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Mike Lux

Mike Lux

Posted: February 17, 2011 05:44 PM

Mary Landrieu said a few days back that dealing with the deficit is the "issue of the decade." And this is from a Democrat.

The inside-the-Beltway mentality creates its own Bizarro World, brain-dead obsessions that are so distorted compared to the real world, that it completely takes one's breath away. The fact that both parties are focused on the same obsessions is a tribute to the power of the framing machine the Wall Street-backed conservative media has created.

I write this even though I do actually think getting a handle on the long-term structural deficit is very important both economically and politically. Being the Midwestern Methodist I am, the kind of debt we are running up makes me very unsettled, and paying hundreds of billions of dollars in interest does the economy no good. I also think that, politically, Democrats and progressives always will have trouble making the case for doing the kinds of things we want government to do unless we make progress on bringing the federal deficit under control. I think progressives should do what Congresswoman Jan Schakowsky and organizations like Demos (a client), the Campaign for America's Future and others have done, and put out their own plans for reducing the deficit. But having said all that, to mindlessly parrot Republican, panic-inducing talking points about the deficit being the issue of the decade is as wrong as can be.

I believe this for two very simple reasons. The first is that I was a member of an administration that, not all that long ago, figured out how to turn a yawning, long-term, "structural" deficit into a strong surplus situation in a few short years. It really wasn't that hard to figure out, and it didn't take slashing Social Security or Medicare benefits, or decimating every program for low- and middle-income families. All we had to do was raise taxes on the wealthy, produce a bunch of new jobs (quite a few of which had some decent wages attached to them), and make some modest cuts here and there to duplicative programs. It took some political courage, but the policies added up.

After all the reckless Bush tax cuts, two interminable wars, and the deepest, most damaging recession since the Great Depression, our deficit hole is quite a bit deeper today, but the formula still isn't particularly complicated. Raising taxes on the folks who have been rewarding themselves and hoarding all the money is a big part of the answer. Breaking the back of health care inflation by negotiating drug prices with the pharmaceutical companies and giving us a public option to drive down the cost of health insurance would help out quite a bit as well. Reforming government contracting would squeeze a $100 billion-plus out of federal spending every year. Taking a much harder look at the waste in the military budget -- which no one has done for a long time because of the power of the Pentagon and defense contractors -- would easily save another $100 billion a year on top of the tiny savings (less than $10 billion dollars a year) Gates agreed to in Obama's budget for the next 10 years. But by far, the most important way to end our deficit problem is the real issue of the decade: turn this economy around by creating tens of millions of new jobs that pay a decent wage.

We will never solve the deficit issue without a growing economy that is at, or damn close to, full employment, and if wages and middle-class family incomes stay as flat as they have been over the last decade, that will make it very tough as well. The 22 million new jobs and rising pay during the Clinton years, which was easily the best period of economic growth since the 1960s, was the biggest reason by far we turned the big deficits into big surpluses.

The issue of the decade is how to create more jobs, and how to help middle-class families have real income growth in the next 10 years so their spending can produce a strong, sustainable economy. According to independent estimates, the House Republicans' budget cuts will cost more than a million jobs without creating any new ones, while the Obama budget will create more than 15 million new jobs in infrastructure, energy, research, and education, so we at least know which budget is going in the right direction. But we need to do far more to increase jobs and middle-class incomes: unions need to be strengthened, not weakened, so that wages will start moving upward again; we need to help emerging industries like clean energy to flourish; Wall Street banks need to be stripped of their ability to hoard so much money and distort the financial markets toward speculation and away from investment in the Main Street economy, and their incentives need to be altered so they make productive investments rather than engage in destructive market manipulation; we need to promote basic manufacturing in this country again, rather than incentivizing outsourcing with our tax-and-trade and currency policies.

Rebuilding, expanding, and strengthening the hard-pressed American middle class is the issue of the decade by far. Democratic politicians should understand that and focus on it above all other things instead of blindly accepting the right-wing's deficit framing.

 
 
 
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HUFFPOST SUPER USER
DHFabian
09:07 AM on 02/20/2011
Step by step, we embraced (or at least accepted) the very policies that brought us to this point, where the US is no longer sustainable. It's our own fault. When the New Deal and Great Society programs were raided to help finance endless militarism and massive tax cuts for the rich, we grumbled, but who hit the streets? Not many. Even progressive media has flatly ignored the devastating impact of these policies on the poorest, and the overall impact on the economy due to such things as a forced cheap workfare (largely used as temp replacement labor to suppress wages, crush unions, etc.). This was a grotesque failure of progressive media. We shrugged with indifference as funds were taken out of humanitarian aid - welfare - to essentially pay the taxes owed by the rich. We watch as 30-some yrs of tax cuts to corps continu, with that money continuing to cover the costs of exporting our jobs -- and we lose hundreds of thousands of jobs per year.
All that matters is that we're free from the burden of helping impoverished Americans. We could no longer endure the economic burden of the 6% of the budget that went into AFDC (compared with the unprecedented 50%+ of the budget that goes to the military today).
And that's all it takes to bring down a democracy - the apathy of the public. No representative govt ever has, or ever can, endure the extreme economic disparities we have now, right here in
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rbenjamin
Rule 5 rules
11:11 AM on 02/18/2011
Fanned.
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HUFFPOST SUPER USER
TN60
I Hope You'll Dance
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HUFFPOST SUPER USER
TN60
I Hope You'll Dance
10:23 AM on 02/18/2011
Your comments prompt me to say, that for the good of this country, all should have taxes raised. The wealthiest, which have skated by for a decade, should have their tax rates hiked to a level headed increase.

There should be a carbon tax and a tax raised for every gallon of gas we use. Corporate loopholes should be closed....and I do mean closed, not fudged as some would do. There should be tariffs raised on everything shipped into this country and that means American corporations who invest overseas for slave labor and ship those goods back to this country. Only those making below poverty level or even !00K should be excluded for now.


Just three months ago....that's 3 months ago, this MESS that are Republicans threatened mayhem if the rich were not given another (that makes 3) tax breaks. At a cost of BILLIONS of dollars, the President had to go along, so the unemployed would still recieve checks and small businesses could use tax breaks to hire people and help them avoid bandruptcy.

Now, this MESS, is hollering like.... a cat with his tail caught in a wringer (old saying, only it is not tail) and banshies and lunatics and ignorant know nothings, for everything to be cut, all services for the poor, police and firemen and teachers etc.

The simple fix....job creation.....Where are those jobs? Nowhere with this bunch.
10:12 AM on 02/18/2011
Love it. This article betrays the fatal hubris of progressives and keynesian ideology in general. Government is incapable of BUILDING a middle class. Nobody has the omnipotent knowledge to centrally plan a perfect economy. A middle class can only grow organically through the voluntary participation of free actors in a lawful marketplace. All the government can do to support that growth is vigorously enforce justice while keeping the economic burden of government as low as possible.
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FirstGame72
The Sleep of Reason Produces Monsters
12:15 PM on 02/18/2011
Or, we could look back at how the vast majority of Americans rose from abject poverty at the turn of the 20th century to a standard of living that was the envy of the world by 1960 and simply do that again. If it worked once, it can work again.
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Mississippi Red
Stoke City: ugly football that works
09:12 AM on 02/18/2011
So how are Dems going to do this when they work for the corporations? How are they going to rebuild the middle clss without losing the support of the super rich? Face it, so long as the pols of both parties rely on boatloads of cash from the corporations- and the support of those corporations in the media- the needs of the middle class will be secondary to the desires of the big special interests. The middle class will have to make do with a few token gestures of support.

We must reform campaign finance or we will be running in circles and some guy will write an article identical to this one in ten years.
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Buckeye54
...the One your mom warned you about!
08:31 AM on 02/18/2011
I hope that the protests of union workers in Wisconsin and Ohio are the beginning of an awakening in America. We can't balance our budgets upon the backs of the unions and the middle-class and we need to realize this.

It does not surprise me that the Republicans have been true to form and instead of creating jobs turned to their old standards as the priorities of their legislative agenda: repealing healthcare and another fruitless debate on abortion.

They have a mindset locked in the 19th century—constantly trying to refight battles they've lost instead of moving their country, and their party, into the future.

In this, they are like those Southerners who praise the Confederacy: they'd like to take a mulligan so they can refight a war they lost over 150 years ago.
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FirstGame72
The Sleep of Reason Produces Monsters
12:19 PM on 02/18/2011
When you say "Republicans" do you mean just Republican politicans or anybody who is registered as or associates themsleves as a Republican?
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Buckeye54
...the One your mom warned you about!
01:22 PM on 02/18/2011
I am speaking mainly of Republican politicians—I often feel that they are not honestly representing the people who elected them.

I think part of the disconnect is that I can respect and appreciate "conservative" viewpoints—but the Republicans like Eisenhower and Goldwater that I admired are few and far between in the current Republican party, or at least they are not having their opinions and voices heard.
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HUFFPOST SUPER USER
Carl Caroli
Give peace a chance
08:18 AM on 02/18/2011
"The fact that both parties are focused on the same obsessions is a tribute to the power of the framing machine the Wall Street-backed conservative media has created."
Exactly right. Both parties are beholden to the money people on wall st. The money people intentionally keep both parties bickering in an effort to cause gridlock and minimize the threat of any change that may adversely affect them and their profits. We really need to change the way we fund elections or we'll get more of the same. Insanity is doing the same things over and over and expecting different results. Eliminate corporate lobbying and lock down the revolving door.
02:43 AM on 02/18/2011
Wait until the working and middle classes really wake up. It makes no difference what their (our) political party and beliefs are. The workers are being attacked. Their wages, benefits.....even getting the blame for what they didn't cause.

*****AND they are starting to do so.

They are already protesting in middle America over public sector jobs.

It is gonna get worse before it gets better.
Vinkaye
None of the Above 2012
10:05 AM on 02/18/2011
I would have to think so... when I look around I see a tinderbox only awaiting a match. How many more cuts can people take? Every state across the country is cutting services, housing prices are plummeting, gas prices are climbing, food prices are climbing, clothing prices are climbing, school budgets are being slashed, while wages are stagnant and unemployment is really high. How much stress can the Average American take before the whole thing goes kaboom? I live in a good neighborhood, where lock boxes and evicition notices are being hammered to doors. I see friends who used to take a modest vacation once a year, now having to financially plan whether or not they can go to a movie! We used to talk about stocks, and afterschool activities for our kids, and now we talk about coupons and where to get the best deals on essentials. And yet, we are so much better off than most in this country. I just don't know how much longer people can take this constant barrage of bad financial news!
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nkurland
I'm going to leave this planet alive
10:34 PM on 02/17/2011
A new progressive movement is going to have to be built. This time it'll be done by going back to the basics. Campaign finance reform, single payer health care, infrastructure spending will all be achieved by building state level coalitions. The 111th congress provided ample proof that the House can pass limited bill after limited bill, but so long as the Senate is undemocratically structured and the GOP votes in lockstep, nothing substantive will ever get through.
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Mississippi Red
Stoke City: ugly football that works
09:14 AM on 02/18/2011
The Dems are half the problem- they are funded by many of the same groups that fund the Repubs.
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drkazmd65
Mom Taught me - Question Everything - Thanks Mom!
12:39 PM on 02/18/2011
Agreed - There are a few individuals of either party that are not completely the lapdogs of the corporate types,... but they are few and far between, and are regularly marginalized by both their own and the oppositon party.
Vinkaye
None of the Above 2012
10:06 AM on 02/18/2011
I agree, and it is going to have take place outside of the two party system. These changes are not coming from GOP or Dems.
09:34 PM on 02/17/2011
Lux probably is correct that jobs, rather than the deficit, will be the issue of the decade. Unfortunately, that's because the lack of an adequate number of jobs that pay a decent salary/wage will continue to be a problem for the rest of the decade. [There still will be a deficit, also, but the lack of jobs will be of greater concern to a greater number of people.]

Even though it is easy to define the issue/problem of the decade, it isn't going to be easy to come up with a solution. Restoring the manufacturing base is what we need to do, but it is highly unlikely that the politicians will agree on a plan that would cause big business to return manufacturing jobs to the United States.
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runswithscissors
I think, therefore I am not a conservative
07:34 PM on 02/17/2011
The problem is that the tax rates of the wealthy have been effectively taken off the table. The Bush tax giveaways should have been allowed to expire. Clinton enacted the previous rates to deal with a deficit problem; they were subsequently reduced and, low and behold, we have a deficit problem again. While there are obviously other factors involved, it's crazy to think that the government can cut it's only source of income without consequence.
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07:39 PM on 02/17/2011
The problem is that government is out of control.
08:09 PM on 02/17/2011
The problem is our priorities are not conducive to a well, happy, and sustainable civilization.
06:17 PM on 02/17/2011
Instead the title of this article should be -Lack of Discipline- is the reason that our society is such a mess and like all great -Empires- that rise and then fall we do not have the discipline to stop the decline? Do not complain about this decline because -We- have been parasites for the last fifty years living off the greatness of the -Greatest Generation- in the history of our country?
09:12 AM on 02/18/2011
Bush was such an example of disciplined leadership.
10:23 AM on 02/18/2011
What was his discipline- driving this country into the ground? He did a good job of that.
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06:09 PM on 02/17/2011
Life lived from the inside of a rationalization must be very comfortable.