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GOP: We've Been Lying All Along Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=14516"><span class="small">David Sirota, Salon</span></a>   
Monday, 18 March 2013 14:36

Sirota writes: "Thank you, Mr. Speaker, for finally admitting on national television that all the fiscal cliffs, sequestrations and budget battles you’ve created are, indeed, artificially fabricated."

Speaker of the House John Boehner. (photo: AP/Susan Walsh)
Speaker of the House John Boehner. (photo: AP/Susan Walsh)


GOP: We've Been Lying All Along

By David Sirota, Salon

18 March 13

 

Boehner's admission that we don't really have a debt crisis reveals his party's ulterior, program-cutting motives.

never thought I'd write these words, but here goes: Thank you, John Boehner. Thank you, Mr. Speaker, for finally admitting on national television that all the fiscal cliffs, sequestrations and budget battles you've created are, indeed, artificially fabricated by ideologues and self-interested politicians and not the result of some imminent crisis that's out of our control.

America owes this debt of gratitude to Boehner after he finally came clean on yesterday's edition of ABC's "This Week" and admitted that "we do not have an immediate debt crisis." (His admission was followed up by Budget Committee Chairman Paul Ryan, who quickly echoed much the same sentiment on CBS' "Face the Nation").

In offering up such a stunningly honest admission, the GOP leader has put himself on record as agreeing with President Obama, who has previously acknowledged that demonstrable reality. But the big news here isn't just about the politics of a Republican House speaker tacitly admitting they agree with a Democratic president. It is also about a bigger admission revealing the fact that the GOP's fiscal alarmism is not merely some natural reaction to reality, but a calculated means to other ideological ends.

Before considering those ends, first remember that Boehner (like Obama) is correct on the facts.

As Nobel-winning economist Paul Krugman has pointed out, "Even if we do run deficits, federal debt as a share of GDP will be substantially less than it was at the end of World War II" and "it will also be substantially less than, say, debt in several European countries in the mid- to late 1990s." It is also lower than the 80 percent of GDP level that many economists say starts to put countries in a precarious position. Additionally, citing Congressional Budget Office data, the Center for American Progress notes that the long-term debt outlook is only dire because the projections simply assume without question that "future Congresses will enact huge new deficit-increasing tax cuts and spending hikes."

"The debt outlook is bad (but) we’re not looking at something inconceivable, impossible to deal with," writes Krugman. "We’re looking at debt levels that a number of advanced countries, the US included, have had in the past, and dealt with."

So yes, we should start dealing with the long-term debt in a pragmatic and sober way, but we shouldn't pretend it is some sort of imminent crisis worthy of draconian austerity measures.

If we could somehow do that, then there would be plenty of gradual steps that could be taken right now - steps that deal with the debt in measured ways that do the least harm to the overall economy. Those include starting to phase out the Bush tax cuts, which show no correlation with job growth and yet are the single largest driver of annual deficits; starting to reduce defense and war spending, which, job-creation-wise, is one of the least effective ways for the government to spend money; starting to move the United States toward the least costly, more efficient, and more effective single-payer healthcare system that most industrialized countries have, and that lowers overhead for employers; and starting to spend more money on social programs that fight economic inequality, with the understanding that driving down such inequality tends to boost macroeconomic growth and consequently boost public revenues (this is the Reagan-esque idea of growing one's way out of debt).

But, of course, we aren't having a sober and measured discussion about such pragmatic solutions. Instead, the national conversation about the budget is dominated by debt demagogues with ulterior motives. Taking a page out of the shock doctrine playbook that says every crisis is an opportunity, these alarmists have sought to create the perception of an immediate crisis in order to quickly manufacture opportunities to legislate their otherwise politically impossible agenda items.

In practice, that means Wall Streeters and conservative ideologues citing the supposedly imminent crisis to successfully nudge the political establishment to endorse cuts to Social Security, even though the program has almost nothing to do with the debt crisis. It also means a GOP budget that targets most of its cuts at the social programs that the poor and middle-class most rely on (this, at the same time most of these same alleged budget hawks supported an extension of most of the deficit-expanding Bush tax cuts; decry any cuts to the defense budget; and either outright oppose a single-payer system or support the Obama healthcare law that while certainly expanding coverage, nonetheless buttresses the private health insurance industry and, thus, arguably makes such a single-payer system more out of reach).

From Boehner to Ryan to the Bowles-Simpson tandem to an unending parade of television pundits, the last year has been marked by the most prominent political voices ignoring the more prudent way forward, and instead claiming that these shock doctrine prescriptions - i.e., Social Security/Medicare cuts, social program cuts, etc. - are all required. And not just required, but required immediately, because of the supposed urgency of the debt crisis.

Using that supposed urgency as a rationale to create fiscal cliffs, sequestration battles and debt ceiling crises, their talking points have lately assumed a similar tenor to that of the old Thatcherites' "There Is No Alternative" mantra, the idea being that because the emergency is supposedly so imminent, there is simply no other way forward than the conservative neoliberal path of profligacy for the rich (tax cuts, continued corporate subsidies, etc.) and austerity for everyone else.

But suddenly, thanks to yesterday's declarations by Boehner and Ryan, the charade's most sacred lie has been exposed. In acknowledging that "we do not have an immediate debt crisis," GOP leaders are admitting that there is, in fact, an alternative. They are also admitting that their longtime claims to the contrary were ends-justify-the-means tactics to manufacture an unnecessary panic - one that they hoped would scare America into abruptly accepting the kind of draconian policies polls show the public opposes.

Now that the truth is out, maybe a more reasoned debate can begin and more pragmatic policies can finally take center stage.


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FOCUS | Robert Reich: We've Forgotten the Lessons of Watergate Print
Sunday, 17 March 2013 13:19

Excerpt: "There was campaign finance reform, increased transparency and limits placed on presidential power but, he added, in recent years, much of what was accomplished post-Watergate has come undone."

Portrait, Robert Reich, 08/16/09. (photo: Perian Flaherty)
Portrait, Robert Reich, 08/16/09. (photo: Perian Flaherty)



Robert Reich: We've Forgotten the Lessons of Watergate

By Moyers and Company

17 March 13

 

t the National Press Club, the citizen’s lobby Common Cause held a conference commemorating the 40th anniversary of Watergate. Kicking off the conference was economist Robert Reich, former secretary of labor under President Clinton. In this audio exclusive at the event, Moyers & Company senior writer Michael Winship talks with Reich about the ways in which Washington has changed since Watergate, and how the influence of money continues to corrupt politics and exacerbate income inequality in America.

 

 

At the conference, Reich said that despite the crisis, America’s response to Watergate was, in many respects, "a huge success… Watergate should be considered a moment when government showed its resilience." In the wake of wrongdoing by the president and those closest to him, Reich argued, the rest of the government and the American people rose to the occasion in the way our democracy’s founders would have hoped. There was campaign finance reform, increased transparency and limits placed on presidential power but, he added, in recent years, much of what was accomplished post-Watergate has come undone.

Also listen to Michael Winship's conversation with Russ Feingold at the same conference.

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FOCUS | Pope Francis, CIA and 'Death Squads' Print
Sunday, 17 March 2013 09:16

Parry writes: "Would he stand up to Argentina's military neo-Nazis 'disappearing' thousands including priests, or keep his mouth shut and his career on track? Like many other Church leaders, Pope Francis took the safe route."

Argentine Archbishop Jorge Bergoglio, now Pope Francis, speaks during a mass for Ash Wednesday, 02/13/13. (photo: Juan Mabromata/AFP/Getty Images)
Argentine Archbishop Jorge Bergoglio, now Pope Francis, speaks during a mass for Ash Wednesday, 02/13/13. (photo: Juan Mabromata/AFP/Getty Images)



Pope Francis, CIA and 'Death Squads'

By Robert Parry, Consortium News

17 March 13

 

In the 1970s, Father Jorge Bergoglio faced a moment of truth: Would he stand up to Argentina’s military neo-Nazis “disappearing” thousands including priests, or keep his mouth shut and his career on track? Like many other Church leaders, Pope Francis took the safe route, Robert Parry reports.

he election of Argentine Cardinal Jorge Bergoglio as Pope Francis brings back into focus the troubling role of the Catholic hierarchy in blessing much of the brutal repression that swept Latin America in the 1970s and 1980s, killing and torturing tens of thousands of people including priests and nuns accused of sympathizing with leftists.

The Vatican's fiercely defensive reaction to the reemergence of these questions as they relate to the new Pope also is reminiscent of the pattern of deceptive denials that became another hallmark of that era when propaganda was viewed as an integral part of the "anticommunist" struggles, which were often supported financially and militarily by the U.S. Central Intelligence Agency.

It appears that Bergoglio, who was head of the Jesuit order in Buenos Aires during Argentina's grim "dirty war," mostly tended to his bureaucratic rise within the Church as Argentine security forces "disappeared" some 30,000 people for torture and murder from 1976 to 1983, including 150 Catholic priests suspected of believing in "liberation theology."

Much as Pope Pius XII didn't directly challenge the Nazis during the Holocaust, Father Bergoglio avoided any direct confrontation with the neo-Nazis who were terrorizing Argentina. Pope Francis's defenders today, like apologists for Pope Pius, claim he did intervene quietly to save some individuals.

But no one asserts that Bergoglio stood up publicly against the "anticommunist" terror, as some other Church leaders did in Latin America, most notably El Salvador's Archbishop Oscar Romero who then became a victim of right-wing assassins in 1980.

Indeed, the predominant role of the Church hierarchy - from the Vatican to the bishops in the individual countries - was to give political cover to the slaughter and to offer little protection to the priests and nuns who advocated "liberation theology," i.e. the belief that Jesus did not just favor charity to the poor but wanted a just society that shared wealth and power with the poor.

In Latin America with its calcified class structure of a few oligarchs at one end and many peasants at the other, that meant reforms, such as land redistribution, literacy programs, health clinics, union rights, etc. But those changes were fiercely opposed by the local oligarchs and the multinational corporations that profited from the cheap labor and inequitable land distribution.

So, any reformers of any stripe were readily labeled "communists" and were made the targets of vicious security forces, often trained and indoctrinated by "anticommunist" military officers at the U.S.-run School of the Americas. The primary role of the Catholic hierarchy was to urge the people to stay calm and support the traditional system.

It is noteworthy that the orchestrated praise for Pope Francis in the U.S. news media has been to hail Bergoglio's supposedly "humble" personality and his "commitment to the poor." However, Bergoglio's approach fits with the Church's attitude for centuries, to give "charity" to the poor while doing little to change their cruel circumstances - as Church grandees hobnob with the rich and powerful.

Another Pope Favorite

Pope John Paul II, another favorite of the U.S. news media, shared this classic outlook. He emphasized conservative social issues, telling the faithful to forgo contraceptives, treating women as second-class Catholics and condemning homosexuality. He promoted charity for the poor and sometimes criticized excesses of capitalism, but he disdained leftist governments that sought serious economic reforms.

Elected in 1978, as right-wing "death squads" were gaining momentum across Latin America, John Paul II offered little protection to left-leaning priests and nuns who were targeted. He rebuffed Archbishop Romero's plea to condemn El Salvador's right-wing regime and its human rights violations. He stood by as priests were butchered and nuns were raped and killed.

Instead of leading the charge for real economic and political change in Latin America, John Paul II denounced "liberation theology." During a 1983 trip to Nicaragua - then ruled by the leftist Sandinistas - the Pope condemned what he called the "popular Church" and would not let Ernesto Cardenal, a priest and a minister in the Sandinista government, kiss the papal ring. He also elevated clerics like Bergoglio who didn't protest right-wing repression.

John Paul II appears to have gone even further, allowing the Catholic Church in Nicaragua to be used by the CIA and Ronald Reagan's administration to finance and organize internal disruptions while the violent Nicaraguan Contras terrorized northern Nicaraguan towns with raids notorious for rape, torture and extrajudicial executions.

The Contras were originally organized by an Argentine intelligence unit that emerged from the country's domestic "dirty war" and was taking its "anticommunist" crusade of terror across borders. After Reagan took office in 1981, he authorized the CIA to join with Argentine intelligence in expanding the Contras and their counterrevolutionary war.

A key part of Reagan's Contra strategy was to persuade the American people and Congress that the Sandinistas represented a repressive communist dictatorship that persecuted the Catholic Church, aimed to create a "totalitarian dungeon," and thus deserved violent overthrow.

A special office inside the National Security Council, headed by longtime CIA disinformation specialist Walter Raymond Jr., pushed these propaganda "themes" domestically. Raymond’s campaign exploited examples of tensions between the Catholic hierarchy and the Sandinista government as well as with La Prensa, the leading opposition newspaper.

To make the propaganda work with Americans, it was important to conceal the fact that elements of the Catholic hierarchy and La Prensa were being financed by the CIA and were coordinating with the Reagan administration's destabilization strategies. [See Robert Parry's Lost History.]

Evidence of Payments

In 1988, I discovered evidence of this reality while working as a correspondent for Newsweek magazine. At the time, the Iran-Contra scandal had undermined the case for spending more U.S. money to arm the Contras. But the Reagan administration continued to beat the propaganda drums by highlighting the supposed persecution of Nicaragua's internal opposition.

To fend off U.S. hostility, which also included a harsh economic embargo, the Sandinistas announced increased political freedoms. But that represented only a new opportunity for Washington to orchestrate more political disruptions, which would either destabilize the government further or force a crackdown that could then be cited in seeking more Contra aid.

Putting the Sandinistas in this "inside-outside" vise had always been part of the CIA strategy, but with a crumbling economy and more U.S. money pouring into the opposition groups, the gambit was beginning to work.

Yet, it was crucial to the plan that the CIA's covert relationship with Nicaragua's internal opposition remain secret, not so much from the Sandinistas, who had detailed intelligence about this thoroughly penetrated operation, but from the American people. The U.S. public would get outraged at Sandinista reprisals against these "independent" groups only if the CIA's hand were kept hidden.

A rich opportunity for the Reagan administration presented itself in summer 1988 when a new spasm of Contra ambushes killed 17 Nicaraguans and the anti-Sandinista internal opposition staged a violent demonstration in the town of Nandaime, a protest that Sandinista police dispersed with tear gas.

Reacting to the renewed violence, the Sandinistas closed down La Prensa and the Catholic Church's radio station - both prime vehicles for anti-Sandinista propaganda. The Nicaraguan government also expelled U.S. Ambassador Richard Melton and seven other U.S. Embassy personnel for allegedly coordinating the disorders.

Major U.S. news outlets, which had accepted their role treating the Sandinistas as "designated enemies" of the United States, roared in outrage, and the U.S. Congress condemned the moves by a margin of 94-4 in the Senate and 385-18 in the House.

Melton then testified before the Senate Intelligence Committee first in secret and then in public, struggling to hide the open secret in Washington that Nicaragua's internal opposition, like the Contras, was getting covert help from the U.S. government.

When asked by a senator in public session about covert American funding to the opposition, Melton dissembled awkwardly: "As to other activities that might be conducted, that's - they were discussed - that would be discussed yesterday in the closed hearing."

When pressed by Sen. Howard Metzenbaum on whether the embassy provided "encouragement - financial or otherwise - of dissident elements," Melton responded stiffly: "The ambassador in any post is the principal representative of the U.S. government. And in that capacity, fulfills those functions." He then declined to discuss "activities of an intelligence nature" in open session.

On the Payroll

In other words, yes, the U.S. government was covertly organizing and funding the activities of the supposedly "independent" internal opposition in Nicaragua. And, according to more than a dozen sources that I interviewed inside the Contra movement or close to U.S. intelligence, the Reagan administration had funneled CIA money to virtually every segment of the internal opposition, from the Catholic Church to La Prensa to business and labor groups to political parties.

"We've always had the internal opposition on the CIA payroll," one U.S. government official said. The CIA's budget line for Nicaraguan political action - separate from Contra military operations - was about $10 million a year, my sources said. I learned that the CIA had been using the Church and Cardinal Miguel Obando y Bravo to funnel money into Nicaragua.

Obando was a plodding but somewhat complex character. In the 1970s, he had criticized the repression of the Somoza dictatorship and expressed some sympathy for the young Sandinista revolutionaries who were trying to bring social and economic changes to Nicaragua.

However, after the murder of El Salvador's Archbishop Romero in 1980 and Pope John Paul II's repudiation of "liberation theology," Obando shifted clumsily into the anti-Sandinista camp, attacking the "people's church" and accusing the Sandinistas of "godless communism."

On May 25, 1985, he was rewarded when the Pope named him Cardinal for Central America. Then, despite mounting evidence of Contra atrocities, Obando traveled to the United States in January 1986 and threw his support behind a renewal of military aid to the Contras.

All this made a lot more sense after factoring in that Obando had essentially been put onto the CIA's payroll. The CIA funding for Nicaragua's Catholic Church was originally unearthed in 1985 by the congressional intelligence oversight committees, which then insisted that the money be cut off to avoid compromising Obando further.

But the funding was simply transferred to another secret operation headed by White House aide Oliver North. In fall 1985, North earmarked $100,000 of his privately raised money to go to Obando for his anti-Sandinista activities, I learned from my sources.

I was also told that the CIA's support for Obando and the Catholic hierarchy went through a maze of cut-outs in Europe, apparently to give Obando deniability. But one well-placed Nicaraguan exile said he had spoken with Obando about the money and the Cardinal had expressed fear that his past receipt of CIA funding would come out.

What to Do?

Discovering this CIA funding of Nicaragua's Catholic Church presented professional problems for me at Newsweek, where my senior editors were already making clear that they sympathized with the Reagan administration's muscular foreign policy and felt that the Iran-Contra scandal had gone too far in undermining U.S. interests.

But what was the right thing for an American journalist to do with this information? Here was a case in which the U.S. government was misleading the American public by pretending that the Sandinistas were cracking down on the Catholic Church and the internal opposition without any justification. Plus, this U.S. propaganda was being used to make the case in Congress for an expanded war in which thousands of Nicaraguans were dying.

However, if Newsweek ran the story, it would put CIA assets, including Cardinal Obando, in a dicey situation, possibly even life-threatening. So, when I presented the information to my bureau chief, Evan Thomas, I made no recommendation on whether we should publish or not. I just laid out the facts as I had ascertained them. To my surprise, Thomas was eager to go forward.

Newsweek contacted its Central America correspondent Joseph Contreras, who outlined our questions to Obando's aides and prepared a list of questions to present to the Cardinal personally. However, when Contreras went to Obando's home in a posh suburb of Managua, the Cardinal literally evaded the issue.

As Contreras later recounted in a cable back to Newsweek in the United States, he was approaching the front gate when it suddenly swung open and the Cardinal, sitting in the front seat of his burgundy Toyota Land Cruiser, blew past.

As Contreras made eye contact and waved the letter, Obando's driver gunned the engine. Contreras jumped into his car and hastily followed. Contreras guessed correctly that Obando had turned left at one intersection and headed north toward Managua.

Contreras caught up to the Cardinal's vehicle at the first stop-light. The driver apparently spotted the reporter and, when the light changed, sped away, veering from lane to lane. The Land Cruiser again disappeared from view, but at the next intersection, Contreras turned right and spotted the car pulled over, with its occupants presumably hoping that Contreras had turned left.

Quickly, the Cardinal's vehicle pulled onto the road and now sped back toward Obando's house. Contreras gave up the chase, fearing that any further pursuit might appear to be harassment. Several days later, having regained his composure, the Cardinal finally met with Contreras and denied receiving any CIA money. But Contreras told me that Obando's denial was unconvincing.

Newsweek drafted a version of the story, making it appear as if we weren't sure of the facts about Obando and the money. When I saw a "readback" of the article, I went into Thomas's office and said that if Newsweek didn't trust my reporting, we shouldn't run the story at all. He said that wasn't the case; it was just that the senior editors felt more comfortable with a vaguely worded story.

Hot Water

We ended up in hot water with the Reagan administration and right-wing media attack groups anyway. Accuracy in Media lambasted me, in particular, for going with such a sensitive story without being sure of the facts (which, of course, I was).

Thomas was summoned to the State Department where Assistant Secretary of State Elliott Abrams heaped more criticism on me though not denying the facts of our story. Newsweek also agreed, in the face of right-wing pressure, to subject me and the article to an internal investigation, which quietly reconfirmed the facts of the story.

Despite this corroboration, the incident damaged my relations with senior Newsweek editors, particularly executive editor Maynard Parker who saw himself as part of the New York/Washington foreign policy establishment and was deeply hostile to the Iran-Contra scandal, which I had helped expose.

As for Obando, the Sandinistas did nothing to punish him for his collaboration with the CIA and he gradually evolved more into a figure of reconciliation than confrontation. However, the hyper-secretive Vatican has refused to open its archives for any serious research into its relationship with the CIA and other Western intelligence services.

Whenever allegations do arise about the Catholic Church's hierarchy winking and nodding at the kinds of human rights atrocities that claimed hundreds of thousands of lives in Latin America during the 1970s and 1980s, the Vatican PR department lashes out with sternly worded denials.

That practice is playing out again in the days after the election of Pope Francis I. Rather than a serious and reflective assessment of the actions (and inactions) of Cardinal Bergoglio, Cardinal Obando, Pope John Paul II and other Church leaders during those dark days of torture and murder, the Vatican simply denounces all allegations as "slander," "calumny" and politically motivated lies.

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Obama's Charmingly Offensive Road Trip Print
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=18199"><span class="small">Will Durst, Humor Times</span></a>   
Sunday, 17 March 2013 08:14

Durst writes: "POTUS is reportedly reaching across the aisle in a last ditch attempt to resuscitate his budgetary Grand Bargain, but chances still remain stuck in the Potomac Triangle of slim, none and get the heck out of here you silly, silly man."

Political satirist Will Durst. (photo: WillDurst.com)
Political satirist Will Durst. (photo: WillDurst.com)



Obama's Charmingly Offensive Road Trip

By Will Durst, Humor Times

17 January 13

 

hankfully the current revival of President Obama's charm offensive is not a theatrical production because the reviews are decidedly mixed. Seeing him furiously pirouette around Washington for the last two weeks like a carnival contortionist makes you wonder if he might be secretly setting up a post-presidential career in a Cirque de Soleil spin-off in Vegas.

POTUS is reportedly reaching across the aisle in a last ditch attempt to revive his budgetary grand bargain but chances still remain stuck in the Potomac Triangle of slim, none and get the heck out of here you silly silly man. The triangle is that undefined swamp in D.C. where compromise is a four letter word and serious discussion mysteriously disappears amid the scuttled rubble of naïve politicians.

Right now the gulf between House Republicans and the Oval Office is so wide they can't even see each other due to the curvature of the earth. The polar ice caps may be melting but only in direct inverse proportion to the polarization occurring in American politics.

Some folks question the very existence of the Obama Charm School. But its over in the same wing as the George W Bush Think Tank. Just a couple doors down from the William Jefferson Clinton Marriage Counseling Service. One floor up from the Mitch McConnell Touchy Feely Workshop. To say Republicans are skeptical is like implying the surface of the sun is toasty. Or suggesting old white men have an edge in papal elections. Finding horsemeat in Swedish meatballs might indicate avoiding furniture wholesalers when addressing nutritional needs.

Paul Ryan lunched with the president last week, then immediately turned around and introduced a budget that calls for the repeal of ObamaCare and replaces Medicare with vouchers. Again. Of course, Senate Democrats countered with a budget that actually adds spending over 10 years. Both sides are stuck in a loop larger than the London Eye. Lessons learned from the 2012 election: none.

Obama's staff claims this offensive charm of his is not new, but part of a long- standing operation. Five Republicans even admitted to being invited to the White House to watch the movie Lincoln but all declined. Of course, you know what they were thinking: Black guy- Lincoln- "it's a trap!" If only he had screened Life of Pi. Everybody loves man-eating tigers. Especially Southern Republicans.

In the immortal words of Rodney King. Can't we all just get along? Pretty obvious, the answer is "No!" We don't do olive branches. This is more about thorny rose stems.

The president doesn't seem to get it. You can buy them lunch, let em sleep on your couch, wash their poo-poo undies in the sink, throw surprise birthday parties complete with pony rides and Bouncy Houses, co-sign a loan for their summer home on Chesapeake Bay, but in the end it don't mean a thing if you ain't got that swing. Vote, that is.

Doesn't matter how much you schmooze, unless you find a way to muzzle the home district pit bulls on their right, you might as well blow those flirty kisses at a brick wall. Save those chocolates and flowers for Michelle. Could come in handy, especially after you break the news about moving to Vegas.

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Walking and Chewing Gum in Washington Print
Sunday, 17 March 2013 08:08

Scarborough writes: "With any hope, conversations between the two sides will start a process that leads to sensible deals on universal background checks, immigration reform and long-term debt."

Washington is dooming workers in their twenties and thirties. (photo: M. Scott Mahaskey/Politico)
Washington is dooming workers in their twenties and thirties. (photo: M. Scott Mahaskey/Politico)



Walking and Chewing Gum in Washington

By Joe Scarborough, Politico

17 March 13

 

ust as a March snowstorm slammed into the East Coast, a temporary thaw fell over the four-year Cold War between President Barack Obama and Republican leaders. With any hope, conversations between the two sides will start a process that leads to sensible deals on universal background checks, immigration reform and long-term debt.

The most challenging of the three items is tackling long-term debt in a way that will take on comprehensive entitlement reform, allow for investments that spur economic growth and ends the generational theft that victimizes younger Americans. Forget all the talk about stealing from our kids and grandkids. Washington is now dooming workers in their twenties and thirties to a future of unsustainable tax rates and a depressed economy brought on by massive federal debt.

Yes, I believe that the president and Congress can walk and chew gum at the same time. Tackling entitlement reform now allows the president to promise Americans born before 1960 that their Medicare and Social Security benefits will be unchanged. Reforms can be phased in for those born after. Tax reform and a Pentagon overhaul should also be part of any grand deal.

Getting serious about debt will give Washington breathing room on short-term deficits. That does not excuse the kind of crude Keynesian reductionism that President Obama's former economic team practiced - preaching that even wasteful Washington spending was desirable. The CBO's report on Mr. Obama's woeful stimulus bill proves that low-quality investments keep people out of work while limiting future spending options.

As Columbia University economist Jeffrey Sachs said earlier this week, "When the stimulus was done and the Congressional Budget Office ran it through their model, they over predicted the benefits that would come. You can't just throw money at jobs and transfer payments. That's a little too simple."

In the end, the stimulus was such a wasted opportunity because so much of it was wasted. We've got to invest more wisely moving forward.

While on the subject of being smart with our money and getting people back to work, President Obama and Democrats must be more mindful of the negative drag higher taxes have on a weakened economy. While liberals love arguing that spending cuts have doomed European-styled austerity, they always forget to mention that most austerity packages across Europe were packed with tax increases. It is not enough to warn against sudden, sharp spending cuts. Keynesians should also start focusing a little more on the damaging short-term effects of tax hikes.

Democrats can't have it both ways. Raising taxes in the short term will be just as damaging to our struggling economy as fixating on massive spending cuts over the next year. Our leaders need to focus on short-term growth and long-term debt. When the seas calm a bit, Democrats can go back to fighting for higher taxes and Republicans can battle over how to balance the budget. But for now, let's all work together to get America back to work.

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