Lame Duck, Better than No Duck at All

A surprisingly productive 'Lame Duck' session of Congress has come to an end. It's been called the most productive Lame Duck session ever, though I can't speak to that myself. But it's without a doubt the most productive this Congress has been over the last year. That is the sad part. After a year of near absolute stone walling on even the most vanilla bills and nominations, it's astonishing how fast things can be passed under threat of being forced to work over the holidays. Democrats certainly have their issues, but I must say that the way the GOP crumbles like overcooked ginger snaps every Christmas is both pathetic and endlessly amusing. So much for integrity and sticking by your values.

"I will not compromise!" (Generic GOP Senator)

"We will stay and work through the holidays till we get this settled!" (Dem Majority Leader)

"Hey, look at the time! Let's ink this deal!" (Generic GOP Senator)

To add to the fun, there are a number of GOP Congresspersons really ticked off at how well they were played this Holiday season. This includes the ever amusing and often nonsensical Representatives Steve King (R-Iowa) and Michele Bachmann (R- Min). Seeing as they are deeply offended by pretty much anything that doesn't originate from their own spokesman, I generally ignore them both. A shame voters in their states failed to do the same. The general sentiment is that Democrats didn't play fair by actually trying to legislate after the mid-terms. How dare they continue to work till closing time! The GOP has this weird idea that Congressional work should stop the instant the elections are certified. I'm sure they wouldn't feel that way if the November results were reversed, but hypocrisy is a respected tradition for Republicans, so no surprise there. Democrats do it as well, but rarely with the same style and commitement. What is interesting is that at least one Republican House member, Rep. Lynn Jenkins (R-Kansas), has 'tweeted' her intention to re-introduce a motion to dismantle the Lame Duck altogether. In other words Congress would adjourn for the elections and not reconvene till January, thus giving us two months without a functioning Congress. Sorry, I meant to say sitting Congress. It hasn't really functioned consistently for several years now.

Talk about 'taking my ball and going home'! It's these stupid things that have wasted way too much political time lately. Ideas that are pointless and only matter to specific people or parties at this specific moment in time. I might, I stress might, understand if the Dems had rushed through a bunch of controversial bills in December over the unified opposition of Republicans, but they didn't. Remember the Dems only really controlled the House. The Senate, while having a Dem majority, has that wonderful filibuster rule that allows the minority to pretty much prevent anything they don't like from even being discussed. This has been invoked at least 136 times during the now ended session of Congress. More than doubling its use from any previous session. But the real kicker is that these bills that passed were only controversial politically. Polls showed Americans firmly behind them all and even most Republicans would admit that they supported them in principle. But they blocked them out of pure political calculation.

- Tax Cut Bill to extend the current tax rates for a further 2 years. Passed with 37 Republican votes. Not surprising considering it was made up heavily of pro-Republican tax provisions, many of which will grow the deficit significantly over the next few years. Typical of Republican 'fiscal responsibility'.

- 'New START' Treaty to renew the US-Russian nuclear inspection and arms reduction agreement. Passed with 13 Republican votes.

- 9/11 First Responder bill to provide healthcare assistance to those who developed serious illnesses as a direct result of their weeks and months breathing in toxic dust at the ground zero World Trade Center site. Incidentally this bill was fully paid for yet seemed to have been nearly killed by Republican obstruction till a last surge, led by Jon Stewart of the Daily Show among others, shamed Congress into action. In the end it garnered Yes votes from ALL Republican Senators.

- Bill to Repeal 'Don't Ask, Don't Tell', which had been fought tooth and nail despite as much as 70% public support and the support of the President, Secretary of Defense and the Chairman of the Joint Chiefs of Staff. Passed with 8 Republican votes.

No Experts Needed

There are a lot of issues that require some level of expertise when you delve into the details. This is especially true with finance and economic related policies. However, it requires no specialized knowledge to see when theories defy logic itself. The recent debate over the so called 'Bush Tax Cuts' are a perfect example. They were originally enacted to help restart a sluggish economy, but really did very little in this regard. On top of that, they were unpaid for and therefore were mainlined directly into the deficit and ultimately the national debt. To add insult to stupidity, these cuts disproportionately helped those earning over a million dollars a year. Hardly the segment hurt most by economic troubles. This is what is known to Conservatives as the theory of Trickle Down Economics, made famous under the Reagan administration. To everyone else, it's simply known as Help the Wealthy and hope they feel generous towards the little people.

If there is one economic idea that should be run through the shredder it's Trickle Down Economics. Let's set aside the example of its abject failure in the mid-late '80s and instead just think for a moment. A capitalist based economy is powered by the engine of consumerism. People buy houses, cars, TVs, computers, beer, clothes, etc. That demand means companies who supply these items need to make more of them and create improved versions. To do this they hire workers to design and produce the items. Those workers get paid for this work and use that money to buy houses, cars, TVs and so on. With me so far? So the corporations make money by selling items to people who have money to spend. The more money consumers have to spend, the more they can buy and the more luxuries they will desire. Corporations make more money by providing these items. As demand rises, they find it profitable to add more factories, hire more workers and produce more. The new workers spend their paychecks on more items, from necessities to luxuries. From food to diamonds. The capitalist version of the circle of life. Simplified, but you get the idea.

Now for the Trickle Down Economics in this scenario. This theory says that to stimulate the economy you should give tax cuts to the corporations and the wealthy so that they will use that money to expand factories and create jobs. What should be obvious by now is that this goes against even the most basic idea of capitalism. Wealthy individuals and corporations don't create factories and the resulting jobs because they have extra cash on hand this year, they do it when there is DEMAND! It doesn't matter how many tax cuts you give them, if there is no one shopping for jewelry, it's unlikely that Kay Jewelers is going to be opening any new stores anytime soon. You can 'trickle' all you want and all you'll accomplish is to make the corporations richer. This is not particle physics, it's logic on par with 1+1=2.

So here we are, two years into a colossal recession. Unemployment is pushing 10% and the credit markets might as well not exist for all the lending that's going on. Bankruptcies and foreclosures are at eye watering levels. The deficit, and therefore the national debt, is skyrocketing as the Federal government keeps pumping money into the economy like a winter driver trying desperately to keep the engine running on a December morning. So what is the plan being pushed by Conservatives? Trickle Down Economics in the form of the Bush administration's disproportionate tax cuts for the wealthiest 2%! They spew forth all sorts of political babble to confuse us into thinking that keeping tax cuts in place for this tiny section of America is vital to reviving the economy.

Nobody seems capable of explaining how this would work in the real world. Don't forget that these tax cuts are already in force and have been for the better part of a decade. All we are debating is if they should expire or be renewed. But to hear Republicans tell it, maintaining these cuts for the top earners will magically boost the economy. Remember that if the rates were to return to what they were before the cuts were enacted in 2001, they would be at the level they were during the economic boom of the 1990s. Hardly a dire situation. In fact, I'd say that generic tax cuts usually have minimal stimulative effect at the best of times. For most of the country the cuts usually only add up to a few dollars a paycheck which is barely noticeable. Certainly not likely to keep a family out of foreclosure or encourage them to spend on luxuries.

If the GOP were really worried most about the deficit and actually cared about being fiscally responsible, they would be the first in line to call for the Bush Tax Cuts to expire. The next best option is to keep them in place for income less than a quarter million dollars and let the rest lapse. This would erase about $800 Billion in projected costs over the next decade. But what are they actually calling for, nay, demanding? Keep 'em all, especially the cuts for the top 2%. They are so desperate to keep the wealthy well looked after that they have gone for a scorched earth policy in the Senate, refusing to consider any legislation until the tax issue is resolved. And by resolved I mean, all GOP demands met. What is so amazing about this is that they can still say the words 'fiscal conservative' without collapsing in laughter. It certainly is a joke, albeit a very bad one.

As I write this, and wallow in disgust, Congress has just passed a deal struck between the White House and senior GOP leaders that would renew the entire Bush Tax package for two more years. What did Obama get for giving in on a stand he and the Democratic leadership have been harping on since before the elections? A stand supported by a majority of Americans, according to more than one poll. Well, he got an agreement for a one year extension of Unemployment benefits and, uh... nope, that's about it. There are some assorted other tax related cuts and such, but most of them were things the GOP liked anyway, so from my standpoint a very lopsided deal. Actually not just from my standpoint. A good number of Democrats are pretty put out by this agreement, as are a few Republicans who seem irritated that Obama didn't just surrender the Presidency outright. Worse, at least for the future of the Obama Presidency, is that it gave the GOP a huge, undeserved victory and inspired the Democratic base to a collective "WTF?!" Most importantly though, it shows that if Republicans pick the right hostage, in this case the long term unemployed, the White House is likely to capitulate. By the way, in a post deal press conference it was Obama who used the hostage metaphor to explain the deal. This is particularly odd since as far as I know, if the hostage takers demand a jet as a trade for the hostages, we usually don't whistle up a Gulfstream 200 and wave goodbye as they depart. But perhaps I'm misinformed on these sorts of negotiations.

There is so much about this deal in particular, as well as Congressional incompetence in general, that leaves me stunned. As far as I can tell, the only real stimulative part of the proposal is the extension of unemployment benefits. This will put cash in the hands of those who not only want to spend it, but absolutely must. Think unemployment benefits are just a waste of money? First, let's remember that these benefits are only for those who have been laid off through no fault of their own. So we aren't dealing with lazy people who quit their jobs. These are the casualties of recession level downsizing. Second, the money these people get through unemployment is often the only thing keeping them housed and fed. Stopping unemployment benefits isn't just non-stimulative, it actually contributes to the recession. Soon after losing this life-line, individuals and families will start defaulting on mortgage and car loans. Going delinquent on rent. Some who have held on as long as possible will finally give in to Bankruptcy. Do any of these things sound good for the economy?

I had a tiny sliver of hope that this deal would be modified enough to be at least vaguely palatable. But that was way too optimistic of me as, despite angry words on both sides of the aisle, it passed both houses of Congress this week. The 111th Congress, from GOP obstruction and the ongoing 'War on Logic' to Democratic incompetence and spinelessness, is a poster child for all that's wrong with our government. And I didn't even mention the Supreme Court's ruling to give corporations many of the rights of individual citizens! I suppose Corporate suffrage can't be far off. We are in tough times, but we are not going to get out of them by shoring up the coffers of the wealthy or of big corporations. Huge corporate profits have not managed to resuscitate the economy thus far. Why? Because it doesn't matter how nice the detailing or how clean the engine is, if there's no fuel in the tank then the car ain't moving. The economic fuel is consumer spending. Everything boils down to this. Without it, we aren't going anywhere. Outside of the unemployment extension, I don't see anything in this deal that will improve matters, though it will spike the national debt to greater heights. Once again political victory brings little help to those most harmed by the recession while continuing to reward the mindset that got us into it.

Think it Through

Am I the only one who has noticed the flood of vague and/or unworkable policy positions from Conservatives, especially Tea Party candidates? It's starting to get on my nerves. Particularly as some of the most fringy candidates are sheltering in the friendly embrace of the conservative media so as not to be faced with the indignity of an inquisitive thought. In that climate they are able to say almost anything and not be asked any inconvenient questions like, "How would you go about that?" or "Could you clarify what you meant when you said . . . ?" Therein lies the problem. Candidates are making claims that go virtually unchallenged. Not that this is entirely new since the Republican party as a whole has been doing that ever since they lost big in 2008. However some of the ideas that are fashionable on the Right are getting a bit on the extreme side.

One of the Tea Party favorites is the idea of privatizing Social Security. You hear this popping up all over the campaign trail. Some even use the euphemism of 'personalizing' rather than privatizing. Sounds better, but it means the same thing. This plan would move your Social Security nest-egg out of the Federal government and into the private sector. In other words, into the Stock Market. As I understand it you would manage it like a 401K account by picking which investment vehicles to invest your bundle of retirement cash in. Of course it takes only a brief glance in the nation's rearview mirror to see a glaring example of why this is a stupid idea. Just remember the near collapse of the financial system only a few years ago. You don't even need to flex your imagination since we just saw it in brilliant technicolor. For something that's supposed to be a minimum, reliable retirement income, risking it in the stock market may not be the best idea. Yes you could do well, but you may not and you can't really plan on the best case scenario. One other thing to think about, what do we do as a nation if a crash does wipe out a large percentage of the privatized Social Security nest eggs? Odds are, and you know it's true, that the government would end up stepping in to help reimburse those who lost most or all of their investments. So any savings to the country would be wiped away when we bail out retirees. It's called 'cause & effect' and it transcends all political parties and philosophies.

A perennial favorite of Conservatives is what I call the 'Magic Tax Cut'. According to Conservative lore, the bigger and more wide ranging the tax cut, the more the economy will grow! This is, of course, impossible. The 'Magic Tax Cut' also pays for itself! This is, of course, impossible. Doesn't stop them from pretending it's true though. Less taxes means less money into the government. Now if the economy is booming then it will equal out to some degree. But as a stimulant to a sluggish economy, it's not that effective. The economy runs on consumers spending money. The more money we have to spend, the more cash is pumped into the economy. A tax cut is only going to put a few dollars a pay check into consumers' hands. Nowhere near enough to make a difference in spending habits. But wait, just like all things in the universe, for every action there is an equal and opposite reaction. In the case of a tax cut that means that the government will take in much less money than it otherwise would. The one way to make tax cuts less problematic is to make cuts somewhere else so that they are paid for. This rarely happens, particularly with Republicans. No politician wants to undermine the propaganda value of cutting taxes by also cutting services. In fact both tax cuts instituted by the G.W Bush administration are partly to blame for current deficits as they were never offset by any cuts. In other words, un-paid for. Sadly amusing to now hear many of the same Conservatives that were so supportive of the Bush tax cuts now moaning at the insanity of expenditures that aren't paid for. Funny how perspective changes everything.

Look, we all love the idea of less money siphoned from our paychecks by the government. It's also a great talking point as it feeds the idea that 'The Man' is taking our hard earned cash for some shadowy purpose that doesn't benefit us. But think about it for a minute. Where do you think the money comes from to pave the roads? Fund the Police, Fire and Rescue services? Help clean up after a natural disaster? Fund agencies that test our food, water and air for safety? Protect and maintain parks, not just Yellowstone and the Grand Canyon but also the national battlefields and other parks? Provide security at border crossings, airports and seaports? Fund our global military commitments? Finance a public education system so kids of any economic background can get a basic education, not to mention the publicly funded colleges and universities? Student loan guarantees? Medicare for older Americans who would have a hell of a time getting affordable health insurance on the open market? Any of these things sound familiar? Contrary to the propaganda, taxes are not inherently evil. Yes there is some waste, inevitable whenever humans are involved, but most of it goes to support the things we use every single day. And yes, we all have things we wish our taxes didn't pay for, but so what? That's the price of living in a country like America. We should stay on top of our government to make sure they are spending our money as wisely as possible, but we have to stop acting like taxes are always evil and that 'Public' means 'Free'.

Then we have one of my personal favorite Conservative mantras; Small Government. One well known Conservative, Grover Norquist, famously quipped "I don't want to abolish government. I simply want to reduce it to the size where I can drag it into the bathroom and drown it in the bathtub". What I find so annoying is that the people who proudly proclaim support for this idea are the same ones who are demanding that homosexuals be barred from legally being married. They are the same people who support kicking gay service members out of the military simply for their sexual preference. They are the ones ready to enshrine the Ten Commandments into law and push other Christian doctrine on a secular nation made up of large numbers of non-Christians. They are the same people who think that once an egg is fertilized that the government assumes control of a woman's reproductive system. Some of the current crop of Conservatives are even now claiming that a woman be forced to carry their rapist's child or a pregnancy from incest. Sharon Angle, Tea Party candidate for Senate in Nevada, actually stated that it was God's plan and a woman in this situation should "make lemonade from lemons". This is the small government many Conservatives want. A government with no ability to regulate corporations, but with the right to dictate citizens' personal choices. That's not small government, that's dictatorial government.

There are many more items I could pick on, but the bottom line is that when a politician makes a statement, even if it does resonate with you on some level, think it through. Follow the train of logic, if one even exists. Don't just take it at face value and assume they've already checked all the angles. The only angle they're really concerned with is the one that gets them into office. Just like a PR firm, a politician is trying to grab you with catchy phrases and emotional hooks. And a politician who is campaigning for office is not concerned with accuracy or workability. It's about motivating you to vote for them. A great example of this is health reform. Republicans will freely admit support for most of the individual parts of the law, yet in the media they are blathering on about "Repeal & Replace". Believe me, if they actually could repeal it, highly unlikely, they would replace it with something almost identical, but with a more flowery name. Of course to repeal it would require not just control of both houses of Congress, but a solid 2/3 majority in both to ensure an override of the inevitable Presidential veto. So you see, a politician can promise you anything he wants, but that doesn't mean he can or even wants to actually do it.

We have lots of problems and few, if any, have solutions so simple that they will fit on a bumper sticker. Cutting taxes will not, by itself, fix the economy or take millions off the unemployment roles. Tax cuts are also not without cost. And less money into the government means less money for the things we all demand our government do. It's fine to believe in small government, but if you do then you better be able to tell us what you're willing to do without. You can't support a government small enough to "drown in a bathtub" yet continue to pretend that it can do everything it does now. And if you really want a smaller government presence, then start by keeping it out of our personal lives. It has no place dictating personal choices that do no harm to others.  We, as voting citizens, have to hold all candidates and sitting politicians accountable for what they say and demand that they tell us how they plan to implement these grand ideas. What many candidates most fear is that voters will actually question their statements and realize that the only thing beneath the catchy tag line is their own personal ambition.