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Robert Reich

Robert Reich

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Paul Ryan's Plan, the Coming Shutdown, and What's Really at Stake

Posted: 04/ 5/11 11:41 PM ET

I was there in 1995 when the government closed because of a budget stalemate. I had to tell most of the Labor Department's 15,600 employees to go home and not return the next day. I also had to tell them I didn't know when they'd next get a paycheck.

There were two shutdowns, actually, rolling across the government in close succession, like thunder storms.

It's not the way to do the public's business.

Newt Gingrich got blamed largely because his ego was (and is) so big he couldn't stop blabbing that Clinton should be blamed. (Gingrich's complaint of a bad seat on Air Force One didn't help.)

But the larger loss was to the dignity and credibility of the United States government. When average Americans saw the Speaker of the House and the President of the United States behaving like nursery school children unable to get along, it only added to the prevailing cynicism.

Cynicism about government works to the Republicans' continued advantage.

Case in point: House Budget Chair Paul Ryan unveiled a plan today that should make every American cringe. It would turn Medicare into vouchers whose benefits are funneled into the pockets of private insurers. It would make Medicaid and Food Stamps into block grants that allow states to ignore poor people altogether. It would drastically cut funding for schools, roads, and much else Americans need. And many of the plan's savings would go to wealthy Americans who'd pay even lower taxes than they do today.

Ryan's plan has no chance of passage -- as long as Democrats are still in control of the Senate (even Democratic deficit hawks like Kent Conrad and Ben Nelson are appalled by it) and the White House.

But this so-called "blueprint" could be a blueprint for America's future when and if right-wing Republicans take charge.

Which is where the cynicism comes in -- and the shutdowns. Republicans may get blamed now. But if the shutdowns contribute to the belief among Americans that government doesn't work, Republicans win over the long term. As with the rise of the Tea Partiers, the initiative shifts to those who essentially want to close it down for good.

That's why it's so important that the President have something more to say to the American people than "I want to cut spending, too, but the Republican cuts go too far." The "going too far" argument is no match for a worldview that says government is the central problem to begin with.

Obama must show America that the basic choice is between two fundamental views of this nation. Either we're all in this together, or we're a bunch of individuals who happen to live within these borders and are mainly on their own.

This has been the basic choice all along -- when the Founding Fathers wrote the Constitution, in the Civil War, when we went through World War I and World War II and the Great Depression in between, during the Civil Rights movement and beyond.

The president needs to remind us that as members of the same society we have obligations to one another -- that the wealthiest among us must pay their fair share of taxes, that any of us who loses our jobs or homes or gets terribly sick can count on the rest of us, and that we have collective obligations to our elderly, our children, and the rest of the planet.

This is why we have government. And anyone who wants to shut it down or cut it down because they say we can't afford it any longer is plain wrong. We are the richest nation in the world, richer than we've ever been. We can afford to remain a society whose members are in it together.

Robert Reich is the author of Aftershock: The Next Economy and America's Future, now in bookstores. This post originally appeared at RobertReich.org.

 
 
 
 
 
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07:47 PM on 04/12/2011
Professor Reich is certainly correct when he says that there is enough blame to go around for the state of affairs we are in, including President Obama's blame. Why for instance, two years into his presidency has he not taken the opportunity to define to the American people who he is, what he stands for and what he thinks is the role of government in reestablishng the US as a major economic power? Certainly, as we witnessed during the Presidential campaign and during his magnificent speech in Tucson, Mr Obama has the intellect and the rhetorical power to make his thoughts on important matters clear to the country. Why is he such a shrinking violet when it comes to defining his vision of government's role in boosting the economy? Two other Presidents, FDR and JFK, had an equally daunting task in redefining government to a doubting US when the economy was in the midst of a major transition, and they found the courage to tell their countryman that the task of reigniting our economy was going to be a long and arduous one. They did not shrink from letting the average citizen or the well off citizen know that the pain and sacrifice would be equally shared (And took pains to see that it was). I think that Mr Obama must remember that it is not a President's job to be nice but to be effective.

Birddog
07:09 AM on 04/09/2011
"Even less" taxes. Cause over a damn third of their money to the feds is a trifling amount.
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Robert Turner
News? I hurt the news.
01:14 AM on 04/08/2011
As long as we're shutting down the government, why don't each of us agree to refuse to go into work on Monday. Let's shut down corporations. We our company is spending too much, especially for shareholders, who are primarilybthe corporate executives and board members, and for executive pay. Remember that executive golf outing last month?

Let's shut down our SMBs. I think our small business spends too much on capital improvements and accounting software.

Let's shut down the power plants, the grocery stores, the mines, tha manufacturing facilities... Let's see how long we get away with that.
03:36 AM on 04/08/2011
Not happening. Corporations are people, except they are not potty trained and get away with it. And if you shut down people, police (these are people too) will come looking for you to shut you down. So forget this warped logic and get back to work on Monday.
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Allen Jenkins
Virtual Ferroequinologist
10:40 PM on 04/07/2011
Robert, I am sorry to here you had to let any workers public or private go.

Your anger is revealed as you called the behaviour of the Speaker of the House of Representatives as well as the President of the United States...."school children" because of their immature responses to each other...I feel your pain.

But, you have well foretold the possibility of the Republican strategy actually working and it is...

A little irritation was shown in the media when it was revealed(via public records) of the large corporations getting not only tax breaks, but in the case of General Electric a $3.8B refund...

But nobody, not even the right/conservatives have revealed that General Electric will build the largest solar paned manufacturing facility in the world right here in the United States of America.

A $6B manufacturing plant that will bring employees from every direction & pay them well so they can pay appropriate taxes....that is the model Republicans have talked about.

Yes, Congress has approved appropriate tax deductions as a valid way of satisfying a tax-debt, but GE of course is using the tax-breaks our government gives for 'green technology.'

Manufacturing frivolous taxes would prevent investment in all our future.
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10:18 PM on 04/07/2011
I wonder if some corporations are eager for the shutdown, to capitalize on the situation by dodging annoying safety and environmental regulations while nobody is minding the store. You can bet on it. It is a time for reporters to do some real reporting.

Continued GOP attempts to gut the power of the people with attacks on unions, public schools, and a 75 year legacy of legislative progress, will, I believe, send the tea baggers packing and the GOP into obscurity for the next decade.
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rossor
Groovy ... just groovy.
01:38 PM on 05/20/2011
Not going to happen, even if some enterprising reporter wanted to. Our corporate-owned media have gutted their newsrooms, and the skeleton staffs remaining are busy writing obits and five paragraph articles attempting to analyze city budgets.

Yikes. We are sooooo screwed.
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oceanye
defy evil; enhance logic
08:45 PM on 04/07/2011
Of course Reich is correct - yet the MSM (a huge percentage of which is corporate owned or controlled) never mention who will make the money from the shutdown.

MONEY CONTROLS ALL.
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bessielil
trying to organize hummingbirds
06:57 PM on 04/07/2011
This is the speech Obama needs to deliver. He needed to deliver it over a year ago. Where is he? His measured, contemplative ways aren't working during these crisis situations.
09:19 PM on 04/07/2011
Contemplative ways? Way too much credit. The guy uses pollsters.

You know, I heard Clinton at a 2012 pep rally for a Senator. He gave the most beautiful speech, the speech Obama should have given, explaining the disillusionment of the American people because economic recovery was just not proceeding fast enough to relieve them. And so forth. He gave a speech that would have ensured the re-election of every Democrat running. Not to mention, a speech that also explained "Obamacare" so clearly that you would have voted for the damn thing if you were a Bagger.

You know, I'm tired of waiting for Obama to say the words. He climaxed in his campaign run and since then, we've been played for fools. We need a leader. We also need a leader who has an actual vision of a better life for all of us, and a path forward so that we can make our delayed entry into the 21st century.
11:28 AM on 04/08/2011
I agree, it's very very disappointing. He does not seem to feel it necessary to discuss or explain anything.
06:31 PM on 04/07/2011
Geez, Mr. Reich, with views like this: "Obama must show America that the basic choice is between two fundamental views of this nation. Either we're all in this together, or we're a bunch of individuals who happen to live within these borders and are mainly on their own." and this: "...that as members of the same society we have obligations to one another -- that the wealthiest among us must pay their fair share of taxes, that any of us who loses our jobs or homes or gets terribly sick can count on the rest of us, and that we have collective obligations to our elderly, our children, and the rest of the planet." Mr Reich, do you really believe you can persuade Mr. Obama that it is his job to PRESIDE?

All the world has failed at that so far. Good luck.
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06:17 PM on 04/07/2011
As a progressive liberal, I hope the govt. shuts down and it is painful for many. If the Republicans are not blamed, then it proves the Teaparty has won, and there's no hope for the US. Why put it off, except to allow people like me to liquidate as many hard assets as possible before the tea party drags down the entire country. Let's have it out this next week. Shut down the government and shut it all down now.
11:57 AM on 04/08/2011
Fortunately for you, Reich, and us all, should Democrats get blamed then the country may go about the business of saving itself from unproductive wealth-sucking bureaucrats and proceed to save the poor through honest work and charity. The failure of progressive liberals to account for the economic drag inherent in bureaucracy can't alter the reality that the visible hand of free markets saves by comparison.
05:12 PM on 04/07/2011
Robert Reich is right on.
'The president needs to remind us that as members of the same society we have obligations to one another -- that the wealthiest among us must pay their fair share of taxes, that any of us who loses our jobs or homes or gets terribly sick can count on the rest of us, and that we have collective obligations to our elderly, our children, and the rest of the planet.'
Are you listening, Mr.President?
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Herkv
Caught in a loop . . .
02:05 PM on 04/07/2011
Insofar as the wealthy paying their fair share: What is the fair share of people who have leveraged and gamed a system to steal from it? They don't call 'em robber barons for nothing. Those who think they own the money because they stole it fair and square should simply have to give it back.

When a CEO can hire and fire the board that sets his salary, there's a spanner in the works.
When bank loan officers can pump out reams of trash loans and make huge amounts in commissions with no recourse when the loans go south and they can't even be prosecuted, something's rotten in Denmark.
When Senators can crush unions while their own $176,000 salaries, tax exemptions, and health care plans go untouched, the ghost in the machine gets angry.
When the GOP begins a take-no-prisoners strategy to force the passing of laws, even illegally if necessary, and the Dems are still trying to compromise with them, someone needs to take a serious look at how government is done. And it's not done best by a corporatocracy, a plurocracy, or fascism.
01:01 PM on 04/07/2011
What a fabulous and eloquent article. We are in this together. We are a nation. I cannot imagine a more important message for Obama to deliver.

I'm not saying I'd place a penny bet on hearing it. I'm just saying that Reich's American vision should be the entire premise of government. And it should never be forgotten that it's the bedrock platform of the Democratic Party.
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sanityisneeded
No one said it was going to be easy.
10:04 AM on 04/07/2011
The Republicans didn't offer a plan for healthcare when they were in power, the Dems have not offered a plan for reducing the deficit. They rely on Obamacare to reduce costs and then levy additional taxes - many hidden in energy taxes, etc which are not easy to quantify. Obama and Congress was in the hands of the Dems last year and could have easily enacted a 2011 budget which was due on 1 Oct last year. Government and businesses needed to know what their budget was back then. Shame on them for now saying they want to retain an inflated budget designed to help us out of a depression rather than go back to a level of funding with inflation that was in effect before the depression. Shame on them for not offering a budget designed to reduce the deficit. At least Ryan made an attempt which is more than the cowardly act of not funding the government last year rather than making it a crisis and now complaining about it. Until we get Congress operating to the benefit of all, we are in trouble - they should be able to compromise for the benefit of all Americans and get off their political agendas. There are 46% of Americans not paying taxes and relying on the top 2% to pay the bills is not enough. We need strong tax reform to make the rich/corporations pay their fair share and all should contribute. We need an efficient government, not more
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timm0
It's impossible to have too many malasadas.
11:26 AM on 04/07/2011
My son is 17 and made $3,000 washing dishes, therefore not paying taxes. So he's part of the 46% who are the problem. He's the bad guy while the billionaire paying an effective rate of 15% is the hero who is holding the government together.

Got it. I really I had no idea that was it. I should take him to the woodshed tonight for his crimes against humanity.... I knew that boy was trouble!

What we need are people paying their fair share, not less under some mythical, continuously disproved theory that jobs and middle class riches spring from the keester of the wealthy man.

What we need is to leave Iraq and Afghanistan to fend for themselves. After all, one of the reasons the budget deficit is so large now is because Obama put the cost of the wars which bush was hiding, officially on the books. Slash that cost and MASSIVE savings are immediately recognized.
01:12 PM on 04/07/2011
My mentally-ill sister and her teen-age son live on a food budget of $20 a week before she got food stamps. So she was also a big part of that 46% ruining our economy and even worse than your son. Thank god she finally landed minimum-wage job where she's actually been able to hold on to for more than two months. I hope her taxes make her pay back every nickle of what she owes SanityIsNeeded and the rest of us.

That blogger just didn't understand Reich's article. That we are all in this together.
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oceanye
defy evil; enhance logic
08:54 PM on 04/07/2011
Maybe the MSM should report what you say here? Never a word. Wonder why?

MONEY CONTROLS. faved.
12:33 PM on 04/07/2011
Agreed 100%!!
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07:31 AM on 04/07/2011
Beautiful well written article. Robert Reich has managed to maintain an overview reflecting wisdom.
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bitterindependent
I didn't leave the party -- it left me.
04:22 AM on 04/07/2011
most of paul ryan's numbers ARE NOT REAL........some experts have even called his calculations MAGICAL!!!!
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Coyote50
"Taxes are the price we pay for civilization."
02:05 PM on 04/07/2011
I love how he says we'll get unemployment down to 2.8% - never been done, never will be done. Just like when Bush said his tax cuts for the wealthy would produce 6 million jobs. That worked out well.
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bitterindependent
I didn't leave the party -- it left me.
03:09 PM on 04/07/2011
Neo Conservatives don't get it.......in this internet age, someone is gonna eventually niff out a lie.......