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Jumat, 06 Januari 2012

Where would New Hampshire be without government aid?


They love their liberty, in New Hampshire, and hate their government. Where Iowa is socially conservative, New Hampshire is libertarian. Maybe not Ron Paul-crazy libertarian, but it's still the "Live Free or Die" state, the state of low taxes, guns, and a general aversion to, well, law.

Must be some kind of free market paradise, eh? What good could government ever do? Well:

New Hampshire, scene of the upcoming GOP presidential primary, seems like the perfect illustration of the Republican low-tax philosophy. With no state income tax and one of the lightest tax burdens in the U.S., New Hampshire enjoys an 8.3% poverty rate, the lowest in the country, and an unemployment rate of only 5.2% as of November, far below the national rate.

But here's a surprise: The "Live Free or Die" State, having lost much of its manufacturing base, seems to be thriving mostly on a steady diet of government spending and public jobs. For one, government employment in New Hampshire is up 14% since 2000, compared to 6% for the country as a whole.

What's more, real personal income growth in New Hampshire over the past decade has been driven almost entirely by government spending. Here's how it breaks down: From 2000 to 2010, real personal income in the state rose by $4.6 billion, in 2005 dollars. Out of that, $3 billion, or 66%, came from the growth of government transfer payments such as Medicare, Medicaid, and Social Security. Another $1.4 trillion, or 31%, came from increased wages and benefits to government employees (numbers are rounded and in 2005 dollars).

In other words, 97% of real personal income growth in New Hampshire from 2000 to 2010 came from government transfer payments and government jobs. 

Not that you'll hear any of this from the Republicans on hand to preach free market absolutism, talk up their beloved "makers" and "job creators" of the private sector, and pander to the anti-government prejudices of their local constituency, of course.

Can't have the truth interfering with their lies. How would they be able to scare up votes if people knew what was really going on?

Jumat, 16 Desember 2011

Democrats capitulate to Republican demands, Congress averts government shutdown


Last night, Congress reached a deal on a massive spending bill that will, among other things, keep the federal government running:

Retreating from their harsh partisan sniping, and perhaps fearing public rebuke, Congressional leaders said Thursday that they had agreed on a large-scale spending measure to keep the government running for the next nine months.

But an accord on extending a payroll tax holiday set to expire at the end of the month remained elusive, with Democrats weighing a possible short-term extension, setting the stage for another fight with Republicans over how to pay for it.  

And there's the problem, or at least the most glaring problem.

President Obama and (presumably) Democrats on Capitol Hill wanted to offset the extension of the payroll tax holiday, which would benefit 160 million workers, by imposing a surtax on income over $1 million, that is, on millionaires. Republicans love tax cuts but, plutocrats that they are, opposed any such tax increase on the wealthy. (Their priority is tax cuts for the wealthy, not tax cuts for everyone else.)

Instead of fighting for the tax cuts for 160 million people, though, Democrats capitulated, taking the surtax off the table and thereby giving up their main bargaining chip.

The spending bill will go through, but, needless to say, the payroll tax holiday battle will continue, with the GOP now holding the upper hand. Democrats are reportedly "considering a plan that would find savings in other ways, including fees on the federal housing finance agencies, and could seek to end certain deductions and other tax benefits for millionaires," but, with Democrats committed to the payroll tax holiday extension, it looks like Republicans will be able to get what they want out of this: not a surtax on millionaires and nothing else that would in any way increase the tax "burden" on millionaires but spending cuts of some kind.

How the hell did this happen? Over to you, Charles Pierce:

Oh, they have made a day of it. First, the pillars of Jell-O in the Senate roll over on the itty-bitty surtax they wanted to lay on the plutocrats to pay for a payroll tax cut for the rest of us. Then, the president announces that he's not going to veto after all the bill in which 400 years of Western jurisprudence is pretty much torn to ribbons and tossed to the wind, albeit slightly less deeply into the wind than the original monstrosity would have liked. And, finally, Ron Wyden of Oregon steps forward to give cover to zombie-eyed granny-starver Paul Ryan's latest attempt to "reform" Medicare in the same way that Arthur (Bomber) Harris "reformed" the building codes in Dresden. It's a Very Special Holiday Episode of the long-running hit comedy, Ah, Who Gives a Fk Anyway?

This is an outrage. This is borderline sociopathic. This is so gloriously suicidal that I keep waiting for an angel to come down from heaven to show David Plouffe and Harry Reid what Washington would be like if they'd never been born.

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It cannot be emphasized enough. Of the three issues under discussion, the polling data on two of them simply could not be clearer. The American people want taxes raised on the very wealthiest among us, and the American people do not want Paul Ryan's clammy hands anywhere near the Medicare program. Public opinion is (distressingly) ambivalent on the detainee provisions, but it's not overly popular with the people who have to implement it, and it has retired Marine generals throwing bricks at it, and, dammit, the president taught constitutional law, or so we are told repeatedly.

None of these "compromises" will solve a single one of the country's critical problems. None of these "compromises" will create a single job. All they will do is toss away almost every one of the major political advantages the Democratic party has going into the 2012 elections. My god, six months ago, Paul Ryan was a squawking albatross around his party's neck. (Remember how he said he'd "given up fear for Lent," and then proceeded to start charging people a fee to come to his town meetings, and setting the cops on constituents who showed up at his office while he was on vacation? Ah, thim was the days.) The "Ryan Plan" was well on its way to being an anchor. Now, thanks to the Democrats, and to a preposterously compliant elite political press, Ryan's rehabilitation is nearly complete. Nice work, fellas.

Here's a tip, gang: The American people are not angry at government because people yell at each other and nothing ever gets done. The American people are angry because people yell at each other and nothing the American people really want ever gets done. They want higher taxes on billionaires. They want Medicare kept out of the hands of the vandals. If they think about it a little, they even like their jurisprudence with a little habeas corpus sprinkled on top. Instead, they get endless platitudes, and the steady, futile placating of an insatiable political opposition.

Yes, well done. (And brilliantly put, Mr. Pierce.) Democrats willingly relinquish the advantage, to the extent they ever really had it, on winning issues (both in policy and electoral terms), and, while the government stays open, we end up with a convoluted appropriations bill that is heavily Republican.

Yeah, Merry fucking Christmas.

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I'm with my friend Libby on this: "I understand the need for pragmatic compromise. But this isn't compromise, it's the same devious cave-in to placate the plutocrats. It's not only spineless, it's stupid. I'm really sick of stupid."

Unfortunately, stupid is all we've got.