“Out-Of-Control Spending” Isn’t One Of Our Many Problems

Jonathan Chait, writing for New York Magazine, commented on a bizarre story that appeared in Sunday’s Washington Post. Chait said the story (“After six budget showdowns, big government is mostly unchanged“) was,

one of the weirdest, and most weirdly biased, news articles I’ve ever read in my life. 

The writer of the Post story is David Fahrenthold, who, as the paper tells us, “covers Congress for the Washington Post.” That would lead one to believe that Fahrenthold is a genuine news reporter, not a columnist or an editorial writer.

But as Chait points out, it is hard to tell that the Post story was written by an objective journalist, since it seems to push a Tea Party message that “government is not shrinking” and it is “really, really big.” I strongly urge you to read Chait’s piece, but I will post here a couple of graphs he used (similar to others I have used on this blog) to demonstrate why government is in fact getting smaller and why it is not as big as you might think:

This graph represents the federal workforce as a percentage of U.S. population. It speaks for itself. No one can seriously argue that, in terms of the size of the federal workforce, that government is getting bigger.

This second graph comes from the Center on Budget and Policy Priorities:

U.S. Government Spends Less than Most Other Developed Countries

The article from the CBPP addresses the misleading meme, spread by right-wing government-shrinking radicals, that “government spending in the United States is 41 percent of gross domestic product (GDP).” As with all statistics, a little context is in order, which the CBPP article provides. To summarize slightly:

♦ That 41 percent number comes from the Organisation for Cooperation and Development (OECD) and which reflects “spending by all levels of government,” federal, state and local, with local governments spending about one-third of the total.

♦ The OECD uses a system of measurement developed for the United Nations, which significantly differs from measurements made by the federal government via the Commerce Department’s Bureau of Economic Analysis (that explains the difference between the dark blue and light blue lines on the graph). The United Nations’ measurement includes, for instance, “the entire cost of running the public-university system, not just what legislators appropriate to supplement students’ tuition payments.”

♦ The year the 41 percent figure is derived (2011) “exaggerates the situation”:

Automatic increases in safety-net programs like unemployment insurance andfood stamps, plus recovery measures that Congress enacted, pushed up the numerator (spending), even as a slumping economy squeezed the denominator (GDP).  This happened in other countries, too.

♦ The CPBB notes that government spending is decreasing and that “the Congressional Budget Office projects that federal spending will continue to decline through mid-decade as a percent of GDP.”

♦ Finally, the CPBB makes two more important points that anyone interested in this stuff should know:

First, this doesn’t mean that government controls about 40 percent of the U.S. economy.  The bulk of government spending goes for payments to individuals through transfer programs such as Social Security, and most of the goods and services that people buy with these payments are privately produced.

Second, government spending in the United States — by the OECD’s broad measure—remains about 2 ½ percent of GDP below the OECD average, and about 8 percent below the average level among countries that have adopted the euro.  While the United States faces plenty of long-run fiscal challenges, out-of-control spending today isn’t one of them.

The Shade Tree

Now the LORD God had planted a garden in the east, in Eden; and there he put the man he had formed. The LORD God made all kinds of trees grow out of the ground—trees that were pleasing to the eye and good for food. In the middle of the garden were the tree of life and the tree of the knowledge of good and evil.”

—Genesis 2:8,9

 

At the end of ABC’s This Week last Sunday, which was a “Great American Debate” with the resolution that “There’s Too Much Government In My Life,” George Will summed up his case in favor of the resolution: 

…I think big government harms prosperity. It harms prosperity by allocating resources not in terms of efficiency, but in terms of political power that directs the allocation. I think big government harms freedom, because it is an enormous tree in the shade of which the smaller institutions of civil society cannot prosper. And most of all, big government today harms equality. It harms equality because, by concentrating power in Washington, in big government, it makes itself susceptible to the rent-seeking by big, muscular interest groups. The only people who can come to Washington and bend the government to private purposes.

Get the government out of our lives more and more, and you’ll find that freedom and the market allocations of wealth and opportunity prevails.

Jefferson understood—Jefferson understood that you can have a government with minimal attention to the absolute essentials we have talked about. Of course, we want government to build roads, we want government to defend the shores, we want the government to deliver the mail. But after it does the essentials, understand what Ronald Reagan did. When Ronald Reagan said we’re going to have less government—under Reagan, respect for government, something we all want, respect for government rose as government’s role declined.

Now, there are several things wrong with what Will said (especially that erroneous claim about Ronald Reagan), even as he expressed very well the traditional, mainstream conservative arguments against big government, which contradict some of the extremists in the Tea Party and elsewherethat don’t necessarily even want the government to build roads or deliver the mail. 

But I want to focus on what appears to be the heart of his argument, as expressed by his shade tree metaphor, which does echo much of what teapartiers say today about Barack Obama and his mythical attack on our liberties: 

I think big government harms freedom, because it is an enormous tree in the shade of which the smaller institutions of civil society cannot prosper. 

Let’s look at that metaphor a little more closely because it illustrates the difference between conservatives and liberals quite well. 

I write this in the middle of the Arizona desert, where the sun in all its glory can be quite harmful, not to mention deadly. In the summertime, without shade, it is relentlessly efficient in its ability to scorch skin and earth. And there is a relentless efficiency in the laissez-faire approach that, much like the desert sun, would harm its potential beneficiaries, if there is no relief, no shade tree to thwart that sometimes destructive efficiency.

And that is what government does, or at least should do: Provide some shade from a relentless and necessary power source, a source without which we can’t live but with which we must take precautions to keep it from wilting us, or worse, from searing our civilization. So, there are those of us who welcome such a large shade tree, and we know there are species—”smaller institutions of civil society“— that can thrive—indeed, can only thrive—under its beneficence. 

Obviously, there are activities that can only be done in the sun, out from under the blessings of government’s penumbra. But in order to fully enjoy and benefit from those activities, we need to know that the tree of government—of “we the people”—is there when we, the people, need some civilization-saving relief from a withering sun. 

And that is, thanks to George Wills’ metaphor, a good accounting of the difference between those of us who call ourselves liberals, who see the value in a big shade tree, and those who call themselves conservatives, who do not. 

Remarks And Asides

See if you can figure out where this quote came from:

…our history has shown us that we need government regulation in order to protect our citizens and resources.

The talk of getting rid of government is getting tiring. Government may seem faceless, but it really is made up of us. It is only as good as our participation in it.

Was it The Erstwhile Conservative?  Or maybe some wild-eyed writer for The Nation?  How about Sen. Bernie Sanders or maybe Nancy Pelosi?

Nope.  It was, dear readers, the editorial page of the Joplin Globe speaking (last Sunday).  And after a couple of years of criticizing the paper for some bad editorial decisions, I am here to praise it for, if nothing else, recognizing the compelling need to state the obvious to its mostly-conservative readership.

______________________________________

Democrats are touting the results of some recent polling that indicates they have a chance to take back the House next year…Republicans are meanwhile measuring the chambers to see if Jim DeMint’s post-2012-election head will have breathing room in a GOP-controlled Senate… A Tea Party group, apparently not speaking for God, told Michele Bachmann to quite her race to become the last man standing in the Republican primary…Rick Perry is thinking about pulling a Palin and quitting the GOP debates..Herman Cain, so in tune with the times, says guvmint shouldn’t help the kids go to college…Hillary Clinton is now the favorite to become president next year…A “centrist” group called Americans Elect claims it will run a third-party candidate in all 50 states next year and it will not get very many votes which proves that America is a “centrist” country, right? Right?

_______________________________________

Finally, and seriously, most of us liberals kind of have a suspicion that veterans, especially Marines, sort of lean to the conservative side of things, but what happened in Oakland has caused quite a stir. From mediabistro.com:

Marines have been flocking to the social networking/aggregator site Reddit to voice their anger at the life-threatening injury inflicted on 24-year-old Iraqi war veteran Scott Olsen by Oakland police during the recent Occupy protests. Video showed Olsen go down after taking a tear gas canister to the head. As fellow protesters tried to assist him, police lobbed a flash grenade into their midst–right next to Olsen’s already fractured skull.

The picture above, submitted by Reddit user aburger, has generated well over 1,000 comments on the site–many from fellow Marines who are absolutely livid at the injury to one of their own by police.

Uh-oh.

Cut, Cap, and Kill

“The Cut, Cap and Balance plan that the House will vote on next week is a solid plan for moving forward. Let’s get through that vote, and then we’ll make decisions about what will come after.”

— John Boehner, July 15, 2011

“Next week” is here. 

Tomorrow, Republicans in the House of Representatives will vote on and pass HR 2560, The Cut, Cap, and Balance Act of 2011, the latest gimmick the GOP has concocted to keep its attack on the New Deal and the Great Society alive and well.

Now, no one seriously believes this bill will come within a Limbaugh butt cheek of passing. After all, the bill,

Requires the passage of a Balanced Budget Amendment before raising the nation’s debt limit.

As they say out here in the hinterlands, that aint gonna happen.

So, while the country is begging for something to be done about jobs, the House is taking up valuable legislating time with this nonsense.  Why?  

The conventional wisdom has it that the futile vote is designed  to give hard-headed teapartiers in the House a political reach-around, to eventually soften them up so GOP leadership can push through the Mitch McConnell compromise on the debt ceiling increase.  Republican leadership is hearing from the business community and Wall Street about the calamitous effects of defaulting, and they are listening.

But I believe there is more going on here than giving the Ozark Billy Long’s in the House a feel-good day in D.C.  It is also about selling this dangerous elixir to the public in 2012.

The Cut, Cap, and Balance Act is barely dry behind the legislation ears. It was dreamed up in June of this year by the Republican Study Committee, which its website describes as:

…a group of over 175 House Republicans organized for the purpose of advancing a conservative social and economic agenda in the House of Representatives. The Republican Study Committee is dedicated to a limited and Constitutional role for the federal government, a strong national defense, the protection of individual and property rights, and the preservation of traditional family values.

In other words, the RSC is the voice of the Tea Party extremists in the House.  Area members include, of course, Missouri Representatives Billy Long and Vicki Hartzler, as well as Kansas Rep. Lynn Jenkins and Arkansas Rep. Steve Womack.

The basis for the RSC’s adoption of the draconian Cut, Cap, and Balance Act seems to be the conviction that the public supports the idea. I extracted the following from a summary of the bill I found on the RSC’s website:

In an On Message, Inc. survey of 1,000 likely voters nationwide, large majorities support: 

Cutting next year’s deficit in half through spending cuts. (Favored 69%-20%) 

Capping federal spending to no more than 18% of GDP. (Favored 66%-17%) 

A Balanced Budget Amendment to the Constitution. (Favored 81%-13%) 

The survey also found that Americans support a supermajority requirement to raise taxes (Favored 60%-30%).

Thus, the Cut, Cap, and Balance Act was designed to and would essentially do all those things, were it to become law.  

Now, the “survey” conducted by On Message, Inc –a campaign consultant firm that specializes in electing Tea Party Republicans—is what it is, whatever it is. But there can be no doubt that there is considerable angst among the hoi polloi regarding our debt situation. That’s understandable, given all that Republicans, using consultants like On Message, have done to scare the public.

And having sufficiently scared the public, conservative Republicans sense it is time to mount their final assault on Big Government, using, oddly enough, the public to justify and support its dirty work, a public that benefits in so many ways from the size of our government, as a lot of folks in Joplin have discovered recently.

It is true that the Cut, Cap, and Balance Act technically exempts Social Security and Medicare (but not Medicaid) from budget cuts—which is how the bill is being sold—but as the Center on Budget and Policy Priorities points out,

The legislation would inexorably subject Social Security and Medicare to deep reductions.

The reason it would is that the massive cuts in other parts of the budget necessary to meet mandatory spending caps would cripple “key government functions.” Thus, politicians would have to make cuts to Medicare and Social Security to keep those other key government functions alive.

But more important for those most vulnerable in our society is this, from CBPP:

Adding to the extreme nature of the measure, the legislation also reverses a feature of every law of the past quarter-century that has contained a fiscal target or standard enforced by across-the-board cuts.  Since the Gramm-Rudman-Hollings law of 1985, all such laws have exempted the core basic assistance programs for the poorest Americans from such across-the-board cuts.  “Cut, Cap, and Balance,” by contrast, specifically subjects all such programs to across-the-board cuts if its spending caps would be exceeded.

It is an ingenious scheme, the Cut, Cap, and Balance Act. It uses the considerable debt-angst Republicans have ginned up to accomplish something that conservatives have yearned for since November of 1980, when the radical Ronald Reagan was first elected. 

The Act’s mandatory caps and the supermajority provision to prevent tax increases, especially on the wealthy, would essentially shrink government to a size small enough that Grover Norquist could indeed drown it, and the poor and the working class, in his bathtub.

And despite the fact the Act is doomed to fail this year, Republicans intend on using it as a bludgeon to pummel Democrats next year, as the GOP attempts once again to convince anxious Americans to vote against their own economic interests and elect representatives of the moneyed class.

More than anything, that’s what the vote tomorrow is about.

America: A Center-Left Country

The latest Wall Street Journal/NBC News poll, unfortunately for Republican budget-slashers, teacher-bashers and union-trashers, indicates the following:

           Positive Feelings Toward:  Negative Feelings Toward:

Teachers                        73%                                  10%

Teachers’ unions            47%                                  30%

Public Employee unions  38%                                  34%

Labor Unions                  38%                                  36%

 

Government should do more:   Government doing too much:

                       51%                                      46%

 

Top issue for government to address:

Job creation and economic growth  56%

Deficit and government spending….40%

Health care…………………………………..   28%

National Security and terrorism……. 20%

Energy and the cost of gas………….  20%

Iraq and Afghanistan……………………  13%

 

Tea Party Supporter?

    Yep:  29%     Nope: 61%

Favor right to collective bargaining for public employees?

    Yep: 77%      Nope: 19%

Cut Medicaid to reduce the deficit? 

    Nope: 67%    Yep: 32%

Cut Medicare to reduce the deficit?

    Nope: 76%    Yep: 23%

Cut Social Security to reduce the deficit?

    Nope: 77%    Yep: 22%

Cut K thru 12 education to reduce the deficit?

    Nope: 77%    Yep: 22%

Cut unemployment insurance? 

    Nope: 55%     Yep: 43%

Raise income taxes on millionaires? 

    Yep: 81%       Nope: 17%

Eliminate tax credits for oil and gas industry?

    Yep: 74%       Nope: 22%

Reduce Medicare and Social Security benefits for wealthy?

    Yep: 62%      Nope: 37%

Eliminate funding for Planned Parenthood?

    Nope 53%     Yep  45%

Judging by the chutzpah of Wisconsin and Ohio and Indiana Republicans—a Wisconsin GOP Senator has referred to the protesters in the Capitol building as “slobs” and “a different breed“— one would think that public employee unions, including teachers’ unions, were hated by a strong majority of Americans. Nope.

Judging by the chutzpah of national Republicans—cutting spending and cutting taxes—one would think that a strong majority of Americans were pining for a smaller government, for government to do less. Not so.

This is a center-left country, as I have said repeatedly.

Killing Social Security and Medicare, One Speech At A Time

I watched Glenn Beck’s speech at CPAC this past weekend.  I am the first to admit that he is quite good at what he does. The man has talent.  Forever forecasting inevitable tribulation, he is like a gifted evangelist who writes books and sermonizes, warning us of the doom to come.  And like most gifted evangelists, he profits from his prophesying, making God-like money as he points the way through the apocalypse.

His latest speech—a continuation of a theme he has been hawking for a while now—contained his diagnosis of our sickly condition:  “progressivism is the disease in America.”

He preached:

Progressivism is the cancer in America and it is eating our Constitution. And it was designed to eat the Constitution. To progress past the Constitution.

Comparing progressives to Communists, he explained there is a small difference between the two: Communists of old desired revolution; progressives, being more patient, were and continue to be willing to wait for things to evolve.  But the goals are the same: trash the Constitution and turn America into a “big government,” “socialist utopia.”

Okay.  So far, there’s nothing unusual about that pew-stirring rhetoric, sold to acne-tortured, college-age Republicans at CPAC and the more mature, meat-loving mobs that buy Beck’s books and watch his hysterical television show.

But I have begun to notice something happening on the right.  The straw poll at CPAC went this year to Ron Paul, not exactly a friend to some of Beck’s crazy ideas, but certainly a supporter of the anti-government philosophy that serves as a foundation for conservative thought.  Paul, to orgasmic applause, said:

Government is the enemy of liberty!

The fire was barely out at the IRS building in Texas—where Joseph Stack took seriously words like Paul uttered—and speakers at CPAC were using words like “enemy” to describe the government and violent metaphors to describe what Americans should do about its growth. 

Minnesota Governor Tim Pawlenty, who is moving to the right at brakeless Toyota speed, said Americans should “take a 9 iron and smash the windows out of big government in this country!

Of course, such talk is hyperbole.  I get that.  But what is happening among a growing group on the right is that people are starting to take seriously the idea of dismantling big government programs like Social Security and Medicare. 

Beck said:

It is big government – it’s a socialist utopia. And we need to address it as if it is a cancer. It must be cut out of the system because they cannot co-exist. And you don’t cure cancer by – well, I’m just going to give you a little bit of cancer. You must eradicate it. It cannot co-exist. And we need big thinkers, and brave people with spines who can make the case – that can actually say to Americans: look it’s going to be hard – it’s going to be hard but it’s going to be okay. We’re going to make it.

Now, what could he be talking about?  The subsidy for public television? The Department of Commerce?  No. Big government, especially since most conservatives exclude the Defense Department from budget cuts, has to mean Social Security and Medicare.

He continues:

We believe in the right of the individual. We believe in the right, you can speak out, you can disagree with me, you can make your own path. But I’m not going to pay for your mistakes, and I don’t expect you to pay for my mistakes. We’re all going to make them, but we all have the right to move down that road. What we don’t have a right to is: health care, housing, or handouts. We don’t have those rights.

Rep. Michele Bachmann, another CPAC speaker and trusted ally of Glenn Beck, has advocated “weaning” as a means of reducing the size of government.  A few weeks ago in St. Louis she said:

We’re $14 trillion in debt, but that doesn’t include the unfunded massive liabilities. That’s $107 trillion, and that’s for Social Security and Medicare and all the rest. You add up all those unfunded net liabilities, and all the traps that could go wrong we’re on the hook for, and what it means is what we have to do is a reorganization of all of that, Social Security and all… So, what you have to do, is keep faith with the people that are already in the system, that don’t have any other options, we have to keep faith with them. But basically what we have to do is wean everybody else off. And wean everybody off because we have to take those unfunded net liabilities off our bank sheet, we can’t do it. So we just have to be straight with people.

So, she is saying do away with Social Security and Medicare, after those in the present system are finished.  At least she is being more honest than usual.  And such honesty is being forced upon Republicans, as they are no longer getting away with screaming for deficit reduction and tax cuts without specifying spending reductions.

Rep. Paul Ryan, the GOP’s budget guru in the House, has offered a privatization plan for Social Security and Medicare and has at least nine co-sponsors.

One of those co-sponsors, Rep. Jeb Hensarling, appeared on Chris Matthews recently:

 

It appears that Republicans are becoming so emboldened by the Tea Party movement that some of them are now willing to talk openly about ripping out or seriously reducing the effectiveness of the social safety net that serves so many Americans. 

And if Democrats let them get away with it, then one day Republicans will have their way.