Bonuses for Billionaires
By NICHOLAS D. KRISTOF


The first few times I heard House Republicans talk about our budget mess, I worried that they had plunged off the deep end. But as I kept on listening, a buzzer went off in my mind, and I came to understand how much sense the Tea Party caucus makes.

Why would we impose “job-crushing taxes” on wealthy Americans just to pay for luxuries like federal prisons? Why end the “carried interest” tax loophole for financiers, just to pay for unemployment benefits — especially when those same selfless tycoons are buying yachts and thus creating jobs for all the rest of us?

Hmmm. The truth is that House Republicans don’t actually go far enough. They should follow the logic of their more visionary members with steps like these:

BONUSES FOR BILLIONAIRES Republicans won’t extend unemployment benefits, even in the worst downturn in 70 years, because that makes people lazy about finding jobs. They’re right: We should be creating incentives for Americans to rise up the food chain by sending hefty checks to every new billionaire. This could be paid for with a tax surcharge on regular working folks. It’s the least we can do.

Likewise, the government should take sterner measures against the persistent jobless. Don’t just let their unemployment benefits expire. Take their homes!

Oh, never mind! Silly me! The banks are already doing that.

LET JOBS TRICKLE DOWN Leftist pundits say that House Republicans don’t have a jobs plan. That’s unfair! Granted, the Republican-sponsored Cut, Cap and Balance Act would eliminate 700,000 jobs in just its first year, according to the Center on Budget and Policy Priorities, but those analysts are no doubt liberals. America’s richest 400 people own more wealth than the bottom 150 million Americans, and the affluent would feel renewed confidence if the Republican plan passed. We’d see a hiring bonanza. Each of those wealthy people might hire an extra pool attendant. That’s 400 jobs right there!

Cut, Cap and Balance would go even further than the Ryan budget plan in starving the beast of government. Sure, that’ll mean cuts in Social Security, Medicare and other programs, but so what? Who needs food safety? How do we know we really need air traffic control unless we try a day without it?

ROOT OUT SOCIALISM Republicans have been working to end Medicare as we know it but need to examine other reckless entitlements, such as our socialized education system, in which public schools fritter resources on classes like economics and foreign languages. As a former Texas governor, Miriam “Ma” Ferguson, is said to have declared when she opposed the teaching of foreign languages: “If English was good enough for Jesus Christ, it’s good enough for us.”

For that matter, who needs socialized police and fire services? We could slash job-crushing taxes at the local level and simply let the free market take over:

“9-1-1, may I help you?” “Yes, help! My house is burning down!” “Very good, sir. I can offer you one fire engine for $5,995, or two for just $10,000.” “Help! My family’s inside. Send three fire engines! Just hurry!” “Yes, sir. Let me just run your credit card first. And if you require the fire trucks immediately, there’s a 50 percent ‘rush’ surcharge.”

CHILL OUT ABOUT THE DEBT CEILING House Republicans like Michele Bachmann are right: If the debt ceiling isn’t raised, some solution will turn up. As Representative Austin Scott, a Republican from Georgia, observes: “In the end, the sun is going to come up tomorrow.”

We got through the Great Depression, didn’t we? It looked pretty hopeless in 1929, but in just a dozen years World War II bailed us out with an economic stimulus. Something like that’ll come along for us, too. Ya gotta have faith.

CONSIDER ASSET SALES While Democrats are harrumphing about “default,” Republicans have sagely noted that there are alternatives in front of our noses. For example, why raise taxes on hard-pressed managers of hedge funds when the government can sell assets?

Fort Knox alone has 4,600 tons of gold, which I figure is worth around $235 billion. That’s enough to pay our military budget for four months! And selling Yosemite, Yellowstone and the Grand Canyon would buy us time as well.

RENT OUT CONGRESS If the debt ceiling isn’t raised, we could also auction members of Congress for day jobs: Are you a financier who wants someone to flip burgers (steaks?) at your child’s birthday party? Why, here’s Eric Cantor! Many members of Congress already work on behalf of tycoons, and this way the revenue would flow to the Treasury.

Finally, if we risk default, let’s rent out the Capitol for weddings to raise money for the public good. Wouldn’t it be nice to see something positive emerge from the House?

Lost

So here we are pouring shiploads of cash into yet another war, this time in Libya, while simultaneously demolishing school budgets, closing libraries, laying off teachers and police officers, and generally letting the bottom fall out of the quality of life here at home.

Welcome to America in the second decade of the 21st century. An army of long-term unemployed workers is spread across the land, the human fallout from the Great Recession and long years of misguided economic policies. Optimism is in short supply. The few jobs now being created too often pay a pittance, not nearly enough to pry open the doors to a middle-class standard of living.

Arthur Miller, echoing the poet Archibald MacLeish, liked to say that the essence of America was its promises. That was a long time ago. Limitless greed, unrestrained corporate power and a ferocious addiction to foreign oil have led us to an era of perpetual war and economic decline. Young people today are staring at a future in which they will be less well off than their elders, a reversal of fortune that should send a shudder through everyone.

The U.S. has not just misplaced its priorities. When the most powerful country ever to inhabit the earth finds it so easy to plunge into the horror of warfare but almost impossible to find adequate work for its people or to properly educate its young, it has lost its way entirely.

Nearly 14 million Americans are jobless and the outlook for many of them is grim. Since there is just one job available for every five individuals looking for work, four of the five are out of luck. Instead of a land of opportunity, the U.S. is increasingly becoming a place of limited expectations. A college professor in Washington told me this week that graduates from his program were finding jobs, but they were not making very much money, certainly not enough to think about raising a family.

There is plenty of economic activity in the U.S., and plenty of wealth. But like greedy children, the folks at the top are seizing virtually all the marbles. Income and wealth inequality in the U.S. have reached stages that would make the third world blush. As the Economic Policy Institute has reported, the richest 10 percent of Americans received an unconscionable 100 percent of the average income growth in the years 2000 to 2007, the most recent extended period of economic expansion.

Americans behave as if this is somehow normal or acceptable. It shouldn’t be, and didn’t used to be. Through much of the post-World War II era, income distribution was far more equitable, with the top 10 percent of families accounting for just a third of average income growth, and the bottom 90 percent receiving two-thirds. That seems like ancient history now.

The current maldistribution of wealth is also scandalous. In 2009, the richest 5 percent claimed 63.5 percent of the nation’s wealth. The overwhelming majority, the bottom 80 percent, collectively held just 12.8 percent.

This inequality, in which an enormous segment of the population struggles while the fortunate few ride the gravy train, is a world-class recipe for social unrest. Downward mobility is an ever-shortening fuse leading to profound consequences.

A stark example of the fundamental unfairness that is now so widespread was in The New York Times on Friday under the headline: “G.E.’s Strategies Let It Avoid Taxes Altogether.” Despite profits of $14.2 billion — $5.1 billion from its operations in the United States — General Electric did not have to pay any U.S. taxes last year.

As The Times’s David Kocieniewski reported, “Its extraordinary success is based on an aggressive strategy that mixes fierce lobbying for tax breaks and innovative accounting that enables it to concentrate its profits offshore.”

G.E. is the nation’s largest corporation. Its chief executive, Jeffrey Immelt, is the leader of President Obama’s Council on Jobs and Competitiveness. You can understand how ordinary workers might look at this cozy corporate-government arrangement and conclude that it is not fully committed to the best interests of working people.

Overwhelming imbalances in wealth and income inevitably result in enormous imbalances of political power. So the corporations and the very wealthy continue to do well. The employment crisis never gets addressed. The wars never end. And nation-building never gets a foothold here at home.


~Bob Herbert

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.

From a Smart Friend Responding to Paul Krugman

Thanks, Professor, for the great explanation of why the Republicans' attack on the budget deficit reducing value of health care reform is so illogical. Their actions make more sense, however, when you keep in mind that the entire goal of today's Republican Party is not to reduce the deficit, but rather is to increase it in order to politically strengthen the argument in favor of eliminating government programs that benefit the middle class, working class, and poor in America.

When Republicans attain power, they do two things. They cut taxes for the rich and for large corporations. And they increase spending on the military and programs that benefit large corporations (such as the subsidies to private insurance companies under Medicare Advantage or that used to be made to banks as part of the student loan program or enormous subsidies to agribusiness giants such as ADM). They do this in primarily because it benefits their political benefactors. But they also do it because their ultimate goal of dismantling Social Security, Medicare, and the social safety net --thus freeing up ever more funds for the ruling class-- is politically unpopular, and the Republicans have figured out that the way to make it politically more palatable is to drive the deficits up so people will feel that we have to cut spending.

So, the Republicans' cooking of the books about the budgetary impacts of health care reform is based not simply on an attack on logic. It is also based on the fact that they are lying to us when they claim they care about the deficit.

You Might Be A Republican If...

You think "proletariat" is a type of cheese.

You've ever referred to someone as "my (insert racial or ethnic minority here) friend"

You've ever tried to prove Jesus was a capitalist and opposed to welfare.

You think Huey Newton is a cookie.

You've ever uttered the phrase, "Why don't we just bomb the sons of bitches."

You fax the FBI a list of "Commies in my Neighborhood."

You argue that you need 300 handguns, in case a bear ever attacks your home.

You've ever said "Clean air? Looks clean to me."

You own a vehicle with an "Ollie North: American Hero" sticker.

You ever told a child that Oscar the Grouch "lives in a trash can because he is lazy and doesn't want to contribute to society."

You understand that getting people to vote on abortion issues will keep you in office and let you pass tax cuts for the upper class.

You think that the best way to protect people from illegal drugs is to put them in prison.

You think "compassionate conservatism" is when you feel sorry for the homeless guy sleeping in the gutter as you step over him on your way to a $1000 a plate fundraiser for Tom Delay.

You are opposed to increasing the minimum wage and in favor of repealing taxes on inherited wealth.

You are opposed to Affirmative Action in college admissions and attended a private university as a "legacy."

You really believe that cutting taxes increases government revenues.

You dodged the draft during Viet Nam (with Daddy's help) and now you question the courage and patriotism of men who came back with medals (and scars) and understand wars are bad.

You think that a president lying about getting a blowjob is far more serious than a president lying about the reasons for starting a war.

You don't know that if it weren't for the French, we'd have lost the American Revolution.

You're against abortion but don't give a damn about those babies once they're born.

You think that a whiskey-guzzling, coke-sniffing, draft-dodging loser is the cream of the American crop and the best this country could offer up for President.

You think the USA is the only 'free' country in the world.

You spout talking points that have been proven false, hoping they'll stick anyway.

You firmly believe that the poor folks that got stuck in New Orleans are to blame for their own plight for not having the good sense to have high paying jobs that would have allowed them to purchase SUVs to get out of town and afford hotels in safe areas. (Or having the even better sense to be born into money.)

You're a "good Christian" but you hate more people than you love.

You think fighting in Iraq is like a computer game, and that troops should have to complete level one to get their body armor.

You think Vietnam vets who supported Kerry should be booed on the 4th of July.

You think Tom Delay has class

You think Universal Health Care is bad but Corporate Welfare is
good

You believe less ozone is better for a quicker tan.

You think acid rain helps cleans your driveway.

Your Glock 9mm gets more fondling than your wife.

You think no child left behind is a new bus service to the KKK rally.

You are against gay marriage but have no problem marrying your cousin.

You think mercury in your fish adds flavor.

You thought an AWOL national guardsman alfred e. neuman look-a-like was more patriotic and qualified to be President in 2004 than a former NATO commander four star general rhodes scholar like Wesley Clark

You think George W. Bush is a regular guy even though he was born rich in Connecticut to an old money, politically powerful WASP family just because he moved to Texas and is as stupid as you are.

You have no problem with our bombs finding Afghanistan or Iraq even though most of our citizens can't find either country on the map.

When someone asks you your name you've got to pull your head out of your ass and read it off your belt.

Mitt Romney, Liberal Icon

I need to apologize to Mitt Romney.

Here I was thinking of him as a failed politician with no discernible core values, who had once driven to Canada with the family dog strapped to the roof of the car.

But it’s now becoming clear that he’s the man we have to thank for our new national health care law.

“I mean, a lot of commentators have said this is sort of similar to the bill that Mitt Romney, the Republican governor and now presidential candidate, passed in Massachusetts,” President Obama told Matt Lauer recently on the “Today” show.

Good work leading the way, Mitt!

We did not actually hear a whole lot about how Obama’s health care bill was similar to Romney’s during its long, torturous struggle through Congress. Particularly not during the parts that involved placating the Democratic left wing. Do you think Obama mentioned it during his Air Force One courtship of Dennis Kucinich? Possibly not.

But it really does seem as though the two plans are a whole lot alike, and Romney deserves credit for working with the Massachusetts Democrats to get such an ambitious, sweeping reform enacted. However, since most of his party is currently crouched in the basement, waiting for the health care apocalypse to split the earth into smithereens, they’re probably not going to be all that impressed.

The Republicans are dying for a disaster, and to be honest, even people who like the new law a lot have been worried that something really strange might be hidden in 2,000 pages of verbiage. (Did you know somebody stuck financing for abstinence education in there?)

This week there was an alarming report that AT&T was going to have to reduce its long-term profit estimates by about $1 billion because of the new law — or, as the House minority leader, John Boehner, put it, the newly enacted “job-killing tax increases.” The AT&T charge was for accounting purposes, which is not as much real money as currency-based theology. But still, it did sound bad.

It turned out that the $1 billion goes back to the famous 2003 Medicare prescription drug entitlement passed by a Republican-controlled Congress and paid for through their innovative pretend-it’s-not-there financing system.

In order to keep businesses from ending their drug coverage and dumping their retirees on the federal system, Congress provided a 28 percent reimbursement for the benefits. And, the companies got to deduct the entire cost of the drug plans from their taxes. Including the government subsidy.

Yes! The job-killing tax increase in the new law involves no longer allowing big corporations to take a tax deduction for spending money we gave them. Somehow, this doesn’t seem to have the makings of a Tea Party rally.

But there’s always the insurance mandate. When it comes to roiling right-wing hysteria, nothing whips up a crowd like the law’s requirement that everybody get health coverage.

Gov. C.L. “Butch” Otter of Idaho, who is definitely the winner of the Most Fun Name for a Governor Award, kicked off the rebellion this week by signing a law requiring the state to sue the federal government over this provision. “If it is the proper role for government to mandate that citizens buy certain products, then I’m going to get potatoes in line for them just as quick as I can,” Otter announced.

Idaho, you should not let your elected officials push the potato thing so hard. The state has a lot more to talk about — lovely scenery, great people, the world’s largest factory for barrel cheese, the smallest number of doctors per capita in the country. And what about your state fruit, the huckleberry?

About that insurance requirement. Americans pay an estimated $42.7 billion a year in taxes and higher health care premiums because of the cost of medical treatment for the uninsured. So you would think that conservatives in particular would believe that everybody ought to be held responsible for having their own coverage. Unless they’re starting a new cutting-edge Let Them Die in a Ditch Movement.

“No more free-riders,” Romney said frequently, back when he was a little more vocal about defending the Massachusetts plan. Lately, he’s been vaguer on the subject, and when it comes to the new federal law, he’s jumped on the repeal bandwagon. When someone from the liberal blog ThinkProgress asked Romney whether he thought the new federal insurance mandate — so very much like the Massachusetts one — was constitutional, he muttered something about it being “a big topic” and ducked into an elevator.

It’s possible that he hadn’t looked so uncomfortable since the time he was chased by a reporter who wanted to know if he thought Seamus the Irish setter had enjoyed driving to Canada on top of the family car.

~Gail Collins

A Continued Disgrace

For decades the G.O.P. has been the party of fear, ignorance and divisiveness. All you have to do is look around to see what it has done to the country. The greatest economic inequality since the Gilded Age was followed by a near-total collapse of the overall economy. As a country, we have a monumental mess on our hands and still the Republicans have nothing to offer in the way of a remedy except more tax cuts for the rich.


Some of the images from the run-up to Sunday’s landmark health care vote in the House of Representatives should be seared into the nation’s consciousness. We are so far, in so many ways, from being a class act.

A group of lowlifes at a Tea Party rally in Columbus, Ohio, last week taunted and humiliated a man who was sitting on the ground with a sign that said he had Parkinson’s disease. The disgusting behavior was captured on a widely circulated videotape. One of the Tea Party protesters leaned over the man and sneered: “If you’re looking for a handout, you’re in the wrong end of town.”

Another threw money at the man, first one bill and then another, and said contemptuously, “I’ll pay for this guy. Here you go. Start a pot.”

In Washington on Saturday, opponents of the health care legislation spit on a black congressman and shouted racial slurs at two others, including John Lewis, one of the great heroes of the civil rights movement. Barney Frank, a Massachusetts Democrat who is chairman of the House Financial Services Committee, was taunted because he is gay.

At some point, we have to decide as a country that we just can’t have this: We can’t allow ourselves to remain silent as foaming-at-the-mouth protesters scream the vilest of epithets at members of Congress — epithets that The Times will not allow me to repeat here.

It is 2010, which means it is way past time for decent Americans to rise up against this kind of garbage, to fight it aggressively wherever it appears. And it is time for every American of good will to hold the Republican Party accountable for its role in tolerating, shielding and encouraging foul, mean-spirited and bigoted behavior in its ranks and among its strongest supporters.

For decades the G.O.P. has been the party of fear, ignorance and divisiveness. All you have to do is look around to see what it has done to the country. The greatest economic inequality since the Gilded Age was followed by a near-total collapse of the overall economy. As a country, we have a monumental mess on our hands and still the Republicans have nothing to offer in the way of a remedy except more tax cuts for the rich.

This is the party of trickle down and weapons of mass destruction, the party of birthers and death-panel lunatics. This is the party that genuflects at the altar of right-wing talk radio, with its insane, nauseating, nonstop commitment to hatred and bigotry.

Glenn Beck of Fox News has called President Obama a “racist” and asserted that he “has exposed himself as a guy, over and over and over again, who has a deep-seated hatred for white people or the white culture.”

Mike Huckabee, a former Republican presidential candidate, has said of Mr. Obama’s economic policies: “Lenin and Stalin would love this stuff.”

The G.O.P. poisons the political atmosphere and then has the gall to complain about an absence of bipartisanship.

The toxic clouds that are the inevitable result of the fear and the bitter conflicts so relentlessly stoked by the Republican Party — think blacks against whites, gays versus straights, and a whole range of folks against immigrants — tend to obscure the tremendous damage that the party’s policies have inflicted on the country. If people are arguing over immigrants or abortion or whether gays should be allowed to marry, they’re not calling the G.O.P. to account for (to take just one example) the horribly destructive policy of cutting taxes while the nation was fighting two wars.

If you’re all fired up about Republican-inspired tales of Democrats planning to send grandma to some death chamber, you’ll never get to the G.O.P.’s war against the right of ordinary workers to organize and negotiate in their own best interests — a war that has diminished living standards for working people for decades.

With a freer hand, the Republicans would have done more damage. George W. Bush tried to undermine Social Security. John McCain was willing to put Sarah Palin a heartbeat away from the Oval Office and thought Phil Gramm would have made a crackerjack Treasury secretary. (For those who may not remember, Mr. Gramm was a deregulation zealot who told us during the presidential campaign that we were suffering from a “mental recession.”)

A party that promotes ignorance (“Just say no to global warming”) and provides a safe house for bigotry cannot serve the best interests of our country. Back in the 1960s, John Lewis risked his life and endured savage beatings to secure fundamental rights for black Americans while right-wing Republicans like Barry Goldwater and Ronald Reagan were lining up with segregationist Democrats to oppose landmark civil rights legislation.

Since then, the right-wingers have taken over the G.O.P. and Mr. Lewis, now a congressman, must still endure the garbage they have wrought.

~Bob Herbert