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Mitchell Bard

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Krugman's Takedown of Ryan Demonstrates How Conservatives Are at War With the Middle Class

Posted: 08/08/10 02:52 PM ET

Conservatives routinely paint Barack Obama as a socialist looking to redistribute wealth in the United States. (Or worse, as Rep. Bob Inglis (R-S.C.) reported that tea party leaders, during a meeting, espoused paranoid delusions of a totalitarian takeover of the U.S. by Obama.) This charge is cynical and outrageous, not just because it is false and a naked attempt to use fear mongering to drum up votes, but because there is actually a group of Americans actively engaged in wealth redistribution, and they have been for quite some time.

Who are these people looking to move massive amounts of assets from one subsection of Americans to another? The conservatives themselves.

Beginning with the Reagan administration, and reaching its fullest realization during the presidency of George W. Bush, conservatives have systematically been acting to redistribute wealth from the middle class upward. The result has been the steady decay of the middle class, and it's all a result of conservative policies, specifically involving taxes and deregulation.

Bush successfully pushed through accelerated deregulation and massive tax cuts for the highest earners. The result was that while the wealthiest Americans saw substantial income gains, real income for the middle class was static (and far below the robust growth of the middle class during the Clinton administration). And when, in the absence of regulation, Wall Street's reckless bets nearly brought ruin to the financial industry, the result was a massive recession that severely hit the lower, working and middle classes.

As I lamented last month, middle and working class Americans have every right to be angry now, but that anger shouldn't be directed at the Democrats in November, but at the Republicans, whose policies created the economic mess the country finds itself in. Which is why I was so happy to see Paul Krugman's annihilation of the economic plan advanced by the so-called "intellectual" star of the Republican party, Rep. Paul Ryan of Wisconsin. Krugman exposed Ryan's plan for what it is, a replay of the Bush economic policies, only this time on steroids: A massive tax break for the wealthiest five percent of Americans that would cost the country $4 trillion over the next ten years, a tax increase for the other 95 percent of Americans, and monumental cuts in government spending that would cause catastrophic pain for the lower, working and middle classes (while having little effect on the wealthy, the primary beneficiaries of Ryan's plan). Oh, and Ryan's plan would add to the deficit, pushing it far beyond the current projections for 2020. (Of course, Ryan is touting the savings of his spending cuts without accounting for the costs of his tax cuts for the rich.)

I thought Krugman's exposure of the realities of the Ryan plan provided a solid summing up of current Republican ideology. On the surface, Ryan appears more reasonable than the more vocal leaders of his party. He tends to avoid the outrageous pronouncements of his fellow conservatives (think Sarah Palin, Rep. Steve King (R-IA) and his talk of "velvet revolution," Rep. Michelle Bachman (R-MN) and House Minority Leader John Boehner, not to mention the lies and vitriol spouted by pundits like Rush Limbaugh and Glenn Beck, as well as the consistent national security fear-mongering of Newt Gingrich, and the out-and-out insanity on parade daily in the media, like the recent charge by Colorado gubernatorial candidate Dan Maes that his Democratic opponent encouraged bike use as mayor of Denver as part of a plan to convert the city into a "United Nations community," not to mention the possible Queen of the wackos, Nevada GOP senate candidate Sharron Angle, including her claim that the press should ask the questions she wants to answer.).

Ryan is the young, normal-looking and sounding face Republicans would like to send out in front of the public, but, as Krugman comprehensively laid out, his policies are no more mainstream or plausible than those of his more obviously extreme colleagues. No, Ryan, just like the others, is completely dedicated to policies that empower corporations and transfer wealth upward, at the expense of the middle class.

In short, Ryan and the rest of the conservatives are at war with lower, working and middle class Americans.

The Republicans would like to frame the November midterm elections as a matchup between a socialist party looking to redistribute wealth and engineer a government takeover of the private sector (the Democrats) v. a party defending traditional American values of free market, capitalist economics (the Republicans). Such a framing of the two parties is a Republican fantasy, as accurate as the charge that President Obama was not born in the United States (which, according to a recent CNN poll, nearly two in five Republicans believe to be true).

But one look at the reality of the Bush years and the behavior of Republicans during the Obama administration paints a very different picture. On issue after issue, the Republicans have sided against the middle class, whether it was opposing financial regulation (even after GOP-touted deregulation resulted in the near financial collapse that plunged the country into deep recession), pushing for an extension of the Bush tax cuts for the wealthy, opposing any kind of job-creating stimulus (that didn't involve more tax cuts for the rich), opposing and delaying the extension of unemployment benefits to those out of work (and painting the unemployed as lazy), opposing state aid that would preserve the jobs of teachers, police officers and firefighters (even though it would decrease the deficit), opposing health care reform (except to protect private insurance companies), and even opposing aid to workers sickened by the toxic fumes at Ground Zero after the 9/11 attacks.

The smoking gun of GOP dedication to the wealthy at the expense of the middle class (and the revelation that the party's supposed fanatical opposition to deficits is a facade) came when one Republican after another lined up to back Sen. John Kyl's position that it was okay to add to the deficit for tax cuts for high earners (something even conservative stalwart Alan Greenspan could not support).

The GOP record of the last ten years demonstrates that, in reality, the election in November will pose a choice between Democrats who support a free market capitalist economy, but with protections to prevent against its excesses (thus protecting lower, working and middle class Americans), and Republicans at war with the middle class, advocating policies that further their suffering while benefiting Wall Street, corporations and the wealthiest Americans.

Conservatives are right when they say that there are those in Washington looking to redistribute wealth. It's just that it's their party that is all for the redistributing.

 

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Anne Duchard
07:26 PM on 09/01/2010
Very good article. Well, it is obvious that the Republicans believe in the trickle down economy system. At the top they have to be super rich and the rest of us can eat from the crumbles falling from their garnished tables.
04:29 PM on 09/01/2010
The parallels between us and the Roman Empire are strikingly similar: Overextended military, corruption within the political class, the dismantling of the middle class in favor of the rich, overdependence on foreign powers, an increasingly aloof and arrogant ruling class....
add to it the propaganda of the third reich and we are set to go...............
03:39 PM on 08/30/2010
Great article, Mr. Bard. It is a war waged against the people. Conservatives are the well-paid mouthpieces, shills, and sock puppets of their corporate Overlords whose goal is a kind of NeoFeudalism. They will rule over us all, their serfs, who will have to serve to survive at all.
09:00 AM on 08/28/2010
It is not a delusion to consider that our president is a socialiist with a redistributionist agenda. Every legislative effort he has proposed or supported has grown government and found a way to redistribute money from the upper brackets to the lower ones. Conservatives are not trying to destroy the middle class. They are the middle class. The Congress and the courts are giving more and more authority to the executive branch, but the administration's postions tend to lack popular support. The GOP has had its irresponsible leaders and programs, but the current Democratic leadership has increased federal spending by almost 25% during a recession, a recipe for making all of us poorer. I suppose frenzied egalitarianism will lead to poverty for all, except the elitists who adore the poor with their heartless ideas and grand programs of ever expanding federal infringement on the citizenry.
04:02 PM on 08/25/2010
This country is in the process of becoming a third world country if the Republicans have their way. They tout economic responsibility yet have shown just the opposite. In the last 40 years when there is a Republican president they have run up the debt like a credit card junkie all the while pushing tax cuts like you don’t have to pay for anything. They’ve sent jobs overseas like they don’t understand if Americans don’t have jobs they can no longer be the biggest consumer nation in the world. So where’s the market now? They have been on a mission to deregulate banks that since the aftermath of the great depression had kept us from slipping into a murky financial mess with competent regulation. By privatizing everything they could escape accountability and even slip around constitutional provisions that protected the American people. We could easily say they have wanted to run the country like a corporation but if it was a corporation it would have been bankrupt under Republican economic direction. Trickle down didn’t work. In 2008 we saw where their direction led us into almost financial ruin. Other countries have declared that we are no longer the financial leader of the world. Still, they want to return down the same path. Yeah Republicans, wave the flag like you care.
11:17 AM on 08/18/2010
What I wouldn't give for a live Ryan v. Krugman match, with independent fact-checkers at hand. What an annihilation that would be.

I've been saying (and writing) for some time now that once the big Democratic wave started in '06, Republicans appeared to be engaged in what must be at least a somewhat deliberate "kitchen sink" strategy in which being "Republican" can mean anything from the completely nutbag ignoramic realms of Beck, Palin, Bachmann to the relatively reasonable-appearing end of the bench where guys like Ryan are. In any era other than the present one, Ryan would be seen for the extremist he is simply on the basis of policy; but up against somebody like Bachmann or Angle, he sounds like the voice of reason. You wanna be a Republican? What do you like? We got it all. Everything from Beck barking like a rabid dog on camera (literally) to Ryan and Crist. It's all "Republican." Just tell us what you want, and we'll be it.

What's worse, Obama's obsession with finding the "middle" on every significant issue allows him to be controlled again and again by the excesses of the right. If they want to move him right, all they have to do is stake out an extremist position that moves the middle to the right.
11:24 PM on 08/11/2010
VIVE LA REVOLUCION!!! We really should sooner or later, but even though we are vocal and active, we are still complacent because we have food, shelter, etc, evidenced by the fact that we're all on here.
The system is so corrupt, as evidenced by (I'm likin that phrase tonight) the lack of spine of the democrats in office, that it is beyond repair. Cut off the limb doctor, or the whole bodies gonna die.
I am a leeetle bit scared of what our future holds.
Can we really go underground? Maybe the Google Verizon merger is just what we need to spawn an underground wire-LESS and hence untrackable movement. Who's with me (be careful....they're watching (@)(@)
09:00 PM on 08/11/2010
Conservatives attacking the middle class?
Yet another "failed" attempt at class warfare...
www.countdown21.com
.
01:23 PM on 08/12/2010
I think you're confusing Jesus the Christ with many of his so-called followers. I agree with Ghandi, "I like your Christ, I do not like your Christians." What's happening with the conservative forces today is in many instances they are tied to these fundamentalists who think everyone else is here to serve THEM.. Everyone needs to be familiar with the research conducted by Jeff Sharlet that led to his book, "The Family" to understand what's going on in this country and why. This group of people really does believe they are above everyone else and that God has given them their position of power. As such, they claim they can do no wrong; they are above the law. They believe in a gospel of "power and strength," and run their organization and dealings very much underground. And poor people.... too bad!
http://www.democracynow.org/2009/8/12/sharlet
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Madagain
antirepublicanism
06:51 AM on 08/11/2010
Great article Mr, Bard. You have put into words what I and many working class people have seen of the republicans. There have always been the rich and greedy, I can except that fact, but the working class who vote for and support the republicans are the group that blows my mind. The fact they buy into the 'trickle down economic' polocy of the republicans shows, in my opinion, they just are not doing their own thinking. But of course anyone who takes Limbaugh, Beck, Palin etc.. serious, is obviously not thinking much. I once made a comment about something Beck had said on his show. One of his fans came back with the reply "See you watch him, you must like him and believe what he says." To me this shows a very immature way of thinking (Like about third grade, although I have no wish to slander the third graders out there.)
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Garbaj
What is the Matrix?
02:59 AM on 08/11/2010
well done mr. bard...!!!

this is almost as good as the recent article written by robert creamer and just as adequately EXPOSES the hypocrisy of the conservative movement and all its various offspring.

we can only hope that the democrats make good use of such arguments in the leadup to the midterms...

...and the independents are paying attention...!!!
12:17 PM on 08/10/2010
Matt, How can you so blatantly miss the fundamental cause of the financial crisis. It was caused by horrendous public policy decisions re: Freddie and Fannie - of trying to entice every American to own a house or two or three. The extent of mortgage fraud, bad loans, dirivitive schemes, hyper-home inflation, over building etc, etc which caused the financial sector and stock market collapses could not have happened in an free market where the players (banks, mortgage companies, financial brokers) would have been accountable to their bad decisions. Our current fiasco is a product of government interference and the subsequent bail-outs that were needed to fix the mess that congress created. Both Democrats and Republicans are to blame but it was ONLY a group of Republicans who several years ago anticipated this problem and tried to ring the warning bell and change bad federal policies. Democrats fought the reform and Bush didn't take a stand. Middle class America's personal wealth could not have been more negatively impacted by this anticipated fiasco. Now you think that our legislators enacting more regulation is the answer?? Only if you really want the wolf in sheep's clothing to guard the hen house. OMG - we will be in even more trouble on election day if people think like this article.
01:00 PM on 08/10/2010
The Great Depression happened in a free market. It was after that the regulations were put in place to prevent a repeat. However, the free marketeers started pushing for deregulation and here we are again.
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WIpatriot
I've seen enough to make me Progressive
01:08 PM on 08/10/2010
Who is "Matt?"

F & F were NOT the cause of this crisis...someone told you that and you are parroting it. They got on board the toxic MBOs well after the ship left the harbor.

It was NOT "ONLY a group of Republicans who...anticipated this problem" but were a primary cause, and "Bush didn't take a stand," my @ss...he PUSHED it! That's revisionism at its finest.

Is the answer to regulation of "the wolf in sheep's clothing to guard the hen house" enacting NO regulation?? Or would it be to hold accountable the wolves until guard dogs arrive?
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Ipanemagirl
progressive
12:13 PM on 08/10/2010
let's change the tune: Higher tax rates for the rich, lower for those under 250K.
Any country making money here must pay taxes here,,,no more outside tax shelters allowed , or they will not be allowed to do business in this country! So much loss revenue there by people that can welll afford to pay more! .Stop the military spending , stop the wars, and aid to other countries and help OUR country to pay for teachers, education , lights on the streets, paved roads firemen, libraries etc.! We pay the taxes so we should be the first beneficiaries of the money , not other countries.. The GOP is so out of toutch and so corrupt, they are only fighting for themselves, their power and the corporations that support them. They should all be left to hang out to dry and be replaced by responsible civil servants that care about all americans, not only the rich and powerful!.
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WIpatriot
I've seen enough to make me Progressive
01:10 PM on 08/10/2010
"They should all be left to hang out to dry..."

They should be IN PRISON.
10:11 PM on 08/10/2010
Sounds good to me. Sure hope some "responsible civil servants" are ELECTED this time around.
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mheister
Raconteur. Blog michaelheister.com
12:05 PM on 08/10/2010
Stats about the war on the middle class:

Per the Brookings Institution, middle-income neighborhoods as a proportion of all metropolitan neighborhoods declined from 58 percent in 1970 to 41 percent in 2000. As housing costs increase, the middle class is squeezed and forced to live in less desirable areas making upward mobility more difficult. Safety, school systems, and even jobs are all linked to neighborhood types.

http://www.brookings.edu/reports/2006/06poverty_booza.aspx

Per the US Census, the percentage of Americans living in poverty climbed from 11.3% to 12.3% between 2000 and 2006.

http://www.census.gov/prod/2007pubs/p60-233.pdf

More stats on the war on the middle class here:

http://coto2.wordpress.com/2010/07/29/americas-middle-class-is-dying-and-the-stats-prove-it/

Too much to repost here, and too depressing.
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WIpatriot
I've seen enough to make me Progressive
01:10 PM on 08/10/2010
Indeed, it is a war.
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tinman123
11:27 AM on 08/10/2010
Yet the Republicans want to continue all of that ??
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WIpatriot
I've seen enough to make me Progressive
01:10 PM on 08/10/2010
Continue?? They want MORE of it!!!
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Madagain
antirepublicanism
07:56 AM on 08/11/2010
Yes, they are the new aristocracy, and wish us (working class) to be their surfs. If you have ever been lorded over by a rude and arrogant 'Boss', who holds your and your families welfare in his hands, then you know what to expect from the rich and powerful once they have total control of our government. You only have to look back in our history to see how cruel the powerful can be. For that matter look about anywhere in the world.
11:20 AM on 08/10/2010
politicians know the middle class are full of drunks and casino gamblers who just want to do their 40 hours on the job
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Madagain
antirepublicanism
08:30 AM on 08/11/2010
I think it's more complicated than that. Over the years our agrarian economy (early US) was taken over by the rich and powerful (think George Washington and his over 100 slaves) by gradually buying legislation and positions in government, that enabled then to force many of the small farmers and craftsmen out of business. I remember in the 70s there was much unrest by small farmers because there were government grants for large forign farm corporations, while the small US farmers were driven out of business by these policys and could not get these grants. This turned the small landowner into an 'employee' of the very industries who drove him out of his livelyhood. Our government was a willing participant because they profit directly from the lobby and often hold interest in these corporations. Example, If you own a small hardware store in the US and a Home-Depot moves in somewhere near, you are effectively out of business. And of course our wars made some very fine employers. Think 'Haliburton" and back in our history. So I don't think it is just the stupidity of the class, it is just the average person underestamates the averice of the powerful, or their joint efforts to reduce us to depend on them for our livelyhoods. I know this is also oversimplifing.