Paul Ryan is slowly but surely becoming the face of the Republican party of future years, the supposedly "serious-thinker" in-chief. And still he says stupid, misleading, and irritating things like this:
"[It] appears that the politics of division are making a big comeback." Of course, he is saying it without a hint of irony. But to Congressman Ryan's credit, it is always hard to see a problem clearly when you're part of it yourself.
For decades, the Republican Party has fostered division in this country with its policies and with its rhetoric. It finds no shortage of socially useful programs to slash or defund, while it opposes any tax increases for those who have more than they could possibly ever need, or spend.
For 2 years Republicans talked about the dangers of death panels coming to American health care if we let "Obamacare" become the law of the land, when in fact death panels are a staple of the American health care system. (Tell Rep. Ryan to read Deadly Spin: An Insurance Company Insider Speaks Out on How Corporate PR Is Killing Health Care and Deceiving Americans, Wendell Potter's account of how the America health insurance sector plays Americans for fools is not. Wendell Potter was a VP at Cigna, he should know. Or suggest that he watches Michael Moore's "Sicko", a portrayal so accurate of the American health care system that even Fox News didn't find anything bad to say about it.)
For years Republicans have said that they would not support any tax hikes. But now their true message is finally surfacing: They don't want to raise taxes on the "job creators" (their wealthy übermasters), but it's okay to raise them on those who cannot afford a tax increase (the poorest in particular). That would be the effect of any flat tax plan, a Republican wet dream, that did not include significant exemptions for those in the lowest income tiers.
Actually, Think Progress has it right, in a post titled Talking About Income Inequality Isn’t Dividing America, Actual Income Inequality Is.
Wednesday, October 26, 2011
Tuesday, October 25, 2011
What The Fuck?!?
"Uh, yeah. Huzzah. It's great that 300 congressmen had the guts to stand up for mom, apple pie and baseball."
This is from a post by Barbara Morrill of the Daily Kos, announcing great bipartisan agreement on celebrating the baseball Hall of Fame. Finally, bipartisanship at work on something that really matters to Americans, particularly unemployed, underemployed, and sick Americans. And by the way, minority party: a good way to handle such a meaningless, offensive vote would have been not to to vote for it. Stay away from the floor of the House, until the discussion moves on to things that are relevant to the country's well being.
It reminded me of Matt Taibbi's The Great Derangement, in which the Rolling Stone magazine's reporter says that the only business which is transacted on the floor of Congress these days is the naming of post offices and schools. We have to get rid of the bums, all of them. Start from scratch, ban political advertising, bring on free, public debates and public campaign financing. We won't get anywhere fast until we do.
This is from a post by Barbara Morrill of the Daily Kos, announcing great bipartisan agreement on celebrating the baseball Hall of Fame. Finally, bipartisanship at work on something that really matters to Americans, particularly unemployed, underemployed, and sick Americans. And by the way, minority party: a good way to handle such a meaningless, offensive vote would have been not to to vote for it. Stay away from the floor of the House, until the discussion moves on to things that are relevant to the country's well being.
It reminded me of Matt Taibbi's The Great Derangement, in which the Rolling Stone magazine's reporter says that the only business which is transacted on the floor of Congress these days is the naming of post offices and schools. We have to get rid of the bums, all of them. Start from scratch, ban political advertising, bring on free, public debates and public campaign financing. We won't get anywhere fast until we do.
Monday, October 24, 2011
I Support A Flat Tax
I do. For corporations. So no corporation can get out of paying taxes. You pay 20%, no loopholes.
And, to foster employment in the United States, there should be a penalty v bonus scale system, to reward companies that keep employment in the United States, and to punish companies that outsource plants and work.
Realize that even though corporate taxes in the United States are among the highest on the planet, as Republicans like to say on Fox News and to any organization that offers them a mic to spew spin at, that is true just in terms of statutory rates, not for effective rates. Many companies pay no tax. So you support a flat tax? Start by supporting a flat tax system for those who systematically use the law to pay no tax at all, and who use profits to destroy small businesses and export jobs abroad: large American corporations.
And, to foster employment in the United States, there should be a penalty v bonus scale system, to reward companies that keep employment in the United States, and to punish companies that outsource plants and work.
Realize that even though corporate taxes in the United States are among the highest on the planet, as Republicans like to say on Fox News and to any organization that offers them a mic to spew spin at, that is true just in terms of statutory rates, not for effective rates. Many companies pay no tax. So you support a flat tax? Start by supporting a flat tax system for those who systematically use the law to pay no tax at all, and who use profits to destroy small businesses and export jobs abroad: large American corporations.
Yes, please.
Do get rid of the Electoral College system. It is an abomination that grants some states unbalanced power in the election of the President.
Labels:
~short,
elections,
nation of dunces
Friday, October 21, 2011
Fucking Liars and Their Fucking Talking Points
Thanks to the incomparable Joan McCarter of Daily Kos for drawing my attention to this chart, which exposes naked the Republican lie about the fact that too many Americans don't pay their fair share and pay no taxes.
Labels:
~short,
demolishing spin,
taxes
Thursday, October 20, 2011
The Greatest Scam Perpetrated by The Financial Sector on Unwitting Americans
Now that the title of the post got your interest, you do want to know what the greatest scam ever perpetrated on the unwitting American public is, right? 401Ks. There, I said it. And I have been saying that for a long time, to my friends and to my wife. And now, after a long time, they are starting to understand what I meant and still mean. And last night Rachel Maddow put things in perspective for you, with the help of Simon Johnson.
Visit msnbc.com for breaking news, world news, and news about the economy
Visit msnbc.com for breaking news, world news, and news about the economy
Labels:
~short,
corporate rule,
demolishing spin,
economy
Tuesday, October 18, 2011
The Republican Debate, Bonus Round
Here's a quick summary of the Republican Presidential Debate in Las Vegas, since there is a good chance you were among the 99%-ers (not that you were occupying anything, you were just not occupying your couch to watch it.) It's in the form of the answer each candidate might have given to the hypothetical question "What did you do last summer?".
Santorum: I spent last summer with my religious, entirely heterosexual family, trying to get google to change the search results hierarchy for Santorum.
Cain: Last summer I played Sim City a lot, and ate a lot of pizza, and then I fell asleep. And then the Archangel Koch came to me and told me "go and spread the 9-9-9 gospel." And I did not know what that crazy motherfucker was talking about, was it the price of pizza or some secret code for Sim City? What the fuck, motherfucker?!? Well anyway, I still don't know how, but I came up with my 9-9-9 tax plan.
Gingrich: When I was in Congress, in the summer of 1994, I ... oh, last summer? When I was in Congress in 1995...
Ron Paul: I didn't do anything last summer because the Federal Reserve is fucking us and our money and we need to get rid of the government, all of it! (Eyebrow falls off, head explodes.)
Rick Perry: When I left the house in the summer, I was packing heat. And a nukular weapon, in my pants. And I was wearing cowboy boots. And I hate Mormons.
Michele Bachmann: Last summer I was a business woman and a tax auditor for the I.R.S., I cooked for my 27 foster children and 5 natural children, did everything my husband told me to, and I have a message for all the white moms who are getting evicted from their nest: Hang in there! It's a shame you live in fear of losing your home while Barack Obama, that horrible black man, lives in a house. But help is on the way, and I am president Barack Obama will not have a house any more... either.
Mitt Romney: Look around, fellas. Who cares what I did last summer? Have you seen the other candidates? I am white, handsome, and love business. Who cares if I am a Mormon?
The End.
Santorum: I spent last summer with my religious, entirely heterosexual family, trying to get google to change the search results hierarchy for Santorum.
Cain: Last summer I played Sim City a lot, and ate a lot of pizza, and then I fell asleep. And then the Archangel Koch came to me and told me "go and spread the 9-9-9 gospel." And I did not know what that crazy motherfucker was talking about, was it the price of pizza or some secret code for Sim City? What the fuck, motherfucker?!? Well anyway, I still don't know how, but I came up with my 9-9-9 tax plan.
Gingrich: When I was in Congress, in the summer of 1994, I ... oh, last summer? When I was in Congress in 1995...
Ron Paul: I didn't do anything last summer because the Federal Reserve is fucking us and our money and we need to get rid of the government, all of it! (Eyebrow falls off, head explodes.)
Rick Perry: When I left the house in the summer, I was packing heat. And a nukular weapon, in my pants. And I was wearing cowboy boots. And I hate Mormons.
Michele Bachmann: Last summer I was a business woman and a tax auditor for the I.R.S., I cooked for my 27 foster children and 5 natural children, did everything my husband told me to, and I have a message for all the white moms who are getting evicted from their nest: Hang in there! It's a shame you live in fear of losing your home while Barack Obama, that horrible black man, lives in a house. But help is on the way, and I am president Barack Obama will not have a house any more... either.
Mitt Romney: Look around, fellas. Who cares what I did last summer? Have you seen the other candidates? I am white, handsome, and love business. Who cares if I am a Mormon?
The End.
Cain's Jobs Plan
"Some people will pay more, but most people would pay less is my argument... Who will pay more? The people who spend more money on new goods. The sales tax only applies to people who buy new goods, not used goods. That's a big difference that doesn't come out." (Republican presidential aspirant Herman Cain, on last Sunday's Meet the Press.)
Yes, because what better way to create employment and jump start the economy out of a recession than to encourage people to stop buying new shit and trade in used shit instead? You know what else doesn't come out? A lot of people will pay zero tax, because they will rob the grocery store instead of paying for the stuff they used to buy. And as an added bonus, if you are caught stealing and go to jail, not only will you pay no income tax; the government has to feed you, too.
It amazes me that these Republican buffoons are even taken seriously.
Yes, because what better way to create employment and jump start the economy out of a recession than to encourage people to stop buying new shit and trade in used shit instead? You know what else doesn't come out? A lot of people will pay zero tax, because they will rob the grocery store instead of paying for the stuff they used to buy. And as an added bonus, if you are caught stealing and go to jail, not only will you pay no income tax; the government has to feed you, too.
It amazes me that these Republican buffoons are even taken seriously.
They Might As Well Call It "The 999% Plan"
The Tax Policy Center's review of the 9-9-9 plan is in.
Since the difference between 950 and 999% is actually petty, in the general scope of things, I hope someone renames Cain's evil/idiotic idea the 999% plan, to signify the increase in income tax that the poorest would be subjected to. But this is America, so there are plenty of people who should be protesting this evil tax reform plan who are actually rooting for it.
Herman Cain's 9-9-9 tax plan would raise taxes on 84 percent of U.S. households, according to an independent analysis released Tuesday, contradicting claims by the Republican presidential candidate that most Americans would see a tax cut.
The Tax Policy Center, a Washington think tank, says low- and middle-income families would be hit hardest, with households making between $10,000 and $20,000 seeing their taxes increase by nearly 950 percent.
Since the difference between 950 and 999% is actually petty, in the general scope of things, I hope someone renames Cain's evil/idiotic idea the 999% plan, to signify the increase in income tax that the poorest would be subjected to. But this is America, so there are plenty of people who should be protesting this evil tax reform plan who are actually rooting for it.
Labels:
~short,
idiocy,
Repuglycans,
spin,
true evil
Tuesday, September 27, 2011
Immoral Games
Markos Moulitsas is right:
It's typical of Republican/Conservative hypocrisy to fight their battles under false premises. Against taxing the oligarchs and plutocrats? Say you're defending job creators. Fighting for your donors in the oil and gas industries? Say environmental regulations are destroying America's job base. And the same applies to sex. Sexual freedom (as Orwell understood well) is one of the pillars of free society. Particularly sexual freedom for women. If you can control what people can do in the most intimate sphere of their lives, which is what they do with their bodies, is there really anything else you cannot control, squash, impose? So the Republicans' real agenda on sexuality is one of tyranny masked as compassion for the unborn, and it is quite telling that the Conservatives' compassion for human beings stops at the unborn. They have no problem condemning the unborn, once born, to a life of misery, poverty, tribulation, subjugation, modern slavery, ill health.
Shame on them, and on all those who enable them in defense of ideals that Republicans have betrayed daily for close to 50 years.
Every time you hear conservatives talk about the "rights of the unborn," remember this—their opposition to abortion has nothing to do with babies. If it was, they wouldn't oppose funding for pre- and postnatal care. If it was, they'd support wider dissemination of contraception and better sex education and family planning services. After all, the best way to avoid an abortion is to avoid unwanted pregnancies in the first place.
No, this has nothing to do with babies, and all about controlling human sexuality. If people can have abortions, if they can use condoms, then they will fuck—and that will somehow bring about "social collapse." Forcing women to carry unwanted pregnancies to full term is, in their minds, a just punishment for being sluts.
To conservatives, sex is simply bad. (See Markos's full post here.)
It's typical of Republican/Conservative hypocrisy to fight their battles under false premises. Against taxing the oligarchs and plutocrats? Say you're defending job creators. Fighting for your donors in the oil and gas industries? Say environmental regulations are destroying America's job base. And the same applies to sex. Sexual freedom (as Orwell understood well) is one of the pillars of free society. Particularly sexual freedom for women. If you can control what people can do in the most intimate sphere of their lives, which is what they do with their bodies, is there really anything else you cannot control, squash, impose? So the Republicans' real agenda on sexuality is one of tyranny masked as compassion for the unborn, and it is quite telling that the Conservatives' compassion for human beings stops at the unborn. They have no problem condemning the unborn, once born, to a life of misery, poverty, tribulation, subjugation, modern slavery, ill health.
Shame on them, and on all those who enable them in defense of ideals that Republicans have betrayed daily for close to 50 years.
Monday, September 19, 2011
Mark Cuban's Money
You might know him as, among other things, the owner of the Dallas Mavericks. He has a boatload of money and, apparently, he is not looking at paying high taxes as class warfare.
When he says "helping to support millions of Americans" I am sure he does not mean what Republicans usually mean, which is "helping to support leeches who do nothing and expect stuff in return." He means those who, try as they might, will never have the skills, the opportunities, and the blessings that a Mark Cuban earned. Well said.
So be Patriotic. Go out there and get rich. Get so obnoxiously rich that when that tax bill comes, your first thought will be to choke on how big a check you have to write. Your 2nd thought will be “what a great problem to have”, and your 3rd should be a recognition that in paying your taxes you are helping to support millions of Americans that are not as fortunate as you. (Mark Cuban, on his blog. Emphasis added.)
When he says "helping to support millions of Americans" I am sure he does not mean what Republicans usually mean, which is "helping to support leeches who do nothing and expect stuff in return." He means those who, try as they might, will never have the skills, the opportunities, and the blessings that a Mark Cuban earned. Well said.
Saturday, September 17, 2011
Friday, September 16, 2011
Michele Bachmann on HPV
Via the Daily Kos.
"Okay, so what I'm hearing here is that there is a disagreement in the scientific community on this issue [of HPV vaccinations]. On one side you have the full weight of the medical and scientific establishment, and on the other side you have Michele Bachmann citing studies in the New England Journal of Some Lady I Just Met."
---Stephen Colbert
"Okay, so what I'm hearing here is that there is a disagreement in the scientific community on this issue [of HPV vaccinations]. On one side you have the full weight of the medical and scientific establishment, and on the other side you have Michele Bachmann citing studies in the New England Journal of Some Lady I Just Met."
---Stephen Colbert
Thursday, September 15, 2011
Welcome to Fascist America
Why don't Repuglycans just rename their Party to match their ideas? Uniion-busting? That is fascism. Ask Mussolini.
Read about the outsourcers' bill of rights that the Republican House just passed.
This is how Rep. George Miller (D-CA) had to say about the bill from the floor of the House:
Welcome to Fascism, America.
Read about the outsourcers' bill of rights that the Republican House just passed.
This is how Rep. George Miller (D-CA) had to say about the bill from the floor of the House:
Under this bill, a company can retaliate against a worker for trying to organize a union. The employer could layoff that worker and subcontract their work out.
A company can bust a union by setting up a shell company down the street and send all the work there until all of the union employees have lost their jobs. Workers would be out of luck because the NLRB would be prohibited from ordering the work returned to those now-unemployed workers.
Welcome to Fascism, America.
Labels:
~short,
American madness,
fascism,
Repuglycans
Saturday, August 27, 2011
Sen. Sanders on Countdown on How To Save Social Security
A sane man puts intelligence back in a national debate which epitomizes insanity and corruption.
Wednesday, August 10, 2011
Republicans Announce Their Picks For "Gang Of 12"
The Republican picks for the "Super-Congress", the "Gang Of 12", or whatever you want to call it, are out. All six have signed Grover Norquist's pledge not to raise taxes. Ever.
Whether the deficit-reduction commission ends up being the "stalemate commission" or the "cave-in commission" is, basically, entirely up to Democrats. Time to start packing your bags for friendlier, civilized countries, I fear.
Whether the deficit-reduction commission ends up being the "stalemate commission" or the "cave-in commission" is, basically, entirely up to Democrats. Time to start packing your bags for friendlier, civilized countries, I fear.
Tuesday, August 09, 2011
How California (And Government In General) Wastes Tons Of Our Money
Mendocino Marijuana Raid.
Think about it: Add to the value of the marijuana seized ($800 million) the cost of running the operation, the cost of jailing the perps, the loss of revenue from money that could have been earned by California through other productive endeavors, and the cost of trying and jailing people for possession and/or distribution of the stuff, and you will see that the war on drugs is sheer insanity, particularly in a country that tried Prohibition and passed an amendment to repeal it.
Think about it: Add to the value of the marijuana seized ($800 million) the cost of running the operation, the cost of jailing the perps, the loss of revenue from money that could have been earned by California through other productive endeavors, and the cost of trying and jailing people for possession and/or distribution of the stuff, and you will see that the war on drugs is sheer insanity, particularly in a country that tried Prohibition and passed an amendment to repeal it.
Saturday, August 06, 2011
Weekend Reading: Do It For Democracy
It's a beautiful day and, yes, you might think you have better things to do. Barbecue, go to a pool, go to a National Park, to a ballgame or to the mall. The choices are many. The couch potatoes will just stay home and blast the A/C and the TV instead.
Of course, that is kind of how we got to the predicament we're in. We stopped caring about the things that matter. We stopped reading, we stopped trying to find out what goes on in the world around us. We misinterpreted the role we play in a healthy democracy by reducing it to voting every two or four years (if at all) for people who are supposed to represent us. We became numb to the talking points of the few and inured to the pain they inflicted on our lives, as if inevitable.
Someone said that democracy is not a spectators' sport. It isn't, it shouldn't be. Not only we let it become a spectators' sport, we let it become a victim's activity. That's the prevailing thought of many, that we are all victims of an incessant stream of conspiratorial activities at the hands of the powerful is so dangerous and so destructive; because, if you believe that the world is run by a small number of conspirators that cannot be stopped, you stop fighting for what you, in theory deserve.
That is also why religion has such a devastating effects on the lives of Americans: because if you get used to submitting yourself to a higher, unquestionable authority in matters of spirituality, you will most likely retain that attitude in all facets of life. George Carlin put it best, when talking about the Ten Commandments, he said this about the 4th (or 5th, depending on which flavor of Christianity you submit to): "Obedience, respect for authority. Just another name for controlling people. The truth is that obedience and respect shouldn’t be automatic. They should be earned and based on the parent’s performance. Some parents deserve respect, but most of them don’t, period." You can quibble with some aspects of Carlin's routine, but not with the central point: obedience and respect should not be automatic; not for parents; not for any authority, be it governmental or of any other kind.
But it's hard to question authority without being able to grade its performance, not based on belief or unsupported personal convictions, but on facts and logic. Of course, we have also been trained to believe that one man's facts are another's man fallacious opinions. That is not so: everyone is entitled to his own opinion, but not his own facts. It is true that facts and data are subject to interpretation; but the interpretation should rely on a consistent world view. Only when logic is twisted beyond recognition, do facts also lose their essential truth.
I hope that you will forgive me for this long preamble. To make a long story short, there are many things you could be doing this weekend. In truth, they are not all mutually exclusive, and that is precisely why I invite you to read these posts which I found engaging, illuminating, and--to a great extent--convincing.
How to Think About Standard and Poor's Downgrade
America in Decline
30 Years Ago: The Day the Middle Class Died
By all means, don't stop at these; they are just recommendations. If you don't like them, find your own reading. But, as surely as you must feed your body and your spirit, don't forget to also feed your mind. Your well-being, and the well-being of those you care about, depends on it, all the more so in an ailing democracy.
Of course, that is kind of how we got to the predicament we're in. We stopped caring about the things that matter. We stopped reading, we stopped trying to find out what goes on in the world around us. We misinterpreted the role we play in a healthy democracy by reducing it to voting every two or four years (if at all) for people who are supposed to represent us. We became numb to the talking points of the few and inured to the pain they inflicted on our lives, as if inevitable.
Someone said that democracy is not a spectators' sport. It isn't, it shouldn't be. Not only we let it become a spectators' sport, we let it become a victim's activity. That's the prevailing thought of many, that we are all victims of an incessant stream of conspiratorial activities at the hands of the powerful is so dangerous and so destructive; because, if you believe that the world is run by a small number of conspirators that cannot be stopped, you stop fighting for what you, in theory deserve.
That is also why religion has such a devastating effects on the lives of Americans: because if you get used to submitting yourself to a higher, unquestionable authority in matters of spirituality, you will most likely retain that attitude in all facets of life. George Carlin put it best, when talking about the Ten Commandments, he said this about the 4th (or 5th, depending on which flavor of Christianity you submit to): "Obedience, respect for authority. Just another name for controlling people. The truth is that obedience and respect shouldn’t be automatic. They should be earned and based on the parent’s performance. Some parents deserve respect, but most of them don’t, period." You can quibble with some aspects of Carlin's routine, but not with the central point: obedience and respect should not be automatic; not for parents; not for any authority, be it governmental or of any other kind.
But it's hard to question authority without being able to grade its performance, not based on belief or unsupported personal convictions, but on facts and logic. Of course, we have also been trained to believe that one man's facts are another's man fallacious opinions. That is not so: everyone is entitled to his own opinion, but not his own facts. It is true that facts and data are subject to interpretation; but the interpretation should rely on a consistent world view. Only when logic is twisted beyond recognition, do facts also lose their essential truth.
I hope that you will forgive me for this long preamble. To make a long story short, there are many things you could be doing this weekend. In truth, they are not all mutually exclusive, and that is precisely why I invite you to read these posts which I found engaging, illuminating, and--to a great extent--convincing.
How to Think About Standard and Poor's Downgrade
America in Decline
30 Years Ago: The Day the Middle Class Died
By all means, don't stop at these; they are just recommendations. If you don't like them, find your own reading. But, as surely as you must feed your body and your spirit, don't forget to also feed your mind. Your well-being, and the well-being of those you care about, depends on it, all the more so in an ailing democracy.
Friday, August 05, 2011
Beyond The Outcry for S&P's Downgrade Of The USA's Credit-Worthiness
(UPDATED with Robert Reich's perspective, below my original post.)
There are those who decry the decision of Standard & Poor's to dowgrade the credit-worthiness of the United States as laughable, indefensible, and wrong. I beg to differ. S&P did the right thing, and I hope that other rating agencies will follow suit. This does not mean that S&P and other credit rating agencies do not have credibility issues of their own, nor that we should take everything they say or write as the revealed word of god. But after the the pitiful spectactle offered by the two political parties in the standoff over the debt ceiling, which ended with the side of the hostage takers getting everything they wanted (98%, according to the Speaker of the House), and the other side, the Stockholm-syndrome plagued Democrats, acting as if we have to thank the kidnappers for releasing us after paying a 2.4 trillion ransom, how can anyone blame S&P for just taking reality into account?
The American government gave the world the worse possible performance it could have given, and we should expect everybody to applaud because it decided to honor its debts? How deluded are we if we think that the world regards the current political class as responsible and trustworthy, and that we are deserving of the best possible rating?
I believe that when all the dust has settled you will see that S&P's rationale for downgrading the United States' credit rating actually makes a lot of sense. Below are excerpts from their press release, in the order in which they appear. (Emphases added.)
The conclusion of the press release states:
The full report can be found on Standard and Poor's website.
P.S. You will hear that the Obama administration has levied accusations that S&P's numbers are off by a couple of trillion dollars, making the downgrade decision flawed or outright wrong. But you should also notice that much of the rationale for the downgrade lies in the intransigence of (Republicans in) Congress against raising revenues, and on the lack of credibility of Washington's political class. So the downgrade is less about numbers than it is about prospects and credibility. And the decision therefore falls squarely on the shoulders of those who decided to take the American economy hostage in the service of their wealthy overlords.
---------------------------------------------------------------
And now, as promised, is Robert Reich's take on S&P's downgrade of the U.S. credit rating. It is interesting, because Reich correctly points out that S&P has no business telling the United States how large a deficit it can run, unless its ability to repay its debts is in question.
While I respect Reich's point of view greatly, I still would not discount the weight that the credibility of American politics has in forecasting the nation's ability to repay its debts. In other words, I welcome S&P's downgrade IF, and that's a big if, it sends Washington the message that some things are off-limits to politicking. Which is why I also blame President Obama for not throwing the weight of the Fourteenth Amendment at the leaders of the Republican Party and at Tea Party members during the negotiations. The President is making many people regret their decision of supporting him instead of Hillary Clinton. It is hard to imagine that Mrs. Clinton could have done worse than he has in negotiations with Republicans, who have run all over him from Day 1 of his arrival in office. And that, which is that Obama is making us long for a Clinton presidency, speaks volumes to the magnitude of his failure so far.
There are those who decry the decision of Standard & Poor's to dowgrade the credit-worthiness of the United States as laughable, indefensible, and wrong. I beg to differ. S&P did the right thing, and I hope that other rating agencies will follow suit. This does not mean that S&P and other credit rating agencies do not have credibility issues of their own, nor that we should take everything they say or write as the revealed word of god. But after the the pitiful spectactle offered by the two political parties in the standoff over the debt ceiling, which ended with the side of the hostage takers getting everything they wanted (98%, according to the Speaker of the House), and the other side, the Stockholm-syndrome plagued Democrats, acting as if we have to thank the kidnappers for releasing us after paying a 2.4 trillion ransom, how can anyone blame S&P for just taking reality into account?
The American government gave the world the worse possible performance it could have given, and we should expect everybody to applaud because it decided to honor its debts? How deluded are we if we think that the world regards the current political class as responsible and trustworthy, and that we are deserving of the best possible rating?
I believe that when all the dust has settled you will see that S&P's rationale for downgrading the United States' credit rating actually makes a lot of sense. Below are excerpts from their press release, in the order in which they appear. (Emphases added.)
- the downgrade reflects our view that the effectiveness, stability, and predictability of American policymaking and political institutions have weakened at a time of ongoing fiscal and economic challenges to a degree more than we envisioned when we assigned a negative outlook to the rating on April 18, 2011.
- [we are] pessimistic about the capacity of Congress and the Administration to be able to leverage their agreement this week into a broader fiscal consolidation plan that stabilizes the government’s debt dynamics any time soon.
- The political brinksmanship of recent months highlights what we see as America’s governance and policymaking becoming less stable, less effective, and less predictable than what we previously believed. The statutory debt ceiling and the threat of default have become political bargaining chips in the debate over fiscal policy.
- It appears that for now, new revenues have dropped down on the menu of policy options. In addition, the plan envisions only minor policy changes on Medicare and little change in other entitlements, the containment of which we and most other independent observers regard as key to long-term fiscal sustainability.
- Compared with previous projections, our revised base case scenario now assumes that the 2001 and 2003 tax cuts, due to expire by the end of 2012, remain in place. We have changed our assumption on this because the majority of Republicans in Congress continue to resist any measure that would raise revenues...
The conclusion of the press release states:
On the other hand, as our upside scenario highlights, if the recommendations of the Congressional Joint Select Committee on Deficit Reduction–independently or coupled with other initiatives, such as the lapsing of the 2001 and 2003 tax cuts for high earners–lead to fiscal consolidation measures beyond the minimum mandated, and we believe they are likely to slow the deterioration of the government’s debt dynamics, the long-term rating could stabilize at ‘AA+’.
The full report can be found on Standard and Poor's website.
P.S. You will hear that the Obama administration has levied accusations that S&P's numbers are off by a couple of trillion dollars, making the downgrade decision flawed or outright wrong. But you should also notice that much of the rationale for the downgrade lies in the intransigence of (Republicans in) Congress against raising revenues, and on the lack of credibility of Washington's political class. So the downgrade is less about numbers than it is about prospects and credibility. And the decision therefore falls squarely on the shoulders of those who decided to take the American economy hostage in the service of their wealthy overlords.
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And now, as promised, is Robert Reich's take on S&P's downgrade of the U.S. credit rating. It is interesting, because Reich correctly points out that S&P has no business telling the United States how large a deficit it can run, unless its ability to repay its debts is in question.
While I respect Reich's point of view greatly, I still would not discount the weight that the credibility of American politics has in forecasting the nation's ability to repay its debts. In other words, I welcome S&P's downgrade IF, and that's a big if, it sends Washington the message that some things are off-limits to politicking. Which is why I also blame President Obama for not throwing the weight of the Fourteenth Amendment at the leaders of the Republican Party and at Tea Party members during the negotiations. The President is making many people regret their decision of supporting him instead of Hillary Clinton. It is hard to imagine that Mrs. Clinton could have done worse than he has in negotiations with Republicans, who have run all over him from Day 1 of his arrival in office. And that, which is that Obama is making us long for a Clinton presidency, speaks volumes to the magnitude of his failure so far.
Study Cuts Through The Fog Of Anti-Union Lies
Here is an important post regarding the strong correlation between a decline in union membership and declining wages.
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