The REAL causes of the deficit

With Republicans claiming to be deficit hawks and frugality champions, it seems to be time to take a look at this chart from the Center on Budget and Policy Priorities showing the true causes of the deficit.

Background: Remember, the Republicans oppose the extension of unemployment ($34 billion) because it's bad for the deficit. But they support an extension of the Bush tax cuts ($678 billion), even though they're worse for the deficit. they also support an extension of subsidies to the billion-dollar-profit-making oil industry, to the tune of $4 billion a year.

But the deficit is all Obama's fault because of the stimulus and TARP. Just ask any Republican, they'll tell you. Never mind that TARP was started under President Bush and TARP saved the whole blanking economy.

The lower black line is where the deficit would be today without the wars in Afghanistan and Iraq, the Bush-era tax cuts, TARP, and the Fannie and Freddie bailouts, the stimulus and the economic downturn.

Notice the culprits. In order, the Bush tax cuts are the biggest deficit problem we have. Second is the Bush economic downturn. Third are the on-going wars in Iraq and Afghanistan. TARP and stimulus - which have been credited with saving the economy - are far down the list.

But the GOP are concerned about the deficit. Right.

If we're truly going to talk defiict, let's look at the U.S. military budget. In 2009, military spending was $782 billion, 23% of our deficit-riddled budget. click the link and look at the projects we're funding. We're still building a Cold War military to fight 21st century battles. It's wasteful. And why? Because Congress's power is unchecked and connected politicians are able to strike deals saving outmoded bases and projects in their districts.

If we're serious about cutting the deficit, we have to look at military spending. Actually, first we have to get serious and stop any talk of the Bush tax cuts, which go to the wealthiest Americans who need it least. Cutting the funds that go directly to boost our moribund economy, unemployment and stimulus, is stupid, short-sighted and will have almost no impact on our deficit.

Chart: Hullabaloo via Cesca

Reconciliation schmeckinciliation

MSNBC

Republicans argue that reconciliation is a partisan tactic that would limit their ability to offer amendments and limit debate to 20 hours in what's considered "the world's most deliberative body." They also say it's inappropriate to use a fast-track budget process to craft health care policy.

But Democrats are quick to point out that the process has been used by both parties — more than 20 times since 1980 — on things like tax cuts, student loan programs, children's health insurance, and welfare reform.

"They should stop crying about reconciliation as if it's never been done before," Reid said last week. "It's done almost every Congress, and they're the ones that used it more than anyone else."

This is why Democrats suck: they don't frame issues well.

They're letting the GOP frame this issue as "Democrats going to extraordinary lengths to ram health care through". And the Democratic response is "well, you did it too".

While that is true, that's not the issue. The issue is that the GOP has turned the Senate from a body that operates on majority rule to a body that needs a supermajority of 60 votes to get anything done. That was NOT the intent of the Framers. The intention was that 1 vote more than half would pass legislation.

The filibuster is being used as a parliamentary tactic (superbly, I might add) to stop passage of anything that might reflect positively on this president. They're paralyzing the nation to score political hits.

Why the Democrats have not noted this - the fact that the Republicans are trying to change the rules of the Senate to require 60 votes for almost anything - is beyond me.

It used to be that to filibuster, one has to have continuous floor speeches until and unless cloture is invoked. Now, it's not necessary - which is ridiculous. If you're going to stop the business of the country, you should at least have to hold your pee for it. Here's the big unless...the Senate Majority Leader may require an actual traditional filibuster if he or she so chooses. That's always an option.

On the subject of reconciliation (and liars), Paul Krugman contributes this:

So, on the This Week panel today I didn’t get a chance to weigh in on the biggest whopper from Sen. Lamar Alexander, who told Elizabeth Vargas that reconciliation — I don’t have the exact transcript — had in the past been used for small things and “to reduce the deficit”.

In fact, reconciliation was used to pass the two major Bush tax cuts, which increased the deficit — by $1.8 trillion.

And there’s no penalty for this kind of deception.

Update: Brad DeLong has the transcript, including my final lament.

Here's Rachel Maddow taking on the latest lie regarding reconciliation. How do we allow these Republicans to lie and contradict their own statements and votes.



Then there's Jim Bunning, the retiring senator from Kentucky who used to pitch for the Phillies and is likely suffering from some form of dementia (I'm not joking). He decided to throw a hissy-fit and... let's let Jon explain. My only reaction is: if a Democrat did this, the outrage would be legendary. THIS is why Democrats suck. Bunning got a way with this and the very serious media was never forced to deal with it.

Krugman: Fear mongering on the deficit

Paul Krugman

...the sudden outbreak of deficit hysteria brings back memories of the groupthink that took hold during the run-up to the Iraq war. Now, as then, dubious allegations, not backed by hard evidence, are being reported as if they have been established beyond a shadow of a doubt. Now, as then, much of the political and media establishments have bought into the notion that we must take drastic action quickly, even though there hasn’t been any new information to justify this sudden urgency. Now, as then, those who challenge the prevailing narrative, no matter how strong their case and no matter how solid their background, are being marginalized.
And fear-mongering on the deficit may end up doing as much harm as the fear-mongering on weapons of mass destruction.

Of course, each and every Republican voted against raising the debt ceiling. Now remember, from 1995-2007 the Republican-controlled Congress voted eight times to raise the debt ceiling. But not this time. Because they think their voters are idiots who can't remember anything prior to January 20, 2009.

They might be right, actually.