Symbolic Blather: Washington's Congenital Disease

This Congress potentially could be the most productive in over forty years. It has passed the largest recovery plan in the nation's history. It extended health care to millions of children. It passed Obama's first budget with its significant down payment on education and energy. The House just passed the comprehensive energy bill. Health care reform and the most extensive financial reform since the New Deal are next up.

Yet this same Congress will take the time to debate legislation that might best be considered symbolic blather. Its only effect is symbolic and the symbolism is loony.

The best example of this is the bill championed by Blue Dogs in the House and Senate -- the conservative Democrats that the media labels "moderates" -- called PAYGO. Paygo is the Washington shorthand for a rule that requires the Congress to pay for any expansion of entitlements (guaranteed benefits like Social Security Medicare) or decrease in taxes. It's supposed to "discipline" the Congress on spending. Although discretionary spending -- the appropriations that Congress approves annually for the running of the government -- is not covered, the rule is designed to put significant pressure on Congress to limit spending.

Now House Blue Dogs are pushing to pass this self-imposed rule into legislation. At a time of unprecedented deficits, they want to parade their righteous commitment to cutting spending and balancing the budget. Since Democrats have already imposed paygo rules on their actions in the House and Senate, the legislation is purely symbolic. And the symbolism is utter blather.

For one thing, Blue Dogs are the first to line up to vote for massive spending on wars and adventure abroad, all of which is exempt from paygo rules. Thus Bush's three trillion dollar war in Iraq would not have violated paygo, nor does the special supplemental to fund the continuing war in Iraq and the escalating one in Afghanistan.

Beyond that, the message sent by the bill is wrong headed. In the short term, it puts an emphasis on cutting spending and balancing the budget. But we're in the midst of fighting the worst economic collapse since the Great Depression. In these conditions, with consumers and businesses cutting back, workers getting laid off, families losing their homes, the federal government must step in to boost the economy. Deficit spending is essential, not evil. In fact, as unemployment heads to double digits, states and localities face staggering cutbacks, banks aren't lending, businesses are cutting capacity not expanding it -- we will need to borrow more money to spend on a second stimulus plan. (as Paul Krugman among others argues) Paygo heads exactly in the wrong direction.

In the long term, paygo puts the focus on controlling "entitlement" costs. But virtually the entire long term structural deficit problem comes from projected soaring health care costs. We don't have an entitlement problem; we have to get health care costs under control. Ironically, the same Blue Dogs like Sen. Max Baucus that champion paygo are the ones doing the most to weaken the public option in health care reform, which will do the most to control costs by offering a choice to private insurance.

Paygo also is translated into the need to cut spending and limit tax cuts to balance the budget. In fact, as Clinton's experience showed, the way to balance the budget is to get the economy going. Without growth, budget deficits will increase and should do so.

Washington's dirty little secret is that we need more investment, not less. We're running a debilitating public investment deficit -- failing to invest adequately in areas vital to our future from modern infrastructure to research and development to new energy and education. In the new economy emerging out of the calamity, we need progressive tax reform with the wealthy paying far more in taxes than they do now, and increased public investment.

Finally, as economist Dean Baker argues, paygo is an atavistic throwback to the conservative economics that led us off the cliff. Growth, we were taught, comes from balancing the budget, sustaining a high dollar, deregulating banking, adhering to corporate trade policies, and ignoring the inequality and loss of good manufacturing jobs that resulted. That didn't work out so well. One would have thought that even the Blue Dogs understood that.

This week, progressive legislators will try to figure out where they stand on this lemon. At the very least, they should demand something sensible as a price for holding their noses as the symbolic blather passes. They could demand an investment bank or a capital account in the budget. Either would put the US in the same position as a family or state and local governments, financing investments in buildings or homes or education or research and development rather than budgeting their entire costs in the first year.

Speaker Pelosi supports paygo as a way of keeping the Blue Dogs as least partially on the leash. The question is why do the Blue Dogs so stridently demand it? It's like an ideological tic. They don't seem to understand how deep a hole we are in nor have a clue about how to get out. They simply want to croon the old ditties of a bygone and tawdry age.

Comments

[Hemihead]

Let's see, If you want to call spending 2 trillion we don't have an "investment" you can. But the only thing it invests in is a much huger deficit.

Taking money out of the private sector sure as hell doesn't create jobs The private sector knows that these huge deficits will result in huge tax increases. That's why they are sitting tight, not increasing employment and cutting overhead costs to the bone.

What have we had so far? A so called 'stimulus' of 800 trillion that went mostly for pork, not private sector job creation. A cap and trade bill that will cost further trillions for businesses and energy consumers, and the EPA admits it won't do anything to reduce global CO2 output, as India and China have said "no way-no how to economy destroying Carbon limits." They will be very attractive places for American Companies to relocate jobs to because of that.

We are once again witnessing the total failure of "progressive economic policy," and it's a truly astounding failure.

And don't give me the old "it's Bush's fault." That dog don't hunt anymore. We are finally seeing who's fault it really is; mainly the same party that now has total control of government.

[billw8017]

Entitlement spending and the so called "pork" are the investments with the greatest stimulus. Truly, "paygo" should be applied to military spending as it stimulates less effectively, thereby reducing our resources to fight this recession when we need the most.

Is it true, "The private sector knows that these huge deficits will result in huge tax increases.­" How wise they are! Having ridden greed to the brink of disaster (or beyond), they take huge bailouts, then think to advise us(?). Perhaps, they are sitting tight because they are not the engines to restore the economy, but always cut back when the economy goes south and make things worse. The most new jobs are often in new start ups and small businesses where people with relatively little money make jobs for themselves and others.

Hemihead's theory of austerity as economic medicine is part of what got us where we are. He is quite right that you and I should spend less when we have less to spend, but we are little actors responding to the signals of the market. The great corporations, the banks and our governments have a power to lead the market. For the government to throw people out of work because people are increasingly out of work is an absurdity. That the corporations or banks do so is just too hopeless to worry about though it doesn't call for sympathy.

[Hemihead]

"The most new jobs are often in new start ups and small businesses where people with relatively little money make jobs for themselves and others."

Most of those businesses that make less than 250K a year employ very few people. that's a fact. It is only when those businesses expand to the point where they make more than 250k that they start to create jobs. And what Obama has done is put a target on the back of those that make more than 250K.

Go ahead an put targets on those peoples' backs and see how many jobs they create. What we are currently seeing is the results of progressive economics which promotes the fiction that you can have economic equality.

"Entitlement spending and the so called "pork" are the investments with the greatest stimulus."

Anybody can say that, when they don't produce facts to support it. That's because the facts don't support it. It's just more foolish, feel good liberal rhetoric.

The fact is, strong economies and high standards of living are obtained by economies that offer economic opportunity.

Economic equality is the hallmark of weaker economies, lower standards of living (as in those countries where the average unemployment rates are typically and consistently high.) and those countries typically spend large amounts on entitlements and on programs that enlarge government.

The BS ain't working anymore.

[daddysboy]

Thank you for making this most excellent and important point. I think this , "Ironically, the same Blue Dogs like Sen. Max Baucus that champion paygo are the ones doing the most to weaken the public option in health care reform, which will do the most to control costs by offering a choice to private insurance.­" , says it all. There is NO LOGIC to their political display, and you are right, that is EXACTLY what this is, symbolic blather. Because of the DRASTIC hole this country is sinking into, I think the mood of the public IS post-politics - exactly what it should be. Because of that, I think these "blue dog" democrat party members will find that their lame attempt at a show of "look what I can do" will backfire on them this time. I do however have to point out that all that busy activity in congress has been as WEAK as it could possibly get. If that level of competency continues, even though we will probably see some form of a public option, it will likely be designed to be broken from the start - exactly what the insurance lobby would like to see.

[lilian101]

Free education for all illegal aliens, just like California does "California Immigrant Higher Education Act (AB 540)"
"NOW IS THE TIME to end second-class treatment of undocumented immigrant students and stand up for the RIGHT TO EDUCATION FOR ALL. The Federal Dream Act, which has gotten bipartisan support in the past, would make federal college financial aid available to those who qualify for it and open a path to citizenship to undocumented immigrant college students." http://www.facebook.com/group.php?gid=49679450803
In other words, give instate tuition to illegal aliens, because they came here and need to have benefits that US citizens don't and give illegal aliens special financial aid packages, special grants and special benefits, because they all voted for Obama!

[irishdemocrat]

Surely if they were illegal aliens, they wouldn't have been able to vote, for Obama or otherwise?

[PigLipstick]

Why does the Democrat leadership pander to the Blue Dog Democrats, these were the Southern Democrats who crossed over to the Republican Party in the late 60s when the true progressives of the party broke a 100 year log jam and passed real civil rights legislation that extended equality to Americans of color. Today this group is not limited to Southern racists, it's racists from all parts of the country. Need we ask why the progressive goals of the Democrat party have been all but eliminated as they adopt a policy of conservative lite, you can bet that the Republican leadership would never allow a progressive movement to exist within their party. But as all the Democrat leaders say, "we are a diverse party"; I guess that's why Pelosi and Reid have to employ gangster arm twisting tactics to get the vote outcomes they desire !

[AndSoItGoes]

Government continues to prove it is no longer effective nor is it working for the people, AND it certainly is not by the people.

The GOP when in power ran the country entirely into a ditch & as usual, accepted no accountability.

The Dems were elected for CHANGE & the party can't get their act together with a majority to get some really serious / important legislation passed on health care which was a large percentage of the votes to put them in office. Am so tired of the stone walling, grand standing, and pettiness of all of these people.

It is time for a political party that represents moderates, evaluates issues on their merit, does not represent special interests and moves this country forward with new & environmentaly responsible technologies, is accountable & holds government accountable, passes legislation with penalties for violations & enforces it across the board. AND... LEGISLATION PASSED REQUIRING TERM LIMITS !!!

[billw8017]

Term limits reduce the authority of those to whom it pertains. It does not assure officers responsive to the electorate since candidates will be selected by big contributors just as always, and people will vote for the advertising. Then, the new and inexperienced officers will become dependent on the lobbyists (who are the ones abiding and know how things work) to write their legislation.

It would be more practical to make lifetime offices. Then, legislators would not have to begin soliciting campaign funding from day one but would be secure enough to consider the best interests of the country as such. I am not in favor of lifetime offices. I just say, this would be more practical than term limits if you want independent minded legislatures.

What I really think is that we should have public financing of political campaigns. Perhaps, the media should have publicity standards mandated; e.i., all broadcasting and publicly supported media (as through the Post Office) should be required to pass on some minimal candidate messaging as a free public service.

Instead of term limits, let's say RESTORE DEMOCRACY! GIVE US BACK THE CANDIDATES WE PREFERRED! (Not shouting, just putting it in placard form.)

[billw8017]

California is the example of the bad. After term limits turned out the experienced legislative leaders, the power industry wrote an energy law full of wonderful competition and deregulation and that kind of stuff. The industry quickly gamed the new law, raised rates hugely and burned out the California budget reserve as it was applied to relieve some victims. It's not as if it really did anything beneficial to Enron, the smartest guys in the room and the big player there, but they were bankrupt within the year. It sure didn't do anything else to the benefit of California!

[ok9otj]

Why is it Congress only champions something if they can give it a cutsey name & forget about listening to the people their symbolic efforts really affect? When did health care go from caring for the sick & comforting the dying to an entitlement controlled by big business & doled out to only the well employed & the well endowed? If we are already paying more for health care than any other developed nation, how can the additional expense to serve everyone amount to an addtional trillion dollars? & what's a few trillion here & there compared to Bush's 3T$ bill for a war of choice that he just dreamed up cause he wanted to show Saddam Hussein who's the fastest draw in the west? Where have our priorities gone?

[frag1409]

"failing to invest adequately in areas vital to our future from modern infrastruc­ture"...th­at tired old myth has no evidence to support it.

Minnesota received billions in Federal highway funds over the last ten years, yet can't explain why they didn't maintain the most traveled bridge in the state.

Medicaid spending consumes three times as much money as "Bush's" war in Iraq to only cover 8% of the population. And Medicaid covers the healthiest segment of Americans, children and young adults.

So enough of the "failure to invest". If money would fix these problems, we'd already have the best highway system and medical care int he world.

[daddysboy]

No, the idea that because our government is SERIOUSLY flawed we shouldn't fund it is the tired old myth. This is why teachers (what I believe is the single most important occupation) claim one of the lowest salaries of all occupations. This is why America has the MOST EXPENSIVE health care in the world that covers the fewest citizens of any industrialized nation. This is why we house more inmates than any other industrialized nation in the world. The important things that government SHOULD be responsible for are the very things that "conservatives" like to "privatize". Oddly enough, the REASON that our transportation infrastructure is in the condition that it is in is because the funds that do get shuffled out to the states from the federal government don't usually end up getting spent on transportation infrastructure because every other aspect of every state government is so completely starved for cash. The states do what they can to shuffle funds where they are most needed and will pay for other things when they get federal transportation money.

[bighat]

Is everyone gullible. The blue dogs are not conservative. They do not care about this bill and certainly now whether it passes or not. They are simply kicking off their 2010 campaigns. They need talking points for the home folks to show they care. (actually like all members of congress re election is the only thing they care about not the country and certainly not their constitutents)

[Dugwood]

When I see Washington start to encourage US small business and manufacturing and discourage out sourcing, then I will believe that a recovery will soon start. I voted for Obama and while I was impressed with the vigorous start of his administration, I am very disappointed that the majority of the stimulus monies went to the people who caused the economic crisis. Anyone seen any SBA advertisements encouraging small business borrowing? Anyone seen any new manufacturing sector tax incentives?

Regarding the Blue Dog democrats - blame their ignorant voters. Hopefully, they will be flushed with the rest of the conservative refuge this next cycling of our political toilet.

[Mark Mack]

Why does Congress waste their and more importantly, our time, doing this? They must like torturing themselves and more offensively , us. First of all, Congress is supposed to be "disciplined" when controlling the Nation's purse strings. They should save the loony symbolism for, what you know, will be a dramatic showdown between some in Congress, pretending to have standards, and Sheila Jackson-Lee, D-Texas, over passing a resolution recognizing Jackson as a “global humanitari­an." Why not attach the PAYGO legislation to the Jackson resolution.

[desmo4]

Why does Congress waste their and more importantly, our time, doing this?

They do it because they are bought and paid for by the corporate world.

[Mike Barden]

Sorry, i'm also tryin' to order some new glasses.

[bobwalters]

Man, this column really flushed out the Rethuglican trolls!! They love to argue about government spending being "less productive' than private-sector spending and wail and moan about the deficit and national debt. But these same trolls remain totally silent in response to corporate welfare and the financing of "defense contractors" and/or wars of empire, no matter how negatively those impact on the deficits/debts. What a bunch of phonies!

[frag1409]

These so-called "wars of empire" that your Democrats in Congress - and your beloved United Nations - authorized are only a fragment of Federal spending, dwarfed by Medicare, Medicaid and entitlement spending. I would be glad to argue the benefits of each, but get some facts first.

[Trublulu]

Why do you call Medicare "entitlement" spending? People pay into Medicare every single day they work. Would you have older, retired workers be denied medical attention just to appease the big insurance companies. Most retirees love their Medicare. It is the best healtcare coverage available and should be a model for healthcare reform.
I guess you would rather see the fat cats that have ruined this country continue to live the "good" life on the backs of regular people.

[DSimpson]

Bush's tenure has ended. Bush's war has ended. Now, let's take a look at Afghanistan and how much it costs.

[desmo4]

They are not phonies. There only allegiance is to there own personal welfare and how much payola they can get for it. They bought and paid for by corporations We need to get rid of all of them. Laws should be passed to make being a neocon illegal.

[Nofuzzydreams]

Top 5% in this country earn 31% of the income and pay 61% of the taxes. Bottom 40% get 3% back from the government. I do not understand you more taxes and more government BS. Go hike off to France and live there with a lower standard of living.

[edva]

France? Isn't that where they have a health care system that works?

[mrfreeze]

France has a lower standard of living? Where do people get these notions of other national standards of living. I have a lot of family in Italy and, materially, they have exactly the same creature comforts that we do........­..........­..........­..and then some. It's the "and then some" that America lacks. The reason? While were off "investing" in our sacred free enterprise system, we've forgotton to invest in our infrastructure or art or modernize our schools, etc. Ah, this little island we call America...­......

[Mike Barden]

course that top 5% do all the work.

[mrfreeze]

As is usually the case with conservati­ve/liberta­rian thinkers, you're exaggerating the impact of taxes on the wealthy. Sure, they pay a lot, but as a proportion of their individual budget, they pay far less in taxes than do average folks. Sorry. If you're wealthy, start digging into your buckets of money.

Those of us who actually live regular lives know that if one is paying 28% of 40,000 (they get to live on $26,560) it's a far cry different than that 5% of Americans who pay 36% on, let's say 1,000,000 (you get to live on $640,000 per year). To us "lower classes" the wealthy have NOTHING to complain about.

Also, I can hardly wait for the next stimulus package (it's inevitable). Simply put, if American free-enterprise economics works so well, why are we in this mess? Could it be that the Titans of Industry have outsourced and offshored our manufacturing sector? Could it be that we've become a country based on debt creation? Could it be that government must pick where the capitalists left off?

[bighat]

What free enterprise? Free enterprise is supposed to weed out the inefficient.

[Sean 6399]

We don't have a free-enterprise economic system. We have a Keynesian monstrosity of pseudo-fascist, neo-liberal authoritarian meddling. We have an unconstitutional central bank that creates endless fiat currency out of nothing, dictates interests rates that have no connection to reality, and thereby distorts the messages that a free marketplace would normally send regarding the need for investment, or saving.

We have a bubble economy that rests on a foundation built out of public apathy, willful suspension of disbelief, and coercive government force. Now the chickens are coming home to roost in this economic nightmare, and all the fans of government leviathan can do is try to pass the blame onto something that hasn't existed for decades at least.

[elkabong]

You still think tax cuts work after Bush and the repubs had their way with tax policy. Congratulations! Your brain is squeaky clean.

[mrfreeze]

Anyone who is being intellectually honest about tax cuts knows that they are intended to line the pockets of the wealthy. If they really worked, why isn't the top 5% "trickling down" its wealthy to the rest of us? Tax cuts are nice in theory.

[bayside]

Cant prop up the old corrupt system ,it is still corrupt. It has to come all the way down and honest people build it back up..Good luck with that.

[Mike Barden]

Geeeeeeeeeeeeeeze, i'm doin' the best i can.

[research]

keynes is correct: Spending directly on people will revive the economy,

even if many of the jobs fail to produce any positive result.

It's still better than WAR, which we know revives economies.

[MJinCanada]

It also depends on where you are in the war. Ask an elderly European about the "revived" economy they faced during and after WWII and they will recall a strong sense of community but no money or luxuries. I've seen the ration cards my Dad's English cousin got, and I've heard from my father-in-law about how lucky he was to get a decent job and even a motorcycle after the war. There were only two other vehicles on their street.

If you really think about it, all war time spending goes up in smoke or gets buried in a grave.