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Richard (RJ) Eskow

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Deficit Rorschach Test: The Presidents, the Editors, and the Truth

Posted: 09/10/2012 8:25 pm

Both political parties have "an aversion to telling the truth," says The Washington Post. The truth? That newspaper's editors are part of a small but powerful billionaire-funded circle that seems to believe that any facts that don't support their distorted and unpopular ideas are deviations from the "truth."

With a few selected phrases, President Obama and former President Clinton appeared to endorse this tiny faction's recovery-crushing austerity approach last week in Charlotte. But the rest of their speeches, along with others given at the convention, were a strong rejection of the privately authored set of policy proposals known as Simpson-Bowles. That's good, since Simpson-Bowles so closely resembles the Republican Party Platform that the Democrats could wind up running against themselves.

Voters should embrace the Democrats' stirring anti-austerity rhetoric. They should also encourage Democratic leaders to embrace their own rhetoric, to stop "triangulating" themselves into invisibility, and speak plainly and directly to the American people. In other words, Democrats should say they oppose any cuts to Medicare or Social Security benefits. They should say they'll use government resources to create and protect the jobs we need -- for teachers, firefighters, and police officers, among others. And that they'll face facts and address the real cause of the government's long-term budget deficit.

The Circle

The "truth"? To paraphrase Jack Nicholson in A Few Good Men, the members of this circle can't handle the truth. But then, contradiction is their stock in trade: They call themselves "bipartisan," though their views are opposed by majorities in both parties. They call themselves "civil," although they engage in relentlessly ad hominem attacks on their critics. They call themselves "truth tellers," although all but the most extreme and ideological economists reject their ideas. And they insist that they're the only ones displaying "courage," as if advocating for the rich and powerful has ever been the brave thing to do.

Who are they? They're the small group of politicians, ex-politicians, consultants, and advisors who are closely connected to anti-government billionaire Pete Peterson. Several of them were appointed to the President's Deficit Commission, in what is most generously described as a colossal error in judgment. This small but well-funded cadre has convinced a number of key media outlets, chief among them The Washington Post, that long-term government deficits are our chief problem -- this in a time of growing wealth inequity, wage stagnation, declining consumer confidence, and the widespread human anguish that has been brought on by extraordinarily high (and extraordinarily long-term) unemployment.

The Editors

You'd think The Washington Post would change up its editorial positions once in a while, if only to avoid the appearance of being a house organ for the crowd that's pushing low tax rates for millionaires and billionaires while advocating cuts to Medicare and Social Security for everyone else. But they can't seem to help themselves.

They "can't recall a single hard truth the politicians told us" at the conventions, the paper's editors wrote this weekend. Which "truth" went untold and un-"hardened"? "The national debt," say the editors. And yet Obama mentioned the national debt, his "bipartisan debt commission," and the "deficit" (our annual shortfall) quite a few times. Biden mentioned the national debt, too. And Bill Clinton devoted five or 10 minutes to the subject in the "arithmetic" portion of his speech. The Democrats' emphasis on debt reduction was, in my opinion, misplaced, at least while the country struggles through a jobs and wage stagnation crisis, but the Washington Post editors are wrong to claim it wasn't mentioned. Then again, to this crowd, the "truth" only seems to mean one thing: their truth, and their program.

The Program

This small circle is pushing a clear, simple program: even lower tax rates for corporations and the wealthiest Americans; benefit cuts to Social Security, along with changes to Medicare that (especially in today's political climate) would cause its slow deterioration and eventual collapse; and limits on how much money the government can spend, irrespective of the need at any given time. If you think that looks a lot like Paul Ryan's budget, which is now the GOP's official budget, or like the Republican Platform, you're right. Even the GOP's lower tax rates for millionaires and billionaires are in the Simpson-Bowles proposal.

Is that what President Obama was endorsing when he said these words: "I'm still eager to reach an agreement based on the principles of my bipartisan debt commission"? (That commission actually deadlocked and failed to issue any conclusions; he is referring to a document which was privately prepared by Simpson and Bowles, its two co-chairs.) Or what Bill Clinton was endorsing when he spoke of "the kind of balanced approach proposed by the Simpson-Bowles Commission, a bipartisan commission [sic]"? (Clinton was endorsing an approach that depends twice as much on cuts as it does on tax increases for the wealthy; that doesn't sound "balanced" to me.) Only Joe Biden kept a slight distance from the Simpson-Bowles proposal, suggesting only that it came from a "respected" source. Said Biden, "They rejected every plan put forward by us, by the bipartisan Simpson-Bowles Commission [sic] they referenced or by any other respected group."

Equal Time

The Simpson-Bowles tax plan is very similar to the one Bill Clinton was mocking last week when he talked about those unspecified, I'll-tell-you-after-the-election loopholes President Obama made fun of this policy, too: "Have a surplus? Try a tax cut. Deficit too high? Try another." Joe Biden said, "President Obama knows that creating jobs in America, keeping jobs in America, bringing jobs back to America is what the president's job is all about." And that was after his moving tribute to his wife's work as a teacher -- which is, after all, a government-funded job. And just two weeks ago Joe Biden told some older voters in a Virginia diner that he could "flat guarantee" there would be no changes to Social Security if he and the president were reelected. So why did the president, former President Clinton, and Vice President Joe Biden all name-check Simpson-Bowles last week?

The Inkblot

You'll have to ask them. But maybe the plan has become a kind of political Rorschach test, a shapeless inkblot meant to conjure up "reasonableness." There is a slightly fluid element to the otherwise far-right proposals made by two individuals, Alan Simpson and Erskine Bowles, after their commission ended in deadlock and failure. (You wouldn't know it by reading their document, but the commission never issued a report). The Simpson-Bowles proposal does, for example, say this: "Don't disrupt the fragile economic recovery. We need a comprehensive plan now to reduce the debt over the long term. But budget cuts should start gradually so they don't interfere with the ongoing economic recovery. Growth is essential to restoring fiscal strength and balance." It also says, "Protect the truly disadvantaged. We must ensure that our nation has a robust, affordable, fair, and sustainable safety net." And the proposal also reiterates the need for additional tax revenue -- even though it would do so through some unspecified "loophole-closing" sleight of hand that would almost certainly hit the middle class much harder than it would wealthy Americans. Under Simpson-Bowles billionaires would see their already rock-bottom tax rates (35 percent, compared with 91 percent under Dwight Eisenhower) reduced even further to 27 percent. (Another Simpson-Bowles scenario would eliminate the even lower rate on "hedge fund" management fees and capital gains -- but in return it would lower the top tax rate to 23 percent!)

The Problem

Contrary to what the Circle would have you believe, only one issue is driving our government's long-term deficit problem, and it isn't Social Security: It's Medicare. Unfortunately, fixing that problem would require a complete overhaul of our profit-driven health-care system.

Simpson and Bowles basically throw their hands in the air. Their plan's hodge-podge of suggestions implicitly says, "We have no idea what to do about Medicare." Instead, in what looks like the policy equivalent of throwing an entire deck of cards on the floor and saying, "Pick one," they toss out a grab bag of unrelated ideas.

One of those ideas is "an all-payer system," where government (or insurers, acting together) would establish uniform reimbursement rates for all medical providers. That's an ace in the deck, and the Democrats should grab it. While they're at it, if they're serious about deficit reduction, they should go one step further and come up with an even more effective cost-cutting proposal: Revive the public option they traded away during dealings over the health-care bill.

In the end, the guaranteed solution to our Medicare cost problem -- which is our deficit problem -- is "Medicare for All." But we're told that this approach isn't "politically feasible." It would certainly take "courage," which may be why we haven't heard Alan Simpson, Erskine Bowles, or the editors of The Washington Post pushing for it.

I guess they have "an aversion to telling the truth."

The Race

Did the Democrats embrace their opponents' platform when they embraced Simpson-Bowles, which they misleadingly presented as the work of a "bipartisan commission"? Were they playing some sort of deep game, counting on their opponents to be intransigent so that they could appear reasonable? Or were they making the decision to run on a platform of benefit cuts to Social Security and Medicare? That would be political suicide and a grim harbinger of things to come under a second Obama term.

If that's the case, then voters, especially Democratic ones, have an opportunity and an obligation: They should inundate the White House with phone calls and emails asking the Democrats to declare their unequivocal support for the Democratic portions of their convention and pre-convention speeches: job creation, "fair share" taxation for millionaires and billionaires, and defending Social Security and Medicare benefits from that small circle who will go to any lengths to cut them.

But the race is on, and the finish line is within sight. If voters are going to persuade the White House to make a course correction, they'd better do it soon. One thing is clear: If Democrats don't do a better job distinguishing themselves from the GOP than they did in 2010, they'll get the same outcome.

Obama isn't enjoying that bump because a few people mentioned a Simpson-Bowles plan. The bump came from talk about jobs, protecting Social Security and Medicare, and asking millionaires to pay their fair share. Call it what you want, but the right economic plan is also a winning political platform.

But the Simpson-Bowles plan, even if it's presented as "Austerity Lite," will hurt the Democrats. And it will spell disaster for people who depend on Social Security or Medicare, people who need a job, or... well, for pretty much everyone. American voters want these programs protected. They've rejected the austerity economics that's currently wounding Europe. And they appreciate it when someone represents their interests.

The party that speaks for these voters will find better rewards than anyone else can offer -- even the billionaire-funded insiders who make up the Circle and want to leave the rest of us in a hole.

 

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

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Both political parties have "an aversion to telling the truth," says The Washington Post. The truth? That newspaper's editors are part of a small but powerful billionaire-funded circle that seems to b...
Both political parties have "an aversion to telling the truth," says The Washington Post. The truth? That newspaper's editors are part of a small but powerful billionaire-funded circle that seems to b...
 
 
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12:17 PM on 09/11/2012
Today’s comment stream for the Washington Post’s latest budget editorial is replete with references to Eskow’s conspiratorial theory that WP editors are mere stooges in a vast right wing billionaire plot to rule the world. Which is how I happened to read this piece – wanted to check out the basis for all those allegations. Until today, I had never heard of Mr. Eskow.

Now that I’ve read Mr. Eskow’s rant, I have two reactions. First, he and I are on the same side politically; I’m every bit as progressive as Mr. Eskow on the substance. Second, as to style, this piece stinks. Talk about left-wing McCarthyism on sterioids, hidden conspiracies, dark motives in high places. Hard to tell from this one piece whether we’re dealing with drug-induced paranoid delusion, too much coffee and too little sleep, or just really bad journalism (suggestion: Mr. Eskow’s friends might want to check in, just to be sure he’s OK). The speculation here is way out in front of the facts. Mr. Eskow presents no evidence of the existence or membership of the imagined malevolent Circle of co-conspirators he posits, or of its coordinated activity. He decries the Circle’s use of ad hominem attacks, even though his piece is one big ad hominem attack on the alleged motives of these unnamed alleged conspirators.

Also, I watched much of the Democratic convention, and I didn’t hear anyone raise the specter of benefit cuts to either Social Security or Medicare.
11:38 AM on 09/11/2012
http://www.blackagendareport.com/?q=content/top-ten-ways-tell-your-president-his-party-arent-fighting-health-care-everybody by Bruce A. Dixon

A single payer Medicare-For-All system will eliminate 500,000 insurance company jobs and replace them with 3.2 million new jobs in health care for a net gain of 2.6 million new jobs according to a study by the National Nurses Organization. That's as many jobs as the US economy lost in all of 2007.

Single payer will create hundreds of billions in annual wages and local and state tax revenues for cash strapped cities and towns. It will lift the shadow of bankruptcy for medical reasons from two thirds of a million American families yearly.

Dr. David Himmelstein of Harvard and PNHP states that having everyone on single payer would save at least $350 B per year, and latest reports say $400 B per year.

--Comprehensive, no deductibles, no co-pays, no rescissions. Oh, prescriptions included.

What's not to like?

Oh, yeah, the Big Insurance Parasites lose their ability to suck wealth out of the populace. Some pols lose big contributors.

But mostly, if the democrats were able to pass such a common sense practical solution the republicans would lose power for a number of years - like they did after the new deal.

Pat Buchanan said it best

To hell with principle; what matters is power, and that we have it, and that they do not."
11:37 PM on 09/11/2012
You can add dental care to that, too.
Well said.
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Estreet1964
Gimmie the beat boys and free my soul....
10:31 AM on 09/11/2012
How can anyone call Simpson/Bowles balanced and bipartisan. Everyone involved sits on corporate boards.

Who on that commission was speaking for the people?

Answer: No one.
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HUFFPOST SUPER USER
Stanley Bonk
"mad, bad, and dangerous to know"
10:15 AM on 09/11/2012
The President is to be faulted for attempting to fashion himself into a centrist pesudo-Republican in a misguided effort to reconcile with Republicans who loathe the very fact of his existence. He would have been far better advised to approach the Republicans with a chair and a whip.

That leave it up to the American voters to ensure American prosperity by getting rid of all the forces that would stand in the way of it. We have to vote as many Republicans as possible out of office at all levels of government. They've caused just as much mischief at the state level as they have at the federal level, and it's high time we realized that they serve their rich campaign contributors and not their constituents.
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fairwitness
Avid Ignoramian
08:45 AM on 09/11/2012
Yes--the misrepresentation of the Simpson-Bowles by even Obama is depressing and revealing. There never was a "report" from the commission, only a desperate ass-covering document from it's chairs to give the illusion of having done something and an attempt to push the whole "debate" into deep right-wing territory--and it worked. But the whole exercise was a political sham, and for Obama and ANY Dems to touch it with a ten-foot pole means they are playing to the moneyed crowd and not the people they are supposed to represent.
07:53 AM on 09/11/2012
Another great column, RJ. I will continue to withhold support from the Democrats until they stop pandering to the Pete Peterson crowd. The President continues to pay lip service to the misbegotten Simpson-Bowles proposals and there are even rumors that Erskine Bowles may be his next Treasury Secretary. Obama's naked failure during the debt negotiations last summer--where he was prepared to sacrifice Medicare and Social Security in return for almost nothing--was deeply disappointing. For once, GOP intransigence was actually a blessing.

The Democrats need to stop trying to be Republican Lite and get back in touch with real progressive values that support ordinary working Americans. I understand that the electoral alternative is worse, but I am increasingly convinced that the party's leadership under Obama is unwilling to make that kind of a shift. It's the evil of two lessers.
07:43 AM on 09/11/2012
Between 1946 and 1981, income taxes averaged 12%(+/-1%) of normalized GDP. Reagan reduced them to near 9%. Clinton increased them back to 12%; and Bush/Obama reduced them again to 9 %(and below). However, on budget expenses(which excludes Medicare,Social Security), have remained 12%(+/-1%) of normalized GDP throughout. The deficit in income taxes has been financed by borrowing, largely from the Social Security trust fund. When Clinton raised income taxes back to 12%, this eliminated the on budget deficit. The CBO projected that this, plus the Social Security and Medicare surpluses, was enough to pay off the entire US debt by the time that the Social Security/Medicare trust funds would have to be amortized for beneficiary payments, without having to raise taxes to pay for the amortization of those trust funds. Like Reagan before him, Bush took those excess payroll tax receipts and gave them “back” as income tax reductions, heavily weighted to the wealthy–who didn’t create those surpluses in the first place. By doing this, Bush guaranteed that income taxes would have to be raised in order to amortize the trust funds. The failure to do so simply permits the 1% to steal the money contributed by workers for their retirement. Everything about not raising taxes or limiting expenses, is about stealing workers' money. The national debt has been caused primarily by income taxes which were reduced far below their historic 12%(+/-1%), not by on budget expenses, which have remained at their historic 12%(+/-1%) throughout.
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DwightBurdick
07:17 AM on 09/11/2012
Many pundits here highlight parts of the problem, but seem loathe to even mention more significant factors in our impending trip over the precipice.

Austerity is, as frequently pointed out, counterproductive in a recession, only aggravating the growing limitation on cash circulation.

Loss of meaningful progressivity in taxation, likewise prominently mentioned, deprives government of revenue needed as an injection at the bottom to "trickle up".

Although out of control health care expenditure rates a mention, none seem willing to point out that everyone else does much better for less than half the cost, through universal coverage devoid of profit.

Bigger than these problems, and never mentioned, is our bloated offensive military and our aggressive wars, arguably consuming 1/3 or more of our budget, when to DOD is added Homeland (in?)Security, intelligence (oxymoron!) agencies, the VA, and more.

More opaque is the gambling subsidy. The Fed, encouraged by the government, is loaning at near (or below) 0%, and the government is handing more of our treasure over to the banks ("bailout"). This "money" is promptly circulated among the 1% in the form of "derivatives", a gamble without risk, as these speculators collateralize their debt with the instruments of their gamble, derivatives, which typically have the same value as the interest rate sustaining them, zero. Were we able to pry open the vaults of Goldman Sachs or even Fort Knox, likely all we would find is HP printers. Their emperor has no clothes!

www.voterocky.org
05:49 AM on 09/11/2012
The truth as you see it. It seem everyone has thier own truth in what should happen in America. The media no longer write the truth. They write stories to promote thier own agenda and call it the truth. If a story would hurt the party they promote they do not write a story. So a lot of the news goes unreported. You seem to write to fit your agenda and only write what fits it. It gets hard to fine the truth that America needs to reform taxs and cut intitlements. You defend the base. Public service union pensions and benifits are brankrupting city and states cannot balance thier budget because of them. It is time to fix the problem. When the news can write all the story and not promote thier agenda then they will be part of the solution. Now they are part of the problem.
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Balthasar
Wise Man
04:01 AM on 09/11/2012
...and, don't forget: local independent media is essentially nonexistent in most of the US today. How many folks reading this have no idea of who their local representatives are, what they stand for, or who's funding them? While we rail at national pols and national media, the grassroots have been replanted by corporate interests. Got a locally owned newspaper? Local radio (other than a college station)? What you can do: Get informed about local issues, then get busy. Blog local. Inform people. Use public access. Use your printer. The first tool for change is sitting right in front of you.
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essbird
IOKIYANO
10:06 AM on 09/11/2012
Also, subscribe to that local newspaper (it costs less than your coffee), patronize the advertisers, and tell them why. We need them to have reporters covering the community, and to afford to buy good national and regional stories and columns. If they disappear, we will be totally in the dark.
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carburetor
Because money isn't everything!
01:18 AM on 09/11/2012
HANDS OFF SOCIAL SECURITY & MEDICARE - PERIOD! GET WITH IT DEMOCRATS!
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HUFFPOST SUPER USER
John Olson
09:46 AM on 09/11/2012
You don't seem to realize that Congress has had its hand in the Social Security cookie jar for decades. The Social Security and Medicare Trust Funds are invested in a special series of non-marketable Treasury bonds. These trust funds were built up ostensibly to pay for the retirement of the Baby Boomers, but with what money will the bonds they contain be redeemed when they fall due? That money can come from only two sources: higher income taxes or more borrowing. Unlike other Treasury bonds, this debt cannot be inflated away as long as Social Security is indexed for inflation and as long as medical costs keep rising. Furthermore, the number of Social Security beneficiaries who have gone on disability has sharply risen, consistent with the Obama administration's policy of mass dependency. So, you can say "hands off Social Security and Medicare" all you like, but don't you realize that both of these programs are headed for bankruptcy because Congress has been milking them for years?
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carburetor
Because money isn't everything!
09:52 PM on 09/12/2012
You've been sold a bill of goods.  Social Security is not bankrupt and is not going bankrupt, regardless of the nonsense that you've heard at FOX or in Newsmax.  Payroll taxes or benfits will have to be adjusted in another decade, but whichever is done, it's far from broke.  Raising the retirement age is another way to conserve the funds, adjusting for longer lifespans.
11:45 PM on 09/10/2012
What do Pete Peeson and the Koch brothers have against ordinary working Amercan? SS is funded for the next 20 years and is NOT part of the deficit
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NAMI
The Divine Socialist
11:24 PM on 09/10/2012
Mr Eskow
I think it is best if the Dems say WE ARE NOT GOING TO ALLOW The GOPers to DESTROY and PRIVATIZE and VOUCHERIZE MEDICARE OR SOCIAL SECURITY .period
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NAMI
The Divine Socialist
11:18 PM on 09/10/2012
Mr Eskow
It has become like the same as GOD word. If you do not mention the Word DEFICIT .you are UN-American'SO
the DEMS are just saying what is a MUST like the LAPEL FLAG or that GOD word.

Obviously as CHENEY said DEFICITS do not matter !!! JOBS DO MATTER a LOT
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HUFFPOST SUPER USER
peasent
11:02 PM on 09/10/2012
"The two Santa Claus theory"

https://www.commondreams.org/view/2009/01/26-0

Yes the Democrats will embrace Republican Policy, just as they have for 30 years. Then when the chickens come home to roost the Democrats will have the Republican finger of blame pointed at them. Of course just as we saw with the so called health care debate they will also call the very policies that they champion "socialist" and "communist". Then when they predictably fail not only do the Republicans win but they have convinced the fools they have turned us all into, that it is not their ideas that have failed, but "socialist" "liberal" ideas that have ruined us. Oh and we will buy it just like we bought Welfare reform, Free Trade, Privatization, deregulation, destruction of workers rights and the killing of unions, off shoring, out sourcing, tax breaks for the rich, monetary fetishism, War in Iraq, torture, rendition, military tribunals, the patriot act, the department of homeland security, bank bailouts, 30 years of wage stagnation, the largest prison population in the world...