It’s only on the New York Times’ blog (not sure if these things ever make their way into the paper), but thanks to David Firestone for taking the right lesson from the Obama Administration’s proud boasts in favor of spending cuts:
“Do not buy into the b.s. that you hear about spending and fiscal constraint with regard to this administration,” (White House Press Secretary Jay Carney) demanded. “I think doing so is a sign of sloth and laziness.”
This trumpet blast would seem to indicate that Mr. Carney has bought into a standard Republican line: restraint is good and spending is bad, even when government dollars are desperately needed by a struggling economy. When Mitt Romney and other Republicans claim the president is a big spender (as they do every waking minute), the administration’s first instinct is to say they’re wrong on the facts, not that they’re wrong on the principle.
Firestone goes on to explain that Republicans in Congress have “constrained Obama’s desire to spend more,” but that’s not quite right. Federal fiscal policy became a drag on the economy in mid-2010, before Republicans took power in the House. It’s true that we had spending cuts in the FY2011 budget and spending caps in the 2012-2021 budgets due to Republican demands. It’s also true that the Administration is proud of that. As Firestone notes, the investment in discretionary spending has moved from 5% of GDP to less than 2%, and that includes the kinds of programs – education, housing assistance, transportation, job training – that enables upward mobility. And he adds that a time of economic fragility and headwinds at all corners actually needs some stimulus if you’re going to reduce the unemployment rate. “Apparently, though, you have to leave the administration to favor a stimulus program, because everyone there would rather talk about austerity and restraint. Just like Mitt Romney,” Firestone concludes.
It’s refreshing to see a traditional media reporter taking this approach. And it will be important for the coming battles over the fiscal cliff. Because you have this strange situation of Republicans, while admittedly defending tax cuts for the rich and defense contractor giveaways, using the language of Keynesianism, while Democrats are using the opposite.
In an interview with POLITICO, Reid said he was open to a compromise that would salvage about four-fifths of the Bush-era tax cuts. But absent some concession on revenues, the $110 billion in spending cuts ordered by the debt agreement last August would go into effect.
“I am not going to back off the sequestration,” Reid said. “That’s the law we passed. We did it because it wouldn’t make things easy for us. It made it so we would have to do something. And if we didn’t, these cuts would kick in.”
“To now see the Republicans scrambling to do away with the cuts to defense, I will not accept that,” Reid said. “My people — in the state of Nevada and I think the country — have had enough of whacking all the programs. We’ve cut them to a bare bone, and defense is going to have to bear their share of the burden.”
It’s not that I disagree with Reid on the defense cuts – I think they’re more than achievable. But the rhetorical shift is notable, for starters, and also, Reid is happy to make a deal to trade revenues for defense spending. Overall, there’s nobody arguing for the position that we need a bounce-back in the economy and that can be achieved by running a higher deficit.





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Don’t expect this meme to make its way onto the Sunday talk shows,
any more than Mann and Ornstein will.
Administration economists have adopted anti-empirical macro-economic theories, whose principal benefit appears to be that they favor and protect the wealthy (in a political environment where money is speech, that is a big benefit). These ideas aren’t just wrong and destructive, and aren’t just ideological instead of scientific, as applied in a campaign, they deprive the American public of a democratic (small d) choice about their future. I am delighted that Firestone sees that.
David…you gonna wear yourself out today.
United States of Austerity
R & D Agree:
Austerity for The Masses
and
Don’t Tax Me, Bro’
for the rich.
Not only does Obama have to fight the hysteria created by being the first black president, he also has to fight the perception that he cares more about the jobs of bank CEOs that he does about jobs for the middle class.
Obama has never promoted growth .His auto bailout was engineered by Wall.St. and spurred by GMAC , bond exposures and unfunded indemnities .These and a spindly .compromised stimulus in a climate of unconditional bankster giveaways said it all.Bowles told C Rose that O wasn’t interested in SB because he planned to make very much deeper cuts in entitlements after re-election .Obama is just another austerity shill who clerks for G-20 MOTU
Indeed, being the Jackie Robinson of American politics has and is a tough job. I’ll give him that.
But:
He’s failed dismally at this. Or, as some say here, is it a failure?
I don’t see what’s so shocking here; Barack Obama was bragging to conservative opinion columnist David Brooks that he was going to destroy Social Security and Medicare, way back when he was just the president elect:
http://www.dailykos.com/story/2010/02/16/837014/-Mr-President-no-Real-Democrat-is-agnostic-about-Social-Security
You can only be ignorant of Obama’s real intentions if you deliberately go out of your way to fool yourself.
Yeah, right! It’s just a coincidence that Obama taught Constitutional Law at the same institution where Milton Friedman’s Economic Department indoctrinated “The Chicago Boys” with the privatization policies of disaster capitalism(aka the Shock Doctrine).
Maybe that’s because deficits don’t do anything for a debt recession. What’s that new cliche… If deficits were the answer, Greece would be doing well.
And as Saint Reagan said, or was it Saint Cheney, “deficits don’t matter.”
Having just read their book, “It’s Worse Than You Think,” it is clear that their premise — it is time for the media to stop the false equivalency BS and start calling out the Republicans for being the ones who are destroying our democracy — is perhaps one of the best and most scarey things I have read lately. Unfortunately, the media prefers to do the he said/she said routine and will NEVER put the blame where it really belongs. They aren’t even headlining the striking comments by Colin Powell and David Stockman, both of whom took down the FAUX NEWS lies about Obama better than anything I’ve seen on TV in many, many years. Sweet stuff. Now if only they would read the book and get the message. Our democracy truly is in serious trouble and it is worse than we think…..
Marvc both parties stink .They are both corporate-owned frauds who seek to destroy America by advancing austerity agendas for Wall.St. internationalists .
Marvc ,we lost every vestige of our democracy over a decade ago There was a class warfare waged over 30 years ago ,and we didn’t win .In fact ,we didn;t even know there was a war .Our rentiers are just plucking up the spoils .Whoa ,gotta go ,Big Ed is on ,and I just know he’ll lead us out of this terrible mess .
Not when the money is spent on the military-industrial complex.