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Algernon Austin

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The Gingrich Nonsense

Posted: 01/18/2012 3:28 pm

Newt Gingrich has been using the fast exchanges of the Republican presidential debates to ignore facts, misdiagnose economic problems and then present wrongheaded solutions. The key fact that he is ignoring is the Great Recession -- the greatest economic downturn the country has seen since the depression of the 1930s. It is amazing that anyone could miss this fact, but, apparently, Gingrich has.

Once we acknowledge the existence of the Great Recession, Gingrich's ideas stop making sense. His statement that "more people have been put on food stamps by Barack Obama than any president in American history" is ludicrous. The recession began in December of 2007; president Obama's first day in office was in January of 2009, more than a year later. The Supplemental Nutrition Assistance Program (SNAP, formerly known as food stamps) exists to reduce hunger in America. During this period of extreme economic hardship when the rate of hunger in America is high, our leaders should want the needy to turn to SNAP. Would a President Gingrich eliminate SNAP or prevent the number of SNAP recipients from rising during a recession?

Gingrich's latest idea is to fire janitors in schools and "hire 30-some kids to work in the school for the price of one janitor, and those 30 kids would be a lot less likely to drop out." It is true that teen (i.e., 16 to 19 years old) employment is correlated with positive student outcomes including high school graduation. But this is a horrible idea.

Think of a family where one parent is a janitor and one child is in high school. Gingrich is proposing to layoff the parent and replace the parent's income with one-thirtieth the salary brought in by the child. Who knows how many hundreds of thousands of families would be plunged into poverty if this idea is ever implemented. We know that poorer children do worse in school, so any possible benefit from the increase in teen employment would likely be undone by the increase in poverty. One important reason that the teen unemployment rate is so high today is because of the Great Recession, the recession that began in the final year of the Bush administration.

It is great that Gingrich wants "to find ways to help poor people learn how to get a job, learn how to get a better job, and learn someday to own the job." All Americans support these goals. But the real issue is this: What policies should we pursue right now to speed a full recovery from the Great Recession?

Gingrich wants to slash taxes. But we know that this is not the path to prosperity that Gingrich thinks it is. Mark Zandi, chief economist of Moody's Economy.com, tells us that tax cuts are among the weakest things we could do to stimulate the economy and that increased SNAP spending is among the best. The reason is simple. People on SNAP are experiencing economic hardship. They spend their benefits, circulating those dollars in the economy. Much of the added income produced by tax cuts to people who are well-off is saved and not spent.

We also know to be skeptical of the tax-cut strategy because we tried it during the George W. Bush administration and it failed. President Bush cut taxes and "the U.S. economy experienced the worst economic expansion of the post-war era."

Further, after examining the Gingrich Jobs plan, Howard Gleckman of the Tax Policy Center reports that "Newt Gingrich is proposing a massive tax cut aimed at the highest earning American households. Gingrich's plan would add about $1 trillion to the federal deficit in a single year." It is hard to imagine worse economic policy than Gingrich's economic ideas.

Once we begin the discussion with acknowledgement that the Great Recession, which began more than a year before president Obama took office, is the root cause of the massive loss of jobs we've seen since 2007, we can see that Gingrich's economic proposals are disastrous for the U.S. economy. Apparently, he wants hungry Americans to stay hungry. He wants to layoff workers and replace them with children making a tiny fraction of the prior wage. During this period of high unemployment, this policy guarantees an increase in poverty. And, while he has increased hardship and misery for the poorest Americans, he wants to make sure that the richest Americans get even richer with massive tax cuts. Gingrich's vision for America is an American nightmare.

 

Follow Algernon Austin on Twitter: www.twitter.com/EconomicPolicy

Newt Gingrich has been using the fast exchanges of the Republican presidential debates to ignore facts, misdiagnose economic problems and then present wrongheaded solutions. The key fact that he is ig...
Newt Gingrich has been using the fast exchanges of the Republican presidential debates to ignore facts, misdiagnose economic problems and then present wrongheaded solutions. The key fact that he is ig...
 
 
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07:10 AM on 01/25/2012
The man gives "amorality" a bad name.
Rogell
Proud Veteran
11:35 PM on 01/23/2012
Nothing Gingrich does, suprises me - nothing...
03:45 PM on 01/23/2012
I will skip to the chase: Just spend more money that will fix all problems. Make the wealthy pay after all they are all greedy, evil and own everything.
12:03 PM on 01/21/2012
Integrity is of the utmost. Remember, this man berated Clinton's actions until he got caught with his pants down, literally. No pun intended. And, he is on his 3rd marriage, right? Regardless of his party affiliation, we must asks ourselves, is this the kind of man we want running our country?
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WARHUKKER
“My country, right or wrong
04:14 PM on 01/20/2012
Director, Program on Race, Ethnicity and the Economy at the Economic Policy Institute,Austin is one that gets his power from unacknowledge self interest.
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WARHUKKER
“My country, right or wrong
04:12 PM on 01/20/2012
““Belief in the ongoing power of racism is, today, an article of faith for "good" whites and "truth-tel­­ling" blacks. It is heresy for any white or black to say openly that, today, underdevel­­opment and broken families are vastly greater problems for blacks than racism, even though this is obviously true. The problem is that this truth blames the victim. It suggests that black progress will come more from black effort than from white goodwill — In other words, this truth is unfair. And when whites or blacks utter it, they are instantly identified with the unfairness rather than with the truth. Propriety causes us to say that racism still explains black difficulty­­.

This explanatio­­n also a source of power because it portrays blacks as victims. Wherever there are victims, there is justificat­­ion for seeking power in their name. Thus the specter of black difficulty has been an enormous source of power for the left since the 1960s. To say racism is not the first cause of black problems is to put yourself at odds with the post-'60s left's most enduring fount of power.

This means that racism in the United States has parallel lives. In one life, it is the actual instances of racism on the ground, in its parallel life, it is a time-honor­­ed currency of power that still trades well in the United States. Here, racism lives as faith rather than fact. It is something you believe in out of unacknowle­­dged self-inter­­est. Shelby Steeleâ€â€
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l78lancer
Wisdom is the principal thing
02:26 PM on 01/20/2012
I enjoyed reading this essay, even though I was a little dissappointed. I think it actually generated more questions and issues, provoking more thought. So the author definitely did his job.

I just wish this discussion was contained in chapter in a book rather than a few paragraphs online.

;)
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l78lancer
Wisdom is the principal thing
02:22 PM on 01/20/2012
"During this period of extreme economic hardship when the rate of hunger in America is high, our leaders should want the needy to turn to SNAP. Would a President Gingrich eliminate SNAP or prevent the number of SNAP recipients from rising during a recession?"
--------------------------------------------------->

Maybe it's me, but there seems to be something inherently wicked, capricious, even nefarious about thought processes that enable human beings to discourage other humans enduring hard times, during economic peril from taking advantage of programs intended to provide subsistence level existence - otherwise there would be no existence for them.

Yes, that's a mouthful. It's intended that way. And for the length and complexity of that sentence, that's the depth of evil of Newt Gingrich and other who subscribe to that mindset. It's done under the guise of encouraging independence and self-reliance. However, this masks the cynicysm and hypocricy of the rightwing leadership.

Essentially they are encouraging people to forsake life preservers and jump from the ship during stormy seas, by mocking their courage and integrity as humans.

The right has a long history of riging the game when it comes to the darwinian process of survival. However, they've now foresaken any pretense of randomness and chance, opting to put their hands directly on the controls of the machinery pushing the must vulnerable of our society over the edge.

The only thing more treacherous than living in these economic times is the desire of the right to gain control during these times.
11:20 PM on 01/19/2012
I agree with the journalist who wrote this article. At this juncture no one should be surprised. Newt will continue to ignore facts, misdiagnose economic problems and present wrong headed solutions. A newt can't change its spots. His past and present traits are indicative of his future actions. The more he claims change, the more he stays the same. It is terrible when people allow their prejudices to lead them to desire and accept an amoral, incorigible person over our current president. If you feel that a man of President Obama's calliber shouldn't lead the country, then that automatically cancels out Newtie G. for the same reasons and more!
08:58 PM on 01/19/2012
Vote GOP out of office.
11:48 AM on 01/19/2012
Perry's endorsement of Newt tells me all I need to know about Newt's quals for the job. If Perry likes him, he isn't qualified.......
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LloydDrako
11:43 AM on 01/19/2012
I have no problem at all with having 13-year-olds perform janitorial duties at their schools.

Provided they receive at least minimum wage and are allowed to form or join unions.
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09:38 AM on 01/22/2012
I have news for you, that comment is a lot of BS aimed at like minded people. Is there any possible way this can be implemented? Ignorance is the way of life in this country.

America ranks low in all world statics, yet, the Republicans believe that Obama says bad things about the country. The joke is that it is the talk of the town. Ignorance???
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Blissful
ignorance is not
10:42 AM on 01/19/2012
Why doesn't the media question him directly on these points? He gets away with so much hogwash.
08:56 AM on 01/19/2012
Yeah, that's a pretty good summary of ole' Newtie's policies.
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SocratesSiddhartha
"Poverty is the worst form of violence." Gandhi
08:38 AM on 01/19/2012
Gingrich is more appropriately a close-minded revisionist than the "historian" he claims to be.
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l78lancer
Wisdom is the principal thing
02:32 PM on 01/20/2012
Very astute observation. It seems that historians attempt to objectively capture and record history based on the info available. A revisionist attempts to reconcile past for some purpose and inserts himself/herself to affect the future to create perceptions as part of that history.

Newt = revisionist