All the uncertainty around fiscal issues has convinced the group of Washington mandarins who have been trying to undermine the social safety net in service to reducing the deficit that this is the moment to strike. Practically everyone affiliated with a commission that could earn the appellation “cat food” over the past several years has joined forces, rock-supergroup style, with broad support from Georgetown to slightly east of Georgetown, to “fix the debt.”
America faces a pivotal moment in its history.
For several years, the federal government has relied on a series of temporary patches and one-year extensions in lieu of a thoughtful economic policy—while amassing trillion dollar annual deficits for the first time ever.
Washington now borrows 40 cents of every dollar spent.
And Americans are increasingly dismayed at the seeming inability of our elected leaders to put aside party divisions and do what needs to be done to get our fiscal house in order.
The end of the year will bring what Federal Reserve Chairman Ben Bernanke has termed the “fiscal cliff,” as various tax provisions expire and the $1.2 trillion budget sequester begins to take effect—threatening to remove trillions of dollars from the economy, coupled with an almost certain need to raise the federal debt ceiling.
The Committee for a Repsonsible Federal Budget is the nominal sponsor of this campaign, but supporters include Erskine Bowles, Judd Gregg (who has magically replaced Alan Simpson, like a new Darren on Bewitched, as the right-leaning deficit scold leading the campaign), Ed Rendell, Honeywell CEO David Cote, CRFB President Maya MacGuineas, former Senator Sam Nunn, longtime deficit scold and funder of multiple catfood commissions Pete Peterson, Steve Rattner, Alice Rivlin, former World Bank President Robert Zoellick, and more. You get your “serious” badge on Foursquare when you sign up to be part of this group.
This campaign posits a terrifying future that doesn’t exist. The US can currently borrow at a negative interest rate. As their own charts show, the debt did not measurably grow from the additional burdens from the Great Recession, and most of their warnings refer to a time 10-20 years from now. The number one necessity of any policymaker right now should be to put people back to work, not obsess over the debt/GDP ratio two decades from now. What’s more, there’s no constituency in the country for deficit obsession and safety-net reduction.
This is the big move, and this supergroup has a lot of support at its flanks. Richard Eskow reports today on a separate effort from “No Labels” (which is apparently still happening), which added to this new campaign has a cumulative effect:
No Labels is just one small cadre in a great army of mercenaries pushing the austerity cause. Their brigades have colorful (that is to say, silly) names like “Americans Elect,” “I.O.U.S.A,” the “Committee for a Responsible Federal Budget,” and my personal favorite, “Budgetball” – which I like to think of as ‘The Fountainhead’ Meets ‘Deathrace 2000′.”
Even if every one of these groups fails individually – which so far they all have – the hope seems to be that they’ll have the cumulative effect of making it look like there’s a tidal wave of support for Simpson Bowles austerity.
These programs uniformly attempt to stigmatize the majority’s opinions and interests as “extreme.” These front groups always try to stigmatize the popular goals of protecting Social Security and Medicare benefits and fighting Simpson Bowles austerity as those of a “tiny minority” which “ruthlessly punishes those who step out of line.”
Gerald Seib shills for a grand bargain in today’s Wall Street Journal as well, pitchin it as a structural panacea to all that ills the US economy. The unique circumstances afforded by the fiscal slope and the lame duck session has this crowd buzzing that they can overcome enormous unpopularity by attacking democracy at its weakest point.
Digby has more on this today. So far, this has failed every single time it’s been tried, despite buy-in at the highest levels, certainly of the Democratic Party. One of the points Tom Coburn made in his raspberry at Grover Norquist in the New York Times yesterday is that he’s rapidly becoming irrelevant. Coburn isn’t so thick that he can look again at the prospect at huge cuts to the signature progressive achievement of the last century, the New Deal safety net, in exchange for some token and easily surmounted increases in taxes, and blink once again. The groups forming for the lame duck session certainly have that in mind.




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Shorter SCOLDS (Sensible Centrist Oligarchs Lustily Demanding Suffering):
Listen to us, not to that silly bond market.
The campaign “posits a terrifying future that dosent exist”..it dosent exist for we the 99% but i have no trouble believing that the tiny elitist consituency of this “movement” are terrified that they may have to trim the enourmous “profit” and “growth” which they now recieve and which they obviously consider to be thier God given, etched in stone right. They have a right to be millionaires 100 times over you know, at the expense of everyone and everything else in the multiverse. Thats what they mean by “rights: and “responsibilities”… they have the right to become ever more rich, and we all have a responsibility to make sure that happens, no matter the cost (to us )
Who are they trying to convince?
I’ve been getting very skeptical that we even have a deficit problem. it’s just more terrorism from our government and friends to get their hands on the last groat we have in our pockets.
Who knows, maybe we’ll have to sacrifice the safety net this time to “save” the banksters from the Libor losses?
Fear sure seems to work in “The Land of the Brave” these last 12 years.
You’d think people would stop to question after all the lies that have been foisted on US and proven to be lies, but they don’t
Ed Rendell. Yet another reason to wish the Democratic Party a swift death.
The fact that Clinton is a regular attendee at Peterson conferences gives me the horrible sense that its pretty much downhill from here.. Resistance is futile, they are all greed droids and we are kibble.
Bill Clinton is to the Democratic Party what Phillipe Petain was to France.
Determined-Elites-Flagrantly-Instigate-Civilization’s-Imploding-Totality
“…this is the moment to strike…”
Why not, with a democratic president who put Alan Simpson in as co-chair of the catfood commission, from which vantage point he could slag Social Security?
If, on the night that Barack Obama was elected, I’d have made bets that in three years, he’d be inviting the republicans to go after SS, I could have had a trip to Tahiti, with all the trimmings.
The absolute worst is that slime ball Rendell.
He is so disgusting to watch and listen to.
What a fucking slob.
Hey maybe the real problemis that Erskine and Alice and the Boys have too much money. So there isn’t enough to go around for everybody else. And the Boys can’t sustain an economy all by themselves, no matter how much incredibly expensive shit they buy.
I always find it interesting to check out the family backgrounds of members of these fiscal scold supergroups. A defining characteristic is that these members with very few exceptions grew up in families where they never knew a day of financial need, much less be in need of many of these social programs they are maneuvering to dismantle.
They have no clue what these programs mean to ordinary people, and thus don’t care about the effects of slashing these programs. Atrios has the perfect response when he suggests that these scolds be asked to guess the average monthly amount paid to Social Security beneficiaries. They can relate to budgets because that’s a game to which they can relate and one in which they personally were dealt a winning hand; which is why they will continually talk about this issue in relation to budgets and hardly ever in relation to the needy. Same thing we’ve been getting from the austerians: they always talk about keeping the fiscal house in order (balanced budgets, inflation <= 2%) and you will never hear them voluntarily utter the words “jobs” or “unemployment.” Good piece as usual.
s/b “They prefer to talk about budgets because that’s a game to which they can easily relate and one in which they were personally dealt a winning hand; …”
Maybe someday somebody will blow the debt whistle and scream about the deficit and no one will jump up to follow that whistle. I can only hope. That day we will begin to heal.
Damn, you’re good.
Here’s a link to the “kick off” of the CRFB “Campaign to Fix the Debt,” which took place at the National Press Club today (July 17, 2012).
http://www.c-span.org/Campaign2012/Events/Cmte-for-a-Responsible-Federal-Budget-Launches-Debt-Reduction-Campaign/10737432391/
Please listen to ALL of this video. This group had the audacity to include Mr. Pete Peterson himself, as one of the speakers. Also, former Senator Judd Gregg is prominently featured in this video. Senator Gregg is visibly gleeful, if not giddy, about the prospect of eliminating “loopholes” (read, tax deductions or expenditures), mainly for the working and middle classes, in the form of eliminating the tax exemption for the portion of the health insurance premium, that employers pay on behalf of employees, in order to (as he says explicitly) drop the top marginal tax rate to 23% (from the current 35%, which is temporarily lowered from the permanent top marginal tax rate, of 39.6%).
So I ask, what are we going to do about this? Ideas or suggestions, anyone?
Mad As Hell
rollotomasi–
They know–they just don’t care.
Ditto.
“What’s more, there’s no constituency in the country for deficit obsession and safety-net reduction.”
Ummm, well, there’s ONE constituency out there. The elitist 1% pricks who have bought our government and won’t rest until they have Hoovered out every last cent from the middle class.