I think at this point, we can say with a fair degree of certainty that Republicans have clear goals for the set of post-election measures that must be dealt with in the lame duck session. Generally speaking, they don’t care about the deficit, and that manifests itself by wanting to extend the Bush tax cuts as long as possible and canceling the automatic cuts to defense spending. If they can replace those cuts with other discretionary spending cuts, great, but really the plan is low taxes for the rich and more defense spending. In this sense, their bumper-sticker values are driving their policy choices.
It’s often said that Democrats have no bumper sticker argument, nothing that can be said in an elevator pitch to boil down the principles of the party. That can be seen in the utter confusion with which the party is approaching the lame duck session and the fiscal cliff. I follow this stuff fairly closely, and I can say without reservation that I have no idea what the overarching plan for the lame duck is coming out of Democrats in Congress or the White House.
Take the Bush tax cuts, for example. In the 2008 primaries, the universally acknowledged plan was to repeal the Bush tax cuts to pay for other priorities. By the time we got to the general election, that had narrowed to letting the Bush tax cuts expire for the top two brackets, above $250,000 a year. That has held in all Presidential budgets since that time, though in 2010 all the tax cuts got extended for two years. And now there’s not even a clear direction. Nancy Pelosi’s shift, asking for the Bush tax cuts to be extended except for incomes over $1 million, came as a surprise to allies. I have been able to confirm that Americans for Tax Fairness, the organization launched to argue for repeal of the Bush tax cuts over $250,000 a year, as it is in the President’s budget, was totally blindsided by the Pelosi letter to John Boehner, setting the dividing line at $1 million. They hastily rushed out their coalition, which includes some of the biggest progressive and labor groups in the country. They weren’t even able to complete their Web presence. They felt the need to answer Pelosi’s shift.
While the White House still nominally supports the $250,000 demarcation, they haven’t really said much about it. And the Democrats in the Senate have been muddled on the issue as well.
Then there are the automatic cuts to defense. The White House finds these so distasteful that they didn’t even include them in their budget plan, expecting them to be reversed. However, Harry Reid last week vowed to carry out deficit reduction already scheduled, and that includes the defense cuts. He might want to have a word with Defense Secretary Leon Panetta, who continued to demand a reversal of the cuts:
During the interview, Panetta also raised an alarm about looming cuts to the defense budget, saying that they would be “disastrous” for national security and urging Republicans and Democrats to work together to avoid a budget showdown.
“Well– my view is that when you’re facing the size deficits and debt that we’re facing, that obviously defense has to play a role in trying to be able to achieve fiscal responsibility,”
The Defense Department, he said, “provided a budget that, we think, meets not only the goal of savings but also, more importantly, protects a strong national defense for this country. The thing that does concern me is the sequester which involves another $500 billion in defense cuts.” [...]
“I think what both Republicans and Democrats need to do, and the leaders on both sides is to recognize that if sequester takes place, it would be disastrous for our national defense and very frankly for a lot of very important domestic programs,” Panetta said. “They have a responsibility to come together, find the money necessary to de-trigger sequester. That’s what they ought to be working on now.”
So what is the official position? Is it what Harry Reid said, that the defense trigger will have to be pulled, or what Panetta said, that they’ll have to be replaced – without being specific – or what was in the House Democratic budget, a replacement of the trigger with the closure of tax loopholes? There’s just no unity on the Democratic side on these issues.
Then there’s the overall question of deficit reduction itself. We know that the CBO predicts a recession for the first half of 2013 if nothing is done on the fiscal cliff measures. But we also know that they predict 4.4% growth on the year if everything gets extended. I don’t know if I totally believe that figure. But you would think that a country desperate for growth, with a high unemployment rate, would want to chase that 4.4% brass ring. That would entail extending unemployment benefits and the payroll tax cut for another year. Yet that’s not on the table at all. Nobody’s said a word about the payroll tax, which is sure to expire. And we’re already seeing extended unemployment benefits wind down, despite their high-multiplier stimulative effect, and the continued elevated presence of the long-term unemployed.
What is the goal here? Growth or deficit reduction? We know that the Obama Administration has gone out of their way to promote themselves as spendthrifts, who would rather deal with long-term fiscal issues than a near-term lesser depression. But if that’s the goal, it isn’t totally manifesting itself in policy. They want to replace the defense trigger. They want to extend 98% of the Bush tax cuts or more. Similarly, it’s not like growth is the sole agenda either. We know that Democrats, in broad terms, want a “balanced” deficit solution to come out of the lame duck session. The numbers on past spending they continue to promote are in fact evidence of a failed recovery policy, but they continue to promote them.
There’s a lot of gimmickry going on about true intentions and public intentions, particularly before the election. And there are months left on the calendar before any of this has to become clear. But Republicans are operationalizing their values. They know what they want. I see no reason to believe that Democrats have the same strategy. I don’t know what their values even are here. They want growth but not the policies – and higher near-term deficits – that will produce growth. They want deficit reduction but not the kind of deficit reduction that comes from higher taxes or defense cuts. If one side has staked out definitive ground, and the other side hasn’t, you can bet that the side with more certitude will have the advantage. Despite the fact that the leverage is on the Democrats’ side in most of the fiscal cliff measures, because something has to affirmatively pass to change the trajectory, their lack of a clear plan is inviting a bad outcome.





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Democrats may be muddled handwringers, but on the other side there’s:
Mitt = Trump = stick it to small business creditors/vendors and outsource workers = planned bankruptcies and “I like to fire people.”
Austerity during a recession makes as much sense as cutting back on irrigation during a drought.
Who cares what the official Democratic position is. Everyone knows that the Democratic party never follows through on its official positions. The unofficial position is to present token opposition to some cuts to the services to the neediest Americans, and then accept those cuts anyway because these greedy Republicans wont’s let the nice Dems do anything of substance for the needy. Then, whatever little money is saved by cutting those services for the needy can be channeled into funding even more of our unnecessary perpetual wars or to preemptively capitulate to Republicans’ demands to cut taxes for the wealthiest of us.
Great going Democratic party.
Some portions of the platform are fantasy, other parts are reality.
Reality is toadying to the defense corporations and the 1%. Fantasy is what the politicians proclaim to be doing when campaigning.
“There’s just no unity on the Democratic side…” on anything. Obama and congressional democrats have no principles they are willing to fight for. There is not a single “line in the sand” issue among them.
This is why the republicans are able to consistently advance their agenda even when they are in a minority.
“…you can bet that the side with more certitude will have the advantage …”
And until the democrats develop unity and certitude, they will continue to be the policy losers. Of course that assumes that they actually would like to win once in a while, which I am not sure they do.
I agree with you on substance. But, I disagree with you on the lack of unity of the Democratic party establishment, which does NOT include true liberals, but is loaded with bluedogs and DLC sell outs. And, they are united on (1) channeling even more funds for even more of our unnecessary perpetual wars and (2) to preemptively capitulate to Republicans’ demands to cut taxes for the wealthiest of us, and of course (3) the utter need to reduce and possibly to even end SS as we know it, as doing so is the only way that this country can be brought back to fiscal stability and overcome the debt crisis.
Great going Democratic party.
“I agree with you on substance. But,…”
And I agree with you. But…
I was referring primarily to that piece of fiction euphemistically known as the “democratic party platform.” I know it exists, I just don’t think any democrats have actually read it.
The tax cuts for people earning above $250,000 a year, represent 2%?
Unintended truthiness about the “Bush Tax Cuts For The Rich”?
david is like the republican party who ignore facts even when presented in the face with them
they are the obama “tax cuts” which aren’t tax cuts at all but a redistribution of assets owned by the middle class but transferred to the wealthy
never the less, even though david won’t stop posting it, they are NOT bush tax cuts, those expired
Somehow I think this diary, which I wrote two months ago on DailyKos.com, is still relevant:
http://www.dailykos.com/story/2012/03/30/1079054/-What-if-Barack-Obama-weren-t-a-leftist-
One party has to pretend more than the other, so this is why you have “aimlessness” with the Democrats.
You always see the headline, “Democrats in Disarray.” Never Republicans. In Bill Clinton’s immortal phrase, “When people are insecure, they’d rather have somebody who is strong and wrong than someone who’s weak and right.”
Bill, I was just being humorous. Actually, I do agree with you entirely. I appreciate your blog on DK. BTW, I have concluded that, on economic issues and also on many social issues, Obama is actually a blue dog Democrat or even a Republican though he likes to call himself a Democrat.
I’m guessing “push the liberals off the cliff” is the Democratic solution, just like it is with every other cliff-type dilemma they encounter. Health care, Wall Street, etc…
Neither!
As much as they like to call themselves stingy mofos, they want to make the Bush Tax Cuts permanent. They also want to avoid cutting defense. But they’ve already telegraphed their intention to go after Social Security.
Growth would mean deficit spending of a non-corrupt variety, putting people back to work. Well, that’s not going to happen. Deficit reduction would mean tax increases on the rich, and being very rich themselves, the Dems have no intention of going there either.
If they sound muddled, it’s because that’s their default position. Being clear would mean one of two things: 1) Telling lies of such magnitude even most Democratic voters would see them; and/or 2), Being so honest about their priorities that even most Democratic voters would catch on.
So their best comm strategy is to muddy the waters to the greatest extent possible, since erstwhile “liberals” and “progressives” will put in the needed overtime to concoct fresh rationalizations that people can believe, absent any proof whatsoever.
It’s worse than that. The mandarins of the Democratic Party are on board with all of the Republicans’ foreign-policy and national-security agenda and almost all of their economic agenda. The lame-duck session gives the Democrats an opportunity to make it appear as though they were dragged, kicking and screaming, into caving in to GOP demands.
this Administration has gone out of their way to promote themselves not as spendthrifts, but as the opposite of spendthrifts
from wiki: A spendthrift (also called profligate) is someone who spends money prodigiously and who is extravagant and recklessly wasteful, often to a point where the spending climbs well beyond his or her means. The origin of the word is someone who is able to spend money acquired by the thrift of predecessors or ancestors.[citation needed]
I say we help them push the liberals off the cliff. It’s nauseating the way they shill for Obama.
Cutting back on irrigation during a drought wouldn’t be necessary if water had been stockpiled instead of debt.
OUtstanding piece David. WE desperately need new leaders. The whole bunch we have on both sides are destroying what the nation has spent 230 years to build.
“I say we help them push the liberals off the cliff.”
Works for me. Tired of hearing that the democratic party might actually do something liberal someday if only the stars are properly aligned and the republicans all stay home.
“WE desperately need
newleaders.”Fixed it for ya.
Hmmmmm. You’re right. That makes not sense.
Per the Heritage Foundation, the upper 1% pay 40% of the income tax, the upper 10% pay 70%, and the upper 53% pay 100% of the income tax. I’m no fan of the Heritage Foundation, but those numbers sound about right.
“The extension of the Bush Tax Cuts by Obama to appease the wealthy class at the expense of the middle class” is more correct but too long. Remember that V.P. Cheney cast the 51st(not 60th) and deciding vote to pass the Bush tax cuts so we should throw his name in as well. :)
http://www.factcheck.org/2008/04/americans-making-more-than-250000/ 2% refers to the percentage of the population making more than $250,000 AGI per year, not to percentages of tax revenue raised from the highest brackets. The income tax system is progressive; that’s why you see the highest brackets paying more, because they appropriate higher (and higher) amounts of wealth. From your previous posts I can deduce you’re not a puppet, but instead have fallen into the Heritage Foundation’s/alan1tx’s mendacity trap.