In other words, the best lack all conviction while the worst are full of passionate intensity. Or put another way: “It’s a Madhouse…a Madhouse!” So, yeah, this is my day job, and, sad to say, it’s mostly been like this since 2010: Two-to-three days out of the week, the House votes to repeal, defund, delay, or otherwise hamstring the Affordable Care Act. On the off day, it usually pays homage to some other deeply stupid and destructive Republican shibboleth, like, say, scrapping literacy programs, gutting the EPA, or kicking four million poor people off of Food Stamps.
That’s business as usual ’round these parts, and this idiotic, self-inflicted shutdown is just the apotheosis of the creeping crazy that has afflicted the House over the past three years. On the off-chance that people just might get better access to affordable health insurance — from a free-market-based plan originally conceived and enacted by Republicans, mind you — the GOP have now completely shut down the federal government. And since it’s looking like America just isn’t backing their play on this, the GOP already have their eye set on a bigger hostage: the nation’s credit rating. Here’s Clownshoes Ryan on this: “I think it will fold into the debt-ceiling fight. I think that’s inevitable, and preferable in my opinion…I like combining all of our leverage, which is sequester and the debt limit.”
That Ryan quote brings up an important and often-overlooked point about this current madness: There is a method to it, and for the GOP — however bad the headlines — this is mostly going according to plan. For, absent all the Sturm und Drang surrounding the Affordable Care Act, when it comes to the actual budget situation: The Democrats have (once again) already caved, and the Republicans will almost assuredly be getting the Austerity Economy they so desire. To wit:
Dave Dayen: “The new fiscal year, which begins October 1, is the natural moment to assess the harm sequestration has wrought, and fix it to prevent more damage. But the extreme nature of the House Republican demands has made a ‘clean’ budget resolution with spending cuts intact the compromise position in the debate.”
Digby: “The Democrats already folded. Sequestration is now the ongoing law of the land and Paul Ryan’s budget wet dream is considered the ‘clean’ continuing resolution…the Democrats have been losing on policy every step of the way since these budget battles began, even as they seem to be winning the politics. What could be more telling than the fact that the numbers in Paul Ryan’s budget are now considered the starting point in any new negotiations to end the shutdown?”
Rep. Jim McGovern (D-MA): “It’s baffling to me that the Republicans aren’t claiming victory. I’ve talked to a lot of them, privately, and a lot of them say, ‘Yeah, this is what we want. We should call it a day.’”
The point being, and with the caveat that a crisis situation has its own dangerously combustive logic — who knows what happens once ambitious, patently amoral dudebros like Ted Cruz and Paul Ryan call the shots? — the ACA fight is mostly a big shiny object to keep the fringiest of the right-wing loons happy and everyone else distracted. However much further down the rabbit hole the Republicans intend to take us — and it seems like they now want this to bleed right into the debt ceiling fight for maximum destructiveness — they’ve already got what they wanted in many of the ways that matter. They’re happier than a pig in slop whenever government seems broken. They rejoice every time lazy Beltway media pundits shrug and publish he-said, she-said stories about DC dysfunction. And they for all intent and purposes won their Austerity budget the moment Senate Democrats sent back and began pushing a “clean”-CR — meaning a government funded at sequester levels — as the compromise solution.
So, yeah, it’s a demoralizing time in Washington and no mistake — especially since, if anything, we’ll be lucky if the White House doesn’t try to step into the breach with another social-insurance-slashing Grand Bargain at some point. Hope and Change! But ah well, at least they keep making movies.
Per Mike Konczal of Rortybomb, writing over at Next New Deal: In 2012, the Top 1% (notwithstanding capital gains, which only slightly changes the picture) took home the largest share of the national income since 1928. Socialism!
In a less-than-positive review of the administration’s recently-proposed higher education reforms — in short, Race to the Bottom for colleges — Tim Burke attempts to explain the madness behind Obama’s technocratic method. “Technocrats live in the wonderland of the question marks in the Underpants Gnomes business model, endlessly fussing over the exact terms of Point #1 and certain that the Profit! of #3 will follow.”
Also, I said this in the Virtually Speaking chat the other day, but we’ve tried this sort of business-minded technocratic leadership before in America — It didn’t pan out. (Burke post by way of Tropics of Meta.)
Ask yourself: If you could steal $125 million, with the only downside being that if you got caught you might have to give the money back and lose a single day’s income, would you give it a go? Me too.”
It’s tempting to hate on FERC for agreeing to this sucker’s deal, but let’s face it, this type of wink-and-a-nod, Potemkin oversight is endemic across our supposed regulatory agencies. (See also: the (lack of) fallout from JP Morgan’s Whale Trade.)
It used to be, not even all that long ago, people and companies who engaged in systemic energy and financial fraud went to prison. Now…not so much. Today, they not only continue to be treated as esteemed citizens by the highest levels of government — They even have the temerity to complain they’re being over regulated.
Meanwhile, our ostensibly progressive administration spends much of its days trying to prosecute whistleblowers and poor people to the fullest extent of the law. Some system. Honestly, if you’re not disgusted at this point, you’re not paying attention.
After four years of inaction, CEPR examines the costs of a stagnant minimum wage. Conversely, raising the minimum to $10.10 an hour — as supported by 80% of Americans — would create an estimated 300,000 jobs and add $33 billion to the economy. So you’d think Congress would get on that, yes? Umm…
In very related news, a new AP poll finds that, as a result of stagnant wages, income inequality, and a deteriorating job market, fully 80% of Americans experience poverty, unemployment, and deprivation at some point in their lives. “By 2030, based on the current trend of widening income inequality, close to 85 percent of all working-age adults in the U.S. will experience bouts of economic insecurity.” The American Dream, now with Vegas casino odds.
CEPR’s Dean Baker, one of the only economists to anticipate the collapse of the housing bubble, calls out his many colleagues currently collaborating in the deficit witchhunt. [Y]oung people today can expect many more years of dire labor market conditions, because the remedies that could turn around their job situations have been blocked by nonsense spewing from economists. Incidentally, this situation works out very nicely for those on top, who are enjoying the benefits of record-high profit shares, which have also helped to fuel a soaring stock market.”
Along very similar lines, here’s James K. Galbraith on the state of economics in 2002:
|“Leading active members of today’s economics profession, the generation presently in their 40s and 50s, have joined together into a kind of politburo for correct economic thinking. As a general rule — as one might expect from a gentleman’s club — this has placed them on the wrong side of every important policy issue, and not just recently but for decades. They predict disaster where none occurs. They deny the possibility of events that then happen. They offer a “rape is like the weather” fatalism about an “inevitable” problem (pay inequality) that then starts to recede. They oppose the most basic, decent, and sensible reforms, while offering placebos instead. They are always surprised when something untoward (like a recession) actually occurs.
And when finally they sense that some position cannot be sustained, they do not re-examine their ideas. Instead, they simply change the subject. No one loses face, in this club, for having been wrong. No one is disinvited from presenting papers at later annual meetings. And still less is anyone from the outside invited in. Only the occasional top-insider-turned-dissident — this year the admirable Stiglitz — can reliably count on getting a hearing.
Put another way, when it comes to our elected representatives, the best lack all conviction while the worst are full of a passionate intensity. A new study finds politicians consistently overstate the conservatism of the American electorate. Which may be why we’re all very busy discussing ridiculous cuts to everything in Washington right now, instead of working harder to create jobs and foster economic growth.
In very related news, the Dow reaches a new high — 14,164 — even as household income hits a decade low. “As a percentage of national income, corporate profits stood at 14.2 percent in the third quarter of 2012, the largest share at any time since 1950, while the portion of income that went to employees was 61.7 percent, near its lowest point since 1966.”
As CERN in Switzerland becomes the new frontier in particle discoveries, physicists worry the United States is falling behind. “How such efforts will fare in this age of sequestration and federal cutbacks is unknown, he admitted, but particle physics has produced important spinoffs into medicine, including imaging devices and beams to treat cancer, and in materials science.”
It’s not just pandas and sea lions: Chris Good of ABC News lists fifty-seven terrible consequences America can expect from the looming sequestration, the deep automatic cuts resulting from the August 2011 debt ceiling deal that — unless action is taken — are set to go into effect on March 1st. Among the probable damage: 700,000 jobs lost. “With the House in recess and with Obama playing golf [with oilmen] over the weekend, a deal does not appear imminent.”
There’s a lot of back-and-forth going on in Washington right now about whose fault these lousy sequesters are. Clearly, the GOP loved the idea back when, and they’re the ones preventing any action on averting the cuts now. So make no mistake — if these deep and indiscriminate cuts go into effect, it’ll be because the GOP wants them. It’s the same reason they hold up disaster relief constantly, and are currently holding the US Postal Service hostage — Because they seem to get an ideological kick out of seeing Big Guvmint fail at its basic responsibilities.
That being said, let’s remember: The president handed House Republicans a loaded gun. It takes a very short-term view of things to forget how, throughout 2010, 2011, and 2012, President Obama actively fomented the deficit witchhunt, and continued to promote both Simpson-Bowles and a deadly Grand Bargain even as it became patently obvious that investment, spending, and economic growth should be the order of the day. (By the way: Not in the Simpson-Bowles package of deficit-defeating awesomeness? The corporate tax loophole that just made Erskine Bowles $114,000.)
In short, this lousy sequester is the GOP’s baby, yes. But it’s also the ultimate consequence of both parties trafficking in unresponsible hysteria over a phantom problem for years one end. Now the chickens have come home to roost, and our fragile economic recovery, weakened by several years without any serious stimulus, faces a real crisis. Let’s be clear: This crisis was not caused by the illusory danger of deficits, but because Republicans and the administration both, when the chips were down in August 2011, elided over basic economic sense and instead embraced the nonsense of austerity.
In Rolling Stone, Matt Taibbi explains how and why the Justice Department refused to prosecute HSBC for sundry violations of the law. In short, they were Too Big to Jail. “An arrestable class and an unarrestable class. We always suspected it, now it’s admitted. So what do we do?”
In related news, Wall Street bankers throw one of their customary hissyfits over a gaggle of fully complicit, bought-and-paid-for regulators finally being asked a hard question or two by the Senate Banking Committee — thanks to its and our new champion, Senator Elizabeth Warren. “The anonymous banker followed up [with Politico, naturally]: ‘Elizabeth Warren and Ted Cruz are dueling for the title of ‘most extreme fringe freshman senator.”
Anonymous Banker, let me choose my words carefully: Go fuck yourself. If this administration’s promises of change-we-can-believe-in were worth a dime, you and so many others would be doing hard time right about now.
My favorite Onion piece in a few moons: Pet Eating Like Country Isn’t In Goddamn Recession. “According to reports, the 5-year-old labrador appears callously unswayed by the constant stream of gloomy market forecasts and instead demands greater and greater supplies of dog food, to the point where he must think the Dow Jones industrial average is soaring through the fucking roof or something.“