Category Archives: Deficit

Death Of Yarnell 19 May Be The Result Of Sequestration Cuts.

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On June 30, 2013, 19 members of the Granite Mountain Hotshots wildfire crew perished in the Yarnell Fire in northern Arizona. As you probably know, an investigation is underway to determine the events that led to their deaths. But one fact is already clear: The wildfire crews were stretched thin and firefighting resources have been dramatically reduced by federal budget cuts.

According to Sen. John McCain, air tankers have been reduced from 42 to 10. He also estimated that a $115 million budget cut would result in roughly 500 fewer firefighters and 50 fewer fire engines despite the fact that western states are experiencing a rise in wildfires.

The day of the loss of the Yarnell 19, resources had been diverted to another wildfire near Kingman, Arizona. At the same time, there were major fires in Colorado, Nevada and Utah.

Unfortunately, this event demonstrates that budget cuts have real consequences. Especially big, dumb, across-the-board cuts like those resulting from sequestration. We should all remember that the federal budget isn’t just about taxes and money.  It’s about services, resources and American lives.

The Yarnell 19 are a prime example.

The Austerity Fraud.

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For more than 30 years, conservatives have pushed for smaller government. Their battle cry is to “Starve the Beast,” the beast being our federal government. They have demanded more and more tax cuts, especially for the wealthy, and they finally got them under President George W. Bush. Yet, when the tax cuts led to large deficits, Richard “The Dick” Cheney and other conservatives famously stated that “deficits don’t matter.”

Of course, when President Obama took office, their attitude suddenly changed.

Despite having driven our economy off a cliff, conservatives demanded that the new administration cut spending in order to bring the deficit and debt under control. To prove their point that these were the biggest challenges facing our nation (bigger than rampant unemployment, the housing crisis, losses by pension funds and the depressed stock markets), conservatives cited a Harvard University study by Reinhart and Rogoff which stated that economies suffer whenever a nation’s debt surpasses 90 percent of GDP.

This study was cited over and over by conservative politicians and conservative media.

Unfortunately for conservatives, it was recently debunked by a graduate student who found numerous statistical and computational inaccuracies which completely altered the study’s conclusions. Turns out, there were numerous exceptions to the Reinhart-Rogoff rule.

As for the effects of austerity measures, one need only look to Europe to see what happens when concern over deficits and debt trump job creation. Following strict austerity measures in both Greece and Spain, unemployment among young people now exceeds 60 and 50 percent, respectively. Both countries are facing major upheaval as the unemployed have taken to the streets to riot. In England, France and Italy, the effects of austerity have been less dramatic. Nevertheless, austerity has pushed their economies back into recession.

Had President Obama followed the advice of conservatives, we, too, could be struggling through another deep recession. Despite conservative claims to the contrary, the economic stimulus worked. For the past 3 years, we have not only recovered the jobs lost as the result of the Bush recession. We have added 1.5 additional jobs, and we would have added many more if not for layoffs in the public sector forced by Republican-controlled state houses.

We might well be back on the road to full recovery had the Teapublicans not taken  control of the House in 2011.

Virtually every economist has stated that the budget restraints imposed by our Teapublican Congress have hampered our economic recovery. Indeed, a recent article in The New York Times states that deficit reduction has already cost our economy at least 2 percent growth and 1 percent employment. And the budget cuts forced by sequestration have yet to fully take hold!

But don’t look for conservatives to give up on austerity any time soon. Despite our fragile recovery, they’re still demanding severe cuts to federal programs. They have proposed cuts to “entitlements” such as Social Security, Medicare and Medicaid. They want to eliminate or severely reduce unemployment insurance, SNAP (food stamps), Pell grants, Fannie Mae and Freddie Mac. They even want to cut or eliminate the United States Postal Service!

During the last election, Teapublican candidates said they would target entire departments for elimination, including the Environmental Protection Agency, the Education Department, the Commerce Department and the Bureau of Alcohol Tobacco Firearms and Explosives. Some want to get rid of the Federal Reserve and return to the gold standard.

Given a limited (and false) understanding of history and our Constitution, today’s conservatives believe that the only constitutionally-allowed functions of the federal government are defense, homeland security, border security and highway construction. For everything else, you’re on your own.

It’s easy to see what these policies would do to our nation. Just look at Somalia.

A Message To Tea Party “Patriots.”

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There’s simply no nice way of saying it. You are a bunch of self-serving, gun-toting, conspiracy promoting, anti-intellectual, anti-education, anti-evidence, anti-American nitwits.

You call yourselves Tea Party Patriots, but you’re neither patriotic nor even a party. You are the lunatic fringe. You wrap yourselves in the flag and spout quotes from a select few of our Founding Fathers all the while undermining the very principles they stood for. You say you’re strict Constitutionalists, but it’s apparent that the only part of the Constitution you’ve read is the Second Amendment (and you can only quote half of that). The other principles you attribute to the Founders are actually from the Articles of Confederation, the document our Constitution replaced.

You didn’t have the guts to stand on your own, so you decided to backdoor the Republican Party. Your angry rhetoric and Koch brothers’ millions managed to drive most moderate Republicans from office. As a result, you and your wealthy supporters have destroyed the party of Lincoln.

Now you’re trying to destroy our nation.

Your economic theories not only defy economics, they defy logic. They’re hurtful to children, the elderly, the poor, even veterans. You claim to be worried about the national debt, yet you sat idly by while the previous administration ran up enormous deficits through two ill-conceived wars and the collapse of our economy. Then you blamed President Obama for our economic ills. You watched as President Bush expanded the size of government by creating the government’s second-largest agency, the Department of Homeland Security, then screamed about the growth of government when the new administration took office.

You ignored the bailout of “too big to fail” banks, which saved the jobs of Wall Street millionaires and the assets of billionaires. But you howled in disgust when President Obama loaned money to US automakers, saving tens of thousands of jobs for middle class workers. You whined that you are “Taxed Enough Already” and blamed President Obama for raising taxes, even though tax rates were at a 60-year low.

You claim that you’re not racists, yet every single one of your rallies includes blatantly racist depictions of our democratically-elected president. You call him a Muslim, a socialist, a communist, a fascist and worse. You compare him to Hitler. You have even called him the leader of al Qaeda.

When you’ve failed to win elections, you’ve tried to change the rules. You have tried to suppress the votes of minorities and your political opponents. You have tried to deny women the right of equal pay for equal work. You have tried to deny women the right to control their own bodies. You have held our economy hostage in order to get your way. You have undermined democracy through use of the filibuster and gerrymandering. As a result, our nation now suffers from tyranny by the minority.

Thanks to your tactics, Congress has been turned into a venomous body devoid of compromise. Thanks to your representatives, the approval rating of our duly-elected Congress is lower than that of cockroaches. Thanks to your policies, the very wealthy have become wealthier while the rest of our citizens have suffered. Thanks to you, our nation is on the verge of becoming a plutocracy.

All of that is bad enough. But your real “triumph” is that you have made millions of Americans fearful of their government and of each other. Thanks to you, according to a new poll, 44 percent of Teapublicans now believe that an armed revolution against our government may be necessary…our own democratically-elected government!

Your entire movement is based on lies and meanness.

That said, it’s difficult to determine who is most at fault…you…or those who tolerate you, especially the media that give you undeserved credibility. One thing is certain…your movement would be more accurately called the Tea Not-Really-A-Party Traitors.

Turning History Into Fiction.

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Last week’s opening of the George W. Bush presidential library was remarkable in one respect. With the opening, Teapublicans began their attempts to rewrite history in earnest.

Last week, you heard Bush state that he still considers our invasion of Iraq a great achievement for exporting democracy to the world. There was no mention, of course, about the tens of thousands of casualties, the war’s estimated $3 trillion price tag, and the fact that the invasion actually strengthened Iran’s influence in the area.

You heard some Teapublicans speak glowingly of Bush’s economic policies, which will, in their opinion, make history. They view Bush as the greatest president in recent decades. (In case you’ve forgotten, when Bush assumed office, there was an annual surplus. And when he left, our economy was in absolute free fall.) You even heard Karl “Turd Blossom” Rove state that Bush’s image should be carved into Mount Rushmore alongside Washington, Jefferson, Lincoln, and Roosevelt!

Does this mean that, in the feeble minds of Teapublicans, Bush has now displaced Reagan as the greatest president ever?

Given the amount of b.s. being generated in Texas last week, no wonder it’s known as the Longhorn state.

“We Can’t Afford That Anymore.”

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We hear it all the time. There’s no money to improve our schools. There’s no money to rebuild our infrastructure. There’s no money to ensure that our citizens have access to food and medicine. There’s no money to care for the mentally ill and the homeless. There’s no money to give our veterans the care they deserve. There’s no money for pensions and retirement benefits.

The US is broke…at least that’s what Teapublicans want us to believe.

So what happened? How did we go from the richest, most powerful nation on Earth to a nation that can no longer afford the things that our citizens value most? For starters, our economic ills are the result of two costly wars, the unparalleled expansion of government immediately following 9/11, an expansion of Medicare drug benefits and the Great Recession that began as the result of unfettered gambling by the so-called “too big to fail” banks.

But none of those causes have been as devastating as runaway greed, the off-shoring of jobs and money (it’s estimated that wealthy Americans, including Mitt Romney, and US-based multinational corporations have stashed trillions in off-shore tax havens), subsidies for large corporations, and tax cuts intended to benefit the very wealthiest portion of our populace.

Following World War II, when we could afford to build things, our top individual tax rate was 91 percent for those making more than $200,000 per year. The capital gains tax was 25 percent. And the effective corporate tax rate was 50 percent.

Compare those rates with today’s: The top individual tax rate is now 39.6 percent for those making more than $400,000. The capital gains tax is 15 percent. And the effective corporate tax rate is 17 percent (that is, if large corporations pay any taxes at all). In fact, some large multinationals now have a negative tax rate!

See the problem?

For most working Americans, wages have stagnated over the past 40 years, while worker productivity has skyrocketed, along with incomes for the wealthy. Most Americans are working harder and earning proportionately less…if they’re lucky enough to have a job! And the only answer Congress (at least the Teapublican portion of Congress) has for these problems is to cut spending, to protect tax cuts for the wealthy, and to cut taxes for corporations.

Speaker Boehner, Minority Leader McConnell and the rest of the Teapublicans in office want to “starve the beast.” They consider investment and compromise dirty words. And they steadfastly refuse to agree to one more dollar of revenue.

To relate that to family finances as Teapublicans are so fond of doing: It’s as if parents, faced with growing credit card bills, decided to give up food for their children in order to cut their work hours!

Yes, we have to cut government waste and be efficient with our spending. But there isn’t enough fat in discretionary spending to eliminate the deficit and still meet the needs of our growing population. We already have seen that with the sequester cuts, and they’ve only just begun. If we want to reduce our nation’s debt without destroying our fragile economy, we must find new sources of revenue.

Putting The Party In Tea Party.

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The Tea Party began as a group of individuals who claimed to be aghast at runaway government spending.  To fight back, they promoted a number of candidates who ran on a platform of fiscal responsibility.

That was 2010.

Just a few years later, those so-called fiscal hawks have decided that federal spending is a good thing…as long as it’s used for a good cause, such as paying large bonuses to their staff and friends.  According to the website, www.LegisStorm.com, Rep. Todd Akin (R-Mo.), who was defeated in his attempt at a Senate seat, used taxpayers’ money to increase his staff’s salaries 98.3% in the final quarter.

Many outgoing Democrats also gave large bonuses to their staffs, but the records show that Republicans were even more generous with taxpayers’ money.  Among the most generous were Tea Party Representatives Chip Cravaack (R-Minn.) and Allen West (R-Fla.), who ranked numbers 3 and 4 in giving pay increases to staff members.

In other words, these so-called deficit hawks are partying with our money as though it were 1999.

Moreover, if you think the Tea Party is any more serious about reducing the deficit than Democrats, compare the Paul Ryan budget, which was passed by the Teapublican-led House, to the People’s Budget proposed by the House Progressive caucus.

Both plans cut about the same amount from the federal budget.  But the Ryan plan does it on the backs of the poor and the middle class while cutting taxes for the rich and increasing the already bloated defense budget. On the other hand, the progressive plan cuts the defense budget, raises revenues by eliminating tax dodges for the rich, secures the future of Social Security and Medicare, and rebuilds our failing infrastructure.  And it does all this while reducing deficits by $5.6 trillion over the next decade according to the non-partisan Economic Policy Institute!

When you look past the Tea Party rhetoric and look carefully at its policies, you quickly discover that the teabaggers are more interested in self-interest, greed and ideology than principles, debt reduction and the future of our nation.

Most U.S. Problems Are The Result Of The 2000 Election.

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In some ways, those who predicted apocalyptic disaster as the result of Y2K were right. No, our computers did not stop working.  No, the millennium did not lead to the end of the world. But we did experience a disaster nonetheless.

Despite winning the majority of the popular vote, Al Gore was denied a recount in Florida and, as a result, the White House. Consider, for a moment, the implications of the Supreme Court’s decision to award George W. Bush the presidency.

That unpopular decision led to almost all of our most intractable problems.

Let’s begin with 9/11.  A Gore administration likely would have continued most of the policies of the Clinton administration, including its attempt to kill Osama bin Laden and destroy al Qaeda with a cruise missile (a strike derided by Bush as “sending a million dollar missile to blow up a camel tent”).  Unlike Bush, President Gore almost certainly would have listened to warnings by counter-terrorism experts of an imminent strike in the US using hijacked airliners.

And without 9/11, we wouldn’t have become mired in the 10-year war in Afghanistan which has cost us trillions of dollars.

Moreover, it’s highly unlikely that a Gore administration would have falsified evidence in order to justify the invasion of Iraq, leading to a second war costing trillions more dollars.

As for our economy, Gore would have continued the Clinton administration’s policies which led to budget surpluses – surpluses that were on track to eliminate the national debt by the end of 2012.  The Bush tax cuts, which added hundreds of billions of dollars to the debt, never would have happened (at least, not until the debt was nearly paid off).

As vice-president, Al Gore led the successful Reinventing Government Program that streamlined the federal government and cut wasteful spending.  He likely would have continued that program as president, continuing to down-size government.

Bush, on the other hand, oversaw the largest increase of the federal government in history!

Finally, Gore almost certainly would have led efforts to stem climate change at a time when smaller changes could have had great and lasting effects.  But thanks to Bush, Richard “The Dick” Cheney and all of their oil buddies, it now may be too late to avoid the predictable devastating effects of runaway carbon emissions.

Remember this the next time you hear Teapublicans complain about the budget deficit, the escalating national debt, and the cost of clean-up efforts following storms made worse by climate change.

Does Mitch McConnell Deserve The Title “Leader?”

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Following President Obama’s dinner with Senate Republicans, the invitees were asked to comment on the evening. All said it was productive and one stated that he was surprised to learn that the president had previously offered a variety of spending cuts to prevent sequestration.

Really?!!!

This is surprising on a couple of fronts. First, the president’s proposed budget cuts have been chronicled in the national media for many months. They even have been listed on the White House website for anyone with enough curiosity to read. Second, it would appear that Senate Minority Leader Mitch McConnell is guilty of sabotaging the budget negotiations by failing to communicate with members of his own party.

How can the president hope to negotiate deficit reduction when the Minority “Leader” fails to lead?

Of course, McConnell’s failure should come as no surprise to anyone who has followed his “leadership” the past four years. In the days immediately following the election of President Obama, McConnell famously stated that his number one priority was to assure that Obama would be a one-term president.

Try as he might, McConnell even failed at that.

Despite a record number of filibusters, stonewalling, caterwauling, and every other form of obstruction, President Obama was re-elected in a landslide. Now it seems McConnell has even failed to keep his budget sabotage secret.

McConnell’s failures should not only assure defeat in his own re-election efforts. He should be locked out of any further negotiations. By ignoring McConnell and Speaker John Boehner, Congress might actually get something done.

Tax Cuts For The Rich, Budget Cuts For The Poor.

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Following are a few numbers that clearly show the results of more than 40 years of Republican economic policies:

1 percent of Americans now control more than 40 percent of the nation’s wealth, while the bottom 40 percent of Americans control 0.2 percent of the wealth.

46.2 million Americans are living in poverty. 3.9 million working Americans are paid at or below the minimum wage. 12 million Americans are unemployed. 650,000 Americans are homeless. 50 million Americans, including 17 million children, don’t know where their next meal is coming from. 48.6 million don’t have health insurance.

Naturally, Teapublicans in Congress want to protect these people from further harm. I’m referring, of course, to the 1 percent! Even though taxes for the wealthy are at historic lows, Teapublicans believe they’re overtaxed. They absolutely refuse to consider asking these people to pay one more cent of their enormous wealth.

Those other people, according to Teapublican leaders, are merely the freeloaders who rely on the federal government for assistance. 

Is it any wonder, then, that Congress is locked in a budget standoff with the president? The austerity cuts resulting from sequestration will cut 9 percent from unemployment checks and $175 million from energy assistance for the poor. Sequestration will cut rental assistance to 125,000 low-income families. It will put 100,000 previously homeless back on the streets. It will cut 70,000 kids from Head Start. And it’s projected to cost up to 750,000 jobs.

But these cuts are less cruel than the Teapublican demands to end sequestration. They want to cut SNAP food assistance for the poor. They want to cut Medicaid health assistance for children and low-income families. They want to cut Medicare, Social Security and more.

But don’t worry about the poor. They’ll get by. After all, they still own 0.2 percent of our nation’s wealth.

Since Most Americans Want Compromise, Why Elect Those Who Don’t?

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A variety of polls show that the overwhelming majority of Americans want their elected officials to compromise. Yet the US House of Representatives is controlled by those who view compromise as a weakness.

Speaker Boehner can’t even bring himself to say the word!

As a result, President Obama was forced to sign an order implementing the most ill-advised, ham-handed budget cuts in history. $89 billion will be indiscriminately cut from every federal program except critical national defense and Social Security. If allowed to stand, these cuts will have devastating effects on our nation – especially those who are out of work, the working poor and others struggling to survive.

These cuts have been made because traditional Republicans are afraid of the Tea Party nitwits within their own party. They’re afraid to end tax loopholes that allow multinational corporations to stash money offshore. They’re afraid to end tax loopholes for the wealthy who are enjoying tax rates that are near historic lows. They’re afraid to compromise with the president for fear of being “primaried” and replaced by even more teabaggers. 

Although, I admit the prospect of even more angry teabaggers in Congress is frightening, it’s time for traditional Republicans to grow a pair.

It’s not that President Obama hasn’t reached across the aisle to avoid sequestration. After stabilizing our economy in the first year of his administration, the president has cut the deficit each year. In fact, we have already seen the largest deficit reductions since the years immediately following World War II. Yet that isn’t enough for the extreme wing of the Republican Party. Teapublicans have refused offers of $2 to $3 in cuts for every $1 of revenue created by eliminating tax loopholes.

Still there is no compromise from the radical right. They refuse to negotiate with the president and they refuse to listen to the American people. Of course, they won’t suffer as the result of their actions. We will.

I hope voters remember that next election.