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Richard (RJ) Eskow

Richard (RJ) Eskow

Dear Washington DC: The Public Is Smarter About Money (and Deficits) Than You Are

Posted: 02/22/11 08:58 AM ET

Some condescending politicians and pundits never miss an opportunity to talk down to the American people, especially when it comes to budgets. The members of Washington's political "center" encounter one another at social events, often in pleasant halls where the chill of winter is kept at bay by the warmth of oak paneling. There they cluck-cluck to one another about the foolishness of their constituents and readers, to the accompaniment of that tiny cracking sound ice makes at the first touch of warm scotch. As soft-spoken waiters serve hors d'oeuvres, they share a chuckle over polls showing that voters want to 'reduce deficits' but don't want to cut any government programs.

Voters. They're like children. We'll have to make the tough decisions for them. They'll thank us someday. After all, they don't know how to balance a budget.

They may really believe that -- but nothing could be further from the truth. Polls have shown that the public has a much better idea how to manage the government's money than leaders from either party do -- and that includes knowing how to cut the deficit. The real problem isn't that the public can't manage money. The real problem is that nobody's speaking for the public in Washington. Which raises the question: Who are they speaking for?

Smarter budgets, smaller deficits

The Republican Party is very, very proud of its plan to cut $60 billion in discretionary spending from this year's budget. But $60 billion is child's play compared to what the public's willing to embrace. A recent PPP poll showed that majorities of those polled would cut double that amount -- and that's just from the defense budget! ($109.4 billion from the overall Pentagon budget, plus $12.8 billion from Iraq and Afghanistan.) They would also cut more than $13 billion from our bloated and poorly targeted intelligence budget, along with a variety of other reductions that add up to more than $145 billion in spending reductions each year.

Know what else they would do a lot more of? Raise taxes. They would support nearly $300 billion in new taxes, for an annual deficit reduction of $437 billion. That's more than seven times what the Republicans were able to do -- and without slashing needed social programs doing some of the other crazy things the Republicans would do. They'd cut law enforcement funding, from the FBI down to state and local levels, and programs to predict hurricanes. They're also hard at work cutting funds for last year's mild financial reforms, which could conceivably help prevent the next multi-trillion dollar meltdown.

Give people good information and you'll get good answers.

The PPP study didn't do what many of these polls do, which is feed people slanted questions and then get predictable slanted answers. As the pollsters explained, they simply "presented 31 of the major line items of the discretionary federal budget with a description of each one, the amount budgeted for 2015, and the projected deficit. (Respondents) were then given a chance to increase or decrease each item as they saw fit and to try to reduce the deficit."

The PPP respondents didn't find it necessary to cut heating oil for poor people in the winter, as the President just proposed, or to do anything else brutal in order to prove that they were "serious" about deficit control. (Liberals are expected to slash beloved programs to prove their bona fides, the way a mafioso might have to kill a teenager to become a "made man." That's one of the Washington conventions the President seems unwilling to challenge.)

They didn't find it necessary to raise the cost of student loans, either, something the White House was busy doing even as the president spoke his stirring words about the importance of affordable education if we're to "win the future." Young people already face the most jobless, hopeless future they've had to contend with in a long time (as Marian Wright Edelman details). Perhaps the White House decided: What's a little more debt on top of that?

When it came to Social Security -- which doesn't contribute to the deficit -- "options that were chosen by large majorities were to raise the limit on wages subject to the payroll tax to at least $156,000 and to increase the retirement age to at least 68" (emphasis mine). Since the retirement age is already being increased, this finding confirms what many previous polls have said: The public doesn't want to cut Social Security benefits. It also confirms that the public has better judgment than Washington insiders, since lifting the payroll tax limit would pretty much fix any long term problem with the program.

Public vs. Politicos -- Folks vs. 'The Freeze"

Pundits and pols had conniptions over a recent Pew poll which showed that 49% of respondents thought that cutting the deficit was more important than spending to stimulate the economy, but when asked about specific programs those numbers fell apart. See? they told each other. They're not serious about reducing the deficit. Yet the PPP poll shows the exact opposite: Give them the details and they'll make very smart decisions.

The PPP respondents' approach was much smarter than the president's five year "spending freeze," which swings a meat cleaver at all government programs. The Senate Democrats just signed on to this approach, which cuts some highly needed (and very popular) programs in order to save what they estimate will be $400 billion over a decade. The public saved more than that in a year, and in a way that keeps government functioning effectively (without shafting either government workers, the needy, or anybody else in the general public).

These Democrats could save $40 billion a year, or ten percent of what the freeze accomplishes, just by ending tax subsidies for oil companies. That would make economic sense -- and it would be popular, too. But apparently it wasn't on their to-do list.

Content and clichés

So what happened with the Pew poll? When asked a question that was merely a vague generality, respondents repeated the clichés about government expenditure they hear from politicians and pundits every day. But when asked about specifics, they had a different (and much more realistic) sense of priorities. That's not a condemnation of the public. It's a condemnation of the pundits and politicians who pelt them with platitudes instead of giving them the information they need to participate in our democracy.

The center cannot hold

To the extent that it still is a democracy, that is. Social Security, Congressional priorities, job creation, antipoverty efforts: on issue after issue pollsters have found that citizens across the political spectrum have strongly-held views that aren't being presented by prominent figures in either party inside the beltway.1 Instead, the Washington debate is being driven by an artificial consensus that's well outside the mainstream for the country as a whole, and which was manufactured in corporate think tanks and by highly-financed propaganda operations. And what do they call this artificial set of views, so far out of sync with the public's wishes and desires?

They call it "the center." Pundits like Fred Hiatt somehow still manage to invoke words like "bipartisan" when invoking the Simpson/Bowles deficit proposal whose ideas are soundly rejected by voters in both parties (and by 76% of Tea Party supporters). Come to think of it, that is bipartisan, if not in the way Mr. Hiatt would wish. And he managed to invoke the "hard choices" mantra that's inevitably used to describe the sacrifices imposed upon others in order to win campaign contributions and good media jobs today, along with treasured think tank positions and other sinecures in the future.

The frenemies within

And sure enough, a "bipartisan" team of Senators is riding to the rescue by trying to force the Simpson/Bowles proposals through that body. The team is disproportionately made up of Senators from small states where a Senatorial seat can be purchased with far less spending on campaign contributions, making them cost-effective allies in this world of unlimited corporate political spending. They are: Kent Conrad (D-N.D.), Majority Whip Richard J. Durbin (D-Ill.), Tom Coburn (R-Okla.) Mike Crapo (R-Idaho) Mark R. Warner (D-Va.), and Saxby Chambliss (R-Ga.).

The Wall Street Journal reported on a closed-door meeting where Senate Democratic leaders, responding reasonably to both sound policy and the public's will, tried to remove Social Security from upcoming budget negotiations but were sandbagged by this so-called "gang of six." Adds the Journal: "President Barack Obama attended, although his contribution to the conversation couldn't be learned."

"The President's contribution to the conversation couldn't be learned." There's a lot of that going around nowadays. It's a shame. The president could be leading the national debate on this subject. Instead he's buying into right-wing framing of the debate and using inept gestures like the heating-oil cut and the spending freeze to portray himself as a "kinder, gentler" budget slasher. In the end, his approach is every bit as condescending as that of the pols and pundits who distort facts, mislead the public, and then present themselves as the representatives of a mythical center.

While the President talks about "winning the future," they're spinning the future -- and winning everything.

Centering

Why is the public so much smarter with budgets than our leaders in Washington? It helps that normal people don't have to ask for campaign contributions, and that they haven't marinated in a sauce of think tank-fueled truisms for a couple of decades. Maybe they make good decisions so often because they still have to balance their own checkbooks. Whatever the reasons, it turns out that the real "center," not the Washington version, can make some very sound decisions when given the right information.

It's time for people inside the Beltway to stop talking to the public and start listening. That used to be a skill that both politicians and journalists were encouraged to develop. In fact, it used to be a job requirement.

1. More on the public opinions not represented inside the Beltway:

The New Silent Majority
Giving Thanks On Thanksgiving For the Opinions of the American Public
The Six Percenters


Richard (RJ) Eskow, a consultant and writer (and former insurance/finance executive), is a Senior Fellow with the Campaign for America's Future. This post was produced as part of the Curbing Wall Street project. Richard also blogs at A Night Light.

He can be reached at "rjeskow@ourfuture.org."

Website: Eskow and Associates

 

Follow Richard (RJ) Eskow on Twitter: www.twitter.com/rjeskow

 
 
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HUFFPOST SUPER USER
Richard Clay
People first, money last
09:42 AM on 02/23/2011
My solutions: Stop the wars in Iraq and Afghanistan and cut, cut, cut military spending. Tax (punish) the daylights out of companies that outsource or have outsourced jobs overseas (yes, I mean retroactively punish them). Award tax cuts for companies who create jobs in America and are serious about helping to grow the economy only in America!! Raise taxes on those making $1M or more. Recend estate tax breaks for the rich. Raise tariff rates on ALL imports. Finally, just to set an example, require all those in Congress to pay for their own insurance and completely end their pensions after they leave office!!
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08:23 AM on 02/23/2011
If the public was so engaged, why did they need you to tell them the details? Why didn't they know about this stuff from the get-go and answer general questions on that basis? Why did they say in a recent poll we spend 25% of the budget on foreign aid when it's really around 1%?

Why do you expect politicians to give the information when it goes against their vested interests?

Framing the issue like this only gives cover for victimhood mentality--which people use as an excuse to not participate in the political process, or stay informed about it. No one in Congress or the White House is going to hold voter's hands to let them make good decisions. You have to stay abreast of things on your own; there aren't enough people who do, which is just as dangerous as any special interest or any corporate money. If not worse.
HUFFPOST SUPER USER
jeanrenoir
12:44 AM on 02/23/2011
If the public is so smart, how could they possibly have voted all these Republicans into office last November?
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HUFFPOST SUPER USER
Richard Clay
People first, money last
09:31 AM on 02/23/2011
AMEN!! F & F!! Not being informed and educated is the reason why Republicans won in November. EXAMPLE: Rick Scott being voted in as the governor of Florida. People need to do their homework before they go to the polls to vote or they shouldn't vote at all!!
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The Lone Stranger
Yes, I am a lousy typist. OK!
11:48 PM on 02/22/2011
Here is the solution: a one time tax on assets. The same tax rate applies to all. Everyone gets to protect their first 1 million dollars in assets, then the scale rachets upwards at a rate of 1 % per million, until it maxes out at 95% for amounts 95 million and above.
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The Lone Stranger
Yes, I am a lousy typist. OK!
11:42 PM on 02/22/2011
I have to strenuously object.

Economics is a serious subject that sometimes defies so-called common sense. This is why they give a nobel prize in economics.

If you ask leading economists who are not beholden to any political party, they say we need to increase spending and increase taxes on the rich. Our budget problems stem from the longer term impact of letting the rich get away without paying their fair share for too long, resulting in a conctration of wealth in the pockets of the wealthy few, resulting in a stagnant economy.

If we fail to raise taxes on the rich the economy will continue to collapse.
10:01 PM on 02/22/2011
Thanks for this reassuring report on the public's wisdom. Now if only we could get some ordinary citizens to represent us in office, instead of the millionaires doing "public service". That is one of the biggest oxymorons in existence. Remember when some retailers called themselves "cash and carry" stores? We have inherited a "Cash and Carry Congress and Senate" who's motto is "Take the Money, and Run again and again and again. A public servant is someone who works in the community to help find solutions to peoples everyday problems, not someone who is suddenly too important to do the dirty work.
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The Lone Stranger
Yes, I am a lousy typist. OK!
11:43 PM on 02/22/2011
other studies prove the exact opposite. he merely cherry picked the data to support his preexisitng conclusion.
HUFFPOST SUPER USER
krone5
river walker
09:42 PM on 02/22/2011
of course you got to raise the income limit to better help SS. Nice to see the public has some common sense.
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HUFFPOST COMMUNITY MODERATOR
jrmarsh
08:11 PM on 02/22/2011
Oh really?, the same public that bought houses they couldn't afford, used them like an ATM and got into debt up to their ears?, that public?, or is it another public you are talking about?
ubrew12
that crazy uncle from Amarcord
11:02 PM on 02/22/2011
No, that's the public he's talking about. People named Goldmann Sachs, Bank of America, and the like.
05:51 PM on 02/23/2011
you mean the public that listened to the financial experts who told them that was the prudent thing to do?
that we had to sock lots of money away in our 401ks and be fairly aggressive to keep up with inllation?
to invest in a house to make up for the fact that there were no raises?
who told us to go shopping to solve the economic problems?

ya- we screwed up! we listened to the people who now claime all economic problems are our fault!!
Linda from Deerfield
Paying attention
06:21 PM on 02/22/2011
Well, thanks. I like to think that the public is not that dumb, too. However, even the public has not been able to articulate a solution to an economy that is structured to bleed dollars to Asia every time somebody goes to the store, and it seems that those missing dollars somehow are the same dollars missing from the paychecks of our workforce. Oh, there is a feeling that some kind of tariffs should be imposed, but that is not only verboten by the more vocal among us but it will contribute to increased costs and tend to negate any resulting domestic wage increases.

Certainly, not the pundits nor the politicians nor the academics have the answers either, which does even more to make the public look not so dumb.
06:17 PM on 02/22/2011
Yes we are smarter than Congress, it doesn't take much but we don't get money under the table either.
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HUFFPOST SUPER USER
ElBruce
05:34 PM on 02/22/2011
Government only fails to work to the degree that Republicans get elected to government positions. The fewer Republicans there are, the better America functions. Get enough Republicans in office and the entire place crashes down in chaos (see Wall St. 2008, Wisconsin now).
04:45 PM on 02/22/2011
I did not read this in any palins articles so it must not be true.
HUFFPOST SUPER USER
revolutionary1
03:40 PM on 02/22/2011
Richard, the way out...

1. Enact Fair Elections Now Act. $100.00 maximum donation

2. FCC mandate that all TV political advertisin­g is a public service and therefore free

3. Adopt California­'s Propositio­n 11 nationally­. End gerrymandering.

4. Permanentl­y ban anyone who has served in federal office from becoming a lobbyist

5. Enact The Bipartisan Tax Fairness and Simplifica­tion Act of 2010 – Eliminate $1 trillion in tax giveaways and change the top individual income tax bracket to 70% to balance the budget

6. Break up the big banks and strengthen the Volker Rule

7. End ALL wars and reduce the bloated defense budget

8. Reduce health care costs by adding the public option. Allow Medicare to purchase drugs. Allow drug re-importa­tion. Medicare Independen­t Payment Advisory Board be given a broader mandate for cost control.

9. National Infrastruc­ture Bank – Run by engineers, not politician­s. Federal government invest $2 trillion over 10 years to create jobs now and increase productivi­ty later. Put millions back to work. Fund with millionair­e's tax

10. Federal government invest 6% of GDP yearly on R & D to create quality jobs long term in areas like biotechnol­ogy, alternativ­e energy, alternativ­e-fuel automobile­s, clean technology­, etc. Fund with 7% national sales (innovatio­n) tax

11. Raise educationa­l standards through a national core curriculum­. Fire the bottom 10% of teachers nationwide and replace them with good teachers. Make higher education free to families that can't afford it to encourage upward mobility. Fund with financial transactio­ns tax
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HUFFPOST SUPER USER
DustyMills
A liberal tree-hugging Oregonian...
03:09 PM on 02/22/2011
A republicans favorite line anymore is "We're broke"......they are using this excuse to eliminate every and any program that they don't like......NPR, Planned Parenthood, Emergency heating, food stamps and on and on......we're broke so all these social programs must be killed.

What they don't say is how we got broke......they imply it was the social programs or the EPA or regulations on business...........but the truth is, the politicians have either misspent our treasury or given it away in tax cuts or used it to in some way to control other countries.

The people are not responsible for this country's deficit, but if the politicians get their way, it will be the people who pay for their incompetence......we must not allow them to get their way. Why should the people pay for tax cuts for the wealthy, or tax breaks for big business, or for over 700 military bases around the world?

Politicians need to be held accountable, they need to know it's not our duty to ride to their rescue b/c they have made terrible decisions....as they say, "been there, done that" and it didn't work out so well for us.
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HUFFPOST SUPER USER
joeinvt
the human being and fish can coexist
03:59 PM on 02/22/2011
It is crucial that hedge fund operators making one billion dollars plus per year continue to be taxed at their current 15% rate. In fact, we should take even more stuff like fuel assitance and food stamps away from those chiseling lower and middle class workers so we can lower the rate to 10% for hedge fund guys and other Wall Street types because of all the jobs they create.
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HUFFPOST COMMUNITY MODERATOR
jrmarsh
08:12 PM on 02/22/2011
"we're broke (since Jan. 21st 2009)"
ubrew12
that crazy uncle from Amarcord
02:58 PM on 02/22/2011
General Electric, Carnival Cruise lines, Boeing, FedEx, News Corp, ExxonMobil, Pfizer, Proctor and Gamble. All these American corporations pretend their profits are earned in tax havens like the Grand Cayman Islands and their losses are earned in the U.S.

America's governers are trying to close a budget gap of about $100 billion a year. Guess what American corporations are saving in taxes by operating overseas tax havens? Yup, $100 billion a year.

So, of course, lets bust the teachers unions...
wsdave
Abusive or Insulting? I won't be responding.
08:53 PM on 02/22/2011
Well, actually their profits ARE "earned" in foreign countries, legally speaking. And their losses DO occur in the US.

That's the tax code, and it's the same for everyone. They aren't doing anything that YOU can't do, too.

I have an off-shore corporation that deals with my off-shore earnings: Since they have NOTHING to do with the US, then the US government has no business taxing them (even though it WOULD, were it not for my off-shore corp.).
ubrew12
that crazy uncle from Amarcord
10:14 PM on 02/22/2011
"their profits ARE "earned" in foreign countries" specifically the Grand Cayman Islands? LOL.
If their profits are earned in foreign countries, then why are they declaring them in the Grand Caymans?

"That's the tax code, and its the same for everyone" mmm, sure. No one believes that. Not even you.