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Robert Creamer

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Budget Battle Opens Two Huge Rifts Within GOP

Posted: 05/23/11 09:37 AM ET

The ongoing battle over the federal budget and the role of government in America has certainly clarified the fundamental difference in the visions of the Republican and Democratic Parties -- and the progressive and conservative forces within American society.

At the same time, however, the budget battle has also opened up two gaping rifts within the Republican Party itself. The first threatens to do massive damage to the GOP's election chances in 2012. The second may cause the collapse of its 2011 legislative agenda.

First is the seemingly irreconcilable conflict between the "Tea Party" class of GOP "young turks" -- who want to go for broke to destroy the New Deal and impose their social agenda -- and those elements of the Party whose highest concern is winning general elections.

More "moderate" Republicans like Olympia Snowe and Dick Lugar are terrified of being defeated in primaries by Tea Party insurgents who are eager to take advantage of any deviation from ultra-right orthodoxy. But they know very well that purist right wing positions like ending Medicare and privatizing Social Security are the kiss of death in general elections.

Last week, Newt Gingrich became the poster boy for the corrosive effect of this conflict, as the nation watched him pleading for forgiveness from the right for his characterization of Paul Ryan's Republican budget as "extremist right wing social engineering." Even though Gingrich himself remains a hard core right wing ideologue, he has had an experience many of the Tea Party newcomers have not: he knows what it's like to lose.

Gingrich is smart enough to know that it's one thing to prevent people from achieving their aspirations -- it's quite another to take something away that they already have -- that they've already paid for -- like Medicare and Social Security. He can read the polls that show almost 80% of the electorate wants Congress to keep its hands off Medicare and Social Security. And almost as many oppose cutting or restructuring Medicaid. Remember that Medicaid not only provides health care for the working poor, and children, but also provides nursing home care -- and home care that lets seniors and the disabled stay in their own homes instead of institutions.

Of course it's not just Gingrich that is caught in the vise between primaries dominated by well-organized right wing ideologues and a general electorate that has no use for candidates who want to abolish Medicare or defund Planned Parenthood. The entire Republican presidential field will have to cope with this virtually unsolvable conundrum every day during the upcoming primary season.

The same difficulty faces GOP Senate challengers and House incumbents. Sixty one D battles for House seats will be fought in districts won by Barack Obama in 2008 -- and fourteen were won by Obama in 2008 and John Kerry in 2004. In the 2010 elections, seniors voted Republican by 21%. Now that the Republican leadership and Ryan's "young guns" have rounded up all but four members of the GOP House caucus and got them -- incredibly -- to cast a public vote to abolish Medicare -- don't expect seniors to flock to their cause again in 2012.

And in case the Republicans didn't notice, it's not just seniors who strongly oppose abolishing Medicare. All of those 45- to 50-year-olds who would be most directly affected and have paid their Medicare taxes all of these years aren't too happy either.

Before this year is done, many Republican office holders and candidates will feel as though they're on a political rack. On the one side they will find themselves and their colleagues pilloried at town meetings for voting to abolish Medicare. On the other, they will watch those who are bold enough to distance themselves from the Republican budget "Koolaid," smacked back into line by Tea Party zealots.

This of course will be great news for Democrats in 2012. Many Republicans are taking the path of the least short-term pain in order to avoid humiliation in a primary. They are refusing to distance themselves from Ryan's politically radioactive proposals. And of course candidates like Gingrich who try to head for a radioactive free zone -- and then have to reverse themselves -- look as though they have cast their principles to the winds. In politics, appearing to flip flop -- to have no core commitment to values -- is often the most toxic quality of all. Remember, Republicans beat John Kerry by -- erroneously -- convincing many swing voters that he was a "flip flopper."

Already we've seen the power of the Medicare issue to drive swing seniors into the Democratic column. In the Special election for heavily Republican New York's 26th Congressional District, Democrat Kathy Huchel has actually surged ahead of Republican Jane Corwin in last-minute polling -- mainly on the strength of the Medicare issue.

But the Medicare issue doesn't just move swing seniors. The Republican Budget -- coupled with President Obama's response -- has drawn clear lines between the Democratic and Republican visions for our society. That clear distinction has already reinvigorated the Democratic Party base and will serve to rally Democratic turnout in 2012.

Paul Ryan has given Democrats the gift that will keep on giving right through November, 2012.

But the second great conflict in the Republican Party will have an impact in just a few months. That's the conflict between the real base of the GOP -- Wall Street and America's corporate elite -- and the Tea Party bomb throwers who are willing to risk allowing America to default on its debts to advance their ideological goals.

Now don't get me wrong -- much of the Wall Street/corporate CEO crowd would love to abolish Medicare and force draconian cuts in the Federal budget so they could have yet another round of tax cuts and free themselves of "meddlesome" government "regulation." They would love to be freed to devise exotic trading schemes, sell worthless mortgage securities, decertify unions and slash middle class salaries, defund public education and all of the rest.

But they're not interested in risking the collapse of the economy, and the markets to get it. They are smart enough to prefer the billions they have in their hot hands, to the risk that their portfolios will plummet in value once again as they did in 2008. And that is exactly what might happen if their erstwhile Tea Party allies force House Speaker John Boehner to play chicken with the nation's debt limit in order to pressure the Democrats to scrap big portions of the New Deal.

Wall Street is terrified by guys like Illinois' Republican Congressman Joe Walsh who said that default wouldn't be so bad -- that we should be thinking "outside of the box." Or Congressman Devin Nunes who thinks that a default would benefit America by forcing politicians to go through a "period of crisis". These "default deniers" just scare the bejezus out of the investor/CEO class.

But Boehner has a whole flock of these folks in his caucus, and before the default battle is over he may look like a pancake -- squeezed by Wall Street on the one side, and by his Tea Party crew on the other.

It is likely that whatever deal to avoid default ultimately emerges from the Biden talks, will ultimately pass with more Democratic than Republicans votes in both houses. That means that the deal cannot contain poison pill proposals that are completely unacceptable to most mainstream Democrats. But that, in turn, may very well be unacceptable to the right-wing ideologues who see the debt-ceiling vote as their one chance to make big changes in the federal budget.

If Boehner allows a vote on such a proposal -- and it does indeed pass with more Democrats than Republicans -- he is afraid there may be a mutiny and he may no longer swing the big House gavel when the smoke clears.

This kind of division massively weakens the Republican's bargaining position. As the prospect of default barrels toward us, looming larger and larger in the weeks ahead, the pressure from the Wall Street/CEO gang will grown unbearable.

The fact of the matter is that the Party's big dogs will not allow Boehner to pull the plug on the grenade that sends the economy back into a major recession and causes markets to plummet. And of course, if they did, the political consequences for the GOP in 2012 would be catastrophic.

Had the Republicans simply continued to scream about deficits (as hypocritical as that may seem) they would have had a much stronger hand. Instead they handed Democrats a politically iconic example of exactly what the world would be like if they had their way -- abolishing Medicare.

Now the Party's candidates and its legislative leadership are divided, confused and in disarray.

In this situation, Democrats and Progressives need to remember one important axiom: when you've got them on the run, that's the time to chase them.

Robert Creamer is a long-time political organizer and strategist, and author of the book: Stand Up Straight: How Progressives Can Win, available on Amazon.com. He is a Partner in the firm Democracy Partners. Follow him on Twitter @rbcreamer.

 
 
 

Follow Robert Creamer on Twitter: www.twitter.com/rbcreamer

 
 
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HUFFPOST SUPER USER
talkstocoyotes
11:09 PM on 05/31/2011
This couldn't happen to a better political party. If it is in fact a political civil war, I hope the casualties are very, very high.
03:15 PM on 05/24/2011
Republicans can certainly depend on Mr Creamer and other liberals to distort and misrepresent the Republican position on Medicaid, Social Security, etc, and thereby frighten senior voters into shunning GOP candidates. They've been playing this game since Bill Clinton claimed Bob Dole wanted to do away with Social Security. But the coming generations of citizens will see the record and realize who tried to save the programs by making them solvent...and who was happy to ride the entitlement bus over the cliff--so long as they won the next election.
12:49 PM on 05/24/2011
That's an interesting perspective: to think that the New Deal is no longer affordable in its present form is "ultra-right orthodoxy." Since when is mathematics "ultra-right orthodoxy?" The recent estimate on the size of Medicare's UNfunded liability is $24.6 trillion. To think this is unaffordable is not ultra-right. It should be common sense.
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HUFFPOST PUNDIT
jsgaetano
Legum servi sumus ut liberi esse possimus
12:40 AM on 05/24/2011
It's funny how the Teabaggers think they're hotshot young turk 128s.
05:55 PM on 05/23/2011
Congressman Devin Nunes who thinks that a default would benefit America by forcing politicians to go through a "period of crisis". Who does he think is going to be the ones who pay for this period of crisis? The American people would. Not members of congress.
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Democrat in the South
Empathy, the most important word
06:34 PM on 05/23/2011
And what do they think THIS CRISIS is? A Christmas party? :-)
10:15 PM on 05/23/2011
I know what this probably is better then you. It is a economic disaster.
Sense 2007 my husband has been laid off 3 times took low paying jobs till he could find something better. We lost are chance at retirement when wall street crashed we lost half of are retirement. Oh and we didn't by more of a house that we could afford at the time. But we have almost lost it a couple of times. Savings whats that, that has been long sense gone. So if this is a party I wish I hadn't got a invitation.
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04:43 PM on 05/23/2011
The Ryan budget, and the GOP/Tea Party's strident support for it, is recognized by even rank and file Progressives as a HUGE opportunity for the Democratic party. It has outed Republicans as the destroyers of the middle class and the social contract, which we have all known them to be. Moreover, it will allow liberal Democrats and Independents the opportunity to sharply contrast their vision of a more equal and just America, with the Regressive "feed the rich" mantra.

If there was ever a time for our President to go on the offensive and move our nation toward a better future for all, that time is NOW.
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Democrat in the South
Empathy, the most important word
06:35 PM on 05/23/2011
ear, hear!!!!!!! F&F
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Democrat in the South
Empathy, the most important word
06:47 PM on 05/23/2011
That's" hear hear". How embarrassing.
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JimWind
Be still like a Mt, yet flow like a river. Lao Tzu
09:42 PM on 05/23/2011
Its a golden gift, they should hit them 24/7 on this.
04:32 PM on 05/23/2011
general electorate DOESNT WANT PLANNED ABORTION DEFUNDED. NOW THATS FUNNY.
07:53 PM on 05/23/2011
?????

Actually, government money is not allowed for abortion (though maybe to save the mother's life).

Planned parenthood provides mostly birth control and women's health care like pap smears.

I guess you don't mind risking more unwanted births....
One way or another, the taxpayers pay something for them....premature births (medical care), education......

Yup, everybody in favor of more unwanted births due to less financial access to birth control please raise your hand!
HUFFPOST SUPER USER
DuxMom
Wine merchant, parent, artist
03:28 AM on 05/24/2011
Well said.
04:14 PM on 05/23/2011
There are divisions in the Democratic Party also. It is essential for moderates to try to solve the problem of the deficit. We cannot keep on borrowing 40% of all federal expenditures. The Social Security system must be modified so that it will be available for generations to come. For instance, the Social Security tax might me made applicable for those making up to $180,000, the age to receive full benefits might be raised to 70 and partial benefits to 67 (from 62), the tax on Social Security might be increased to 100% from 85%, etc. Note, I do not favor privatizing Social Security. It is essential that we recognize that changes must be made because of demographic changes in our country. People are living longer. When Social Security was started, we had some 10 workers for everyone receiving Social Security. I believe that the figure is now 3 workers, with 2 workers possible in the near future. It is critical that we balance the budget with changes in taxes and benefits.
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HUFFPOST SUPER USER
Frederick Bosick
Science and Computer Guy
05:36 PM on 05/23/2011
No. The solution for Social Security is to increase what's taken in, not reduce benefits. For a start, the maximum income to be taxed is a good idea. But for the long term, wages and salaries must increase for those paying into the system. Minimum wage must increase and offshoring and outsourcing must stop. H1-B immigration must end and those holding those visas must be given a ticket home. The Middle Class will have no problem funding the system if they get the wages they've earned.
HUFFPOST SUPER USER
fairandbalanced100
11:54 PM on 05/23/2011
Yea, the rich don't pay their fair share. They only pay on first $105,000.
The difference between the rich & the poor has got way too big.
one09flat04
Octogenarian
04:03 PM on 05/23/2011
The "tea-buggers"? Their hard core are the same right wing wackos and religious zealots that have been the base of the Republican Party for years and years! Taking advantage of a bad economy they have attracted more followers angered by the recessionary-depression to them initially! But as they find out who they are...there aren't as many protestors as there were a while ago! Roland C. Woodaka
one09flat04
Octogenarian
03:56 PM on 05/23/2011
They are both wrong as is the rest of the Republican Party! Every action proposed by Republicans , every bill written and every one passed is dedicated to one thing...how to put more money in the bank accounts of the wealthy and how to increase the profits of corporations! And you don't have to go visit a guru on a mountain top to learn this! I posted the unshakable TRUTH for you! Roland C. Woodaka
03:51 PM on 05/23/2011
Wow Robert! I did not realize that reducing the budget to an amount that does NOT require borrowing more money and incurring a larger national debt as the real Tea Party is pushing for would

1) Give Wall Street Unrestricted access to do as they please (I thought the most recent Financial Overhaul bill did that; it certainly did not reel in the derivatives fiasco that got us the 2008/2009 financial melt down)

2) Eliminate Public Education

3) Eliminate the Middle-class

4) And bring about the global apocalypse as described in the Bible, at least here in America.

Who would have guessed so much was riding on our willing to continue borrowing money to pay for things we can't afford. WOW.

One problem though Robert; how do we get the rest of the world to continue loaning us money to prevent the Apocalypse, when they know we will never pay them back? The previous solution of enforcing our might via the military is becoming too costly so you'll have to think up another reason.

Perhaps if you told them their countries will explode via comets if they don't lend us money we will never pay back, maybe then they'll keep doing it?

You may be able to motivate the pro-big government voters out there but the rest of us who actually work for what we get see right thru your Global Governance BS.
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slowuncle
Ella Megalast Burls Forever
03:55 PM on 05/23/2011
don't include me in your teapublican diatribe just because I'm in the working class
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HUFFPOST SUPER USER
Hermes Mercury
04:04 PM on 05/23/2011
Number one -- for the sake of all sanity -- tax the wealthy reasonably. In the time of Eisenhower -- when America was the strongest country in the world by EVERY measure - when we were creating new products EVERY year - when our factories churned out goods used throughout the world while also giving decent jobs to working people -- the US highest marginal tax rate was 90%. Now its in the mid 30s. When Richard Nixon became the last president to endorse full employment -- we still had a highest marginal rate in the 70% range. It is ludicrous to argue that I should, with a good accountant, pay less than my secretary -- legitimately -- but I can -- and while we aren't wealthy by modern standards, we make nearly 3 times the average household income.

Number two. Before you comment on currency, please consider, we are a sovereign nation. That does in fact have a lot of meaning.

As the Optimist Party Says -- "the law of scarcity has been repealed."

Regards,

Reyn
01:23 PM on 05/24/2011
During the Eisenhower administration, Europe and Japan were still recovering from the rubble of WW2, while another sizable chunk of thw world's industrial capacity was experimenting with communism and therefore not competing with American businesses. I think these things had everything to do with our economic success. And the ability for workers to make a decent living working in a factory back then was mainly due to extremely restrictive immigration greatly limiting the supply of workers and thusly increasing their leverage for wages. It's not a coincident that wages have been basically stagnant since the immigration spigot was reopened in the early 70's.

Now I fully support your implied suggestion fo doing away with deductions including mortgage, hybrid cars, weatherproofing, charities, etc. But correlation doesn't equal causation. Just because things were great for workers in the 50's when marginal tax rates were high doesn't mean that same scenario can be replicated now. The US must compete with other nations. Wishing for 1950's Flint, MI like Michael Moore is nice but unproductive.
03:46 PM on 05/23/2011
Seven publicly traded U.S. corporations represented on President Barack Obama’s advisory council for jobs and competitiveness -- including General Electric Co. (GE) and Intel Corp. (INTC) -- have devoted a growing pool of their non-U.S. earnings to investments in other countries.

As a group, multinational companies with current or former chief executive officers on Obama’s jobs council have, over the past four years, almost doubled the cumulative amounts they’ve reinvested overseas, according to data compiled by Bloomberg.

By doing so, companies may be able to take advantage of faster-growing markets or lower production costs, and they can defer U.S. income taxes on profits from overseas sales. Underscoring the difference between corporate interests and the national interest, they’re also investing money elsewhere that could be helping the U.S. economy, said former U.S. Labor Secretary Robert Reich.

http://www.bloomberg.com/news/2011-05-23/ge-joins-intel-to-advise-obama-as-overseas-holdings-expand.html
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SteveM39
That's how dad did it, that's how America does it
03:38 PM on 05/23/2011
You have to marvel at the irony of the situation. Republicans did such a great job of making government the villain that they created a sub party dedicated to its destruction. Unfortunately, Republican politicians like their jobs and don't want to lose them. Republicans have proven the old addage wrong; "No one ever went broke under estimating the ignorance of the American public." The lies and misrepresentations foisted on the public are now coming back to bite them.

When your entire platform is built around demonizing everything the opposition does, sooner or later you will make all rational ideas untouchable.

It's too bad the President will let Republicans off the hook. Biden's committee will come up with some compromise that will allow the Republicans to save face with their base. Democrats should stand firm and say the debt ceiling is not up for political debate. It is too vital to attach any riders one way or the other. The high road is the best but Washington prefers lying down with the dogs and suffering the fleas.
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03:36 PM on 05/23/2011
Note to "Tea Party"-you are NOT a party, you are a fringe. Time to stop riding the GOP coat tails and become an actual party. That way, America can more easily ignore your idiotic blathering. Either that or stop trying to hijack the party of Lincoln
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MysticMichael
Less Fluff, More Stuff
03:16 PM on 05/23/2011
"Now the Party's candidates and its legislative leadership are divided, confused and in disarray.

In this situation, Democrats and Progressives need to remember one important axiom: when you've got them on the run, that's the time to chase them."

My thoughts exactly. Here's hoping that this time - now that we've finally got them where we want them - that the Democrats can somehow avoid snatching defeat from the jaws of victory...