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Mike Lux

Mike Lux

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It's All One Story

Posted: 04/14/11 01:02 PM ET

I'm going to comment on the president's budget speech in a minute, but first I want to highlight something happening on Capitol Hill today that really ties together the Republican governing philosophy.

There is a certain rich irony in Darrell Issa bringing Wisconsin Gov. Scott Walker to the Capitol for a hearing on how Moody's has boosted Wisconsin's credit rating because of the union-busting measures Walker has been pushing in the state. So in one sentence, you have a leader of the House Republicans that are trying to do away with Medicare and Medicaid, the governor who most personifies the attempt to crush collective bargaining in this country, and one of the principal companies at the dead center of the fraud on Wall Street that brought down the world economy. They should take their show on the road. You could entitle it "Cruelty, Arrogance, and Fraud: How to Dismantle the American Middle Class in Three Easy Steps."

Issa, Walker, and Moody's belong together. This is all one story -- the story of a relentless assault on the working middle class and those desperately trying to gain a foothold on the ladder up to it.

Now there is nothing the least bit notable about two right-wing Republican politicians hanging out together -- that happens at every exclusive country club in America. But touting the new ratings upgrade Moody's just gave to NYC is like having a guy just convicted of murder as your character witness in the case over in the next courtroom; he might say nice things about you, but he doesn't bring much credibility to the table. Moody's is one of the least credible companies in America right now, condemned yesterday in a Congressional report for their pivotal role in the financial crisis. Their collusion with the biggest Wall Street firms in issuing thousands of AAA-bond ratings to sub-prime derivatives that were basically junk was, as much as any other factor, at the heart of the fraudulent bubble that caused the financial collapse of 2007 -- a collapse that caused the loss of trillions of dollars of wealth to pension funds, foundation and church endowments, and individual stockholders. Remember, AAA-rated stocks are supposed to be the safest of the safe, as safe as sticking your money into a savings account in an FDIC-insured bank. Pension funds, church and foundation trustees, state and county treasurers are all looking for investments that are absolutely safe, completely reliable, and they depend on Moody's to tell them what those investments are. They are fine with accepting a lower rate of return because they want their investments to be safe. But the culture or reliability and integrity and honest numbers crunching at Moody's eroded badly in the late '90s and early 2000s, and with the pressure of the big Wall Street banks pushing them to do it or lose business, they started ginning up the ratings of these junk bonds to assure getting more business from the big boys. As much as any other single thing, this line of corruption going from the big banks to Moody's and the other bond ratings companies set the financial industry, the housing market, and all of us up for the big fall.

Now this same company is playing political footsie with politicians like Scott Walker and Darrell Issa. It's financial fraud and political fraud all wrapped up in a nice little package. There is nothing about what Scott Walker is doing -- giving huge tax cuts to big business while crushing unions and canceling infrastructure projects -- that will help make Wisconsin's finances or economy stronger in the long run. If you destroy middle-class jobs, drive down working families' pay, and give more tax breaks to your big business friends, all you end up with is a third-world economy. There is nothing about what House Republicans are doing that will give our federal budget more stability, because if you give $4.2 trillion in tax cuts to millionaires and big business while taking away Medicare, Medicaid, and all the other programs that help support working middle-class families, you will have neither a balanced budget (the House Republican budget won't come into balance until 2040, and that's only if we have 2.8 percent unemployment, so it will never come into balance), nor a strong economy.

Which brings me to the president's speech yesterday. Like I said, this is all one story. Now the president didn't make a budget proposal along the lines that I would have. Jan Schakowsky and the Congressional Progressive Caucus budget were more in keeping with what I would have proposed: more taxes on the wealthy and big, multinational corporate interests who can well afford it, more cuts in defense spending, and more investments in the working middle class and the young and poor people trying to work their way into it. I would have strongly preferred, for example, for the president to endorse a financial transactions tax that would both raise $125 billion a year and have the strong added bonus of some curb on the reckless trading and speculation on Wall Street. Most passionately of all, I wish the president would have made an investment in more middle-class jobs and reframed the debate by making clear that the D.C. establishment's single-minded obsession with long-term deficits when the unemployment rate is still close to 9 percent (and the real unemployment rate when you count the people who are too discouraged to look for work, or who are stuck in part-time or temp jobs when they want to be working full-time, is still around 17 percent) is wrong. I wish he had said, "Yes, we need to worry about deficits, and I have a long-term plan for dealing with that, but our top priority right now needs to be producing more jobs."

Having said all that, though, what the president's speech did do was create a real debate about the budget between a Democratic position and a Republican one. Unfortunately for the country, it is a centrist Democratic position vs. a far, far right Republican position, but still: this speech laid out a plan that is more unifying than not for Democrats, and it sets up a strong, clear contrast going forward. In the House Republican plan, the guarantee of health coverage and nursing home coverage for seniors, people with disabilities, and poor children through Medicare and Medicaid is taken away; student loan programs have an axe taken to them; investments in green jobs and clean air and water are ended; investments for the future in public education and scientific research are obliterated. On all these things, Obama actually didn't just advocate for them, he drew bright lines: while he is president, he said, Republican plans to take these things down will not happen. Even more importantly, he made a full-throated case for progressive tax increases as a major part of the solution on the budget.

The debate this sets up now is about as fundamental as a political debate can get, and unlike some of his above-it-all mushiness on past issues, the president has taken a side. These are very big, very important questions: Are you for or against a guarantee of senior citizen health coverage in Medicare? Are you for or against a guarantee of nursing home coverage in Medicaid? Are you going to let those with disabilities and poor children fend for themselves? Are you going to try to cut the deficit while continuing to give more tax breaks to millionaires, or are you finally going to ask them to pay their fair share? This is the kind of debate we need to be having as a country, and I am thankful both that the Republicans have decided to go for it and lay out their true beliefs on these issues, and that Obama has come down clearly on the Democratic side.

For progressives, these are battles in which we should be eager to engage and happy to fight. This isn't playing around at the edges, debating whether something should be cut 5 percent or 10 percent, debating whether the Medicaid matching formula for Title-whatever in the bill is lined up right. And whether we agree with Democratic Sen. X, Congressman Y or the administration on the exact specific subtitle of a policy doesn't matter a lot either. We are at the most fundamental debate in terms of the future of the country since the 1930s. This is our time to organize together and the win the debate on behalf of the working middle class.

This is all one story, it is all one fight. It is about whether the most broad-based middle class in the history of the world survives in the 21st century. It is about whether this country will continue to provide a safety net, or whether each of us is completely on our own to fend for ourselves. It is about whether government chooses to prioritize seniors, children, and the most vulnerable among us, or only those with lots of money and power. It is about whether the right to bargain collectively, which Ronald Reagan championed in the days of Lech Walesa, will still exist. It is about whether financial institutions like Moody's and their client banks get to commit fraud and not get penalized for it, get to run roughshod over homeowners whose homes are underwater through no fault of their own, and get to pick the pockets of small businesspeople and consumers on things like swipe fees.

In spite of his speech's flaws, Obama ultimately decided to align himself firmly and resolutely on the progressive side of the debate. Now he needs to be our leader and fight the good fight. If he does, I have little doubt we will win this debate.

 
I'm going to comment on the president's budget speech in a minute, but first I want to highlight something happening on Capitol Hill today that really ties together the Republican governing philosophy...
I'm going to comment on the president's budget speech in a minute, but first I want to highlight something happening on Capitol Hill today that really ties together the Republican governing philosophy...
 
 
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11:05 PM on 04/17/2011
"It is about whether the most broad-based middle class in the history of the world survives in the 21st century. " SO TRUE!

"For progressives, these are battles in which we should be eager to engage:"

IT'S about Educating the Electorate W/FACT VersusRepublican Fiction, Lies &Brainwashing.

So Rule #1 NEVER, EVER PRAISE **The ReInvented REAGAN*** (As you did above)

The worst President of the Modern Age until Republicans ReLentlessly fought in 2000 to stop the recound of the Popular Vote &declared their DUM DAWGY FRONT NUMBER2 The Winner.

Reagan fired Air Traffic Controllers for asking for Overtime on 18hr days.
Lauched his campaign where the Civil Rights workers were tortured to death to appeal
to those who did it for votes!

Slept every afternoon, worked till 5:00, &confused Movie Plots with History in ways
that reminds one of Bush who proudly declared "I don't do Nuance" which the
Supreme Court should have rescinded their appointment for National Security reasons.

Bush was warned 40+ times about Al qAeda's and did nothing. While Fox gets away with
saying that no attack happened on Bush's watch!

Republicans used 9/11 to divide us: VeteranVsVeteran, CatholicVsCatholic ChristiansVsLGBTs, WorkersVsUnions. EmployerVsEmployee, StateVsState. The BrainwashedVsKnowledgable,
EmployedAgainstUnemployed

EVERY argument is on the Democrtic Side yet we're not making them.

In 2001 Democrats PLEADED TO KEEP PAYING OFF THE DEBT.
Only 9% of RepublicanTaxCuts went to US Jobs (DroveUpOi&RealEstatejunkl
87% of the debt was wracked up by the Republicans
TaxCuts =Same Amounts as1.5Ttrillion inSocSecSURPLUS TheyCollected!
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HUFFPOST COMMUNITY MODERATOR
ManwithaParachute
Not Seeking Your Approval
12:14 PM on 04/15/2011
Walker testifies that union busting had nothing to do with the budget and Moody's raises Wisconsin's credit rating. Who's LYING?

Prosecute Moody's.
11:10 AM on 04/15/2011
Mike, I think you're wrong that the Dems won much from the president's speech. The Repubs know they won't be able to kill Medicaid and Medicare and hurt SS right away. Their goal was to force Obama to move the "center" further to the right, and they succeeded. Sure, Obama made a rousing campaign speech bashing the Repubs, just as he did in Campaign 08, but he and the Repubs both know that rhetoric which is 1) not constantly repeated and 2) not followed by action is nothing but cheap thrills. The right isn't afraid of it, because they saw that Obama did move the center further to the right, setting the stage for big battles later this year and in 2012.

Privately the Repubs must be smiling now because Obama has embraced supply-side economics and discusses the economy on their terms: Obama has abandoned liberal economics and now claims that cutting budgets in the midst of a severe recession will decrease the deficit, when in fact it will hurt economic growth and increase the deficit. Tragically, Obama's indirect but clear embrace of Reaganesque voodoo economics will give it renewed credibility among millions of people. On top of that, Obama capitulated and validated the false Repub claim that we have an immediate fiscal crisis that is the Most Important Issue, allowing Repubs to control the debate from now on. Despite the anti-Repub rhetoric, this speech was a sellout and a painful Repub victory.
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intellectualTradition
corruptisima re publica plurimae leges
10:32 AM on 04/15/2011
progressives.........the least desireable group in the nation
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HUFFPOST SUPER USER
wespenn56
Conservative does start with "CON"
01:22 PM on 04/15/2011
Gee, project much?
HUFFPOST COMMUNITY MODERATOR
JScott
John Galt's last name is McGuffin-Smithee
10:25 AM on 04/15/2011
"Cruelty, Arrogance, and Fraud: How to Dismantle the American Middle Class in Three Easy Steps."

That sez it all.
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AvgJoeBlow
We are smarter than any of us.
09:04 AM on 04/15/2011
But Rush says its all the Democrat Party's fault for passing laws that MADE Freddy and Fannie loan all the bad money to people (of color mostly) who shouldn't have and don't deserve homes anyway. Who am I to believe? Gotta go now, Fox and Friends is still on. -Teabagger
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HUFFPOST SUPER USER
sharin
liberal and proud of it
10:35 AM on 04/15/2011
love the snark
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dogdiva
08:12 AM on 04/15/2011
Mr Lux,

I found the president's "full throated case for progressive tax increases" welcomed but I continue to question why so few Democrats make the case about how much of value a wealthy business owner or corporation benefits financially from their place at our table.

As George Lakoff says, ""The wealthy have, to a large extent, amassed that wealth through indirect contributions to them by governments — governments build roads corporations use, fund schools that train their workers, subsidize their energy costs, subsidize their access to resources, promote trade for them, and on and on. " I'm sure there are more government subsidized benefits such as government research that allows drug companies to abscond with the investment and produce a money making drug from it.

We've seen a lot of evidence that there are those in the Republican party who are driven by the desire to take away anything from someone in need that they deem the "something for nothing crowd". Could there be a bigger crowd than corporations (GE) and the wealthy who get "something for nothing" from this government??? "Job creators" the R's are so enamored with didn't get there on their own.

Why don't Democrats in the public arena talk about the concrete benefits to corporations and the wealthy instead of strictly trying to appeal to rabid haters on the basis of being better people. For a lot of conservatives, "being a better person" isn't high on the list.
11:29 AM on 04/15/2011
Good question! Fan! In my opinion, the reason the Dems don't clearly and dramatically point out all the ways the rich depend on the whole social and material infrastructure to gain and maintain their wealth is because the Dems are also working mainly for the plutocracy, only in a more low-key way. They don't want to bite the hand that feeds them, so they usually keep silent on corporate tax-dodging and other sociopathic behavior by plutocrats -- except when they're making campaign speeches. The Dems -- aside from the Congressional Progressive Caucus -- will make grand gestures and rhetorical defenses of raising taxes on the rich, but then, in the post-Reagan years, they will often turn around and embrace trickle-down economics at the same time, undercutting their claim to be protecting the middle class and the poor. It's a bit like an old now-you-see-it-now-you-don't trick. What do you think?
07:03 AM on 04/15/2011
If Obama stays true to form in the end the negotiations will get down to how fast and when the Ryan budget kicks in not on whether it does or not. Obama is playing on the Republican chess board and according to their assumptions, rules, and referees. He calls it bipartisanship but it isn't bipartisan when it's the other sides philosophy, agenda, and overall strategy that is accepted and you're just trying to slow down the timeline.
11:43 AM on 04/15/2011
Absolutely! This is the crucial point. Fan! Your chess board metaphor is very good. Obama only responds after pressure builds up on him from the Repubs, and by then the rules and vocabulary of the discussion are already set, and the suspense is only about how much he will lose while declaring a mutual victory. This is something FDR would never have done. FDR almost always took the initiative, and when he did become passive and gave in to pressure and tried to balance the budget in 1937, slashing the WPA and many programs, the economy soon tanked, with nearly two million new unemployed people appearing in a matter of months.

Obama has let himself be cornered and forced into sellout-scale "compromises" so many times that it's beginning to look as if it's his preferred mode of operation. To me, at least, it looks as if he's declared he's actually a believer in supply-side economics and budget-hawkery, i.e., he's actually a Republican who uses Democratic rhetoric to appeal for votes.

You're right, this pattern of preemptively caving in, then getting entrapped, and finally selling out is not bipartisanship. The end result will be the destruction of the New Deal and the Party of Roosevelt and the auctioning off of the party to Wall Street, the medical industry, and other parts of the plutocracy. This is a tragic. I hope and pray that most Dems and other progressives see through the smoke and mirrors and understand what's happening.
06:52 AM on 04/15/2011
In the past 2 years I have learned that it doesn't matter what he says in his speeches.

When the rubber hits the road, Obama will fold up like a cheap card table.

Will somebody please primary this guy from the left in 2012?
11:45 AM on 04/15/2011
Fan! Let's persuade Russ to run. Right now he seems to be hesitating.
06:43 AM on 04/15/2011
Obama hasn't really fought the good fight so far, at least not with much success. Why should we believe he will and can do his job this time?
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03:03 AM on 04/15/2011
From Charles Ferguson, creator of the "Inside Job" documentar­y...

http://www.huffingtonpost.com/charles-ferguson/the-financial-crisis-and-_1_b_782927.html
Charles Ferguson: The Financial Crisis and America's Political Duopoly

"...My answer is this: far from being in an era of brutal partisan warfare, as convention­al wisdom holds and as watching the nightly television news might suggest, the United States is now in the grip of a political duopoly in which both parties are thoroughly complicit. They play a game: they agree to fight viciously over certain things to retain the allegiance of their respective bases, while agreeing not to fight about anything that seriously endangers the privileges of America's new financial elites. Whether this duopoly will endure, and what to do about it, are perhaps the most important questions facing Americans. The current arrangemen­t all but guarantees the continuing decline of the United States as a nation, and of the welfare of the bottom 90% of its citizens.

[snip]

In my personal conversati­ons, I sense an emerging consensus based on nothing more complicate­d than a sense of basic honesty, fairness, and common sense, qualities which the American people still have in abundance. Let us hope that this can be translated into some organized force that can put an end to the present political cartel. "

Others call "political cartel" a two-party duopoly.
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dogdiva
08:18 AM on 04/15/2011
"a sense of basic honesty, fairness, and common sense, qualities which the American people still have in abundance."

You may be leaving yourself open to a challenge on this one.

Interesting quote from a man who can sometimes be a real 'arse'.
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10:22 AM on 04/15/2011
True, but he's on target with this statement:

"The current arrangemen­­t all but guarantees the continuing decline of the United States as a nation, and of the welfare of the bottom 90% of its citizens."
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jeanrenoir
11:34 PM on 04/14/2011
What's farcical, and pathetic, is how easy it's been for Republicans to con lower-class white Americans to vote Republican for decades, thus voting for their own economic destruction in order to further enrich the top 1% for which the Republican Party exclusively operates.
01:40 AM on 04/15/2011
Incorrect. At the heart of the progressive agenda is the destruction of the middle class. You just don't recognize it. Also, for the past 60 years. the democrats have had complete control of the house, senate and presidency 11 times. What have they done to advance the middle class? You also make the assumption, for some odd reason, that there are enough lower class white Americans to actually affect voting in republican candidates, while dems/leftists are always claiming that the lower class consists chiefly of minorities. What's also incredible to me is that so many dems/leftists still claim that the rich are somehow exclusively supported by republicans. Do you really believe that dems don't support the rich just as much as the repubs? They just hide it better.

There is a con going on all right, and it most assuredly isn't just on the part of republicans.
06:40 AM on 04/15/2011
"At the heart of the progressive agenda is the destruction of the middle class."

How so? Care to elaborate?
TRRoughRider
Truth be Known
10:45 PM on 04/14/2011
Mr. Lux, do not keep your hopes up about Obama staying in it for the fight. Given his history over the past two and half years he has stayed clear of any fight and the Dems themselves do not put up a fight because all you hear in response to the Republicans extreme nonsensical proposals is crickets. To me the President's speech was all political theater for his base because not in one instance has he stood up to really fight for his base. In my opinion, Obama is the best candidate for the Republican party for 2012.
11:50 AM on 04/15/2011
This is so true! Fan! As long Obama claims he is a Dem, he will split Dems and unify the Repubs. He should show a little class and decline to run as a Dem for the sake of Dem unity and then run as an independent or as a Repub -- if they would have him. If he did that, I could respect him.
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HUFFPOST SUPER USER
laurieanichols
je pense donc, je suis
08:51 PM on 04/14/2011
Why aren't the good folks at Moody's being indicted and awaiting trial? Why are they allowed to stay whole and exist to wreak havoc yet once again? What is wrong with this picture? I am just disgusted. I have nothing to more to say about these perverse bedfellows.
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HUFFPOST SUPER USER
mad tn dem
Surrounded by Republicans But Won't Be Silent
08:11 PM on 04/14/2011
Thank you sir..I needed to read your article..this day..I really did. I received a call to participate in a telephonic town hall meeting this evening..I agreed, and began to listen as my representative answered questions from "supposed constituents" and was patiently waiting my turn to ask a question. I was listening to totally misinformed people ask questions that would make one think it was all a hoax, and part of me wished it was, but sadly, that's how ignorant the citizens in my area are. But, even worse than that was listening to this guy spout the republican bs, knowing he has done absolutely nothing for his district..nothing..I couldn't bear it anymore and hung up. Thank you sir, for speaking the truth. I am more grateful than I can say, and it lifted my spirits.