Tag: government shutdown
I Was Wrong: Democrats Won A Dunkirk Victory In Shutdown Defeat

I Was Wrong: Democrats Won A Dunkirk Victory In Shutdown Defeat

In 1940, Winston Churchill ordered the evacuation of 338,000 troops facing annihilation on the beaches of Dunkirk. Churchill called the successful operation "a miracle of deliverance." Historians portray it as a perfect example of victory in defeat.

Democrats raging at eight members of their caucus for ending the government shutdown might take a few lessons from the master of morale and strategy. What some hotheads framed as "capitulation" is, in the long run, the wisest plan.

Right after Dunkirk, Churchill famously said, "Wars are not won by evacuations." That is so, but stopping a potential disaster lets your side fight another day. Ending the shutdown prevented negative outcomes that had begun chugging the Democrats' way.

Shutdowns almost always bite the party that starts them. The record for this is so strong that I thought Democrats had erred from Day One.

I was wrong. Democrats effectively used the headlines to highlight the issue sure to haunt Republicans come the midterms: the soaring cost of health care.

Democrats prevailed in the recent elections, partly on threats to their health coverage, partly on rising food prices, tariff chaos and in-your-face corruption. But at a certain point, the news started turning from the fight to extend the Obamacare subsidies to flights being canceled and the poor losing food assistance.

With Thanksgiving approaching, the sight of family members sitting on suitcases in airports is not optimal. As many more Americans feel shutdown pain at the personal level, Democrats are harder pressed to avoid blame, even if the public liked certain items they were fighting for.

Now some firebrands just want a fight. But their contention that reopening the government caused a loss of leverage is based on illusion. Democrats never held meaningful leverage because they don't have the votes. Republicans control the White House, the House, and the Senate.

To quote Barack Obama, "Elections have consequences."

The election of Trump and a mostly pliant Republican Congress created such consequences as attacks on Obamacare and, more ominously, our democratic institutions. Democrats can offer a prettier set of consequences, but they can only deliver them if they retake control.

The Democrats' winning message should be, elect us and we will restore health care security. Even the temporary loss of it will hit home. As another great American, Joni Mitchell, sang, "Don't it always seem to go that you don't know what you've got till it's gone?"

Now, if the shutdown worked in avoiding even some pain, that would be an argument in favor. But it wasn't.

Speaking for Democrats who voted to reopen the government, Maine Sen. Angus King, an independent, posed the right question: "Does the shutdown further the goal of achieving some needed support for the extension of the tax credits?" (He's referring to credits that were temporarily increased during the pandemic, making coverage cheaper for millions.)

These senators come from the swing states of Nevada, Virginia, Pennsylvania, New Hampshire and Maine. They are key to Democrats obtaining and keeping a majority in Congress. Without them, Democrats have no hope of obtaining real power. And without real power, their politics are just performance.

As noted, the shutdown did succeed in putting the specter of lost health coverage front and center. That mission has been accomplished. Trump's now railing that Obamacare is a "scam" to get the insurance companies filthy rich. Democrats should thank him for calling this revered benefit a "scam."

Assessing the dire situation at Dunkirk, Churchill chose not to make a heroic yet suicidal stand. But he followed closely with his immortal "We shall fight on the beaches" speech — a rally to the nation for continued resistance.

The midterms are the beaches that Democrats should be storming.

With Unity And Grace, Democrats Can Build Powerful Midterm Message On Shutdown

With Unity And Grace, Democrats Can Build Powerful Midterm Message On Shutdown

The shutdown is winding down as eight Senate Democrats (7 Democrats and one Independent who caucuses with Democrats) voted with Republicans to get to the 60 votes needed to reopen the government. The ensuing spending plan will not include the health coverage subsidies for which the Democrats were holding out.

There is a lot of legitimate anger at the “defectors.” If you were going to cave, why wait until day 40? With public opinion leaning your way, why let up? Especially when this is the only leverage you’ve got? And how can you shake hands with these thoroughly untrustworthy Reppublicans, who have blatantly and illegally ignored previous spending allocations? All for the promise of a show vote on the health-coverage tax credits next month, a vote that will almost surely fail?!

Also, some of what the moderate Democrats are claiming they “got” in the deal are not at all Republican concessions, specifically rehiring government workers illegally laid off during the shutdown and “fully funding SNAP.” Simply getting the other side to obey the law may look like a win these days, but it is not.

Still, there are a number of arguments that point the other way, ones I’d argue are more compelling, though if and only if the fight we saw in the shutdown regarding who’s fighting for whom continues to rage. If these moderates don’t work with the rest of the Democratic caucus to build on the political and messaging gains made during the shutdown, then they really are part of the problem, not part of the solution.

The main argument for ending the shutdown was that the Ds were not going to get the tax credits and too many people were feeling the brunt of the shutdown. The former is probably true; the latter is definitely true.

The group of people affected by the shutdown grew with each week, beyond the hundreds of thousands of federal workers who have not been paid for weeks. The Trump administration’s legal fight to avoid paying SNAP food assistance benefits put tens of millions of Americans at risk of going hungry. And its decision to ratchet back air traffic capacity ensnared millions of others in air travel disruptions and flight cancellations that began over the weekend.

Given that these two facts—probable loss on tax credits and spreading pain—were highly predictable from the start, why shutdown at all? For one, minority leader Schumer understood that the party was itching for a fight with what is, hands down, the worst, most spineless GOP Senate caucus of any of our lifetimes. On a daily basis, they bow before their corrupt leader and violate their vows to protect the Constitution.

Granted the leverage that shutdown gave them, Senate Democrats had to pitch a fight. And they pitched a uniquely strong one. They made the Republicanss own the highly potent health-care (un)affordability issue, and they’ll get another chance to elevate that issue next month when Republicans continue to stand by while 20-plus million people see their premiums spike.

My sense, backed by some polling evidence, with the most important polls being last Tuesday’s mini-blue-wave, is that a very important sentiment is clarifying among voters: the Trump administration doesn’t care a whit about their economic concerns but the Democrats do.

I grant you, that last bit—”the Democrats do”—is an uphill battle and is just now maybe coming into focus. The shutdown underscored that for Republicans, unaffordability and cruelty are spectator sports. This leaves Democrats as the only party in the game. No question, the party is suffering from years, if not decades, of being perceived as abandoning working-class economics, in many cases, justly so. But during the shutdown, they were clearly the party fighting for affordable health care, for SNAP, for government workers, while the Republicans were weaponizing the moment to push hard in the wrong direction on each of these issues.

This is the fight that Democrats won in the shutdown, even if they lost on tax credits. But if they stop here, they’re toast, and deservedly so. I could be wrong—maybe this time is different—but in a few months, most regular folks won’t remember the shutdown. These events have historically had a very short half-life.

But if they start here, if they learn from this shutdown that they can unify around the message of affordability, of competent governance that follows the rule of law, of elevating the hurt that this administration, backed by a do-nothing, wholly-compliant Congressional majority, is doing to large swaths of Americans on a daily basis, then the shutdown will have been worth it.

Jared Bernstein is a former chair of the White House Council of Economic Advisers under President Joe Biden. He is a senior fellow at the Council on Budget and Policy Priorities. Please consider subscribing to his Substack.

Reprinted with permission from Econjared.

Surrender Caucus: Enough Senate Democrats Cave To End Shutdown

Surrender Caucus: Enough Senate Democrats Cave To End Shutdown

Senate Democrats are caving on the shutdown.

The broad framework for agreement, which was negotiated in part by Sens. Angus King, Jeanne Shaheen, and Maggie Hassan, as well as GOP senators, has “more than enough” members of the Senate Democratic Caucus to advance, according to two people granted anonymity to disclose the terms,” Politico reported.

In exchange for their votes, these handful of “moderate” Democrats—which notably does not include Senate Minority Leader Chuck Schumer—are getting nothing.

Well, that’s not true.

They’re getting a promise of a vote on ACA subsidies in the Senate, which will easily go down in defeat. Not to mention, Speaker Mike Johnson has said he’ll never even bring the matter up for a vote in the House.The deal also fully funds the Veterans Administration and Department of Agriculture, and the operations of Congress, of course, because they have to take care of themselves.

Nothing in that is a victory for Democrats.The surrender is perplexing given how clearly the shutdown was hurting Republicans, so much so that President Donald Trump specifically cited it as one reason for why Republicans got their asses kicked in last Tuesday’s off-year elections.

But instead of letting Trump figure out a way out of his own mess, Democrats inexplicably threw him a life vest on Sunday night.There is one silver lining—this deal will eventually haunt Republicans. Had Democrats succeeded in saving ACA healthcare subsidies, clueless voters would never have known of the Democrats’ role in safeguarding their insurance.

When Republicans vote down Democratic efforts to save health care for millions of Americans, the blame will be crystal clear.

Federal Shutdown Drags On As Trump Shows Zero Interest In Ending It

Federal Shutdown Drags On As Trump Shows Zero Interest In Ending It

Come Wednesday, we’ll have a new record to celebrate: the longest government shutdown on record. The graph below, from Goldman Sachs Research, is particularly revealing, because the width of the bars show the length, while the height shows how much of the government was affected. The current episode is about to surpass the previous record—the 35 day shutdown in Trump’s first term, from December 18 -- January 19 — but that one affected a far smaller share of the government’s agencies.

It makes perfect sense that Trump would preside over the longest shutdowns, especially Trump 2, given the administration’s authoritarian aspirations, lack of internal opposition to the President’s instincts (less the case in Trump 1), and the false reality in which they cloak themselves, especially regarding the rule of budget law, as I wrote a few days ago.

The extent to which the administration desires to and believes they can legally ignore Congress when it comes to spending appropriations must not be underappreciated. It is a key building block in the monarchical agenda. Even the most compliant, spineless Congressional majority of our lifetimes is too much for the Trump administration to deal with, making shutdowns a welcome environment for them. It also makes this White House a deeply non-trustworthy counterparty in budget negotiations.

The problem Trump and company are facing is that they poorly understand and fully discount the things the government does, along with the extent to which tens of millions of Americans depend on those government services. That reality is starting to bite and it is likely to herald the beginning of the end of the shutdown.

Recall that the last long shutdown ended the afternoon of the morning when the unpaid air-traffic controllers said “we’re done.” Well, “the government shutdown is straining US air travel, with air traffic controller shortages triggering hundreds of flight delays nationwide.” You can see the damage in the aptly named “misery map.”

Though the courts were unequivocal about the admin’s upside-down claim that they couldn’t use the SNAP contingency fund to pay SNAP benefits, there’s still going to be a disruption to nutritional support received by one in eight Americans, many of whom reside in Republican districts. It’s the same story, in terms of constituents, with the higher health care premiums that folks in the ACA exchanges are now officially learning about, an issue that Democrats have closely tied to the shutdown.

The fact that many hundreds-of-thousands of federal workers and contractors are not getting paid is one reason why GS researchers estimate that the current shutdown looks likely to have the greatest economic impact of any shutdown on record. They and others estimate that it will reduce annualized real GDP growth in the current quarter (Q4) but over one percentage point, to be made up in the next quarter.

If I’m right that these forces lead the shutdown to end, as is now expected in the next week or two, it raises at least two questions.

What will be the political fallout from the shutdown? My read of the polls is that most people blame the Republicans more than the Democrats for the shutdown. This is consistent with the fact that it’s usually the party in charge that takes the brunt of the blame. But there’s ample evidence that folks are unhappy with both sides.

Not a pollster, as I’m always quick to point out, but I believe the evidence shows that these shutdowns fade from the general public’s memory pretty quickly, though they leave a bad taste in your mouth. This one is different, however, in many ways, so perhaps it will have more lasting impact. My guess is its longer-term impact will depend on the fate of the ACA tax credits. If Republicans fail to extend them, it’s possible that a lot of people hurt by the increase will remember who was fighting to help them and who was busy bailing out Argentina instead.

What the heck was that all about? Especially given the economic bounce back noted above, why go through this? It’s like going on a starvation diet for six weeks followed by the same period of massive overeating. What’s the freakin’ point?!

The answer is there is no point. It’s the unavoidable consequence of the deep, partisan divide, which has only grown since Newt Gingrich got the bright idea of weaponizing appropriation expirations as a tool to elevate budget fights back in the mid-1990s.

To be clear, this is not a pox on both houses. The Democrats are and should be hard pressed to negotiate with Republicans who not only allow the Trumpies to break legally-binding spending deals, but applaud them for doing so. And the Democrats are right to use what leverage they have here to elevate the spike in healthcare premiums due to the expiration of the ACA premium credits.

It is also absolutely the case that Trump’s disinterest in any negotiation to end the shutdown has extended it. When I was in the Biden administration, we worked hard to prevent numerous pending shutdowns, and we were successful. That can be done, but it takes presidential commitment.

Of course, if a president views a shutdown as a way to further promote his kingliness, he’s going to be a lot less prone to help. As for the rest of us: “let them eat cake.”...

Jared Bernstein is a former chair of the White House Council of Economic Advisers under President Joe Biden. He is a senior fellow at the Council on Budget and Policy Priorities. Please consider subscribing to his Substack.

Reprinted with permission from Econjared.

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