Tag: trickle down economics
Scott Walker: Uncle Scrooge’s Lackey In Wisconsin

Scott Walker: Uncle Scrooge’s Lackey In Wisconsin

Economically speaking, all 237 GOP presidential candidates are selling the same magic beans.

Everybody knows the script by now: Tax cuts for wealthy “job creators” bring widespread prosperity; top off Scrooge McDuck’s bullion pool, and the benefits flow outward to everybody else, the economy surges, budget deficits melt away, and the song of the turtle dove will be heard in the land.

Almost needless to say, these “supply side” miracles have never actually happened in the visible world. State budget debacles in Kansas and Louisiana only signify the latest failures of right-wing dogma. Hardly anybody peddling these magic beans actually believes in them anymore. Nevertheless, feigning belief signifies tribal loyalty to the partisan Republicans who will choose the party’s nominee.

However, with everybody in the field playing “let’s pretend,” a candidate needs another way to distinguish himself. I suspect that Scott Walker, the Republican governor of Wisconsin, may have found it.

See, Walker won’t just put money back in “hardworking taxpayers’” pockets. Like a latter-day Richard Nixon, Walker will also stick it to people he doesn’t like: lollygagging schoolteachers, feather-bedding union members, and smug, tenured college professors who think they’re smarter than everybody else. If Walker lacks charisma, there’s an edge of ruthlessness in his otherwise bland demeanor that hits GOP primary voters right where they live.

No less an authority than Uncle Scrooge himself — i.e. David Koch of Koch Industries, who with his brother Charles has pledged to spend $900 million to elect a Republican in 2016 — told the New York Observer after a closed-door gathering at Manhattan’s Empire Club that Walker will win the nomination and crush Hillary Clinton in a general election “by a major margin.” 

Viewed from a distance, the determination of prosperous, well-educated Wisconsin to convert itself into an anti-union right-to-work state like Alabama or Arkansas appears mystifying. To risk the standing of the University of Wisconsin system by abolishing academic tenure, as Walker intends, is damn near incomprehensible.

Attack one of America’s great public research universities for the sake of humiliating (Democratic-leaning) professors over nickel-and-dime budgetary issues? Do Wisconsinites have the first clue how modern economies work?

Maybe not. But Walker’s supporters definitely appear to know who their enemies are, culturally speaking. Incredulity aside, it would be a mistake not to notice the craftiness with which he’s brought off the transformation. Not to mention that Walker’s won three elections since 2010 in a “blue” state that hasn’t supported a Republican presidential nominee since Ronald Reagan.

Wisconsin’s 10 electoral votes don’t mean much by themselves, but throw in Michigan and Ohio, Midwestern states also trending similarly, and you’ve definitely got something.

Act 10, the 2011 law that took away collective bargaining rights for many public employees in Wisconsin (except, at first, for police and firefighters), brought crowds of angry teachers (also mostly Democrats) to the state capitol in Madison for weeks of demonstrations. As much as MSNBC was thrilled, many Wisconsinites appear to have been irked.

In the end, the state ended up saving roughly $3 billion by shifting the funding of fringe benefits such as health insurance and pensions from employer to employee, costing the average teacher roughly 16 percent of his or her compensation. Mindful of budget shortfalls, the unions had proposed negotiations, but that wasn’t enough for Gov. Walker.

For the record, Act 10 was an almost verbatim copy of a bill promoted by the Arlington, Virginia-based American Legislative Exchange Council (ALEC), a think-tank largely funded by, you guessed it, the Brothers Koch.

Four years ago, a documentary filmmaker caught Walker on camera telling wealthy supporters that the new law was just the beginning. “The first step is, we’re going to deal with collective bargaining for all public-­employee unions,” he said, “because you use divide-­and-­conquer.”

“If we can do it in Wisconsin, we can do it anywhere — even in our nation’s capital,” Walker wrote in his book, Unintimidated, notes Dan Kaufman in the New York Times Magazine. Elsewhere, Walker has boasted that as president, he could take on foreign policy challenges because, he’s said, “If I can take on 100,000 protesters, I can do the same across the world.”

Ridiculous, of course, but it plays.

Meanwhile, rueful trade unionists who endorsed Walker in 2010 are crying the blues, because they never imagined that having vanquished the women’s union he’d come after the ironworkers and the electricians in their pickup trucks. Divided, they’ve been conquered.

So right-to-work it is: diminished salaries, job security, pensions, health and safety regulations will inevitably follow.

More bullion for Scrooge McDuck’s pool.

So now it’s the professors’ turn. Walker, a Marquette dropout, has described his new law as “Act 10 for the university.” Tenure’s a dead letter in cases of “financial emergency…requiring program discontinuance, curtailment, modification or redirection.” 

So who gets redirected first? Left-wing culture warriors or climate scientists? Hint: Scrooge is a fierce climate-change denier.

Meanwhile, Democrats underestimate Scott Walker at considerable peril.

Photo: Wikicommons

5 Obama Accomplishments & Successes Republicans Have To Pretend Never Happened

5 Obama Accomplishments & Successes Republicans Have To Pretend Never Happened

Republicans have consistently said that a president cannot take responsibility for a strong economy — unless of course he’s a Republican.

A weak economy, however, is always a Democratic president’s fault. And if a Republican president presides over the worst financial crisis in a half-century after seven years in office, that is clearly the fault of poor people.

President Obama is in an awkward position when it comes to the economy. It’s only great if you compare it to the last 14 years. But with 50 percent of America now saying in the latest CNN poll that his presidency is a success, he figures that he’s now allowed to “take a well-earned victory lap” by answering the question Speaker John Boehner (R-OH) asked for four years: “Where are the jobs?”

“Well, after 12 million new jobs, a stock market that has more than doubled, deficits that have been cut by two-thirds, health care inflation at the lowest rate in nearly 50 years, manufacturing coming back, auto industry coming back, clean energy doubled — I’ve come not only to answer that question, but I want to return to the debate that is central to this country, and the alternative economic theory that’s presented by the other side,” the president said in Cleveland on Wednesday.

A sensible media would be debating which of Obama’s two great accomplishments — the stimulus or the Affordable Care Act — is a bigger success; which better proves that the government can successfully intervene to prevent suffering while reshaping our economy to be more sustainable; or about which Republicans were more wrong.

But conservatives won’t let that happen. They’ll focus on metrics that languished before Obama came into office — we’re very concerned about labor force participation all of a sudden! — and blast him for not solving all of the failures of conservative economics and foreign policies.

America should be used to Democratic presidents outperforming Republicans by now. While no administration is perfect, President Obama has staked strong claims for liberal values and policies that prove things Republicans have to pretend never happened.

Here are 5 good things Obama has done for the country:

  1. Proved trickle-down economics are wrong, again
    You don’t hear it mentioned often enough, but 2014 was the best year of job creation in this century. This is a key point, because it’s the first full year in which Obama’s economic policies really took hold. Most of the Bush tax breaks on the rich ended in 2013. And in 2014, new taxes on the wealthy and corporations kicked in to help 16 million Americans gain health insurance. The result was a job market like we haven’t seen since the’90s. As they did in 1993, Republicans claimed that asking the rich to pay a bit more would destroy the economy. So, of course, the opposite happened. It’s almost as if some tax hikes on the wealthy are good for the economy! But if Republicans admitted that, they’d have to give up their entire reason for existing, which is to comfort the most comfortable.
  2. Proved we can expand health insurance coverage and shrink the deficit.
    America’s long-term debt problems are largely built on conservatives’ unwillingness to do what every other advanced nation in the world does — insure everyone. As a result, we pay more and get worse results than almost every industrialized country in the world. Obamacare has shown that we can increase coverage dramatically while cutting more than $600 billion from long-term debt projections. Republicans have finally gotten honest in their new budget and admitted that their alternative to Obamacare is… nothing. They’ve got nothing because Obamacare was their alternative, and every prediction they’ve made about it has been wrong. Health spending is at a 50-year low, businesses aren’t dumping employees’ coverage, hospitals are performing better, and policy cancelations were likely lower than they were before the law. Meanwhile, Obama has been even more successful at shrinking the deficit as a percentage of GDP than even Bill Clinton.
  3. Proved that the government can kick-start a clean-energy revolution.
    When it comes to fighting climate change, President Obama has done more than anyone on Earth. Beyond the regulations he set in his first term, which are quickly reducing our dependency on dirty energy, the stimulus launched the clean-energy technological revolution this nation needed. Republicans started calling the stimulus “failed” before it even became law. And that kind of message discipline — plus half a billion dollars in ads that smeared the bill — scared Democrats from bragging about it. But now that we’ve experienced the first year of economic growth where carbon emissions didn’t increase in 40 years, maybe they should.
  4. Proved we can regulate Wall Street without killing the stock market.
    Good news! Bankers are complaining about being regulated too much. Despite this “over-regulation,” we’re seeing constant stock market records. Meanwhile, the memory of the costs of under-regulation — 8 million jobs and trillions in wealth — continues to fade. Democrats have become newly proud of the Dodd-Frank law now that they see how desperate Republicans are to gut it. The success in keeping the economic engine of the rich purring should not dissuade those on the left. Instead, they should continue to fight against the persistent dangers to our economy that come from ridiculous executive compensation schemesstock buybacks, and high-frequency trading.
  5. Proved that we should give diplomacy a chance.
    The Bush administration left America facing a newly nuclear-armed North Korea, an Iran building nuclear centrifuges, and a wrecked Iraq, run by a propped-up sectarian strongman with no interest in reconciliation. Democrats were likely naive in assuming this Tower of Babel of foreign policy disasters could be kept from crumbling. The Obama administration’s effort to re-engage the world may seem foolhardy now — but what was the alternative? More confrontational Republican alternatives would have guaranteed nothing but more American lives lost. Syria is a disaster. Libya proved that regime change is never simple. Putin is emboldened or frantically flailing, depending on your point of view. But as a result of re-engagement with our allies and a Medvedev-led Russia, sanctions brought Iran to the negotiating table. We’re closer than ever to a nuclear deal that could prevent another, still more disastrous war. And even if it fails, at least we tried not to repeat the catastrophes of the past.

Despite these successes, Republicans have to see Obama as a floundering, economy-shrinking, deficit-creating failure, or risk questioning their failed worldview.

Essentially, they have to pretend he’s Bobby Jindal.

Photo: President Barack Obama arrives at Bob Hope Airport via helicopter from LAX en route to ABC Studios for an appearance on Jimmy Kimmel Live on Thursday, March 12, 2015. (Jay L. Clendenin/Los Angeles Times/TNS)

Obama Touts Economic Policies As Republicans Fight Internally Over Budget

Obama Touts Economic Policies As Republicans Fight Internally Over Budget

By Michael A. Memoli and Lisa Mascaro, Tribune Washington Bureau (TNS)

CLEVELAND — As congressional Republicans find themselves tangled over their newly introduced spending plans, President Barack Obama tried Wednesday to seize the moment to talk about government spending on his terms, namely a focus on opportunities for the middle class.

Noting that Republican House Speaker John A. Boehner of Ohio often asks, “Where are the jobs?,” Obama told a crowd in Cleveland he was there to “not only answer that question” but also to renew a central debate over the two major parties’ economic visions.

Obama said that his administration’s policies, such as investing in manufacturing and the landmark Affordable Care Act, have helped the nation emerge from a deep recession but that the Republican budget would “double down” on the theory that wealth trickles down from the rich to the rest.

“Reality has rendered its judgment,” Obama said in a speech to the City Club of Cleveland. “Trickle-down economics doesn’t work and middle-class economics does,” he said, using the White House’s umbrella term for its fiscal policies.

Meanwhile, Republicans who have the majority in both chambers of Congress are bogged down in trying to make their budgets workable as well as palatable to the party’s competing factions.

More than two months into the new Congress, they are grasping for legislative victories and looking to the House and Senate budgets unveiled this week as chances for a win in Washington. The chambers are expected to approve the budgets next week.

“Hopefully that will be an opportunity for us to show some success,” said GOP Senator Bob Corker of Tennessee.

Republicans are trying to present a unified front in their budget proposals, as internal debates have spilled out publicly between defense hawks, who want to bolster military coffers, and deficit-minded conservatives, who prefer to hold the line on new spending.

Although both of the party’s budgets largely boost military spending at the expense of domestic social programs, House and Senate Republicans are at odds over how to accomplish that goal while still adhering to strict budget caps agreed to in a 2011 deal with the White House.

Senate Republicans made clear Wednesday that they view the House approach as essentially a gimmick. It calls for hiking defense spending by increasing money for an account used for wars that was not subject to the so-called sequester limits established in the 2011 deal. Senate Republicans prefer establishing a separate, new defense account funded with unspecified savings elsewhere, but it also would not be held to the 2011 caps.

Either way, those cause “real heartburn for conservatives” because they maneuver around the limits, Rep. Tim Huelskamp (R-KS) said.

Those differences and others — including the House’s proposed Medicare overhaul that the Senate rejects — risk leaving the GOP unable to pass one budget.

Such a setback would derail not only the goal of increasing Pentagon spending, but also other priorities, including the effort to repeal Obama’s health care law.

“I’m absolutely confident we’ll do our duty,” said Senator Roger Wicker of Mississippi, head of the Republican Senate’s campaign committee. “It’s one of the most important votes we’ll have this year.”

The GOP’s scramble to make the numbers add up with concrete legislative proposals while Obama spoke in broad, aspirational terms further illustrated the contrast between the White House and Republicans who control Congress.

Obama no longer has to worry about being re-elected, and since the November midterm election has made full use of the presidential bully pulpit to present his vision for the country without necessarily fretting over the short-term political consequences for him or his party.

On Wednesday, he said he wanted to “take a little credit” for the nation’s economic recovery.

Republicans have been loath to acknowledge any role Obama’s policies might have had in the nation’s improved economic picture, with deficits on the wane and rising confidence among voters.

“Republicans are proud to take credit for helping force some fiscal responsibility on the Obama administration,” Senate Majority Leader Mitch McConnell (R-KY) said Wednesday as his party’s Senate majority released its budget for the fiscal year that begins in October.

The White House countered that the House GOP is trying to balance the budget in part by further slashing investments that would benefit the middle class.

“House Republicans start their deficit reduction plan by promising large, expensive new tax cuts to high-income households,” White House spokesman Josh Earnest said. “In fact, the only specific tax proposals in the House Republican budget are tax proposals that benefit the wealthy.”

White House officials are eager to promote the notion that Obama has kept Republicans on their heels with a vigorous start to what he calls the “fourth quarter” of his term, a time when presidents often see their influence wane. Obama began the year with campaign-style trips in the run-up to a State of the Union address that challenged Congress’ new Republican majorities on a host of domestic issues.

Democrats who shied away from the president before the midterm election now praise Obama’s approach. Some, including Senator Bernie Sanders (I-VT), who is the Democrats’ ranking member on the Senate Budget Committee, have more leeway to push the party toward even more liberal policies.

“The president feels liberated,” said Senator Richard J. Durbin of Illinois, the assistant Democratic leader in the chamber. “He doesn’t have to measure his actions against the impact on a campaign, and there are many things that he wants to say to the American people in the last two years of his presidency.”
___
Memoli reported from Cleveland and Mascaro from Washington. Tribune Washington Bureau staff writer Christi Parsons in Washington contributed to this report.

U.S. President Barack Obama meets with the Council of the Great City Schools Leadership in the Roosevelt Room of the White House March 16, 2015 in Washington, D.C. The purpose of the meeting is to discuss efforts to strengthen educational opportunities for students in city schools. (Olivier Douliery/Abaca Press/TNS)

Trickle-Down Theory Makes Less Sense Than Ever Before

Trickle-Down Theory Makes Less Sense Than Ever Before

By Ann McFeatters, Tribune News Service (TNS)

SEATTLE — The governor of Washington wants to raise the state tax on a gallon of gasoline by at least 11 cents. A continent away the governor of Maryland wants to block a scheduled increase in the state tax on gas.

We’ve got ourselves more battles between the Democrats and Republicans, and a lot of Americans are going to be miffed at the outcomes.

Governor Jay Inslee, a Democrat, argues that Washington needs billions of dollars in road infrastructure improvements and with gas prices currently the lowest they have been in years, he thinks now is the time for legislative action. He especially wants a $1 billion road improvement to ease a massive daily bottleneck between Seattle and Tacoma.

But Maryland’s new GOP governor, Larry Hogan, a proud “tax-cutter,” doesn’t care that a series of planned gas tax increases by mid-2017 would help finance $3 billion worth of road and transit work. That would include finishing the much-needed Purple Line to the Washington D.C.-area Metro and a Red Line in Baltimore, taking thousands of cars off clogged highways.

Hogan is against drivers paying $80 more in annual taxes, even to fix truck-devouring potholes. He also wants a legislative vote on every tax increase, including those already scheduled.

Even as Congress bickers over budgets, lawmakers refuse to raise the federal gas tax above 18.4 cents, set in 1993, despite competitiveness worries over the country’s crumbling infrastructure. Even President Obama, who likes to warn about toppling bridges and pothole-pocked highways, hasn’t proposed an increase.

But at the state level, there is a different approach, both pragmatic and vindictive. New Jersey desperately needs improved roads and bridges but Governor Chris Christie, hoping to snag the Republican nomination for president, doesn’t want to have anything to do with raising ANY taxes.

Somewhere there is undoubtedly a secret memo telling governors how to handle the problem — cut taxes on the rich and raise them on the poor. “Brilliant!” say many governors.

Chief among them is Governor Paul LePage (R-ME), who in 2011 signed a $150 million tax cut for the rich and doubled the estate tax exemption to $2 million. He now espouses taxing movie tickets and haircuts.

He and Ohio Governor John Kasich are among Republican governors proposing cuts in state income tax rates even though Kansas Governor Sam Brownback proudly pushed through tax cuts as his state promptly fell into economic freefall.

Wisconsin Governor Scott Walker, a Republican running for president, got so ensnared in tax-cutting frenzy he proposed cutting not only education funds but rewrote the soaring language about the purpose of state universities: To “meet the state’s work-force needs.” Amid the outrage, he blamed an “aide.”

Current state income tax rates are bad for the poor and comparably good for the rich, according to the Institute on Taxation and Economic Policy. While the rich pay more in dollars than the poor, the rate on the top one percent of the richest Americans is 5.4 percent while the rate on the 20 percent poorest segment of the population is 10.9 percent.

Republicans don’t dare risk losing their conservative creds by narrowing this gap but they do see potential windfalls in taxing new forms of consumption such as e-cigarettes, generally most hurtful to the non-rich.

We all think we’re too highly taxed. Because of additional local taxes, many residents of Washington state pay a whopping 9.6 percent in sales tax. Marylanders pay 6 percent.

When you start looking at all taxes, not just state and federal taxes but license tags, property taxes and a myriad of new charges such permits to hold garage sales and own dogs, many of us pay about half of our income in taxes.

Is it fair — or counterproductive — to cut the income tax of the rich and charge the poor and middle-class more for services they must have such as haircuts?

The trickle-down theory of economics — that income generated by the wealthy filters down the ladder to the poor and middle class — was always precarious. But it now makes less sense than ever.

Photo: Fort George G. Meade Public Affairs Office via Flickr