments of Congressman Tom Cole (R-OK): “Rep. Tom Cole (R-Okla.), a respected party strategist and former chairman of the National Republican Campaign Committee, became the most prominent House Republican to suggest that the GOP do what has long been unthinkable within the party: lock in the George W. Bush-era tax rates for annual incomes up to $250,000 without simultaneously extending them for top earners.” Diane White (R-TN): “I answer to my constituents, not to a pledge.”
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Tags: Anti-Government Ideas, Barack Obama, Bob Corker, Conservative Ideas, Diane White, Entitlement Spending, Eric Cantor, Federal Deficit, Grand Bargain, Grover Norquist, House Republicans, Jeff Flake, John Boehner, John McCain, Koch Brothers, Lamar Alexander, Lindsey Graham, Peter King, republican party, Saxby Chambliss, Senate Republicans, Sheldon Adelson, tax policy, tea party, Tom Coburn, Tom Cole
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by SJGulitti

Grover Norquist Collateral Casualty of 2012?

9:34 am in Uncategorized by SJGulitti

In light of the election post mortems taking place among conservatives, perhaps no one is more delusional, with the exception of Karl Rove, than Grover Norquist. Norquist, a high priest of limited government, is having nothing to do with the reality borne of Mitt Romney’s defeat. Rather than to see in that defeat the rejection of four years of anti-government attacks and ideas, Norquist would have us believe that Tuesday night’s results have simply “confirmed the status quo of the 2010 election.” That’s an odd way of thinking about the election when one considers the fact that the entire contest was framed as a choice between two different paths for America and that roughly 60 percent of Americans agreed with president Obama’s views on taxes. If you read the National Review piece, written by Jim Geraghty the morning after, you would more likely believe that the Republican victory of 2010 was the anomaly and as such hardly represents the status quo. If Norquist’s political and economic arguments had taken hold, as many on the right believe they had, then Romney and the Republicans would have won by a landslide. Hence the notion that what we have here is a “confirmation” of the recent past is nothing more than a salve for bruised and disconsolate conservative egos. That said, while we may all be focused with laser like attention on the upcoming fiscal cliff, I fully expect to see Grover Norquist among the collateral casualties littering the political landscape in the aftermath of 2012.

Grover Norquist is famous for the “Taxpayer Protection Pledge” which obligates its signatories to “oppose increases in marginal income tax rates for individuals and businesses, as well as net reductions or eliminations of deductions and credits without a matching reduced tax rate.” In the abstract the pledge might seem a sound and reasonable approach to taxation, in reality it has little utility in the current economic and political environment and therein lays a fundamental problem for Norquist. In light of the looming fiscal cliff, with its necessity of raising revenues, coming as it has in the wake of Barack Obama’s victory, the likelihood that Norquist’s ideas will be adhered to are remote at best. Added to that reality is the fact that Americans want their entitlements to remain essentially intact while business leaders are now open to increasing revenues through tax reform. It is of particular significance that responsible business leaders see a need for increased revenues as they should normally be Norquist’s natural allies. To wit: “On Thursday morning, more than 80 executives of leading American corporations signed a statement calling for a deficit reduction compromise that would “include comprehensive and pro-growth tax reform, which broadens the base, lowers rates, raises revenues and reduces the deficit.” Several members of the group, which includes highly paid chief executives of financial and industrial corporations who will stand to pay more if President Obama succeeds in his effort to raise taxes on the wealthy, then helped ring the opening bell at the New York Stock Exchange to draw attention to their coalition, Fix the Debt… But the business leaders’ position also contradicts the stand of Mitt Romney and other Republicans, who say that all tax increases are “job killers,” that the federal budget can be balanced with spending cuts alone and that any overhaul of the tax code should be “revenue neutral,” neither raising nor lowering the government’s total tax collection. “To say that you can solve this without increases in taxes is ludicrous,” said David M. Cote, the chief executive of Honeywell, a Republican and a member of Mr. Obama’s Bowles-Simpson fiscal commission in 2010. “Most wealthy people get it.” The underlying change in tone is clearly evident when even a stalwart critic of the Obama administration, the NeoCon Bill Kristol noted on Fox News “It won’t kill the country if we raise taxes a little bit on millionaires.”

In what can only be seen as a further weakening of Norquist’s anti-tax appeal is the fact that many of the Republican members of Congress who originally signed the pledge have by now distanced themselves from it. Those who have not have suffered politically: “While not all races have been called, at least 55 Republican House incumbents or candidates who signed the pledge — and 24 Republican Senators or hopefuls — lost on Tuesday. Linda McMahon (R-CT), Senator Scott Brown (R-MA), Treasurer Josh Mandel (R-OH), Secretary of State Charles Summers (R-ME), former Gov. Tommy Thompson (R-WI) all signed the pledge and were attacked by their Democrats opponents in face-to-face debates over the issue. All five were defeated in their Senate bids. State Sen. Tony Strickland (R-CA), Rep. Bob Dold (R-IL), State Sen. Richard Tisei (R-MA), and Rep. Frank Guita (R-NH) were also attacked by their House race opponents in debates for signing the pledge in this campaign or in the past. All four were also defeated. In fact, of the fifteen-plus House Republican incumbents who apparently lost re-election, every single one had signed Norquist’s pledge.” In another indication of the changing mood on taxes, a senior aide to one House Republican leader said, off the record, “The president won, and the tax cuts are ending, whether we like it or not. So we have to figure out how to deal with it.” Beyond this weakening in the commitment to the no tax pledge among individual members of Congress there is a renewed interest in the “Grand Bargain” on the part of the bipartisan “Gang of Eight”. These senators, who in the summer of 2011 had crafted a deficit compromise that was a combination of revenue increases and spending cuts, are already meeting to discuss the way forward. When considering the work of the “Gang of Eight” the operative word is compromise, something that the American people have overwhelmingly endorsed and one which Norquist and his followers have opposed. In the words of Tom Friedman who wrote a compelling article as to why Obama was reelected: “The country is starved for practical, bipartisan cooperation, and it will reward politicians who deliver it and punish those who don’t.” Grover Norquist are you listening or are you content with being on the wrong side of this issue?

Speaker of the House John Boehner has already signaled his willingness to compromise on fiscal reform to the point of raising revenues by eliminating loopholes as part of overall tax reform. While he may oppose raising marginal tax rates, and it’s not certain that he will prevail, Boehner’s willingness to increase revenues overall is a direct blow to Norquist’s anti-tax pledge which eschews any idea of revenue increases unless those are offset by further corresponding reduced tax rates. That said it would also appear that the results of 2012 have strengthen Boehner’s hand in dealing with the Tea Party crowd in the House. Former Secretary of Labor, Robert Reich, detailed the setbacks suffered by the G.O.P. in this election and concluded that considering all of the Tea Party induced setbacks: “Tuesday wasn’t exactly a repudiation of the Tea Party, and the public’s rejection of Tea Party extremism on social issues doesn’t automatically translate into rejection of its doctrinaire economics. But the election may have been enough of a slap in the face to cause Tea Partiers to rethink their overall strategy of intransigence. And to give Boehner and whatever moderate voices are left in the GOP some leverage over the crazies in their midst.” Apparently a significant number of House Republicans are already coming around to Boehner’s way of thinking as is indicated a recent New York Times article, “Boehner Tells House G.O.P. to Fall in Line”, referenced below. Ironically, if not almost comically, Grover Norquist himself seems to have sobered up to the new political realities stemming from the reelection of Barack Obama. He is now on the public record as saying “I’m for additional revenue. I’m not for tax increases.” But Norquist is also banking on the hope that any increase in revenues will be offset by a corresponding reduction in overall tax rates thereby conforming to his tax pledge philosophy. If that doesn’t happen then his pledge will have seen to have been violated by House Republicans. Seeing as House Republicans has evidenced much less in the way of loyalty to the “Taxpayer Protection Pledge” look for Grover Norquist to politically take a major hit in the resolution of the fiscal cliff crisis.

In the upcoming deficit reduction fight, Barack Obama presently holds most of the tactical advantages. For one, a central theme of his reelection campaign was tax fairness and it is he who won the election not the advocates of limited government. In staking out his position the president said: “I’m not wedded to every detail of my plan. I’m open to compromise. But I refuse to accept any approach that isn’t balanced…and on Tuesday night, we found out that the majority of Americans agree with my approach.” Secondly, Obama and the Democrats can force House Republicans into a compromise by using the fiscal cliff as leverage, threatening to allow higher tax rates and spending cuts to go into effect on January 1st and thereafter proposing tax cuts for the majority of Americans. Republicans will be put in the position of opposing tax relief for the bulk of the taxpayers in the event that they don’t agree to compromise with the Democrats. The last time we went to the brink of a fiscal cliff, it was the Republicans, not Obama and the Democrats who paid the price politically. This time the damage to Republicans can only be worse, particularly as the electorate demands bi-partisan compromise as noted above. Conservatives have their backs to the wall on this issue for other reasons as well. Several studies have come out and have “found no correlation between top tax rates and economic growth, a central tenet of conservative economic theory…The reduction in the top tax rates appears to be uncorrelated with saving, investment and productivity growth. The top tax rates appear to have little or no relation to the size of the economic pie. However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution.” The gravity of such a finding and its threat to Congressional Republicans is underlined by the fact that their leadership on Capitol Hill had the report withdrawn. Moreover, two recent reports from the Congressional Budget Office also bode ill for Republicans. One shows that the deficit can’t be reduced by spending cuts alone and that “significant deficit reduction is likely to require a combination of policies”; i.e. both spending cuts and revenue increases. The second details the damage that will be done if we go off the fiscal cliff: “According to CBO’s projections, if all of that fiscal tightening occurs, real (inflation-adjusted) gross domestic product (GDP) will drop by 0.5 percent in 2013 (as measured by the change from the fourth quarter of 2012 to the fourth quarter of 2013)—reflecting a decline in the first half of the year and renewed growth at a modest pace later in the year. That contraction of the economy will cause employment to decline and the unemployment rate to rise to 9.1 percent in the fourth quarter of 2013.”

From a political standpoint I hardly think that the Republican Party wants to be blamed for sending the economy back into recession and unemployment back over 9 percent and therein lays another advantage that favors the president. The bottom line is this, politically and tactically the president holds a better hand of cards than do his adversaries. With their most powerful card being politically unpopular continued obstruction they really don’t have a very powerful hand to play after all. The weakness of the Republican hand is particularly relevant as the upcoming fiscal negotiations will take place at the same time the G.O.P. is undergoing a period of deep soul searching as to why they lost an election that they theoretically should have won and to what degree Republican obstruction on Capitol Hill contributed to that defeat. That said look for Grover Norquist to be found among the collateral casualties that will result from a deficit reduction deal. There’s a better than average likelihood that Norquist and Co, are going to be going over their own political cliff and that his ideas will become less and less compelling as we move forward as a nation.

Steven J. Gulitti

11/11/12

Sources:

How Stand the Correlation of Forces in American Politics?; http://www.huffingtonpost.com/grover-norquist/republican-house-obama-reelection_b_2088071.html?utm_hp_ref=daily-brief?utm_source=DailyBrief&utm_campaign=110812&utm_medium=email&utm_content=BlogEntry&utm_term=Daily%20Brief

Jim Geraghty: And Now, the Most Depressing Morning Jolt Ever; http://www.nationalreview.com/campaign-spot/332940/not-less-painful-day-goes

Grover Norquist; http://en.wikipedia.org/wiki/Grover_Norquist

Business Leaders Urge Deficit Deal Even With More Taxes; http://www.nytimes.com/2012/10/26/us/politics/business-leaders-urge-deficit-deal-even-with-more-taxes.html

White House Plans Public Appeal on Deficit; http://online.wsj.com/article/SB10001424127887324894104578113022312251756.html?mod=ITP_pageone_1

More Republicans Rejecting Grover Norquist’s ‘No Tax Increases Ever’ Pledge; http://crooksandliars.com/blue-texan/more-republicans-rejecting-grover-norqu

GOP rookies buck Grover Norquist; http://www.politico.com/news/stories/0512/76470.html

How Grover Norquist’s Radical Anti-Tax Pledge Sunk Top Tier Republican Senate Candidates; http://thinkprogress.org/economy/2012/11/07/1159241/grover-norquist-pledge-albatross-vulnerable-candidates/?mobile=nc

Axelrod calls Boehner ‘encouraging’ ahead of ‘fiscal cliff’ negotiations; http://thehill.com/blogs/blog-briefing-room/news/267257-axelrod-obama-campaign-never-doubted-victory

The Looming Compromise on Revenues; http://open.salon.com/blog/steven_j_gulitti/2011/07/08/the_looming_compromise_on_revenues

Tom Friedman: Hope and Change: Part 2; http://www.nytimes.com/2012/11/07/opinion/friedman-hope-and-change-part-two.html?_r=1

Obama must lead effort to avoid fiscal cliff: Boehner; http://news.yahoo.com/obama-must-lead-effort-avoid-fiscal-cliff-top-164653450–business.html

Obama, Boehner Open to Budget Bargain; http://online.wsj.com/article/SB10001424127887324439804578108971200674876.html?mod=WSJ_Election_LEFTSecondStories

The Fever and the Cliff; http://thepage.time.com/2012/11/09/the-fever-and-the-cliff/?xid=newsletter-thepagebymarkhalperin

Robert Reich: Why John Boehner May Have More Leverage Over the Tea Partiers in Congress; http://www.huffingtonpost.com/robert-reich/boehner-fiscal-cliff-negotiations_b_2093390.html?utm_hp_ref=daily-brief?utm_source=DailyBrief&utm_campaign=110912&utm_medium=email&utm_content=BlogEntry&utm_term=Daily%20Brief

Boehner Tells House G.O.P. to Fall in Line; http://www.nytimes.com/2012/11/11/us/politics/boehner-tells-house-gop-to-fall-in-line.html?ref=todayspaper

Norquist OK with Boehner tax stance; http://thehill.com/blogs/on-the-money/domestic-taxes/267211-norquist-okay-with-boehner-tax-stance

Pressure Rises on Fiscal Crisis; http://professional.wsj.com/article/SB10001424127887324894104578107363250113122.html?mod=WSJPRO_hpp_LEFTTopStories

Sen. Murray: Dems would let Bush-era rates expire before taking ‘unfair deal’; http://thehill.com/blogs/blog-briefing-room/news/267253-sen-murray-dems-would-let-bush-era-rates-expire-before-taking-unfair-deal

Congress Sees Rising Urgency on Fiscal Deal; http://www.nytimes.com/2012/11/09/us/politics/congress-sees-rising-urgency-on-fiscal-deal.html

Nonpartisan Tax Report Withdrawn After G.O.P. Protest; http://www.nytimes.com/2012/11/02/business/questions-raised-on-withdrawal-of-congressional-research-services-report-on-tax-rates.html

C.B.O. Choices for Deficit Reduction; http://www.cbo.gov/publication/43692

C.B.O. Economic Effects of Policies Contributing to Fiscal Tightening in 2013; http://www.cbo.gov/publication/43694

Obama, Boehner Open to Budget Bargain; http://online.wsj.com/article/SB10001424127887324439804578108971200674876.html?mod=WSJ_Election_LEFTSecondStories

Tags: 2012 Election, Barack Obama, Congressional Republicans, Fiscal Cliff, Grover Norquist, John Boehner, tax policy, Taxpayer Protection Pledge, tea party
4 Comments »

by SJGulitti

Conservatives at a Dead End?

1:02 pm in Uncategorized by SJGulitti

Election day has finally arrived and to true conservatives the final outcome will probably be nothing more than a mixed blessing at best. First and foremost Mitt Romney is hardly a rock ribbed conservative, not if you base your assessment of him on his political track record. He has migrated politically from a Northeastern liberal Republican to a faux “severe conservative” and then back to the center as the political winds have necessitated. Just look at his political maneuvering in the post primary run up to today. He may have disavowed the “Etch-a-Sketch” comments of Eric Fehnstrom but he has surely followed just that strategy, even to the point of largely agreeing with the foreign policies of Barack Obama as evidenced in the third presidential debate. In short there’s little reason to believe that Mitt Romney is anything but a shrewd political charlatan.

For conservatives whatever happens tonight there will still be several nagging questions to address. For one, what became of the “conservative counterrevolution of 2010″? In the wake of the widespread Republican by-election victories we were treated to all manner of editorials and op-eds, both written and on talk radio and Fox News about how America had seen through and rejected the “Socialism” of Barack Obama, returning to a more conservative political mindset. I however always believed that 2010 represented more of a protest vote than anything significant in the way of a fundamental shift in the political paradigm. Support for the notion that 2010 amounts to a protest vote rather than a fundamental shift in the American political landscape can be seen in the decline in popularity of the Tea Party Movement, the increased frustration on the part of the public with Republican Party obstruction in Congress and the increasing numbers of Republicans who have distanced themselves from Grover Norquist’s no tax pledge. Neither does Norquist’s idea that “all that we need is a Republican president with enough digits to sign what’s put before him” appear to resonate very well with the voting public. While more people identify as conservatives than identify as liberals, the net number of those who identify as conservatives is roughly around one third of the American public. If conservative thoughts had really taken hold you would see the numbers of people identifying as conservatives being north of 50% and the presidential race would look a lot different than it does today. Likewise the conservative attacks on Obama’s handling of the economy and posture as a world leader have failed to register with a majority of Americans. If they had Mitt Romney would be ahead by at least 6 to 10 percentage points rather than trailing within the statistical margin of error.

The myth that America is a “center right country” has been faithfully kept alive in the warrens of conservative media but as the polling numbers show on the day of the election, there’s no reason to believe that that idea has anymore validity today than in did in 2008 when Dick Morris claimed the same thing on the weekend before the election saying that: “Republicans were coming home and John McCain would win the election.” If there was anything in the way of a true conservative counterrevolution then where were the true conservative leaders during the Republican primary process? Out of the length and breadth of the conservative movement not a single viable candidate arose to challenge Barack Obama, instead Mitt Romney merely waited out the self destruction of one flawed conservative challenger after another till he was the last man standing. Quoting political commentator Steve Bogden: “Normally, you have a competitive primary. This year, it was an ongoing audition for whoever was going to be the anti-Romney. Almost everybody had their surge, but there were no credible challengers. Cain? Ging­rich? Santorum? Romney didn’t have to ‘win’ this year. He just waited for everyone else to lose.”

If Mitt Romney is lucky enough to win tonight it will be a squeaker and being the shrewd politician that he is he will continue to drift around the center no matter the tone of his rehtoric. He’ll have no other choice if he hopes to be reelected in 2016 and that bodes ill for conservatives who will be hoping that he pushes their agenda forward. I seriously doubt that Romney would ever subscribe to Grover Norquist’s notion that he should be a rubber stamp for a Tea Party Congress. I doubt that Romney sees Norquist and his anti-tax movement as anything more than a political sideshow to the big show of governing. If Barack Obama is lucky enough to win this evening I fully expect to see the usual crisis of confidence reemerge among conservatives when they beat each other up over the idea that “every time we nominate a candidate who moves to the center we lose.” The great irony of this debate is that if they did nominate a far right conservative, and why didn’t they, they would lose anyway. Like the Romney-Ryan economic plan the math just doesn’t add up for conservatives. For all of the bluff and bluster that one hears on Fox, Limbaugh, and across the entire spectrum of right-wing media about the American people being fundamentally conservative it just ain’t so. If it were true we wouldn’t be in essentially a dead heat and Romney would be way out in front. However in spite of four years of a visceral anti-Obama diatribe on the right, a lackluster economy and a threatening world scene there just aren’t enough conservative votes out there to make it happen.

Steven J. Gulitti
11/6/12

Tags: 2012 Presidential Election, Barack Obama, Conservative Media, conservatives, Eric Fehnstrom, Fox News, Grover Norquist, MItt Romney, Republican Primary, tea party
2 Comments »

by SJGulitti

Can Mitt Romney Fix the Economy?

8:28 am in Uncategorized by SJGulitti

When Barack Obama first took office economist Ken Rogoff, who served on the International Monetary Fund and at the Federal Reserve, warned the president that the 2008 downturn was no ordinary event. Rogoff advised Obama that downturns resulting from bursting financial bubbles took a minimum of five years to resolve. That meant that recovery wouldn’t be expected to take hold until 2013. A compelling analysis of the crisis, the political stalemate in policymaking and possible solutions has been put forth by the New America Foundation, “The Way Forward”, referenced below. To wit: “The political stalemate is in part structural, but also is attributable in significant large measure to the nature of the present economic crisis itself, which has stood much familiar economic orthodoxy of the past 30 years on its head. For despite the standoff over raising the U.S. debt ceiling this past August, the principal problem in the United States has not been government inaction. It has been inadequate action, proceeding on inadequate understanding of what ails us.” The study is bi-partisan in its critique but to be honest, the solutions given, a substantial five to seven year infrastructure revitalization program, debt restructuring at the household and institutional level and global economic reform are not likely to be championed by a Republican administration in the present political environment. Throughout the entire Obama administration the Republican opposition has conceptualized the current crisis as a garden variety downturn made all the worse by what they believe to be the president’s incompetent policies and that if we could only return to conservative economic fundamentals everything would be alright. The election of Mitt Romney, a businessman, is he held forth as an obvious simple solution and therein lies the problem.

For one thing a nation isn’t a corporation, it has different problems and challenges, it isn’t driven by profit making. A nation is confronted with foreign policy, social and environmental problems that are beyond the scope of a corporation. Secondly, a corporate CEO is beholden to shareholders not the public and his focus is, as a result, rather narrow when compared to president’s. Conservative columnist David Brooks points out the difference: “At first blush, business success would seem to be good preparation for political success. A C.E.O. learns to set priorities, manage organizations and hone analytic skills. But these traits are more transferable to being a mayor, which is more administrative, than to being president…If you look back over history, you see that while business success can sensitize a politician to the realities other executives face, there’s little correlation between business success and political success.” We’ve had several businessmen in the White House, Herbert Hoover, Jimmy Carter and George W. Bush and none of them stand out as great presidents. As such a compelling question arises when we examine Romney’s record and his claims that he’s well suited to the presidency due to his business experience. For one thing Romney’s never been able to quantify whether or not, as a result of his business activity, he created a net positive number of jobs. Quoting Mark Maremont of the Wall Street Journal: “Assigning jobs numbers to private-equity firms has been a fairly rare exercise among researchers…As a result, there is no widely accepted accounting measure. Some academic experts said the Romney campaign’s 100,000-jobs count is flawed, because it gives Bain all the credit, even though other investors also played a role in the four key companies, and includes jobs added long after Mr. Romney left Bain in 1999…Little noticed amid the debate is that the four companies at the core of Mr. Romney’s 100,000-jobs claim were relatively insignificant in the context of his 15-year Bain career. The total invested in all four was about $25 million, or about 2% of the money Bain invested during Mr. Romney’s tenure.” There have been other studies on the topic as well and that raises the question of why hasn’t the Romney campaign produced some hard results that prove that Mitt Romney is the job creator he claims to be? Robert Reich, former Secretary of Labor, pointed out that if private equity companies were such efficient job creators they wouldn’t need all of the favorable tax treatment they receive. Reich pointed out that 98% of the investments channeled into the economy from private equity firms come from outside those firms and as such they aren’t effectively managing resources so much as they’re merely shuffling money around. To paraphrase Reich, through the vehicle of private equity we’ve replaced capital formation with casino capitalism and leveraged buyout firms greatly contributed to the overleveraging that brought us to the brink of disaster in 2008. The truth is that the goal of private equity isn’t to create jobs, it’s to create wealth and any job creation that results is secondary. Thus any claim made by Mitt Romney that his experience at Bain is proof positive that he’s a job creator is both intellectually dishonest and as of today, unsubstantiated.

Regarding Romney as public executive I find it interesting that he has in many ways downplayed his record as governor of Massachusetts and only talks in passing about his role in bailing out the Salt Lake City Olympics. His healthcare law is the obvious reason but his economic track record during that time doesn’t exactly burnish his image as a job creator either. An examination of several news articles reveals why Romney has chosen not to dwell on that record. Citing the Boston Globe and other sources: “Our analysis reveals a weak comparative economic performance of the state over the Romney years, one of the worst in the country. On all key labor market measures, the state not only lagged behind the country as a whole, but often ranked at or near the bottom of the state distribution. Manufacturing payroll employment throughout the nation declined by nearly 1.1 million or 7 percent between 2002 and 2006, but in Massachusetts it declined by more than 14 percent, the third worst record in the country.” FactCheck.org: “Payroll jobs in Massachusetts hit their low point in December 2003 at the end of Romney’s first year in office. And the number of jobs declined in seven of the remaining 36 months of his term, as measured by total nonfarm employment, seasonally adjusted, which is the standard measure of payroll employment used by economists and journalists. The claim that jobs increased “every single month” is false. Furthermore, Romney’s job record provides little to boast about. By the end of his four years in office, Massachusetts had squeezed out a net gain in payroll jobs of just 1 percent, compared with job growth of 5.3 percent for the nation as a whole.” The bottom line on Romney’s record as a governor who created jobs is that Massachusetts ranked 47th overall in job creation during Romney’s tenure, not exactly a winning track record on job creation. When it comes to Romney’s “turnaround” of the 2002 Olympics the one very salient fact that is constantly ignored is that Romney rescued the Salt lake City Games with $1.3 billion dollars of federal money. Beyond the billion plus that went to bail out the games there was an additional $32 million dollars in public funding for infrastructure improvement. Is it any wonder why Mitt Romney doesn’t want to spend too much time airing out the particulars of his turnaround of the Salt Lake City Olympics? After all it was almost totally a function of public spending and in today’s Republican Party that sort of idea is nothing less than heresy.

Beyond the very real questions which arise from Governor Romney’s questionable pitch that he has a track record as a job creator there are a host of questions that relate to policies on taxes and the deficit. Starting with taxes and economic growth, the link between the two is questionable at best. Citing a piece written by David Leonhardt, “Do Tax Cuts Lead to Economic Growth?” recent history shows a disconnect between taxes and growth: “The defining economic policy of the last decade, of course, was the Bush tax cuts. President George W. Bush and Congress, including Mr. Ryan, passed a large tax cut in 2001, sped up its implementation in 2003 and predicted that prosperity would follow. The economic growth that actually followed — indeed, the whole history of the last 20 years — offers one of the most serious challenges to modern conservatism. Bill Clinton and the elder George Bush both raised taxes in the early 1990s, and conservatives predicted disaster. Instead, the economy boomed, and incomes grew at their fastest pace since the 1960s. Then came the younger Mr. Bush, the tax cuts, the disappointing expansion and the worst downturn since the Depression. Today, Mitt Romney and Mr. Ryan are promising another cut in tax rates and again predicting that good times will follow. But it’s not the easiest case to make.” Now granted Romney has proposed to overhaul the tax code as an element in reinvigorating the economy but a detailed study of the plan by the Tax Policy Center has shown that “…achieving all of Mr. Romney’s top-line goals — a revenue-neutral overhaul that does not increase the tax burden of the middle class — is not arithmetically possible.” Moreover the TPC’s Donald Marron, a former Bush administration official said:”At the level of taxes we’ve been at the last couple decades and the magnitude of the changes we’ve had, it’s hard to make the argument that tax rates have a big effect on economic growth.” Another report from Congressional Research Service which analyzed taxes and growth shows: “The results of the analysis suggest that changes over the past 65 years in the top marginal tax rate and the top capital gains tax rate do not appear correlated with economic growth. The reduction in the top tax rates appears to be uncorrelated with saving, investment, and productivity growth. The top tax rates appear to have little or no relation to the size of the economic pie.” Even Reagan era senior economic policy advisor Bruce Bartlett called current Republican Party thinking into question in an article entitled “Taxes and Employment”; to wit: “Since the beginning of the economic crisis, Republicans have insisted that tax cuts and only tax cuts are the appropriate medicine. They almost never explain how, exactly, this would reduce unemployment other than to say it worked for Ronald Reagan in the 1980s…There is simply no evidence that cutting taxes at the present time will do anything to raise employment.” The further problem with Romney’s tax proposals, beyond the fact that they remain largely a mystery on the eve of the election, is that they have the potential to explode the deficit and take the economy back into recession as is detailed in numerous references detailed below. In fact when Romney was governor of Massachusetts that state had the highest per capita debt of any state in the union, a fact that hardly inspires confidence in his ability to manage the federal debt.

There are two additional flaws in Mitt Romney’s claim that he has the heft to turn around the economy. One is a misrepresentation of the problems with regulations. Again, quoting Bruce Bartlett: “Republicans have a problem. People are increasingly concerned about unemployment, but Republicans have nothing to offer them…They assert that Barack Obama has unleashed a tidal wave of new regulations, which has created uncertainty among businesses and prevents them from investing and hiring. No hard evidence is offered for this claim; it is simply asserted as self-evident and repeated endlessly throughout the conservative echo chamber…the number of layoffs nationwide caused by government regulation is minuscule and shows no evidence of getting worse during the Obama administration. Lack of demand for business products and services is vastly more important…These results are supported by surveys. During June and July, Small Business Majority asked 1,257 small-business owners to name the two biggest problems they face. Only 13 percent listed government regulation as one of them. Almost half said their biggest problem was uncertainty about the future course of the economy — another way of saying a lack of customers and sales. The Wall Street Journal’s July survey of business economists found, “The main reason U.S. companies are reluctant to step up hiring is scant demand, rather than uncertainty over government policies, according to a majority of economists.” In August, McClatchy Newspapers canvassed small businesses, asking them if regulation was a big problem. It could find no evidence that this was the case.” Again, what we are given as a way out of the problems of a less than robust economy is a solution in search of a problem to solve and that’s hardly a solution at all.

The second additional flaw in the Romney plan is it’s silence on how to deal with the structural changes that have occured in the world economy over the past forty years and how those chages have affected the American middle class. Other than to carry on about the currency of China, the Romney plan fails to address, as pointed out by Alpert et al.; “the steady entry into the world economy of successive waves of new export-oriented economies, beginning with Japan and the Asian tigers in the 1980s and peaking with China in early 2000, with more than two billion newly employable workers. The integration of these high-savings, lower wage economies into the global economy, occurring as it did against the backdrop of dramatic productivity gains rooted in new information technologies and the globalization of corporate supply chains, decisively shifted the balance of global supply and demand. In consequence, the world economy now is beset by excess supplies of labor, capital, and productive capacity relative to global demand. This not only profoundly dims the prospects for business investment and greater net exports in the developed world — the only other two drivers of recovery when debt-deflation slackens domestic consumer demand. It also puts the entire global economy at risk, owing to the central role that the U.S. economy still is relied on to play as the world’s consumer and borrower of last resort.” A number of studies have shown that these developments have wrecked havoc particularly on the middle tier of the job market, the very segment upon which the post World War II American middle class relyed on for it’s economic existence. These developments have further accelerated the “hollowing” out of the middle class as both jobs and technological innovation have moved from west to east and show little likelyhood of that trend reversing in a big way any time soon.

I closing there is little that would leave any informed observer with the any reason to believe that a vote for Mitt Romney is anything more than a leap of faith, on the part of the voter, that he can significantly effect the American economy for the better. His entire primary strategy was to outlast his advesaries by presenting himself as a safe, if not bland, alternative within an otherwise lackluster primary season. Likewise the same can be said for his contest with Barack Obama, he has stood there parroting stock conservative talking points while failing to produce much in the way of policy particulars all the while hoping that his business experience alone would somehow serve as proof positive that he could better manage the recovery. Thus there is little on offer from Governor Romney upon which a worried and weary electorate can pin theirs hopes on in search for a better tomorrow. According to James Fallows of the Atlantic this has been Mitt Romney’s stock in trade since his earliest days at Bain: “Romney also showed weaknesses that have persisted, even though he managed to minimize their effects in this year’s primary debates. His analysis of any policy rarely moved past the level of abstraction: the problem is too much regulation, so the solution is less regulation, lower taxes, and more incentives for small-business growth. In his Kennedy debates and afterward, this reliance on generalities seemed to reflect both a political and a professional outlook. Politically, a Republican skepticism of govern­ment in general reduces the incentive to learn the fine points of difference among public programs. Professionally, Romney’s background as a consultant and private-equity investor has conditioned him to offer his managerial skills and analytic ability, and to worry about specific answers only after he’s been signed on to deal with a troubled enterprise. Robert Walker, a former congressman from Pennsylvania who chaired the Ging­rich campaign in this year’s primaries, said that Romney’s trademark avoidance of detail arose from this aspect of his background. “Businessmen and consultants like to sell in glowing generalities, because they are never sure what unexpected things they’ll find when they dig into your problems.” Moreover, as per Ken Rogoff, in reality there is little reason to believe that if Mitt Romney had assumed the prseidency in 2009 that he or any other Republican would have done anything that would have produced radically different results. As such it would appear that neither Mitt Romney nor his lieutenants can provide the voting public with the evidence it needs to make a decision that they alone can create jobs and turn around the economy. The great irony of that is that Romney made business experience his trump card and yet his track record leaves so much to be desired and is, on its face and in its particulars, far from convincing. Perhaps that’s why he’s had so much trouble closing the sale with the voting public.

Steven J. Gulitti
11/5/12

Sources:

Kenneth Rogoff; http://en.wikipedia.org/wiki/Kenneth_Rogoff

Daniel Alpert, Robert Hockett, and Nouriel Roubini The Way Forward: Moving From the Post-Bubble, Post-Bust Economy to Renewed Growth and Competitiveness;

https://groups.google.com/forum/?fromgroups#!topic/sid-l/ktC5NDrSE-Q

The C.E.O. in Politics; http://www.nytimes.com/2012/01/13/opinion/brooks-the-ceo-in-politics.html?emc=eta1&_r=0

Mark Maremont: Tally of Job Creation By Bain Proves Vexing; http://online.wsj.com/article/SB10001424052702303292204577519293959381060.html

Mitt Romney Reticent About Bain Capital Debate; http://www.huffingtonpost.com/2012/05/23/romney-bain-capital_n_1540948.html?ref=daily-brief?utm_source=DailyBrief&utm_campaign=052412&utm_medium=email&utm_content=NewsEntry&utm_term=Daily%20Brief

After a Romney Deal, Profits and Then Layoffs; http://www.nytimes.com/2011/11/13/us/politics/after-mitt-romney-deal-company-showed-profits-and-then-layoffs.html?emc=eta1&_r=1&

Can Anyone Really Create Jobs?; http://www.nytimes.com/2011/11/06/magazine/job-creation-campaign-promises.html?pagewanted=2&emc=eta1&_r=0

Robert Reich on the Role of Private Equity; http://www.wnyc.org/shows/bl/2012/may/25/robert-reich-role-private-equity/

Should Romney get credit for job creation through Bain, if “any job creation was accidental”?; http://althouse.blogspot.com/2012/05/should-romney-get-credit-for-job.html

Romney’s economic record; http://www.boston.com/news/globe/editorial_opinion/oped/articles/2007/07/29/romneys_economic_record/

Myrtle Beach Blarney; http://www.factcheck.org/elections-2008/myrtle_beach_blarney.html

Mitt Romney plays the jobs card Commentary: Looking at his record, it’s a losing argument; http://www.marketwatch.com/story/mitt-romney-tries-to-play-the-jobs-card-2010-02-23?pagenumber=1

Mitt Romney and the Olympic bailout; http://www.democrats.org/news/blog/mitt_romney_and_the_olympic_bailout

Romney and the Olympics: What the Salt Lake Games say about a Mitt Romney presidency; http://www.deseretnews.com/article/865559550/Romney-and-the-Olympics-What-the-SLC-Games-say-about-a-Mitt-Romney-presidency.html?pg=all

Do Tax Cuts Lead to Economic Growth?; http://www.nytimes.com/2012/09/16/opinion/sunday/do-tax-cuts-lead-to-economic-growth.html?emc=eta1&_r=0

Tax Topics: The Romney Plan; http://taxpolicycenter.org/taxtopics/romney-plan.cfm

Taxes and the Econom: An Economic Analysis of the Top Tax Rates Since 1945; http://graphics8.nytimes.com/news/business/0915taxesandeconomy.pdf

Bruce Bartlett: Taxes and Employment; http://economix.blogs.nytimes.com/2012/05/01/taxes-and-employment/?emc=eta1

A Tax Plan That Defies the Rules of Math; http://www.nytimes.com/2012/08/12/opinion/sunday/romneys-tax-plan-defies-the-rules-of-math.html?emc=eta1&_r=0

Under Romney, Massachusetts Had Highest Per Capita Debt Of Any State; http://thinkprogress.org/economy/2012/05/16/485035/romney-debt-massachusetts/?mobile=nc

Higher Deficits Seen in Romney’s Tax Plan, and His Rivals’, Too; http://www.nytimes.com/2012/01/19/us/politics/romneys-tax-bill-and-gop-deficit-problems.html?emc=eta1

CBO Report Says Deficit Reduction Will Cause New Recession; http://www.huffingtonpost.com/2012/05/22/cbo-report-deficit-reduction-recession_n_1537774.html?ref=daily-brief?utm_source=DailyBrief&utm_campaign=052312&utm_medium=email&utm_content=NewsEntry&utm_term=Daily%20Brief

FACT CHECK: Romney’s Plan Would Slow The Recovery, Explode The Deficit; http://3chicspolitico.com/2012/06/12/fact-check-romneys-plan-would-slow-the-recovery-explode-the-deficit/

Bruce Bartlett: Misrepresentations, Regulations and Jobs; http://economix.blogs.nytimes.com/2011/10/04/regulation-and-unemployment/?emc=eta1

Don Peck: Pinched: How the Great Recession Has Narrowed Our Futures & What We Can Do About It.

90 Million Workers Won’t Be Needed By 2020, Study Says; http://www.huffingtonpost.com/2012/06/19/unskilled-workers-2020-mckinsey-global-institute-study_n_1609767.html?utm_hp_ref=daily-brief?utm_source=DailyBrief&utm_campaign=062012&utm_medium=email&utm_content=NewsEntry&utm_term=Daily%20Brief

The Seismic Economic and Political Changes that Transformed the American Dream; http://www.pbs.org/newshour/bb/politics/july-dec12/smith_10-01.html

The Structural Revolution; http://www.nytimes.com/2012/05/08/opinion/brooks-the-structural-revolution.html?emc=eta1

James Fallows: Slugfest; http://www.theatlantic.com/magazine/print/2012/09/slugfest/309063/

Stimulus Is Maligned, but Options Were Few; http://www.nytimes.com/2012/02/29/business/economy/republicans-malign-a-stimulus-but-the-plausible-options-were-few-economic-scene.html?adxnnl=1&emc=eta1&adxnnlx=1352030442-60rkb0Mri/Am1cGfZVvyIA

Tags: 2012 Elections, Barack Obama, Economic Policy, Job Creation, MItt Romney, Regulations, Tax Cuts
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by SJGulitti

Mitt Romney and Autumn’s Black Swan

2:09 pm in Uncategorized by SJGulitti

In nature black swans are a rarity. In the world of politics and economics they represent rare surprise events that have significant consequences. Of late the term black swan gained renewed currency when economist Nouriel Roubini said that economic crises weren’t “black swan events” but events that could be predicted by observing “macroeconomic and policy mistakes.” However, in the midst of the current presidential race, the extreme weather event that was Hurricane Sandy may very well represent a black swan, one that may have doomed the presidential aspirations of Mitt Romney and along with it, the conservative dream of defeating Barack Obama.

Needless to say, many would not have expected such a powerful storm so late in the season, especially those so heavily invested in climate change denial. Yet the arrival of Sandy has already had profound effects. First, it pushed the presidential race off of the news cycle for the better part of five days. That effectively precluded Romney from addressing his slowing momentum in the polls. Secondly, it allowed Barack Obama to command center stage as a bi-partisan Commander-in-Chief while Romney found his campaign relegated to a sidebar. Thus Governor Romney’s remarks on how he would “absolutely” eliminate FEMA if elected came back to haunt him at a time when Obama and Hurricane Sandy seemed omnipresent in the news cycle. As it is Obama has garnered a 78% approval rating for his handling of the federal response thus far. Third it refocused the debate on what should be the proper role of government in dealing with disasters and to what extent a crisis like Sandy could be adequately handled by a pared down FEMA, by the states or even less likely, private effort. Fourth it reintroduced the inconvenient subject of climate change into the closing days of the race, a topic that Republicans had sought to avoid.

Not surprisingly, the black swan event of Hurricane Sandy gave immediate birth to several coincident events in the form of Governors Chris Christie of New Jersey and Bob McDonnell of Virginia, both Republicans, praising the president’s efforts in promptly addressing the crisis. Praise of any sort form these two governors would have been unthinkable before Sandy and can do nothing but cause consternation within the Romney Campaign. Coming on the heels of the positive image of Obama and Christie touring a devastated New Jersey, New York’s Mayor Mike Bloomberg endorsed Obama for president claiming that Obama “was the better candidate to tackle the global climate change that he believes might have contributed to the violent storm.” These developments can only serve to heighten the anxiety level within the Romney campaign as it has to now hustle all that much harder to get back on track and on message.

That Mitt Romney was thrown off stride by the events of the past five days was evident in his Thursday stump speech in Roanoke Virginia. That speech, given with an air of rushed desperation, seemed like a presentation in fast forward by a guy who realizes he’s missed the better part of five days of effective campaigning and who seemed to want to make up for that by throwing everything but the kitchen sink into his presentation. It was disjointed and topically Romney was all over the political landscape rushing from subject to subject without anything in the way of a logical segue between topics. Then there was the outburst against Christie by Rush Limbaugh, who accused Christie of “propping up Obama’s campaign.” While such commentary can be seen as a moment of comic relief it is at the same time just one more distraction for Team Romney. But the import of Rush’s latest diatribe didn’t go unnoticed by political pro Howard Fineman who observed: “Rush is sort of a kind of air raid siren for the Republicans. When he’s screaming like that, you know something has happened, something significant has happened.” It goes without saying that any image of disunity within the ranks of the right at this late date represents an unwanted development for Romney who has had problems staying on message throughout the campaign.

To make matters worse, the black swan of Sandy arrived amid other developments that make so many of Romney’s campaign arguments all the more difficult to sustain. For one thing the jobs numbers have come in better than expected and the pitch that unemployment has been stuck above 8% is no longer one that Romney can make: “The Labor Department’s last look at hiring before Tuesday’s election sketched a picture of a job market that is gradually gaining momentum after nearly stalling in the spring. Since July, the economy has created an average of 173,000 jobs a month, up from 67,000 a month from April through June.” Analyzing the jobs numbers, Alan Kruger of the Council of Economic Advisors noted that there was a big increase in the number of construction jobs, something that significantly benefits workers without college. Yesterday we learned that consumer confidence was at a five year high: “The Thomson Reuters/University of Michigan’s final reading on the overall index on consumer sentiment rose to 82.6 from 78.3 in September. It was at its highest level since September 2007 on a final reading basis…Two-thirds of consumers surveyed expected President Barack Obama to win his re-election bid in just over a week…The barometer of current economic conditions gained to 88.1 from 85.7, while the gauge of consumer expectations rose to their highest level since July 2007 at 79 from 73.”

Another serious problem for Romney is the continuing blowback from his flagging efforts to denigrate the auto bailout and the fallout from that in the Midwest. Of particular import here is his campaign’s completely dishonest claim that the Chrysler Corporation was planning to ship jobs to China. That claim, apparently the result of the Romney campaign misreading a Bloomberg News report led to a broadside of criticism from auto industry executives. To wit: “Let’s set the record straight: Jeep has no intention of shifting production of its Jeep models out of North America to China,” Chrysler executive Gualberto Ranieri wrote in a statement “A careful and unbiased reading of the Bloomberg take would have saved unnecessary fantasies and extravagant comments.” The reality of the situation is, quoting Dana Milbank of the Washington Post, that since the auto bailout Chrysler has “has added about 7,000 jobs in North America…and it continues to expand its U.S. workforce and to invest hundreds of millions of dollars in American plants. Milbank goes on to observe: “The fast-and-loose with Jeep points to a troubling Romney instinct: When the stakes are high, as they are for him in must win Ohio, the truth is often the first casualty.” Likewise Romney received a sharp rebuke from General Motors spokesman Greg Martin for his allegation that GM plans to double the number of cars it builds in China. Martin said: “The ad is cynical campaign politics at its worst. We think creating jobs in the U.S. and repatriating profits back in this country should be a source of bipartisan pride.” Romney’s problems with the auto industry were only made worse by the law of unintended consequences, another mini black swan if you will, when Donald Trump was rebuked by Ralph Giles, Head of Design at Chrysler for suggesting that the company would move production overseas. Needless to say it would appear that the Romney campaign has blown a head gasket in Ohio when it comes to how it has handled the auto industry rescue, a flawed tactic that could cost him that state as well as Michigan.

Finally what of the swing state polls? As of 5:00 PM this afternoon the Real Clear Politics average polling for eleven swing states shows Romney leading in just three and with his lead in Virginia extremely slim. Likewise the same results obtain when you look at The Cook Political Report. However in this report there is one notable exception, Cook’s findings show that four of the swing states lean Democrat and none lean Republican even though all are considered toss ups. Charlie Cook, one of the best guys in the business when it comes to crunching numbers said today on MSNBC that in terms of probabilities, Romney had a much harder climb in putting together a winning combination on the electoral map. Quoting Time Magazine’s political analyst Mark Halperin “Based on the totality of the public and private polling, the onus is still on Governor Romney to demonstrate he can get to 270 electoral votes. The President still has more paths and clearer paths.” Earlier in the week another political commentator pointed out that Romney has been able to narrow the gap with Obama in the swing states but he’s never been able to get out in front and stay there. Bear in mind that none of these poll results reflect any of the upward bounce that Barack Obama may get from his handling of the response to Hurricane Sandy.

None of this is to imply that Obama now has a lock on being reelected and the fallout from Hurricane Sandy, as it plays out over the next four days, could trend against the president. But one thing is for certain, the arrival of a black swan event, in the form of Hurricane Sandy, has greatly complicated the road to the White House for Mitt Romney. With only three full days remaining till the election it’s hard to see how Romney and his team can make up for five days of lost campaigning wherein which the president was able to take center stage and burnish his own image while Romney stood by as an onlooker, an onlooker who would only reenter the race with yet another blunder in talking about the auto bailout. This latest blunder, against the backdrop of positive economic numbers, has only worked to make Romney seem increasingly desperate in both his message and it’s presentation and that’s not a place a candidate wants to be with just a few more days to go before the polls are closed.

Steven J. Gulitti
11/2/12

Sources:

Black Swan Theory; http://en.wikipedia.org/wiki/Black_swan_theory

Roubini and Bremmer on Global Economic Problems; http://www.economonitor.com/nouriel/2010/06/06/roubini-and-bremmer-on-global-economic-problems/

Nouriel Roubini sees ‘the roots of the next crisis in the current one’; http://blogs.reuters.com/chrystia-freeland/2010/12/08/nouriel-roubini-sees-the-roots-of-the-next-crisis-in-the-current-one/

Romney’s Momentum Seems to Have Stopped; http://fivethirtyeight.blogs.nytimes.com/2012/10/25/oct-24-in-polls-romneys-momentum-seems-to-have-stopped/

Presidential Polls 2012: New Numbers Show Romney Losing Momentum, Obama Gaining; http://www.policymic.com/articles/17514/presidential-polls-2012-new-numbers-show-romney-losing-momentum-obama-gaining

Romney Losing Momentum;http://www.politicalforum.com/current-events/272986-romney-losing-momentum-2.html

Bloomberg Backs Obama, Citing Fallout From Storm; http://www.nytimes.com/2012/11/02/nyregion/bloomberg-endorses-obama-saying-hurricane-sandy-affected-decision.html?hp

Rush: Christie Propping Up Obama Campaign with Hurricane Praise; http://www.newsmax.com/US/rush-obama-romney-christie/2012/11/01/id/462437

Chris Matthews Mocks Rush Limbaugh as the ‘Guy From Deliverance’; http://newsbusters.org/blogs/scott-whitlock/2012/11/01/chris-matthews-mocks-rush-limbaugh-guy-deliverance-0#ixzz2B1wSCMt5

Jobs, Jobs, Jobs; http://thepage.time.com/2012/11/02/jobs-jobs-jobs-6/?xid=newsletter-thepagebymarkhalperin

U.S. Economy Adds 171K Jobs; Jobless Rate Rises to 7.9%; http://nation.time.com/2012/11/02/u-s-oct-jobs-report-likely-to-show-modest-hiring/#ixzz2B54Mz9Ov

Consumer sentiment at highest in five years in October;http://www.reuters.com/article/2012/10/26/us-usa-economy-sentiment-idUSBRE89P0OR20121026

Survey: Consumer Confidence Gets a Boost; http://www.cio-today.com/news/Consumer-Confidence-Gets-a-Boost/story.xhtml?story_id=0020006NFX3U&full_skip=1

Romney goes off-road with the truth;http://www.washingtonpost.com/opinions/dana-milbank-romneys-jeep-ad-drives-off-the-road-of-truth/2012/10/30/f207c606-22c9-11e2-8448-81b1ce7d6978_story.html?wpisrc=nl_wonk

Romney Caught Trying to Swiftboat the Auto Rescue;http://jaredbernsteinblog.com/romney-caught-trying-to-swiftboat-the-auto-rescue/

Auto companies hit back against Romney ads;http://politicalticker.blogs.cnn.com/2012/10/30/auto-companies-hit-back-against-romney-ads/

Ralph Gilles, Chrysler Executive, Lashes Out At Donald Trump;http://www.huffingtonpost.com/2012/11/01/ralph-gilles-donald-trump-chrysler_n_2060531.html?utm_hp_ref=daily-brief?utm_source=DailyBrief&utm_campaign=110212&utm_medium=email&utm_content=NewsEntry&utm_term=Daily%20Brief

RCP – Electoral Map Polls; http://www.realclearpolitics.com/epolls/2012/president/2012_elections_electoral_college_map.html#battlegrounds

The Cook Political Report;http://cookpolitical.com/story/4849

Romney and 270; http://thepage.time.com/2012/11/01/romney-and-270/?xid=newsletter-thepagebymarkhalperin

Tags: 2012 Presidential Election, Auto Bailout, Barack Obama, Black Swans, Bob McDonnell, Chris Christie, Chrysler, Consumer Confidence, General Motors, Hurricane Sandy, Jobs, Michael Bloomberg, MItt Romney, Political Polling, Swing State Polling, The Cook Political Report
2 Comments »

by SJGulitti

C’mon Mitt, Privatizing Disaster Relief Would be a Disaster

10:11 am in Uncategorized by SJGulitti

In the aftermath of Hurricane Sandy, with the upcoming election a factor, one thing is apparent and that is that Mitt Romney is no better off at figuring out disaster relief than he was at figuring out who constitutes our geopolitical enemies. You see Romney is busy backpedaling on his earlier comments about shutting down FEMA.

Let’s look at those prior statements that are now causing Romney such headaches: “During a CNN debate at the height of the GOP primary, Mitt Romney was asked, in the context of the Joplin disaster and FEMA’s cash crunch, whether the agency should be shuttered so that states can individually take over responsibility for disaster response.”Absolutely,” he said. “Every time you have an occasion to take something from the federal government and send it back to the states, that’s the right direction. And if you can go even further, and send it back to the private sector, that’s even better. Instead of thinking, in the federal budget, what we should cut, we should ask the opposite question, what should we keep?” Now let’s contrast Romney’s statements, made during the primaries when he was pandering to the far right of the Republican Party with the situation now: “Mitt Romney repeatedly ignored questions about his position on federal funding for the Federal Emergency Management Agency (FEMA) at an event for storm victims Tuesday…“Governor, you’ve been asked 14 times. Why are you refusing to answer the question?” one [reporter] asked.” Not surprisingly aides to Governor Romney insisted that he would not abolish FEMA. If you look at the statements made by Romney aides it’s apparent that the campaign is attempting to spin its way out of suggestions that FEMA should be eliminated: “Gov. Romney believes that states should be in charge of emergency management in responding to storms and other natural disasters in their jurisdictions,” Romney spokesman Ryan Williams said in a statement. “As the first responders, states are in the best position to aid affected individuals and communities, and to direct resources and assistance to where they are needed most. This includes help from the federal government and FEMA.” Well it looks like one thing for sure, the word “absolutely” no longer has a fixed meaning in the lexicon of the Romney political play book.

Okay Romney’s original statements are full of stock conservative talking points which he relied on so heavily during the primaries, but do they make any sense when the facts of national disasters are taken into account? Emphatically not. Federal disaster aid, no matter how many problems we’ve encountered with it, still represents a better model for dealing with widespread disasters. Why, because it allows for an aggregation of resources and funding that no individual state can achieve on its own. Consider the states of Mississippi and Louisiana in the aftermath of Hurricane Katrina, they couldn’t possibly have been able to marshal the resources and the funding required to deal with the response let alone the rebuilding. Here’s just one example, the 2012 budget for the State of Louisiana is $25.5 billion and that figure was still the subject of possible further spending cuts to the tune of $303.7 million. Now the rebuilding of the flood control system around New Orleans came with a price tag of $14.5 billion which represents 57 percent of the total state budget. Is it likely that Louisiana’s Governor would have allocated more than half his budget to one disaster abatement project? The answer is of course not and this is the type of example that makes Romney’s idea that federal disaster relief can be eliminated just so much farce and folly. Moreover, the idea that private disaster measures can do what state and federal efforts do is just plain wrongheaded. We already have an empirical example of the failure of private charity to address widespread disaster and that came at the onset of the Great Depression when private efforts were swamped by a unprecedented crisis. Thus we need not reinvent the wheel here so as to prove once again that Romney’s original approach is a losing proposition. Needless to say, Romney’s relief road show in Ohio and his comments that people should donate to private charities have both political and ideological overtones which can’t be denied.

Are there serious flaws in federal disaster relief, yes. Does that mean we need to throw out the baby with the bathwater, of course not and only a conservative ideologue with a lack of practical or historical perspective would suggest such an idea. Why conservatives continue to harken back nostalgically to past programs and approaches that have failed isn’t a mystery to me. It is indicative of a movement that is ideologically exhausted and that is busy pedaling old wine in new bottles for want of new and engaging ideas. I always find it ironic, if not amusing, when conservative governors carry on about trimming the federal government and slashing taxes but then look to that same government when disaster strikes, seeking the relief that their very ideas have put in jeopardy in the first place. It’s more than a bit ironic that Barack Obama’s constant critic, New Jersey Governor Chris Christie, has been praising federal efforts post Hurricane Sandy, the president in particular, while at the same time saying that he cares not if Mitt Romney visits the Garden State.

The solution to problems with federal disaster relief isn’t to be found in Mitt Romney’s original statements, his new spin or among the thoughts of conservative extremists. Instead we need to apply to FEMA the same rigor and discipline that presently exists in small and efficient federal organizations, such as the Marine Corps, Coast Guard or U.S. Fish & Wildlife Service Fire Management Branch. We have existing models that provide transferable templates for reform and as such there’s no need to reinvent the wheel when it comes to federal disaster assistance. As is the case in assessing what we can expect from a Romney presidency in the realm of disaster response the same questions come to the fore as have those in other policy areas, which version of “multiple choice Mitt” will we get if we elect him in November? For this writer, however, when it comes to this topic my response is the same as that given by Colin Powell when he commented on Romney’s approach to foreign policy: C’mon Mitt, think!

Steven J. Gulitti

10/31/2012

Sources:

Mitt Romney In GOP Debate: Shut Down Federal Disaster Agency, Send Responsibility To The States; http://www.huffingtonpost.com/2012/10/28/mitt-romney-fema_n_2036198.html

Romney ignores questions about eliminating FEMA; http://www.washingtonpost.com/blogs/election-2012/wp/2012/10/30/romney-ignores-questions-about-eliminating-fema/

Romney Denies He Would Eliminate FEMA; http://www.newsmax.com/US/romney-fema-hurricane-sandy/2012/10/29/id/461931

Gov. Bobby Jindal aims to cut Louisiana state budget into shape; http://www.nola.com/politics/index.ssf/2012/04/gov_bobby_jindal_aims_to_cut_l.html

Vast Defenses Now Shielding New Orleans; http://www.nytimes.com/2012/06/15/us/vast-defenses-now-shielding-new-orleans.html?pagewanted=all

Tags: Chris Christie, Disaster relief, FEMA, Government Spending, Hurricane Katrina, Hurricane Sandy, Louisiana, Mississippi, MItt Romney
1 Comment »

by SJGulitti

Romney & Co., Beyond the Pale in Politicizing Benghazi

1:55 pm in Uncategorized by SJGulitti

I fully understand that Mitt Romney and his lieutenants want to capitalize on any and every political opportunity that comes their way, but in the case of the Benghazi deaths have they gone too far?

Ambassador Chris Stevens’ father has come out and asked that the Romney campaign cease and desist in politicizing his son’s death. To wit Jan Stevens: “It would really be abhorrent to make this into a campaign issue. The security matters are being adequately investigated. We don’t pretend to be experts in security. It has to be objectively examined. That’s where it belongs. It does not belong in the campaign arena.” Just last week the mother of the slain Navy SEAL Glen Doherty, Barbara Doherty, asked Romney to stop using he son’s death as a political prop with the following statement: “I don’t trust Romney. He shouldn’t make my son’s death part of his political agenda. It’s wrong to use these brave young men, who wanted freedom for all, to degrade Obama.” Republican candidates have a long history of using the American military as a political backdrop during campaign season but Romney’s use of the Benghazi tragedy is beyond the pale of politics as usual and that’s why it’s become so controversial. Moreover, with Romney having made some many missteps in the foreign policy arena one would think that he would pick his fights somewhere else.

I think we’ve come to a point of “enough already” especially as the Secretary of State, Hillary Clinton, has taken responsibility for events and in doing so, has pointed out that requests for security aren’t the sort of issues that would go across the president’s desk. That said, it’s more than a bit disingenuous to try to pin failures in day to day embassy operations on the president. Its analogous to trying to tie the price of a gallon of gasoline to Barack Obama when gas and oil prices are set in a worldwide market controlled by hundreds of traders and economic factors and not in the offices of world leaders.

The other great irony in the Republican attack on the issue of diplomatic security is that they themselves voted to cut funding for it. When asked in an interview with CNN’s Candy Crowley about Republican votes that cut funding for embassy security Rep. Jason Chaffetz (R-UT), a Romney Surrogate said: “Absolutely. Look we have to make priorities and choices in this country. We have… 15,0000 contractors in Iraq. We have more than 6,000 contractors, a private army there, for President Obama, in Baghdad. And we’re talking about can we get two dozen or so people into Libya to help protect our forces. When you’re in touch economic times, you have to make difficult choices. You have to prioritize things.” What’s even more ironic about Chaffetz’s spin is that he sits on two committees that are directly involved in terrorism and security; Subcommittee on Crime, Terrorism, and Homeland Security and the Subcommittee on National Security, Homeland Defense and Foreign Operations. Chaffetz is Chairman of the latter. Should he have known better than to cut this type of funding, I would say so. If anything a guy who seems to be so in touch with the dangers arising in post-revolutionary Libya should have had the presence of mind to speak up against funding cuts then rather than to serve as a mouthpiece for ill considered criticism by the Romney campaign now. Rather than question Barack Obama’s judgment in commenting on the deaths in Benghazi recently, Congressman Chaffetz ought to look in the mirror and question his own lack of judgment and his current contribution in this crass politicizing of the four unfortunate American deaths in Libya.

No matter how you analyze this issue one thing is for sure, the Congressional Republicans look like the pot calling the kettle black and Romney and Co. look like a bunch of crass political operatives in continuing to use the Benghazi tragedy as a political prop. As I said above, enough is enough.

Steven J. Gulitti
10/16/12

Sources:

Ambassador’s dad says son’s death in Libya shouldn’t be politicized; http://www.cleveland.com/nation/index.ssf/2012/10/ambassadors_dad_says_sons_deat.html

Fox News, Stephanie Cutter, And The Politicization Of Benghazi; http://mediamatters.org/mobile/blog/2012/10/12/fox-news-stephanie-cutter-and-the-politicizatio/190596

Mother Of Navy SEAL Killed In Libya Demands Romney Stop Talking About Him In Stump Speech; http://thinkprogress.org/security/2012/10/10/986301/romney-navy-seal-mother-libya/

Honoring Slain SEAL’s Mom’s Request, Romney Will Drop Story On Stump; http://www.capradio.org/news/npr/story?storyid=162671671

Hillary Clinton takes responsibility for Libya US deaths; http://www.bbc.co.uk/news/world-us-canada-19958739

Rep. Chaffetz says he “absolutely” voted to cut funding for embassy security; http://cnnpressroom.blogs.cnn.com/2012/10/10/rep-chaffetz-says-he-absolutely-cut-funding-for-embassy-security/

Tags: 2012 Elections, Ambassador Chris Stevens, Barack Obama, Barbara Doherty, Benghazi, Embassy Security, Glen Doherty, Hillary Clinton, Jason Chaffetz (R-UT), MItt Romney
2 Comments »

by SJGulitti

October 16th Talking Points For President Obama

2:55 pm in Uncategorized by SJGulitti

Obama vs. Romney 2012

(photo: DonkeyHotey/flickr)

As an avid observer of national politics I’ll be honest and admit that President Obama’s last debate performance was nothing short of abysmal. What I find particularly frustrating about Barack Obama in general, and in his performance in the last debate in particular, is that he continues to fail to counterpunch with some very basic facts when challenged by his opponents on the right. Here are just a few suggestions that should be taken to heart, if the president wants to win the last two debates.

1) Nature and Size of Deficit Spending: Mitt Romney, Paul Ryan and the rest of the conservative community need to be called to account for misrepresenting the reason why the deficit is where it is at the present time. Obama’s critics on the right have never been honest when it comes to analyzing the current economic downturn. Rather than addressing the Great Recession for what it is, the worst downturn since the Great Depression, they’ve routinely portrayed it as a garden variety downturn made all the worse by Obama’s policies trying to link those “failed” policies with the growth in the national debt. Obama’s counterpunch here is obvious, during the next debate, and thereafter, he needs to ask Mitt Romney why he doesn’t understand that when the economy falls into a deep recession, government spending goes up as a result of increased outlays for unemployment, food stamps ad infinitum, while tax revenues decline and that those factors have played a large part in the growth of the deficit. Moreover, he could ask Romney what he and the Republican’s would have done differently and to what effect. That’s pretty easy to understand and rather straightforward yet Obama and his surrogates have failed to throw these very obvious and elemental counterpunches much to their own detriment. The second counterargument that Obama needs to make is that this administration, unlike the last, put the costs of the wars in Iraq and Afghanistan on the books so that those costs were reflected in deficit spending more accurately than had previously been the case. That in and of itself would have resulted in a dramatic increase in the deficit regardless of the state of the economy.

2) Medicare: President Obama needs to make it crystal clear that there is a fundamental difference between reduced outlays for Medicare that result from reduced payments to insurance companies and health care providers compared to reduced funding levels for the Medicare program per se that would result from conservative proposals. After establishing this factual difference Obama needs to press Romney on whether or not he understands this fundamental difference and to prove that it isn’t true.

3) Attacking Success: Obama needs to challenge the notion that he’s an enemy of success and that should start with the statement, based on his own life, that he himself is the embodiment of American success. Secondly, he needs to point out that asking the very wealthy to pay a little bit more in taxes isn’t the same thing as attacking success. Obama isn’t attacking the American system of private property and private initiative, he’s merely asking for a readjustment of tax rates that are now skewed to the benefit of a few in what many economists have called the greatest upward realignment of wealth since the 1920s. President Obama should ask Mitt Romney to cite a specific example where Obama conceptually, theoretically or figuratively has come out and denounced the American value of success.

4) Role of Government: President Obama needs to publicly disabuse Mitt Romney of the notion that almost everything that has ever benefited America is a function of private enterprise. Obama needs to give Mitt Romney a history lesson in the role of the federal government in fostering growth in the American economy that began in the early years of the Republic with nationally funded roads, canals and aids to navigation systems and continued through to the development of the Internet as detailed in Free Market Fantasies, referenced below. Obama needs to point out the critical fact that generally government builds infrastructure as individual companies rarely if ever ban together to build highways, bridges, dams and airports, without which there will be little in the way of an environment fostering economic growth. He also needs to point out the percentage of developmental research and development that is funded by government. President Obama needs to point out that Romney’s own proposals related to funding technical and occupational training for today’s unfilled jobs as well as those of tomorrow are unlikely to come about with out government funding and involvement. Lastly, Romney needs to be brought to understand that there isn’t a developed economy in this world that didn’t get to where it is today without significant economic policy input from it’s national government.

5) Foreign Policy: The time for Barack Obama to call out Mitt Romney on his Neoconservative power trip has long since arrived, particularly as it pertains to the Iranian nuclear program. To listen to Romney and Ryan speak of Iranian nukes one would think that the Iranians made their most dramatic advance since Obama took office. This however is factually incorrect. Foreign policy writer David Sanger pointed out that Iran made great strides in developing nuclear capabilities during the eight years of the Bush administration, while American foreign policy was distracted in the quagmire of Iraq. An analysis of the timeline of Iranian nuclear development contained the references below reveals that Iran made great strides in nuclear development from 2002 through early 2009. Barack Obama needs to put Mitt Romney on the spot and ask him how a military solution would effectively cripple Iran’s nuclear program, given that Iran’s military capabilities are considerably more formidable than where those we faced in Iraq or Libya and that much of Iran’s nuclear facilities are either underground or near population centers and that makes such a strike far more complicated.

Obama needs to ask Mitt Romney to square his implied muscular foreign policy rhetoric with the fact that the vast majority of the American people are beyond tired of overseas military involvement and want the money spent on war to be spent here at home. Obama needs to make the point that the foreign policy failures of the Bush administration have real consequences and will affect our foreign policy options for years to come. President Obama needs to distinguish between what military power can and can’t do, a point laid out by the Neoconservative Robert Kagan in an NPR interview: “Well, a lot of what people think is decline is based on a very faulty memory of what things used to be like. People have a sense that America used to call the shots, used to be able to dominate the world, get everyone to do what we wanted them to do. And of course that’s ludicrous. Anyone who remembers even the early Cold War years knows that we couldn’t do anything about the revolution in China. We couldn’t do anything about the Soviets getting a nuclear weapon, etcetera, and etcetera. So we’re making a bad comparison…In terms of military power, even with defense budget cuts that I think are unfortunate, the United States is still by far the most powerful nation in the world. So I think the United States remains tremendously influential.” Kagan, who is himself a Romney advisor, goes on to question the Romney campaigns notion that Obama believes that America is in decline. Look at this interchange between the NPR moderator Steve Inskeep and Kagan:
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Tags: 2012 Presidential Debates, 2012 Presidential Election, American Foreign Policy, American Military Policy, Barack Obama, David E. Sanger, Deficit Spending, George Bush, Medicare, MItt Romney, Robert Kagan, Role of Government
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