Monday, February 14, 2011

Eat The Future






By PAUL KRUGMAN
Published: February 13, 2011
NYTimes


On Friday, House Republicans unveiled their proposal for immediate cuts in federal spending. Uncharacteristically, they failed to accompany the release with a catchy slogan. So I’d like to propose one: Eat the Future.

I’ll explain in a minute. First, let’s talk about the dilemma the G.O.P. faces.

Republican leaders like to claim that the midterms gave them a mandate for sharp cuts in government spending. Some of us believe that the elections were less about spending than they were about persistent high unemployment, but whatever. The key point to understand is that while many voters say that they want lower spending, press the issue a bit further and it turns out that they only want to cut spending on other people.

That’s the lesson from a new survey by the Pew Research Center, in which Americans were asked whether they favored higher or lower spending in a variety of areas. It turns out that they want more, not less, spending on most things, including education and Medicare. They’re evenly divided about spending on aid to the unemployed and — surprise — defense.

The only thing they clearly want to cut is foreign aid, which most Americans believe, wrongly, accounts for a large share of the federal budget.

Pew also asked people how they would like to see states close their budget deficits. Do they favor cuts in either education or health care, the main expenses states face? No. Do they favor tax increases? No. The only deficit-reduction measure with significant support was cuts in public-employee pensions — and even there the public was evenly divided.

The moral is clear. Republicans don’t have a mandate to cut spending; they have a mandate to repeal the laws of arithmetic.

How can voters be so ill informed? In their defense, bear in mind that they have jobs, children to raise, parents to take care of. They don’t have the time or the incentive to study the federal budget, let alone state budgets (which are by and large incomprehensible). So they rely on what they hear from seemingly authoritative figures.

And what they’ve been hearing ever since Ronald Reagan is that their hard-earned dollars are going to waste, paying for vast armies of useless bureaucrats (payroll is only 5 percent of federal spending) and welfare queens driving Cadillacs. How can we expect voters to appreciate fiscal reality when politicians consistently misrepresent that reality?

Which brings me back to the Republican dilemma. The new House majority promised to deliver $100 billion in spending cuts — and its members face the prospect of Tea Party primary challenges if they fail to deliver big cuts. Yet the public opposes cuts in programs it likes — and it likes almost everything. What’s a politician to do?

The answer, once you think about it, is obvious: sacrifice the future. Focus the cuts on programs whose benefits aren’t immediate; basically, eat America’s seed corn. There will be a huge price to pay, eventually — but for now, you can keep the base happy.

If you didn’t understand that logic, you might be puzzled by many items in the House G.O.P. proposal. Why cut a billion dollars from a highly successful program that provides supplemental nutrition to pregnant mothers, infants, and young children? Why cut $648 million from nuclear nonproliferation activities? (One terrorist nuke, assembled from stray ex-Soviet fissile material, can ruin your whole day.) Why cut $578 million from the I.R.S. enforcement budget? (Letting tax cheats run wild doesn’t exactly serve the cause of deficit reduction.)

Once you understand the imperatives Republicans face, however, it all makes sense. By slashing future-oriented programs, they can deliver the instant spending cuts Tea Partiers demand, without imposing too much immediate pain on voters. And as for the future costs — a population damaged by childhood malnutrition, an increased chance of terrorist attacks, a revenue system undermined by widespread tax evasion — well, tomorrow is another day.

In a better world, politicians would talk to voters as if they were adults. They would explain that discretionary spending has little to do with the long-run imbalance between spending and revenues. They would then explain that solving that long-run problem requires two main things: reining in health-care costs and, realistically, increasing taxes to pay for the programs that Americans really want.

But Republican leaders can’t do that, of course: they refuse to admit that taxes ever need to rise, and they spent much of the last two years screaming “death panels!” in response to even the most modest, sensible efforts to ensure that Medicare dollars are well spent.

And so they had to produce something like Friday’s proposal, a plan that would save remarkably little money but would do a remarkably large amount of harm.

5 comments:

  1. The job of the Republicans is to do the bidding of their corporate masters without the voters ever noticing. The only way to keep the majority of the people from noticing or caring that they are still being robbed blind by the banksters is to create convenient scapegoats. Losing your house to foreclosure? Not the bank's fault, say the conservative lawmakers - blame it on your property taxes going toward the pension of the greedy cop on the beat. Can't find work? Blame it on "job-killing Obamacare", says House Speaker John Boehner.

    Their reasons don't have to make sense, because a frighteningly large segment of the American population likes being told what to do in a time of trouble.
    Subjected to the constant harangues of Glenn Beck and the conservative hysterics in Congress, they are relieved of the responsibility of thinking for themselves. It's easier just to feel raw emotion. The Tea Party movement itself was born in 2009 on CNBC, when Rick Santelli performed his famous "populist" rant against government aid to underwater homeowners. Wall Street masterfully co-opted grass roots anger at the Wall Street-created financial meltdown by deflecting it away from the likes of Goldman Sachs and AIG. The oligarchs blamed the mythical Reagan welfare queen, who bought a house and lived above her means. It astroturfed irrational fear of our first black president, his nonexistent death panels and his nonexistent socialism.

    The Conservatives thrive on instilling fear and creating smokescreens. They scream about taking back our freedoms. And people buy into it, because what they really want is freedom from the truth. They hate the government, but they want their Medicare. It's much easier to hate than to reason, much easier to be entertained than to be educated.

    ~Karen Garcia
    New Paltz, NY

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  2. "It turns out that they only want to cut spending on other people."

    Republican strategy 101: Pretend that spending that benefits all working and middle class people only benefits an underprivileged subset of those people. Then exploit prejudice against that subset of people to convince those who aren't part of that subset that this spending is "spending on other people". Thus you make it possible to convince working and middle class voters to vote against their own economic interest.

    Dave K
    Cleveland, OH

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  3. Federal taxes are the lowest in -- what did I read? -- 60 years? But discretionary spending is all that the republican house can seem to think of to solve our deficit problems.

    The situation you outline, of eating our seed corn, is all the more problematic because that solution has already been being implemented for twenty years or more. Our natural gas lines are rupturing, we have many unpaid for athletic stadiums, water, transportation, and education systems that are on the verge of breaking. And what is the republican "solution" in my state? Privatize government, break the unions, and cut back on medicaid. And waste a lot of money mandating drug tests for the "welfare cheats."

    Pathetic...

    ~Neal
    Central Ohio

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  4. I think it helps if you remind yourself that Republican legislators aren't interested in serving the public interest. They are only interested in serving the rich who sponsor them; hell who own them.

    They have only one prime directive: the ever greater concentration of wealth and power.

    Rich people around the world have shown a remarkable tolerance, even affinity, for living in shabby countries, as long as they have gated communities and armed guards and private country clubs. Left to their own devices, the Republicans would leave America looking, and smelling, a whole lot like Haiti, with the better of us "living in a van down by the river".

    One man's spending is another man's investment. I watched Tony Blair debate in Parliament for years and always it was "investment, investment and investment" they were making in their country. In the early 1980s English cities outside London were all in sad shape, including Liverpool which appeared as if the world had passed it by as recently as 1999, but now all those cities have made a remarkable turnaround, the Great Recession not withstanding.

    Americans HAD a high standard of living, because Roosevelt, Truman and Eisenhower weren't afraid to invest in this country and we achieved remarkable efficiencies that drove up our standard of living and our economy. We're living in the fading after-glow of that golden age.

    What the Republicans are telling me is that the Golden Age is in the past. The rich have managed to concentrate the power into their hands now, courtesy of the Republican party's ability to talk average Americans into voting against their self-interest. The future is one where there will be ever declining investments in public interest while that money that would go for it is diverted into the wealthy's bank accounts, which are already bulging beyond any historical precedent.

    This country is literally begging for epic collapse.

    We are in a demand deficient recession. We have a perilously aging infrastructure that cries out for investment, no time would be better than to tax or borrow massive amounts of money to spend on infrastructure and education. Those investments would push us out of the jobs recession, grow our economy to new high levels and yes, even make the rich richer than they are now.

    When the Republicans aren't committing extortion (threatening us with future harm if we don't give money today to the rich in more tax cuts) they are committing treason (by putting the private interest of a few thousand rich people ahead of a few hundred million people known collectively as the public).

    What kind of country can we have when one of the parties is bent on wrecking the country and the other party won't call them on it.

    The Republicans bargain in bad faith at every turn - and all I ever hear is Democratic opposition saying that both sides love this country: that's carbon fiber of the most decomposed order. RHOP: Republicans hate ordinary people. Period.

    Tim Kane
    Mesa, AZ

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  5. Nice summary of how the Republicans rip off of the middle and working classes to lavish tribute on the greedy rich and their predatory multinational corporations and financial institutions. The only thing you left out was a mention of the money and lives lost in feeding the voracious military industrial complex. Even after these manipulators have bankrupted the treasury and thrown this country under a mountain of debt they still scheme to throw the remaining crumbs to their privileged cronies rather than to care for the needy masses pauperized by their sick, reprehensible policies. And, what's really pitiful, is how so many of those masses have been utterly and thoroughly brainwashed by the propagandist media that the right wing has bought up almost in its entirety. The people start to believe all the lies when they are never told the truth by those who own the printing presses, the microphones, the television monitors, and the computer servers.

    Michael
    Florida

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