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Republican Hostage-Taking Threat Again! Guess Who Benefits?

Posted: 12/14/11 06:45 PM ET

Once again, Republicans are holding government hostage, trying to force through unpopular cuts to the things We, the People -- "the 99%" -- do for each other and our economy, while giving handouts to the 1% who pay for their campaign ads and smears. Once again they are threatening to just shut down the whole government if they don't get their way. This time the hostage is unemployment benefits for 2 million people and the payroll tax cut that is the only stimulus left to keep the economy going. Here's the thing, they say they want "cuts" but what they are really doing is shifting costs from the 1% on to the rest of us.

The current 112th Congress is the first Congress elected under the Citizens United Supreme Court decision that opened the floodgates of corporate money in elections. Remember the flood of ads accusing Democrats of "half a trillion in cuts from Medicare" that got them elected -- paid for with corporate money? Those ads swung the electorate toward Republican candidates, and now we are seeing the results -- including cuts in Medicare and even plans to privatize it entirely.

How Many Times?

To get their way Republicans have already nearly shut down our government or just shut down parts of it several times. Shutdown. Hostage. Shutdown. Hostage. Shutdown. Shutdown and hostage. Shutdown. Shutdown. Shutdown. Hostage. Shutdown. Shutdown. Hostage. Hostage. And on and on...

This Time

Here are just some of the Republican demands this time if we want the hostage released:


  • Approve the Keystone XL oil pipeline project.
  • Block rules reducing air pollution from industrial burners.
  • Drug tests for people receiving unemployment benefits.
  • Reduce the duration of jobless aid from 99 to 59 weeks.
  • Allow states to cut benefits even more.

Even Worse Than That

The National Women's Law Center writes, in, House Bill Cuts Unemployment and Health Benefits, Domestic Programs, Child Tax Credit and More that there are many other reasons to be concerned:


  • Slashes federal emergency unemployment benefits for long-term jobless workers by more than half--and hits the states with the highest unemployment rates the hardest.
  • Makes permanent, mean-spirited changes to the basic unemployment program, such as requiring claimants to have a high school diploma or GED and making unemployed workers pay for re-employment services offered by the government.
  • Reduces health benefits by reducing financial protections for low- and moderate-income families purchasing health insurance, cutting funds to providers serving low-income populations, and slashing prevention and public health funds.
  • Denies the refundable Child Tax Credit to low-income immigrant families by requiring a Social Security number to claim the credit.
  • Cuts funding for non-security discretionary programs by over $26 billion--on top of the cuts already imposed by the Budget Control Act.

The European Lesson

Republicans claim that cutting back government is good for the economy and creates jobs. (Note -- they always claim that anything for the 1% is good for the economy and creates jobs, whether or not it really is good for the economy and creates jobs or not.)

But is it really good for the economy to cut back on the things government does for the people and the economy? Let's look to Europe, where they have been cutting back on government in a grand experiment to see if that helps the economy. (Hint: it has really, really, really hurt the economy.) Reuters: Analysis: Europe's austerity zeal risks killing the patient,

Europe's "no pain no gain" attitude to solving its sovereign crisis risks exacerbating the bloc's problems, choking off the very growth needed to raise the money to pay down the debt.

... The austerity zeal risks tipping the continent back into recession and a downward spiral of austerity as pitiful growth prospects undermine budgetary targets and ramp up debt burdens, meaning further austerity is required.

"The expansionary fiscal contraction story says that you cut, you show you are serious about cutting and then the confidence fairy will come along and she will start pulling in private investment," said Stephen Kinsella, professor of economics at the University of Limerick.

"The expansionary fiscal contraction story is a lie. You don't cut your way to growth."

Shifting Not Cutting

Do cuts in government spending actually cut spending? Consider what happens when you cut health care spending. The need for the health care certainly doesn't go away, but the cost of it is shifted away from government and on to individuals. Since iIndividuals do not have the economy-of-scale bargaining power and ability to protect themselves from scams and schemes that government does, their own individual cost is often much higher. So when these costs are shifted from government the cost to the larger economy is actually increased dramatically.

The things government does are done because they need to be done. So if government doesn't pay for them, does the need go away? No, when you cut government the need is still there. The costs are still there. But the power to bargain and to protect is gone. By cutting the 99%'s ability to protect themselves from scams and schemes, the 1% are better able to prey on them.

So, no, cutting government does not cut the costs of the things government does, it just shifts those costs from government onto the larger economy -- the 99% -- and even increases them, to the benefit of the 1%.

Who They Are Protecting And Who They Are Hurting

Why else do the 1% push so hard for government budget cuts, even though they really just shift the same costs onto the larger economy? Because this cost-shifting takes the tax pressure off of the 1%. Government collects taxes to cover the things regular people need, the cost of maintaining and modernizing infrastructure, etc. Of course, these are all good for the economy, the country, and the people. But since the 1% make most of the money and hold almost all of the wealth these prime beneficiaries of the economy are the obvious people to collect taxes from. So by cutting back on government they cut back on government's need for taxes -- from them.

And they get the added benefit of cutting back on government interference in their schemes and control.

In the long game of cuts and consequences, a society cannot win. In the 1980s we cut taxes and started cutting government. As a result we now have crumbling infrastructure, bad schools, unaffordable universities, etc. This is because government cuts do not cut the need out of the larger economy, they shift the costs of needed things away from causing tax pressure on the wealthy.

They don't care if the larger economy suffers as a result, they're already the 1%.

What To Do

Tell Republican leaders to stop sabotaging the economy. Renew the payroll tax cut and long-term aid for the jobless.
Sign the petition.


This post originally appeared at Campaign for America's Future (CAF) at their Blog for OurFuture. I am a Fellow with CAF.

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HUFFPOST SUPER USER
Eggsackley
Organic gardener & growers marketer.
12:17 AM on 12/17/2011
The more I see of legislative hostage taking, the more I see a need for a Constitutional Amendment that would outlaw it. Many state constitutions prohibit legislation with more than one subject. The idea is that every piece of legislation should stand or fall on it's own merits. This is especially true with bills essential to continuation of essential governmental services. Continuation of the Bush tax cuts should not have been tied to the Bill raising the debt ceiling. That was pure legislative blackmail. Tying provisions for indefinite detention without charges and trial to the military appropriations bill was legislative immorality at it's worst. It needs to be outlawed and it will take a constitutional amendment to do that.
HUFFPOST SUPER USER
Eggsackley
Organic gardener & growers marketer.
12:04 AM on 12/17/2011
The more I see of Republican hostage taking, the more I feel the need for a Constitutional Amendment to prohibit legislation with more than one subject. If all bills were required to have only a single subject, there could be no more amendments on appropriations bills for military spending that authorized holding terrorist suspects in indefinite detention without charges and trial. Bills to raise the debt ceiling could not contain provisions extending certain tax cuts. Taking bills that the majority see as necessary hostage by tying them to another unrelated measure and saying you cant have one without the other is pure blackmail. Every legislative measure should stand or fall on its own merits. This is especially true when it comes to appropriations bills. The practice of tying some policy that would be vetoed if it stood alone to an appropriations bill essential to continuation of government functioning is legislative immorality at it's worst. It needs to be outlawed, and it will take a constitutional amendment to do that.
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Evil Twin Rove
No struggle, no progress
12:50 PM on 12/15/2011
I agree with everything you say... however, I am not sure how you can sum it up by saying Sign a Petition, thinking that the GOP will suddenly have a change of hart because of a petition... I don't get it... you make it clear who the GOP works for, how corrupted they are, why then would they give a crap about a petition, unless it is signed by everyone in the 1%?

a petition, are you kidding me?
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HUFFPOST SUPER USER
TexasBahr
act as you would like to be treated
11:11 AM on 12/15/2011
Just like the FBI's policy of never negotiating with hostage takers so should the president's policy be. The Republicans are intentionally making the choice onerous but we have to stand tight and not give in. The president should instead push for a clean bill that only addresses the things he wants and not attach any riders to that bill. By offering a clean bill that forces the republicans to block the bill and again, as they have been shown to do over and over again, make public that they don't give a damn for the 99% of the population an they only care for the 1%.
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11:28 AM on 12/15/2011
yes but Mr. No-Balls will cave... he is as much of the problem as the Do Nothing Congress.... all for the 1%'ers NEVER for the people.
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HUFFPOST SUPER USER
WeThePeople99percent
Greed is a poor substitute for intelligence!
09:06 AM on 12/15/2011
Mr. Johnson, I've proposed this question before maybe you can answer. Why don't the OWS, the columnist or just enough Americans' push for a law that states that if a Company here outsources more than 15% of it's work to other countries, then the CEO's and executives involved in those decisions are required by law or contract with the people to HAVE to relocate them AND their families to the country they outsource too. This might teach the to appreciate the luxuries they get from us "peasants". You know police protection, fire dept,clean water, military protection the things they don't think about when sending their (policemen,fireman,etc) children's jobs to other countries. The people who work those jobs have children that provide these luxuries. Try to drive their own cost for services down to third world levels because they cheap and greedy isn't the way.
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HUFFPOST BLOGGER
Dave Johnson
10:41 AM on 12/15/2011
I really like that idea.
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HUFFPOST SUPER USER
Carl Caroli
I just don't understand people
09:04 AM on 12/15/2011
Screw the GOP. They're not interested in the citizens, only the wealthy.
HUFFPOST SUPER USER
feelingdisposable
Obama 332 - Romney 206
08:38 AM on 12/15/2011
I want to see weekly drug tests for all GOP congress members. Apparently, they really are smoking something extremely mind altering - they don't seem able to see the forest for the trees. Is it just that there are so many suffering people that it's become common-place? I can't think of many other reasons why the GOP would want to continue to punish the majority of people in this country. Hope they have their next moves lined up - I have a feeling the majority of the GOP will be hunting a new job when their next election comes around. They've done NOTHING for US (us the people or US the United States).
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HUFFPOST SUPER USER
akitadave
07:39 AM on 12/15/2011
Concerning pollution and toxic waste. I spent 30 years working in factories that produced computer chips. Dealt with a staggering amount of chemicals and toxic waste. Now at 53 years of age I have a neurodegenerative disease (parts of brain are dieing), can barely walk, problems with speech, motor control , vision adn worse. Was always concerned about the lack of chemical controls and poor safety equipment. Managers said everything was fine. They should walk for a day or more accurately crawl for a day in my shoes.
Let the reublican leadership have their way and your children will suffer a horrible fate.
Pizza as a vegetable is just the tip of the iceberg.
06:11 AM on 12/15/2011
If I recall correctly, last year, Democrats agreed to renew the Bush Tax Breaks for TWO YEARS so the Republicans would agree to the renewal of this same Payroll Tax for ONE YEAR!

Moreover, as I'm typing this, I'm watching a live broadcast of the Casing of the American Flag Ceremony being performed by our brave service men & women in Baghdad, I can't help but recall with anger who got us into this nine-year war, which sadly cost nearly 4,500 American lives and sucked a Trillion Dollars out of our fragile economy. REMEMBER FOREVER! THE REPUBLICANS GOT US INTO IRAQ! REMEMBER FOREVER! THE REPUBLICANS GOT US INTO IRAQ! REMEMBER FOREVER! THE REPUBLICANS GOT US INTO IRAQ! REMEMBER FOREVER! THE REPUBLICANS GOT US INTO IRAQ! REMEMBER FOREVER! THE REPUBLICANS GOT US INTO IRAQ! REMEMBER FOREVER! THE REPUBLICANS GOT US INTO IRAQ! REMEMBER FOREVER! THE REPUBLICANS GOT US INTO IRAQ! REMEMBER FOREVER! THE REPUBLICANS GOT US INTO IRAQ!
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BBackSoon
Hello, I must be going.
02:14 AM on 12/15/2011
I have been watching what has been going on in Wash DC ....Senators needs to be kicked out!!!!!! You are going around in circles and not listening to the people out here. I will never vote for a Republican again-What I have seen in the past 10 years-they don't stand for anything when they are running, other than mud slinging. Keystone Pipeline- give it a break-give a damn about the people in the middle that is drowning out here and about to lose their houses!!
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HUFFPOST SUPER USER
MNValley
Volens et Potens
07:47 AM on 12/15/2011
I will never vote for a Republican again
=============================
F&F

I made the very same statement after Watergate and as you can see .. the Republicans keep validating my choice ...
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BBackSoon
Hello, I must be going.
02:14 AM on 12/15/2011
Who are these people?? The Republicans believe they know what we need??? They need to wake up! My husband and I, both went to college. I have been laid off for over 18 months. My unemployment will run out at the end of December even thou my 99 weeks wouldn't be up until the end of March 2012, but since the cut, my unemployment will run out at the end of December. I am a extreme coupon'er, I have no other choice. I have spent a small fortune on stamps to get resume out there. Spent twice as much in gas than what I was working to try to find a job.

I listen to the Republicans talk about that we need to make less trips to golf course----are you kidding???? I cannot afford to play golf.......unemployed need to try to get their GED's ----we have our 4 years of college already---- The past 5 years we have owed taxes - NEVER DID Before!!!! Haven't bought new cars in 15 years - we can't afford it. Need major dental and surgery on knees- every time husband gets his 2.5% raise per year the insurance goes up above that and it is less than a wash.
10:33 PM on 12/14/2011
If you really believe that people can not get a minimum wage job then you are living in a sad world. If you are right and can not get a minimum wage job then you should be asking your leaders to get rid of the 10 million illegals working here and then you would have 10 million instant jobs and then you would have no argument. Work is work and if you are too damn lazy to do it then it is not my fault. The poor people getting several thousand dollars ayear in food stamps, 10 thousand a year in section 8 housing, 10-20 thousand a year in daycare paid by the goverment, free lunches and breakfast at school and free health care are breaking this nation and they also pay no federal income tax. You can have a family of four in this nation and make 100 thousand dollars a year and have less disposble income than a family of 4 making 25 thousand a year. It is sick and wrong
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HUFFPOST COMMUNITY MODERATOR
Eldienne
Moderate Dem
11:59 PM on 12/14/2011
The economy is finally starting to go into recovery from recent news reports, and the unemployment rate has fallen from 9.1 to about 8.6%. But we have suffered the worst recession since the Great Depression, and this is why our economic recovery has been so unusually slow and painful. So there still aren't enough jobs to go around. Also, please keep in mind that the U.S. and other countries like Greece, Great Britain, Italy and Germany have been hit hard by the worldwide economic turndown, and South Africa, for example, has an unemployment rate of over 40%, which is much higher than it was for the U.S. during the Great Depression, which was at 25%. So what affects them will affect us all.

Then it makes no sense to be so angry and hateful towards the poor in America. Most people don't want to be that way, whether they receive government benefits or not, and would rather work for a living than to be stuck on a low and fixed income for the rest of their lives. There is also such a thing as the working poor, if you didn't know. So if our economy is finally beginning to turn around, slowly but surely - and no matter what the naysayers think, then we will eventually return to prosperity in this country. We did this before, and can do so again.
06:38 AM on 12/15/2011
You clearly do not interact with people who are striving to find a job...any job. You bought the spin, though...the unemployed are "lazy"...we'd have jobs if we got rid of "illegals"...the poor have it rich with all the tax-payer money they take. I view your attitude as "sick and wrong."

Here is a quote from you: "Work is work and if you are too damn lazy to do it then it is not my fault." UGH. Your words contaminate.

This was your response to a fellow citizen. She had just spoken of being laid off two times, being unemployed hat you say to the person who posted...telling of two lay-offs, of running out of unemployment assistance at the end of this month, a college-educated fellow-citizen who keeps sending her resume, and puts a lot of miles on her car in search of a job. She has been unemployed for more than a year-and-a-half.

If her experience is similar to my brother's, places such as MacDonald's say that she is over-qualified. But there are no jobs open in his/her field. The wealthy "job-creators" are sitting on their money, not hiring and still firing workers.

Remember the story with a character who wanted a heart?? Heart is lacking in people such as you. Let this be impetus for you to seek a loving attitude toward suffering people.
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HUFFPOST SUPER USER
aintitgrand
cogito ergo sum...et tu??
01:04 PM on 12/15/2011
Beautiful. My mind went all snarky when I read that post. Now I can ignore it. Thanks. F&F.
10:05 PM on 12/14/2011
Why dont we get all of the politicians to agree to tax rates that were in place before Bush and put spending back to 2006-2008 levels that would bring in more income and with a large decrease in spending we would be close to a balanced budget. This is not extreme thinking. We have got to change everyones attitude and get something done with everyone having a little pain and changing the mindset of everyone.
11:38 PM on 12/14/2011
THAT is a good idea.

And the Repugs won't go for it....that is a tax hike and too extreme for them.

All I can see is incompetency in Washington while America goes to h-ll in a hand basket.
The Repugs are crazy and the Dems are often spineless OR willing accomplices to Repug dirty tricks.

Maybe there is only ONE political party with TWO branches.
The Repugs do the dirty openly and worship the rich in our faces while the Dems SEEM to worry more about ordinary Americans and are a little more discreet about serving the rich.

This whole thing looks like a good cop, bad cop setup.

Does anybody else feel we the ordinary American people are being played and betrayed while both political parties kowtow to the rich and do their bidding?

*****Even the Dems are agreeing with the Repugs over indefinite detention (of SUSPECTED terrorists) by the military without trial for American citizens and could easily overcome a presidential veto.

*****Even the Dems talk about messing with social security.
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01:56 AM on 12/15/2011
Let's see.

If we have to get back to pre-Bush rates, we'll need to raise the top bracket to 39.6%, an increase of 3.6 percentage points.

The Republicans just held the country hostage for a 0.7% surtax on incomes above one million. And to counter this, the Democrats, well, they caved in.

You are proposing that we ask them agree to something that is 5 times what they rejected?
09:29 PM on 12/14/2011
it is time to replqace all the members of the house and senate. If you keep them in you are going to get more of the same old stuff
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08:21 PM on 12/14/2011
"What To Do

Tell Republican leaders to stop sabotaging the economy."

Quite lame! Are you seriously considering the fact that the Republicans do not know that they are taking hostages? And that a petition from the 99% is going to convince them to change their minds.

The problem is the Democrats. Once the hostage taker knows that you will cave in, they'll simply take more hostages.

Why not?
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HUFFPOST BLOGGER
Dave Johnson
09:38 PM on 12/14/2011
Your point is well-taken. Many of the posts I referenced say just that. But it is always, always Republicans taking the hostages, and doing it to gain more for the 1% at the expense of the rest of us.
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01:52 AM on 12/15/2011
The reason they take hostages is because it works. They gain more for the 1% because the 1% pays them a nominal fee, and they get a good return on their investment. The 0.7 surcharge on the income over million, for the richer ones is probably several hundred thousand. They pay one hundred thousand as a fee, and they save the remaining. Great deal, isn't it?

The reason the Dems cave in is because they are gutless AND they know that you'd not even consider blaming them.

Asking hostages to write to the hostage-takers to stop taking hostages is why the Dems feel so safe. No one holds them accountable.

Yes, the reason we are in this mess is because the Republicans are wrecking the country. The reason it continues and why we do not stop it though, is because we elect these Democrats