Chris Hayes is so right about this:Krugman: Redo That VoodooI feel exactly the same way --- that growing sense of disorientation and we seem to going full speed down the rabbit hole. (In that linked post, I attribute some of it to Very Serious people syndrome too, but there's more to it than that.)
This all seems eerily familiar. The conversation—if it can be called that—about deficits recalls the national conversation about war in the run-up to the invasion of Iraq. From one day to the next, what was once accepted by the establishment as tolerable—Saddam Hussein—became intolerable, a crisis of such pressing urgency that "serious people" were required to present their ideas about how to deal with it. Once the burden of proof shifted from those who favored war to those who opposed it, the argument was lost.
We are poised on the same tipping point with regard to the debt. Amid official unemployment of 9.5 percent and a global contraction, we shouldn't even be talking about deficits in the short run. Yet these days, entrance into the club of the "serious" requires not a plan for reducing unemployment but a plan to do battle with the invisible and as yet unmaterialized international bond traders preparing an attack on the dollar.
Perhaps the most egregious aspect of the selling of the Iraq War was its false pretext. It never really was about weapons of mass destruction, as Paul Wolfowitz admitted. WMDs were just "what everyone could agree on." So it is with deficits. Conservatives and their neoliberal allies don't really care about deficits; they care about austerity—about gutting the welfare state and redistributing wealth upward. That's the objective. Deficits are just what they can all agree on, the WMDs of this manufactured crisis. Senator John Kyl of Arizona, speaking on Fox, has come out and admitted as much. All new spending increases must be offset, he said, but "you should never have to offset the cost of a deliberate decision to reduce tax rates on Americans." So there you have it. (read on)
And as Hayes points out it didn't exactly work out politically for the Democrats in the short run ---- and in the long run a whole lot of people died for no good reason. It's insane that we are watching this happen again.
Republicans are feeling good about the midterms — so good that they’ve started saying what they really think. This week the party’s Senate leadership stopped pretending that it cares about deficits, stating explicitly that while we can’t afford to aid the unemployed or prevent mass layoffs of schoolteachers, cost is literally no object when it comes to tax cuts for the affluent.
And that’s one reason — there are others — why you should fear the consequences if the G.O.P. actually does as well in November as it hopes.
For a while, leading Republicans posed as stern foes of federal red ink. Two weeks ago, in the official G.O.P. response to President Obama’s weekly radio address, Senator Saxby Chambliss devoted his entire time to the evils of government debt, “one of the most dangerous threats confronting America today.” He went on, “At some point we have to say ‘enough is enough.’ ”
But this past Monday Jon Kyl of Arizona, the second-ranking Republican in the Senate, was asked the obvious question: if deficits are so worrisome, what about the budgetary cost of extending the Bush tax cuts for the wealthy, which the Obama administration wants to let expire but Republicans want to make permanent? What should replace $650 billion or more in lost revenue over the next decade?
His answer was breathtaking: “You do need to offset the cost of increased spending. And that’s what Republicans object to. But you should never have to offset the cost of a deliberate decision to reduce tax rates on Americans.” So $30 billion in aid to the unemployed is unaffordable, but 20 times that much in tax cuts for the rich doesn’t count.
The next day, Mitch McConnell, the Senate minority leader, confirmed that Mr. Kyl was giving the official party line: “There’s no evidence whatsoever that the Bush tax cuts actually diminished revenue. They increased revenue, because of the vibrancy of these tax cuts in the economy. So I think what Senator Kyl was expressing was the view of virtually every Republican on that subject.”
Now there are many things one could call the Bush economy, an economy that, even before recession struck, was characterized by sluggish job growth and stagnant family incomes; “vibrant” isn’t one of them. But the real news here is the confirmation that Republicans remain committed to deep voodoo, the claim that cutting taxes actually increases revenues.
It’s not true, of course. Ronald Reagan said that his tax cuts would reduce deficits, then presided over a near-tripling of federal debt. When Bill Clinton raised taxes on top incomes, conservatives predicted economic disaster; what actually followed was an economic boom and a remarkable swing from budget deficit to surplus. Then the Bush tax cuts came along, helping turn that surplus into a persistent deficit, even before the crash.
But we’re talking about voodoo economics here, so perhaps it’s not surprising that belief in the magical powers of tax cuts is a zombie doctrine: no matter how many times you kill it with facts, it just keeps coming back. And despite repeated failure in practice, it is, more than ever, the official view of the G.O.P.
Why should this scare you? On paper, solving America’s long-run fiscal problems is eminently doable: stronger cost control for Medicare plus a moderate rise in taxes would get us most of the way there. And the perception that the deficit is manageable has helped keep U.S. borrowing costs low.
But if politicians who insist that the way to reduce deficits is to cut taxes, not raise them, start winning elections again, how much faith can anyone have that we’ll do what needs to be done? Yes, we can have a fiscal crisis. But if we do, it won’t be because we’ve spent too much trying to create jobs and help the unemployed. It will be because investors have looked at our politics and concluded, with justification, that we’ve turned into a banana republic.
Of course, flirting with crisis is arguably part of the plan. There has always been a sense in which voodoo economics was a cover story for the real doctrine, which was “starve the beast”: slash revenue with tax cuts, then demand spending cuts to close the resulting budget gap. The point is that starve the beast basically amounts to deliberately creating a fiscal crisis, in the belief that the crisis can be used to push through unpopular policies, like dismantling Social Security.
Anyway, we really should thank Senators Kyl and McConnell for their sudden outbursts of candor. They’ve now made it clear, in case anyone had doubts, that their previous posturing on the deficit was entirely hypocritical. If they really do have the kind of electoral win they’re expecting, they won’t try to reduce the deficit — they’ll try to make it explode by demanding even more budget-busting tax cuts.
Benen: THE WISDOM OF A LIBERATED HOUSE REPUBLICAN
Rep. Bob Inglis (R-S.C.) really is conservative. I think I could count all the genuine Republican "moderates" in Congress on one hand, and Inglis wouldn't even come close to making the cut. He's a conservative lawmaker from a conservative district with a conservative voting record and strong ratings from conservative groups that give scores to lawmakers.But now that Inglis is on his way out of Congress, he's sounding a whole lot more reasonable.
Inglis, of course, was recently humiliated in a GOP primary, losing by a ridiculous 42-point margin in a district he's represented for more than a decade. What precipitated such a defeat? Inglis expressed a willingness to work with Democrats on energy policy; he urged his constituents not to take Glenn Beck too seriously; and he said his main focus as a lawmaker was to find "solutions" to problems. Last year, Inglis said the Republican Party has a chance "to understand we are all in need of some grace." The result: GOP voters turned on him.
As his congressional career wraps up, the conservative South Carolinian is finding it much easier to speak his mind. Ben Armbruster flagged Inglis' appearance on C-SPAN today, where he didn't hold back.
On Sen. David Vitter's (R-La.) support for birther lawsuits:
"The president is obviously a citizen of the United States.... So, really we do lose credibility when we spend time talking about such things. Why do we do that? We do it because we want to vilify the other side. We want to make them into the big bad guys."
On his caucus' political strategy:
"We have basically decided to stir up a base, and that's a bad decision for the country."
On the right's Community Reinvestment Act talking point:
"What I'm supposed to do as a Republican is just echo back ... that yes, CRA was the cause of the financial meltdown in October of 2008. And if I said that to you, I'd be clearly wrong."
This is the same Inglis who, just last week, trashed conservative "demagoguery" during the health care debate; conceded that some of the right's hatred of President Obama in the South is driven by racism; and said, "I think we have a lot of leaders that are following those (television and talk radio) personalities and not leading."
I can't help but wonder how many other Republican members of Congress would be willing to endorse Inglis' sentiments, if they knew it wouldn't end their careers in GOP politics.
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