Tag: Economics

Stimpak Applied.

“We have begun the essential work of keeping the American Dream alive in our time. Now, I don’t want to pretend that today marks the end of our economic problems. Nor does it constitute all of what we’re going to have to do to turn our economy around. But today does mark the beginning of the end…The American Recovery and Reinvestment Act that I will sign today — a plan that meets the principles I laid out in January — is the most sweeping economic recovery package in our history.” Back in Denver for the day, President Obama signs the ARRA economic stimulus bill into law. [Remarks.] “‘We have done more in 30 days to advance the cause of health-care reform than this country has done in an entire decade,’ Obama said, prompting a standing ovation.“

As with the initial versions, the final bill passed without a single GOP vote in the House and only three Republicans — Snowe, Collins, Specter — in the Senate. Y’know, it’s bad enough that these situationally-ethical jokers stand in the way of what obviously needs to be done to get our economy moving again. (I don’t remember any calls for spending restraint, or any worries about pork, in the flush times when Boss DeLay was running the show, or when both Reagan and Dubya were ratcheting up the deficit to all hell.) But, it offends the senses to have to listen to the aggressively stupid talking points Republicans tend to trot out these days. For example, the party’s new leader, Michael Steele: “Not in the history of mankind has the government ever created a job.” (The armed services notwithstanding, who does he think the runs the government? Elves? Hey, Mr. Steele, look down — we call those roads.) Or consider South Carolina Sen. Jim DeMint: “This is not a stimulus bill. It’s just a spending bill.” Econ 101: A stimulus bill is a spending bill. (They do in fact teach this in SC — I can attest to it.)

Worse still, the national newsmedia has been failing miserably in their coverage of the stimulus battle, by continually enabling these Republicans to spout their inanities without comment. It reminds me of Paul Begala’s “Neil Armstrong Principle,” which I heard him break down on Charlie Rose a few months back: “If John McCain and Sarah Palin were to say the moon was made of green cheese, we can be certain that Barack Obama and Joe Biden would pounce on it, and point out it’s actually made of rock. And you just know the headline in the paper the next day would read: ‘CANDIDATES CLASH ON LUNAR LANDSCAPE.’” Too true.

Well, at least the durned thing passed. I’m sure the bill has its problems, not the least that it was transformed and watered down in an attempt to placate a bunch of Republicans who were never in a million years going to vote for it anyway. Perhaps, when we move forward now, we can focus on writing good policy that will get this economy and our country moving again, rather than catering to the whims of the naysayers, political opportunists, and/or flat-earth morons that comprise today’s GOP.

Fine, We’ll Do It Without You.

“‘There will be people in districts all over the country that will wonder why, when there’s a good bill to get the economy moving again, we still seem to be playing political gotcha,’ White House press secretary Robert Gibbs said in an interview.” Well, so much for the post-partisan era. Despite several attempts at across-the-aisle diplomacy by the new administration, the House passes President Obama’s stimulus bill 244-188 without a single Republican vote. Sigh.

Perhaps a little history lesson is in order. Journey with me, if you will, back to 1993, the last time a new Democratic president tried to work with this same crew of jokers on a new, recession-busting economic plan. As you may remember, Clinton’s 1993 budget also passed the House and Senate without a single GOP vote. Let’s see what the Republicans had to say back then (courtesy of some old, off-line research of mine):

Dick Armey (who, btw, made an embarrassment of himself on national television last night): “This bill would grow the Government…shrink the economy” and “will mean fewer jobs for ordinary Americans.” [Congressional Record, 8/5/93]

Newt Gingrich: The bill will “kill jobs and lead to a recession” that would “force people off of work and onto unemployment and will actually increase the deficit.” [Houston Chronicle, 8/7/93, 1993; AJC, 8/6/93]

Bob Dole: The bill “would take America in the wrong direction.” [WP, 8/4/93]

Ronald Reagan (yes, they wheeled him out with talking points): The bill will “only cause the deficit to increase and will likely wreck any hopes for economic recovery.” [“Just Say No to Clinton’s Package,” NYT op-ed, 8/3/93]

Rush Limbaugh: True to form, the GOP’s poster boy bet the DNC $1 million on the air that three of the following five things would happen by 1996: 1. The deficit would grow. 2. Unemployment would rise. 3. Inflation would swell. 4. Interest rates would surge. 5. The President’s approval rating would fall below 45 percent. [ James McTague, “Off to the Races,” Barron’s, 3/18/96]

Well, I’m sure I don’t need to remind you of the untold economic devastation that was the remainder of the Clinton years. (If you’re keeping score, Rush went 0-for-5, and never paid up.) As it turns out, just as with Boehner this time around, the GOP had decided beforehand they weren’t going to vote for any Clinton bill. As Bob Woodward notes in The Agenda (p. 109), Dole told Clinton this three weeks before the bill was even proposed.

Then as now, the modern Republican party doesn’t seem to understand the first thing about basic economics (their right-wing dogma precludes any grasp of Keynesianism, I guess.) They don’t seem to “get” rudimentary American history. (I’ve seen so many dumb things written about Herbert Hoover and the 1937 “Roosevelt recession” — which was caused by spending cuts and fiscal retrenchment by the FDR admininstration, not “over-regulation” — by right-wingers of late that it’s hard to even know where to begin.)They don’t seem to understand basic politics. (The American people have obviously voted for action, and a path away from Dubyanomics. Getting in the way of this bill won’t “reboot” their party in any way, shape, or form.) At this point, it’s an open question whether they can distinguish their asses from their elbows.

So…can we please stop spoon-feeding these guys now? The GOP has proven yet again that they’re not looking to play ball. If they want to be on the wrong side of the problem as usual, let them. It’s useless to spend any more time bending over backwards to accommodate their lousy, discredited ideas and inchoate, faith-based economic beliefs. It’s time to move on.

We are all “Socialists” now.

“Let’s be clear about why we’re facing a crisis that could pull down the global financial system. The irresponsibility of individuals who bought houses they couldn’t quite afford pales in comparison with the irresponsibility of the financial wizards who built on those shaky mortgages a towering edifice of irrational faith. Someone in the government should have looked at all those trillions of dollars’ worth of mortgage-backed securities and collateralized debt obligations and credit default swaps and demanded that Wall Street prove that all, or even most, of this purported money was real. But we’re in the eighth year of the Bush administration; adult supervision left the building long ago.” — Eugene Robinson.

Boy, nothing like panic and near-catastrophe in the banking and financial sectors to turn all the stark raving free-market fundies redder than Eugene Debs on May Day, eh? In any event, once again we’re on the verge of learning the hard way that Wall Street does a really lousy job of regulating itself, and that, when push comes to shove, it’s the “don’t-tread-on-me” entrepreneurial capitalists among us who are the first to beg for Big Guvmint to come in and bail them out — at above-market prices. “The only emergency is on Wall Street, and that is entirely of Wall Street’s making. It was the banks that made the loans, the banks that bought the paper, the banks that dumbly believed the models that said that housing prices wouldn’t collapse…How touching to see executives from the likes of Lehman Brothers, not normally an institution associated with widows and orphans, squawk about cutthroat tactics.” And I don’t seem to remember the economic Big Boys, or their mostly-GOP minions in Congress, show such concern about the vagaries of risk when the plight of ordinary folks was being discussed, vis a vis the egregious bankruptcy bill of 2005.

Of course, we can’t just let many of our major financial institutions implode without consequence, and — even though delegating the Dubya administration any more “emergency powers” at this point seems like a colossally bad idea — it seems a given that something will have to be done to sort out all this out, and it will no doubt end up costing taxpayers and aggrieved homeowners a bundle. I just hope, when the dust settles, we remember this time how this all came about, and not just let the idiotic free-market fundies blather on about tax-and-spend liberals killing the entrepreneurial spirit every time some sort of regulatory apparatus is discussed in Washington. We know how that movie ends.

Let’s go to the record.

“There is no secret about any of this. The figures below are all from the annual Economic Report of the President, and the analysis is primitive. Nevertheless, what these numbers show almost beyond doubt is that Democrats are better at virtually every economic task that is important to Republicans.” Not that it’s likely to permate the foul miasma of intellectual dishonesty and outright dumbness that today’s GOP uses to breathe, but Slate‘s Michael Kinsley has recently aired some rather telling stats about the respective parties’ records of economic stewardship of late. “There is nothing here about how clean the air is or how many children are growing up in poverty. The only point is that if you find the Republican mantra of lower taxes and smaller government appealing, and if you care only about how fast the economy is growing, not how that growth is shared, you should vote Democratic. Of course, if you do care about things like economic inequality and children’s health, you should vote Democratic as well.”

Reality Bites.

“I’m not going to put my lot in with economists.” As TPM noted, we seem to have finally reached the point where there are “no more sharks left to jump.“ For alas, Sen. Clinton’s final, fraying tether to the reality-based community (and my general election vote, not that she’ll be getting that far anyway) gave up its last this weekend, as she — in defiance of her usual m.o. and very much in the manner of Dubya and the GOP — deemed universal opposition to her gas tax pander to be merely a figment of “elite opinion“. (She’s also doubled down on her anti-Obama gas tax ads.) As Robert Reich noted: “In case you’ve missed it, we now have a president who doesn’t care what most economists think. George W. Bush doesn’t even care what scientists think. He rejects all experts who disagree with his politics. This has led to some extraordinarily stupid policies.” (Clinton partisan Paul Krugman, also a member of the elite-economist cabal, has yet to weigh in on his being cast down as an enemy of the people.)

As it turns out, one of the salt-of-the earth proles at the event (self-identified as an Obama voter making less than $25,000 a year) called Clinton out to her face for this blatant idiocy: “‘I do feel pandered to when you talk about suspending the gas tax,’ the woman said, adding: ‘Call me crazy but I actually listen to economists because I think they know what they’ve studied.’” Clearly, this woman will be requiring significant reeducation. “‘How can I help seeing what is in front of my eyes? Two and two are four.’ ‘Sometimes, Winston. Sometimes they are five. Sometimes they are three. Sometimes they are all of them at once. You must try harder. It is not easy to become sane.’” (Give Clinton credit: Her campaign has been a travesty, but it’s been great fodder for Orwell references around here.)

In any case, regarding the big picture: Unfortunately for earlier hopes that we’d be done May 6, it’s looking like tomorrow will almost assuredly bring a split, with NC for Obama and IN for Clinton. (That is, unless Zogby has finally broke out of its slump this cycle.) Meaning, of course, that Clinton will be even more mathematically eliminated. And yet, in all likelihood, we’ll slog on to June 3. Yay. (With that in mind, each side picked up another super today: Kalyn Free of OK for Obama and Theresa Morelli of Dems Abroad for Clinton. But as Morelli only counts for 1/2 a vote, that’s another 1/2-vote pick up for Obama.)

Update: make that two and a half: Obama picks up two more MD supers, Michael Cryor and Lauren Dugas-Glover. And it sounds like some of Clinton’s CA supers are reconsidering their options.

Update 2: Apparently, economists still mattered in 1992.

Kuttner: He’s the real deal.

“Barack Obama’s speech on the financial crisis was a remarkable breakthrough…I wish I had written the speech. It is this kind of leadership and truth-telling that is the predicate for the shift in public opinion required to produce legislative change. A radical, appropriately nuanced, and deeply public-minded description of what has occurred, the speech was Roosevelt quality: the president as teacher-in-chief.“

The American Prospect‘s Robert Kuttner praises Obama’s economics speech of yesterday, and calls out Paul Krugman for his blatant partisanship: “Unlike some of my friends, I have not fallen in love with Obama…But Krugman, ordinarily an ornament of fair-minded progressive economics commentary, writes almost as if he has become part of the Clinton campaign. His latest characterization of Obama’s proposals in commenting on the New York speech — ‘cautious and relatively orthodox‘ — was preposterous.“

Godspeed, Galbraith.


“In all life one should comfort the afflicted, but verily, also, one should afflict the comfortable, and especially when they are comfortably, contentedly, even happily wrong.” R.I.P. John Kenneth Galbraith (1908-2006), a giant of 20th century economics and politics, and the wry conscience of an affluent society.