Don’t Fall for the GOP Lie

Don’t fall for the GOP lie: There is no budget crisis. There’s a job and growth crisis.

By Robert Reich, Robert Reich’s Blog

Don’t fall for the GOP lie: There is no budget crisis. There’s a job and growth crisis.

“A friend who’s been watching the absurd machinations in Congress asked me “what happens if we don’t solve the budget crisis and we run out of money to pay the nation’s bills?”

It was only then I realized how effective Republicans lies have been. That we’re calling it a “budget crisis” and worrying that if we don’t “solve” it we can’t pay our nation’s bills is testament to how successful Republicans have been distorting the truth.

The federal budget deficit has no economic relationship to the debt limit. Republicans have linked the two, and the Administration has played along, but they are entirely separate. Republicans are using what would otherwise be a routine, legally technical vote to raise the debt limit as a means of holding the nation hostage to their own political goal of shrinking the size of the federal government.

In economic terms, we will not “run out of money” next week. We’re still the richest nation in the world, and the Federal Reserve has unlimited capacity to print money.

Nor is there any economic imperative to reach an agreement on how to fix the budget deficit by Tuesday. It’s not even clear the federal budget needs that much fixing anyway.

Yes, the ratio of the national debt to the total economy is high relative to what it’s been. But it’s not nearly as high as it was after World War II – when it reached 120 percent of the economy’s total output.

If and when the economy begins to grow faster – if more Americans get jobs, and we move toward a full recovery – the debt/GDP ratio will fall, as it did in the 1950s, and as it does in every solid recovery. Revenues will pour into the Treasury, and much of the current “budget crisis” will be evaporate.

Get it? We’re really in a “jobs and growth” crisis – not a budget crisis.

And the best way to get jobs and growth back is for the federal government to spend more right now, not less – for example, by exempting the first $20,000 of income from payroll taxes this year and next, recreating a WPA and Civilian Conservation Corps, creating an infrastructure bank, providing tax incentives for small businesses to hire, expanding the Earned Income Tax Credit, and so on.

But what happens next week if Congress can’t or won’t deliver the President a bill to raise the debt ceiling? Remember: This is all politics, mixed in with legal technicalities. Economics has nothing to do with it.

One possibility, therefore, is for the Treasury to keep paying the nation’s bills regardless. It would continue to issue Treasury bills, which are our nation’s IOUs. When those IOUs are cashed at the Federal Reserve Board, the Fed would do what it has always done: Honor them.

How long could this go on without the debt ceiling being lifted? That’s a legal question. Republicans in Congress could mount a legal challenge, but no court in its right mind would stop the Fed from honoring the full faith and credit of the United States.

The wild card is what the three big credit-rating agencies will do. As long as the Fed keeps honoring the nation’s IOUs, America’s credit should be deemed sound. We’re not Greece or Portugal, after all. We’ll still be the richest nation in the world, whose currency is the basis for most business transactions in the world.

Standard & Poor’s has warned it will downgrade the nation’s debt from a triple-A to a double-A rating if we don’t tend to the long-term deficit. But, as I’ve noted, S&P has no business meddling in American politics – especially since its own non-feasance was partly responsible for the current size of the federal debt (had it done its job the debt and housing bubbles wouldn’t have precipitated the terrible recession, and the federal outlays it required).

As long as we pay our debts on time, our global creditors should be satisfied. And if they’re satisfied, S&P, Moody’s, and Fitch should be, too.

Repeat after me: The federal deficit is not the nation’s biggest problem. The anemic recovery, huge unemployment, falling wages, and declining home prices are bigger problems. We don’t have a budget crisis. We have a jobs and growth crisis.

The GOP has manufactured a budget crisis out of the Republicans’ extortionate demands over raising the debt limit. They have succeeded in hoodwinking the public, including my friend.”


Robert Reich is Chancellor’s Professor of Public Policy at the University of California at Berkeley. He has served in three national administrations, most recently as secretary of labor under President Bill Clinton. He has written thirteen books, including “The Work of Nations,” “Locked in the Cabinet,” “Supercapitalism” and his latest book, “AFTERSHOCK: The Next Economy and America’s Future.” His ‘Marketplace’ commentaries can be found on publicradio.com and iTunes.

Emphasis mine

see:http://www.readersupportednews.org/opinion2/277-75/6813-dont-fall-for-the-gop-lie

Ten things the GOP Doesn’t want you to know about the debt!

the inconvenient truth that the nation’s mounting debt is largely attributable to wars, a recession and tax policies put in place under his party’s watch.

From perspectives see:http://www.perrspectives.com/blog/archives/002215.htm

(N.B.: the author of this blog observes that the correct way to describe the results under each POTUS administration is to add the qualifying word ‘administration’  (and perhaps the definite article ‘the’) to each usage, e.g.: the Clinton administration – the POTUS signs laws passed by both houses.)

“Just two weeks after he seconded Treasury Secretary Tim Geithner’s dire warnings about the August 2 deadline to raise the U.S debt ceiling, House Majority LeaderEric Cantor walked out of the budget talks aimed at reaching a bipartisan compromise over deficit reduction. Like Arizona GOP Senator Jon Kyl, Cantor shifted the burden to Speaker John Boehner, Senate Minority Mitch McConnell and President Obama to “get over this impasse on taxes.”

For his part, McConnell promised that no deal to end the GOP’s hostage taking of the U.S. economy will include tax hikes. But while McConnell boasted that “If they couldn’t raise taxes when they owned the government, you know they can’t get it done now,” left unsaid was the inconvenient truth that the nation’s mounting debt is largely attributable to wars, a recession and tax policies put in place under his party’s watch.

Here, then, are 10 things the GOP doesn’t want you to know about the debt:

  1. Republican Leaders Agree U.S. Default Would Be a “Financial Disaster”
  2. Ronald Reagan Tripled the National Debt
  3. George W. Bush Doubled the National Debt
  4. Republicans Voted Seven Times to Raise Debt Ceiling for President Bush
  5. Federal Taxes Are Now at a 60 Year Low
  6. Bush Tax Cuts Didn’t Pay for Themselves or Spur “Job Creators”
  7. Ryan Budget Delivers Another Tax Cut Windfall for Wealthy
  8. Ryan Budget Will Require Raising Debt Ceiling – Repeatedly
  9. Tax Cuts Drive the Next Decade of Debt
  10. $3 Trillion Tab for Unfunded Wars Remains Unpaid

1. Republican Leaders Agree U.S. Default Would Be a “Financial Disaster”
Senator Pat Toomey (R-PA), Rep. Michele Bachmann (R-MN) and White House hopeful Tim Pawlenty are among the GOP luminaries who have joined the ranks of what Dana Milbank called the “default deniers.” But you don’t have to take Treasury Secretary Timothy Geithner’s word for it “that if Congress doesn’t agree to an increase in the debt limit by August 2, the United States will be forced to default on its debt, potentially spreading panic and collapse across the globe.” As it turns out, Republican leaders (and their big business backers) have said the same thing.

In their few moments of candor, Republican leaders expressed agreement with Tim Geithner’s assessment that default by the U.S. “would have a catastrophic economic impact that would be felt by every American.” The specter of a global financial cataclysm has been described as resulting in “severe harm” (McCain economic adviser Mark Zandi), “financial collapse and calamity throughout the world” (Senator Lindsey Graham) and “you can’t not raise the debt ceiling” (House Budget Committee Chairman Paul Ryan). In January, even Speaker John Boehner acknowledged as much:

“That would be a financial disaster, not only for our country but for the worldwide economy. Remember, the American people on election day said, ‘we want to cut spending and we want to create jobs.’ And you can’t create jobs if you default on the federal debt.”

2. Ronald Reagan Tripled the National Debt
Among the Republicans who prophesied the default doomsday scenario was none other than conservative patron saint, Ronald Reagan. As he warned Congress in November 1983:

“The full consequences of a default — or even the serious prospect of default — by the United States are impossible to predict and awesome to contemplate. Denigration of the full faith and credit of the United States would have substantial effects on the domestic financial markets and the value of the dollar.”

Reagan knew what he was talking about. (N.B. Really?  Only by accident). After all, the hemorrhage of red ink at the U.S. Treasury was his doing.

As most analysts predicted, Reagan’s massive $749 billion supply-side tax cuts in 1981 quickly produced even more massive annual budget deficits. Combined with his rapid increase in defense spending, Reagan delivered not the balanced budgets he promised, but record-setting debt. Even his OMB alchemist David Stockman could not obscure the disaster with his famous “rosy scenarios.”

Forced to raise taxes eleven times to avert financial catastrophe, the Gipper nonetheless presided over a tripling of the American national debt to nearly $3 trillion. By the time he left office in 1989, Ronald Reagan more than equaled the entire debt burden produced by the previous 200 years of American history. It’s no wonder Stockman lamented last year:

[The] debt explosion has resulted not from big spending by the Democrats, but instead the Republican Party’s embrace, about three decades ago, of the insidious doctrine that deficits don’t matter if they result from tax cuts.”

It’s no wonder the Gipper cited the skyrocketing deficits he bequeathed to America as his greatest regret.

3. George W. Bush Doubled the National Debt
Following in Reagan’s footsteps, George W. Bush buried the myth of Republican fiscal discipline.

Inheriting a federal budget in the black and CBO forecast for a $5.6 trillion surplus over 10 years, President George W. Bush quickly set about dismantling the progress made under Bill Clinton. Bush’s $1.4 trillion tax cut in 2001, followed by a $550 billion second round in 2003, accounted for the bulk of the yawning budget deficits he produced. (It is more than a little ironic that Paul Ryan ten years ago called the tax cuts “too small” because he believed the estimated surplus Bush eviscerated would be even larger.)

Like Reagan and Stockman before him, Bush resorted to the rosy scenario to claim he would halve the budget deficit by 2009. Before the financial system meltdown last fall, Bush’s deficit already reached $490 billion. (And even before the passage of the Wall Street bailout, Bush had presided over a $4 trillion increase in the national debt, a staggering 71% jump.) By January 2009, the mind-numbing deficit figure reached $1.2 trillion, forcing President Bush to raise the debt ceiling to $11.3 trillion.

4. Republicans Voted Seven Times to Raise Debt Ceiling for President Bush
“Reagan,” Vice President Dick Cheney famously declared in 2002, “proved deficits don’t matter.” Not, that is, unless a Democrat is in the White House.

As Donny Shaw documented in January 2010, Republican intransigence on the debt ceiling only began in earnest when Bush left the White House for good.

The Republicans haven’t always been against increasing the federal debt ceiling. This is the first time in recent history (the past decade or so) that no Republican has voted for the increase. In fact, on most of the ten other votes to increase the federal debt limit that the Senate has taken since 1997, the Republicans provided the majority of the votes in favor.

As it turns out, Republican majorities voted to raise the U.S. debt ceiling seven times while George W. Bush sat in the Oval Office. (It should be noted, as Ezra Kleindid, that party-line votes on debt ceiling increases tied to other legislation is not solely the province of the GOP.) As ThinkProgress pointed out, during the Bush presidency, the current GOP leadership team voted 19 times to increase debt limit. During his tenure, the U.S. national debt doubled, fueled by the Bush tax cuts of 2001 and 2003, the Medicare prescription drug plan and the unfunded wars in Iraq and Afghanistan. And Mitch McConnell and John Boehner voted for all of it and the debt which ensued because, as Orrin Hatch later explained:

“It was standard practice not to pay for things.”

5. Federal Taxes Now at a 60 Year Low
Even as Vice President Biden leads bipartisan negotiations to trim at least $1 trillion from the national debt, Republican leaders faithfully regurgitate the refrain that tax increases are “off the table.” In one form or another, Mitch McConnell, Eric Cantor and just about every other conservative mouthpiece parroted Speaker John Boehner’s line that:

“Medicare, Medicaid – everything should be on the table, except raising taxes.”

Which purely by the numbers (if not ideology) is an odd position to take. After all, as a percentage of the U.S. economy, the total federal tax bite hasn’t been this low in 60 years.

As the chart representing President Obama’s 2012 budget proposal above reflects, the American tax burden hasn’t been this low in generations. Thanks to the combination of the Bush Recession and the latest Obama tax cuts, the AP reported, “as a share of the nation’s economy, Uncle Sam’s take this year will be the lowest since 1950, when the Korean War was just getting under way.” In January, the Congressional Budget Office (CBO) explained that “revenues would be just under 15 percent of GDP; levels that low have not been seen since 1950.” That finding echoed an earlier analysis from the Bureau of Economic Analysis. Last April, the Center on Budget and Policy Priorities concluded, “Middle-income Americans are now paying federal taxes at or near historically low levels, according to the latest available data.” As USA Today reported last May, the BEA data debunked yet another right-wing myth:

Federal, state and local taxes — including income, property, sales and other taxes — consumed 9.2% of all personal income in 2009, the lowest rate since 1950, the Bureau of Economic Analysis reports. That rate is far below the historic average of 12% for the last half-century. The overall tax burden hit bottom in December at 8.8% of income before rising slightly in the first three months of 2010.“The idea that taxes are high right now is pretty much nuts,” says Michael Ettlinger, head of economic policy at the liberal Center for American Progress.

Or as former Reagan Treasury official Bruce Bartlett explained it this week the New York Times:

In short, by the broadest measure of the tax rate, the current level is unusually low and has been for some time. Revenues were 14.9 percent of G.D.P. in both 2009 and 2010. Yet if one listens to Republicans, one would think that taxes have never been higher, that an excessive tax burden is the most important constraint holding back economic growth and that a big tax cut is exactly what the economy needs to get growing again.

6. Bush Tax Cuts Didn’t Pay for Themselves or Spur “Job Creators”
That Republican intransigence persists despite the complete debunking of two of the GOP’s favorite myths.

The first tried and untrue Republican talking point is that “tax cuts pay for themselves.” Sadly, that right-wing mythmaking is belied by the massive Bush deficits, half of which (as the CBPP chart in section 3 above shows} were the result of the Bush tax cuts themselves. As a percentage of the American economy, tax revenues peaked in 2000; that is, before the Bush tax cuts of 2001 and 2003. Despite President Bush’s bogus claim that “You cut taxes and the tax revenues increase,” Uncle Sam’s cash flow from individual income taxes did not return to its pre-dot com bust level until 2006.

The second GOP fairy tale, as expressed by Speaker Boehner, is that “The top one percent of wage earners in the United States…pay forty percent of the income taxes…The people he’s {President Obama] is talking about taxing are the very people that we expect to reinvest in our economy.”

If so, the Republican’s so-called “Job Creators” failed to meet those expectations under George W. Bush. After all, the last time the top tax rate was 39.6% during the Clinton administration, the United States enjoyed rising incomes, 23 million new jobs and budget surpluses. Under Bush? Not so much.

On January 9, 2009, the Republican-friendly Wall Street Journal summed it up with an article titled simply, “Bush on Jobs: the Worst Track Record on Record.” (The Journal’s interactive table quantifies his staggering failure relative to every post-World War II president.) The dismal 3 million jobs created under President Bush didn’t merely pale in comparison to the 23 million produced during Bill Clinton’s tenure. In September 2009, the Congressional Joint Economic Committee charted Bush’s job creation disaster, the worst since Hoover:

As David Leonhardt of the New York Times aptly concluded last year:

Those tax cuts passed in 2001 amid big promises about what they would do for the economy. What followed? The decade with the slowest average annual growth since World War II. Amazingly, that statement is true even if you forget about the Great Recession and simply look at 2001-7.

7. Ryan Budget Delivers Another Tax Cut Windfall for Wealthy
Looking at that dismal performance, Leonhardt rightly asked, “Why should we believe that extending the Bush tax cuts will provide a big lift to growth?” At a time ofrecord income inequality which saw the incomes of the richest 400 Americans taxpayers double even as their tax rates were halved, that’s a fair question to say the least.

For Paul Ryan and the Republican Party, the answer is simple: because we said so.

As Ezra KleinPaul Krugman and Steve Benen among others noted, the House Republicans “Plan for America’s Job Creators” is simply a repackaging of years of previous proposals and GOP bromides. (As Klein pointed out, the 10 page document “looks like the staffer in charge forgot the assignment was due on Thursday rather than Friday, and so cranked the font up to 24 and began dumping clip art to pad out the plan.”) At the center of it is the same plan from the Ryan House budget passed in April to cut the top individual and corporate tax rates to 25%.

The price tag for the Republican proposal is a jaw-dropping $4.2 trillion. And as Matthew Yglesias explained, earlier analyses of similar proposals in Ryan’s Roadmap reveal that working Americans would have to pick up the tab left unpaid by upper-income households:

This is an important element of Ryan’s original “roadmap” plan that’s never gotten the attention it deserves. But according to a Center for Tax Justice analysis (PDF), even though Ryan features large aggregate tax cuts, ninety percent of Americans would actually pay higher taxes under his plan.In other words, it wasn’t just cuts in middle class benefits in order to cut taxes on the rich. It was cuts in middle class benefits and middle class tax hikes in order to cut taxes on the rich. It’ll be interesting to see if the House Republicans formally introduce such a plan and if so how many people will vote for it.

We now know the answer: 235 House Republicans and 40 GOP Senators.

8. Ryan Budget Will Require Raising Debt Ceiling – Repeatedly
Largely overlooked in the media coverage of the Republican debt ceiling hostage drama is this: those 235 House Republicans and 40 GOP Senators who supported Paul Ryan’s 2012 budget bill voted to add $6 trillion to the U.S. national debt over the next decade. And that means, as Speaker John Boehner acknowledged, Republicans now and in the future would have to increase the debt ceiling – repeatedly.

Of course, you’d never know that based on the incendiary rhetoric from the leading lights of the Republican Party and their right-wing echo chamber. Senator Rand Paul(R-KY) said his vote to bump up the debt ceiling would come at the cost of a balanced budget amendment to the Constitution, “the last time we’re doing it.” His South Carolina colleague Jim Demint threatened to filibuster the increase, even if it meant the GOP’s “Waterloo.” The number two House Republican Eric Cantor (R-VA) regurgitated that line, telling Democrats the GOP “will not grant their request for a debt limit increase” without major spending cuts or budget process reforms.” For his part, House Budget Committee Chairman Paul Ryan insisted, “We won’t raise, just simply raise, the debt limit,” adding, “We will vote to have spending cuts and controls in conjunction with the debt limit increase.” As giddy right-wing bloggers like Patterico described the right-wing’s scorched earth strategy:

If Republicans are going to vote to raise the debt ceiling — and not to do so will indeed cause financial chaos — they have to extract concessions sufficient that they can credibly say: this is the last such vote we will ever have to have.

Sadly, as Ezra Klein of the Washington Post explained last month, “Republicans can’t meet their own deficit and spending targets.” The Ryan plan to privatize Medicare, slash and convert Medicaid into block grants, and deliver another tax-cut windfall for the wealthy nevertheless “blows through both their spending and debt caps”:

House Republicans voted to make the Ryan budget law. But the Ryan budget includes $6 trillion in new debt over the next 10 years, which means that to become law, the Ryan budget would require a substantial increase in the debt ceiling. But before the Republicans agree to increase the debt ceiling so that the budget they passed can become law, Republicans are demanding the passage of either a balanced budget amendment that would make the Ryan budget unconstitutional or a spending cap that the Ryan budget would, in certain years (and if you’re using more realistic numbers, in all years), exceed.

It’s no wonder Klein’s Washington Post colleague Matt Miller deemed the Republican budgetary horror story “The Shining – National Debt Edition” before concluding that Boehner’s “awe-inspiring hypocrisy on the debt limit” is one of those moments of “political behavior that can only be dubbed Super-Duper Hypocrisy So Brazen They Must Really Think We’re Idiots.”

9. Tax Cuts Drive the Next Decade of Debt
“President Obama’s agenda, ambitious as it may be, is responsible for only a sliver of the deficits, despite what many of his Republican critics are saying,” the New York Times’ David Leonhardt explained in 2009, adding, “The economic growth under George W. Bush did not generate nearly enough tax revenue to pay for his agenda, which included tax cuts, the Iraq war, and Medicare prescription drug coverage.” That fall, former Reagan Treasury official Bruce Bartlett offered just that kind of honesty to the born again deficit virgins of his Republican Party. Noting that the FY2009 deficit of $1.4 trillion was solely due to lower tax revenues and not increased spending, Bartlett concluded:

“I think there are grounds on which to criticize the Obama administration’s anti-recession actions. But spending too much is not one of them. Indeed, based on this analysis, it is pretty obvious that spending – real spending on things like public works – has been grossly inadequate. The idea that Reagan-style tax cuts would have done anything is just nuts.”

Which is exactly right. Thanks to the steep recession, as the Congressional Budget Office (CBO) and others have documented time and again, the overall federal tax burden as a percentage of GDP is now down to levels not seen since Harry Truman was in the White House. (The two-year tax cut compromise in December didn’t help any, adding $400 billion to the deficit this year and next.) But is the Bush tax cuts themselves, which Republicans want to make permanent and then (as the Ryan budget mandates) lower further, which account for much of the revenue drain into the future.

As a recent analysis by the Center on Budget and Policy Priorities showed, over the next decade the Bush tax cuts account for more of the nation’s debt than Iraq, Afghanistan, TARP, the stimulus, and revenue lost to the recession combined:

10. $3 Trillion Tab for Unfunded Wars Remains Unpaid
Over the next ten years, the costs of America’s wars in Iraq and Afghanistan will decline as the U.S. commitments there come to an end. But almost ten years, 6,000 U.S. dead and over a trillion dollars after the attacks of September 11, it’s time to pay for our wars.

In May, the National Journal estimated that the total cost to the U.S. economy of the war against Al Qaeda will reach $3 trillion. In 2008, Nobel Prize-winning economistJoseph Stiglitz put the price of the Iraq conflict alone at $3 trillion.

But by 2020 and beyond, the direct cost to U.S. taxpayers could reach $3 trillion. In March, the Congressional Research Service put the total cost of the wars at $1.28 trillion, including $806 billion for Iraq and $444 billion for Afghanistan. For the 2012 fiscal year which begins on October 1, President Obama asked for $117 billion more. (That war-fighting funding is over and above Secretary Gates’ $553 billion Pentagon budget request for next year.)

But in addition to the roughly $1.5 trillion tally for both conflicts through the theoretical 2014 American draw down date in Afghanistan, the U.S. faces staggering bills for veterans’ health care and disability benefits. Last May, an analysis by the Center for American Progress estimated the total projected total cost of Iraq and Afghanistan veterans’ health care and disability could reach between $422 billion to $717 billion. Reconstruction aid and other development assistance represent tens of billions more, as does the additional interest on the national debt. And none of the above counts the expanded funding for the new Department of Homeland Security.

But that two-plus trillion dollar tab doesn’t account for the expansion of the United States military since the start of the “global war on terror.” As a percentage of the American economy, defense spending jumped from 3.1% in 2001 to 4.8% last year. While ThinkProgress noted that the Pentagon’s FY 2012 ask is “the largest request ever since World War II,” McClatchy explained:

Such a boost would mark the 14th year in a row that Pentagon spending has increased, despite the waning U.S. presence in Iraq. In dollars, Pentagon spending has more than doubled in 10 years. Even adjusted for inflation, the Defense Department budget has risen 65% in the past decade.

Even as the World Trade Center site was still smoldering, Republicans insisted Al Qaeda represented an existential threat to the United States. President Bush repeatedly compared 9/11 to Pearl Harbor and his war on terror to World War II. But he never asked Americans to join the military or sacrifice at home. Instead, Bush told us to go shopping and “get down to Disney World.”

From a public policy standpoint, post-9/11 America in no way resembles FDR’s response to Pearl Harbor. George W. Bush was the first modern president to cut taxes during wartime. Barack Obama was the second.

Its time, as Bernie SandersAl Franken and the Congressional Progressive Caucus each proposed, to begin paying for the unfunded conflicts fought in our name.”

Emphasis Mine

The Recovery Act

The American Recovery and Reinvestment Act of 2009 — President Obama’s $787 billion stimulus — has been marketed as a jobs bill, and that’s how it’s been judged. The White House says it has saved or created about 3 million jobs, helping avoid a depression and end a recession. Republicans mock it as a Big Government boondoggle that has failed to prevent rampant unemployment despite a massive expansion of the deficit. Liberals complain that it wasn’t massive enough.

It’s an interesting debate. Politically, it’s awkward to argue that things would have been even worse without the stimulus, even though that’s what most nonpartisan economists believe. But the battle over the Recovery Act’s short-term rescue has obscured its more enduring mission: a long-term push to change the country. It was about jobs, sure, but also about fighting oil addiction and global warming, transforming health care and education, and building a competitive 21st century economy. Some Republicans have called it an under-the-radar scramble to advance Obama’s agenda — and they’ve got a point. (See TIME’s special report “The Green Design 100.”)

Yes, the stimulus has cut taxes for 95% of working Americans, bailed out every state, hustled record amounts of unemployment benefits and other aid to struggling families and funded more than 100,000 projects to upgrade roads, subways, schools, airports, military bases and much more. But in the words of Vice President Joe Biden, Obama’s effusive Recovery Act point man, “Now the fun stuff starts!” The “fun stuff,” about one-sixth of the total cost, is an all-out effort to exploit the crisis to make green energy, green building and green transportation real; launch green manufacturing industries; computerize a pen-and-paper health system; promote data-driven school reforms; and ramp up the research of the future. “This is a chance to do something big, man!” Biden said during a 90-minute interview with TIME.

For starters, the Recovery Act is the most ambitious energy legislation in history, converting the Energy Department into the world’s largest venture-capital fund. It’s pouring $90 billion into clean energy, including unprecedented investments in a smart grid; energy efficiency; electric cars; renewable power from the sun, wind and earth; cleaner coal; advanced biofuels; and factories to manufacture green stuff in the U.S. The act will also triple the number of smart electric meters in our homes, quadruple the number of hybrids in the federal auto fleet and finance far-out energy research through a new government incubator modeled after the Pentagon agency that fathered the Internet. (See TIME’s special report “After One Year, A Stimulus Report Card.”)

The only stimulus energy program that’s gotten much attention so far — chiefly because it got off to a slow start — is a $5 billion effort to weatherize homes. But the Recovery Act’s line items represent the first steps to a low-carbon economy. “It will leverage a very different energy future,” says Kristin Mayes, the Republican chair of Arizona’s utility commission. “It really moves us toward a tipping point.” (Watch a video “TIME Polls America: Spend or Cut?”)

The stimulus is also stocked with nonenergy game changers, like a tenfold increase in funding to expand access to broadband and an effort to sequence more than 2,300 complete human genomes — when only 34 were sequenced with all previous aid. There’s $8 billion for a high-speed passenger rail network, the boldest federal transportation initiative since the interstate highways. There’s $4.35 billion in Race to the Top grants to promote accountability in public schools, perhaps the most significant federal education initiative ever — it’s already prompted 35 states and the District of Columbia to adopt reforms to qualify for the cash. There’s $20 billion to move health records into the digital age, which should reduce redundant tests, dangerous drug interactions and errors caused by doctors with chicken-scratch handwriting. Health and Human Services Secretary Kathleen Sebelius calls that initiative the foundation for Obama’s health care reform and “maybe the single biggest component in improving quality and lowering costs.” (Comment on this story.)

Any of those programs would have been a revolution in its own right. “We’ve seen more reform in the last year than we’ve seen in decades, and we haven’t spent a dime yet,” says Education Secretary Arne Duncan. “It’s staggering how the Recovery Act is driving change.” See TIME’s interactive “The Economy’s Toughest Task.”

That was the point. Critics have complained that while the New Deal left behind iconic monuments — courthouses, parks, the Lincoln Tunnel, the Grand Coulee Dam — this New New Deal will leave a mundane legacy of sewage plants, repaved roads, bus repairs and caulked windows. In fact, it will create new icons too: solar arrays, zero-energy border stations, an eco-friendly Coast Guard headquarters, an “advanced synchrotron light source” in a New York lab. But its main legacy will be change. The stimulus passed just a month after Obama’s inauguration, but it may be his signature effort to reshape America — as well as its government. (See pictures of Barack Obama behind the scenes on Inauguration Day.)

“Let’s Just Go Build It!”
After Obama’s election, Depression scholar Christina Romer delivered a freak-out briefing to his transition team, warning that to avoid a 1930s-style collapse, Washington needed to pump at least $800 billion into the frozen economy — and fast. “We were in a tailspin,” recalls Romer, who is about to step down as chair of Obama’s Council of Economic Advisers. “I was completely sympathetic to the idea that we shouldn’t just dig ditches and fill them in. But saving the economy had to be paramount.” Obama’s economists argued for tax cuts and income transfers to get cash circulating quickly, emergency aid to states to prevent layoffs of cops and teachers and off-the-shelf highway projects to put people to work. They wanted a textbook Keynesian response to an economy in cardiac arrest: adding money to existing programs via existing formulas or handing it to governors, seniors and first-time home buyers. They weren’t keen to reinvent the wheel.

But Obama and Biden also saw a golden opportunity to address priorities; they emphasized shovel-worthy as well as shovel-ready. Biden recalls brainstorming with Obama about an all-in push for a smarter electrical grid that would reduce blackouts, promote renewables and give families more control over their energy diet: “We said, ‘God, wouldn’t it be wonderful? Why don’t we invest $100 billion? Let’s just go build it!’ ”

It wasn’t that easy. Utilities control the grid, and new wires create thorny not-in-my-backyard zoning issues; there wasn’t $100 billion worth of remotely shovel-ready grid projects. It’s hard to transform on a timeline, and some congressional Democrats were less interested in transforming government than growing it. For instance, after securing $100 billion for traditional education programs, House Appropriations Committee chairman Dave Obey tried to stop any of it from going to Race to the Top, which is unpopular with teachers’ unions.

Ultimately, even Obama’s speed focused economists agreed that stimulus spending shouldn’t dry up in 2010. And some Democrats were serious about investing wisely, not just spending more. So House Speaker Nancy Pelosi insisted on $17 billion for research. House Education and Labor Committee chairman George Miller fought to save Race to the Top. And while the grid didn’t get a $100 billion reinvention, it did get $11 billion after decades of neglect, which could shape trillions of dollars in future utility investments. (See 10 big recession surprises.)

It takes time to set up new programs, but now money is flowing to deliver high-speed Internet to rural areas, spread successful quit-smoking programs and design the first high-speed rail link from Tampa to Orlando. And deep in the Energy Department’s basement — in a room dubbed the dungeon — a former McKinsey & Co. partner named Matt Rogers has created a government version of Silicon Valley’s Sand Hill Road, blasting billions of dollars into clean-energy projects through a slew of oversubscribed grant programs. “The idea is to transform the entire energy sector,” Rogers says. “What’s exciting is the way it fits all together.”

“They Won’t All Succeed”
The green industrial revolution begins with gee-whiz companies like A123 Systems of Watertown, Mass. Founded in 2001 by MIT nanotechnology geeks who landed a $100,000 federal grant, A123 grew into a global player in the lithium-ion battery market, with 1,800 employees and five factories in China. It has won $249 million to build two plants in Michigan, where it will help supply the first generation of mass-market electric cars. At least four of A123’s suppliers received stimulus money too. The Administration is also financing three of the world’s first electric-car plants, including a $529 million loan to help Fisker Automotive reopen a shuttered General Motors factory in Delaware (Biden’s home state) to build sedans powered by A123 batteries. Another A123 customer, Navistar, got cash to build electric trucks in Indiana. And since electric vehicles need juice, the stimulus will also boost the number of U.S. battery-charging stations by 3,200%.

“Without government, there’s no way we would’ve done this in the U.S.,” A123 chief technology officer Bart Riley told TIME. “But now you’re going to see the industry reach critical mass here.”

The Recovery Act’s clean-energy push is designed not only to reduce our old economy dependence on fossil fuels that broil the planet, blacken the Gulf and strengthen foreign petro-thugs but also to avoid replacing it with a new economy that is just as dependent on foreign countries for technology and manufacturing. Last year, exactly two U.S. factories made advanced batteries for electric vehicles. The stimulus will create 30 new ones, expanding U.S. production capacity from 1% of the global market to 20%, supporting half a million plug-ins and hybrids. The idea is as old as land-grant colleges: to use tax dollars as an engine of innovation. It rejects free-market purism but also the old industrial-policy approach of dumping cash into a few favored firms. Instead, the Recovery Act floods the zone, targeting a variety of energy problems and providing seed money for firms with a variety of potential solutions. The winners must attract private capital to match public dollars — A123 held an IPO to raise the required cash — and after competing for grants, they still must compete in the marketplace. “They won’t all succeed,” Rogers says. “But some will, and they’ll change the world.” (Watch TIME’s video “Google’s Energy Initiatives Director Talks Clean Power.”)

The investments extend all along the food chain. A brave new world of electric cars powered by coal plants could be dirtier than the oil-soaked status quo, so the stimulus includes an unheard-of $3.4 billion for clean-coal projects aiming to sequester or reuse carbon. There are also lucrative loan guarantees for constructing the first American nuclear plants in three decades. And after the credit crunch froze financing for green energy, stimulus cash has fueled a comeback, putting the U.S. on track to exceed Obama’s goal of doubling renewable power by 2012. The wind industry added a record 10,000 megawatts in 2009. The stimulus is also supporting the nation’s largest photovoltaic solar plant, in Florida, and what will be the world’s two largest solar thermal plants, in Arizona and California, plus thousands of solar installations on homes and buildings.

The stimulus is helping scores of manufacturers of wind turbines and solar products expand as well, but today’s grid can only handle so much wind and solar. A key problem is connecting remote wind farms to population centers, so there are billions of dollars for new transmission lines. Then there is the need to find storage capacity for when it isn’t windy or sunny outside. The current grid is like a phone system without voice mail, a just-in-time network where power is wasted if it doesn’t reach a user the moment it’s generated. That’s why the Recovery Act is funding dozens of smart-grid approaches. For instance, A123 is providing truckloads of batteries for a grid-storage project in California and recycled electric-car batteries for a similar effort in Detroit. “If we can show the utilities this stuff works,” says Riley, “it will take off on its own.”

Today, grid-scale storage, solar energy and many other green technologies are too costly to compete without subsidies. That’s why the stimulus launched the Advanced Research Projects Agency-Energy (ARPA-E), a blue-sky fund inspired by the Pentagon’s Defense Advanced Research Projects Agency (DARPA), the incubator for GPS and the M-16 rifle as well as the Internet. Located in an office building a block from the rest of the Energy Department, ARPA-E will finance energy research too risky for private funders, focusing on speculative technologies that might dramatically cut the cost of, say, carbon capture — or not. “We’re taking chances, because that’s how you put a man on the moon,” says director Arun Majumdar, a materials scientist from the University of California, Berkeley. “Our idea is it’s O.K. to fail. You think America’s pioneers never failed?”

ARPA-E is funding the new pioneers — mad scientists and engineers with ideas for wind turbines based on jet engines, bacteria to convert carbon dioxide into gasoline, and tiny molten-metal batteries to provide cheap high-voltage storage. That last idea is the brainchild of MIT’s Donald Sadoway, who already has a prototype fuel cell the size of a shot glass. The stimulus will help him create a kind of reverse aluminum smelter to make prototypes the size of a hockey puck and a pizza box. The ultimate goal is a commercial scale battery the size of a tractor trailer that could power an entire neighborhood. “We need radical breakthroughs, so we need radical experiments,” Sadoway says. “These projects send chills down the spine of the carbon world. If a few of them work, [Venezuela’s Hugo] Chávez and [Iran’s Mahmoud] Ahmadinejad are out of power.”

Then again, the easiest way to blow up the energy world would be to stop wasting so much. That’s the final link in the chain, a full-throttle push to make energy efficiency a national norm. The Recovery Act is weatherizing 250,000 homes this year. It gave homeowners rebates for energy-efficient appliances, much as the Cash for Clunkers program subsidized fuel-efficient cars. It’s retrofitting juice-sucking server farms, factories and power plants; financing research into superefficient lighting, windows and machinery; and funneling billions into state and local efficiency efforts. (See TIME’s special report “Obama’s Agenda: Get America Back on Track.”)

It will also retrofit 3 in 4 federal buildings. The U.S. government is the nation’s largest energy consumer, so this will save big money while boosting demand for geothermal heat pumps, LED lighting and other energy-saving products. “We’re so huge, we make markets,” says Bob Peck, the General Services Administration’s public-buildings commissioner. GSA’s 93-year-old headquarters, now featuring clunky window air conditioners and wires duct-taped to ceilings, will get energy optimized heating, cooling and lighting systems, glass facades with solar membranes and a green roof; the makeover should cut its energy use 55%. It might even beta-test stimulus-funded windows that harvest sunlight. “We’ll be the proving ground for innovation in the building industry,” Peck says. “It all starts with renovating the government.”

The New Venture Capitalists
The stimulus really is starting to change Washington — and not just the buildings. Every contract and lobbying contact is posted at Recovery.gov, with quarterly data detailing where the money went. A Recovery Board was created to scrutinize every dollar, with help from every major agency’s independent watchdog. And Biden has promised state and local officials answers to all stimulus questions within 24 hours. It’s a test-drive for a new approach to government: more transparent, more focused on results than compliance, not just bigger but better. Biden himself always saw the Recovery Act as a test — not only of the new Administration but of federal spending itself. He knew high-profile screwups could be fatal, stoking antigovernment anger about bureaucrats and two-car funerals. So he spends hours checking in, buttering up and banging heads to keep the stimulus on track, harassing Cabinet secretaries, governors and mayors about unspent broadband funds, weatherization delays and fishy projects. He has blocked some 260 skate parks, picnic tables and highway beautifications that flunked his what-would-your-mom-think test. “Imagine they could have proved we wasted a billion dollars,” Biden says. “Gone, man. Gone!”

So far, despite furor over cash it supposedly funneled to contraception (deleted from the bill) and phantom congressional districts (simply typos), the earmark-free Recovery Act has produced surprisingly few scandals. Prosecutors are investigating a few fraud allegations, and critics have found some goofy expenditures, like $51,500 for water-safety-mascot costumes or a $50,000 arts grant to a kinky-film house. But those are minor warts, given that unprecedented scrutiny. Biden knows it’s early — “I ain’t saying mission accomplished!” — but he calls waste and fraud “the dogs that haven’t barked.” (See 25 people to blame for the financial crisis.)

The Recovery Act’s deeper reform has been its focus on intense competition for grants instead of everybody-wins formulas, forcing public officials to consider not only whether applicants have submitted the required traffic studies and small-business hiring plans but also whether their projects make sense. Already staffed by top technologists from MIT, Duke and Intel, ARPA-E recruited 4,500 outside experts to winnow 3,700 applications down to 37 first-round grants. “We’ve taken the best and brightest from the tech world and created a venture fund — except we’re looking for returns for the country,” Majumdar says. These change agents didn’t uproot their lives to fill out forms in triplicate and shovel money by formula. They want to reinvent the economy, not just stimulate it. Sadoway, the MIT battery scientist, is tired of reporting how many jobs he’s created in his lab: “If this works, I’ll create a million jobs!”

Obama has spent most of his first term trying to clean up messes — in the Gulf of Mexico, Iraq and Afghanistan, on Wall Street and Main Street — but the details in the stimulus plan are his real down payment on change. The question is which changes will last. Will electric cars disappear after the subsidies disappear? Will advanced battery factories migrate back to China? Will bullet trains ever get built? The President wants to extend transformative programs like ARPA-E. But would they be substitutes for the status quo or just additions to tack onto the deficit? And would they survive a Republican Congress?

Polls suggest the actual contents of the Recovery Act are popular. But the idea of the stimulus itself remains toxic — and probably will as long as the recovery remains tepid. “Today, it’s judged by jobs,” Rogers says of the act. “But in 10 years, it’ll be judged by whether it transformed our economy.

See: http://www.time.com/time/nation/article/0,8599,2013683,00.html

emphasis mine

The GOP and demented politics are to Blame

assaulted by what the Nobel laureate Czeslaw Milosz described as a “fantastic proliferation of mass media.”

A light in the darkness, from Bill Moyers Journal.

In the following interview Bill Moyers and Thomas Frank, author of “What’s the Matter With Kansas” and “The Wrecking Crew,” talk about why conservatives can get away with blaming Obama for the past decade of conservative failures.

Bill Moyers: There were hands in the air in Washington this week, but it wasn’t a stickup. The new Financial Crisis Inquiry Commission, appointed by Congress to find out how America got rolled, began hearings this week. These four are not the victims of one of the greatest bank heists in history – they’re the perpetrators, bankers so sleek and crafty they got off with the loot in broad daylight, and then sweet talked the government into taxing us to pay it back.

Watching that scene on the opening day of the hearings, it was hard enough to believe that almost a year has passed since Barack Obama raised his hand, too — taking the oath of office to become our 44th President. Even harder to remember what America looked like before Obama, because we’ve also been robbed of memory, assaulted by what the Nobel laureate Czeslaw Milosz described as a “fantastic proliferation of mass media.” We live in a time “characterized by a refusal to remember.” Inconvenient facts simply disappear down the memory hole, as in George Orwell’s novel, “1984.”

President Obama’s made plenty of mistakes during his first year, and we’ve critiqued them frequently here on the JOURNAL, but hardly anyone talks any more about what happened in the years before. He inherited from George W. Bush the biggest financial debacle since the Great Depression, along with two unpopular and costly wars, and a dysfunctional

and demoralized government.

It’s important to remember those years, a time that has been characterized by the historian Thomas Frank, as “A Low, Dishonest Decade.” He’s here to talk about them with me. Thomas Frank is editor of the recently relaunched BAFFLER magazine, a literary journal; a contributing editor of HARPER’S; a weekly columnist for THE WALL STREET JOURNAL; and the author of ONE MARKET UNDER GOD, the bestselling WHAT’S THE MATTER WITH KANSAS? and his latest bestseller, THE WRECKING CREW, now out in paperback. Good to have you back.

THOMAS FRANK: It’s my pleasure, Bill.

BILL MOYERS: How is it that the people who are responsible for the mess that Obama inherited are getting away with demonizing him when he’s only had less than a year to clean it up. Let me show you just a sample of commentators railing against the President.

RUSH LIMBAUGH: President Obama and the Democrats are destroying the US economy. They are purposefully doing it, I believe.

GLENN BECK: This is a well-thought out plan to collapse the economy as we know it.

JONATHAN HOENIG: The president has, I think if you listen to what he says, a hatred for capitalism. Where do jobs come from? They don’t come from the government, they come from the profit seeking self-interest, from what I hear and see, the President never misses an opportunity to smear and [no audio] slap!

RUSH LIMBAUGH: This guy is a coward. He does not have the gonads or the spine to even stand up and accept what he’s doing! All of this is his doing. He cannot even probably say, you should like this — you may not like this, but I’m telling you it’s the best thing for you, it’s the best thing for me. No! He knows it’s a disaster, he has to slough this off, on his previous– or his predecessor, the previous administration.

SEAN HANNITY: It’s his stimulus. It’s his record deficit spending. He quadrupled the debt in a year. You know, how many more are the Democrats going to say, “Well, it’s George Bush’s fault”? This is Obama’s economy now.

BILL MOYERS: What goes through your mind as a historian when you watch that?

THOMAS FRANK: Well, that is America for you. I mean, that is the, sort of the demented logic of our politics. Is that now– Obama’s been President for a year. And he will come before the public in the fall, you know, having to defend all of these terrible things. That’s how our politics works in this country.

BILL MOYERS: But you called it demented. I mean, you know, demented means crazy, mad. Mad and crazy enough to cause us to forget the world before Obama?

THOMAS FRANK: I’ll give you an example what I mean. So, I was on a radio show the other day with a tea party leader, you know, one of these protest leaders. And he seemed like a good guy. But what he did say that struck me was he said he was really against monopoly, you know? And we’re laboring under all these monopolies, all these concentrated powers here in America. And what we need to do is get back to free markets. And then we can do away with that. And it was mind-blowing.

Because if you look back any further than the Obama Administration, since, I mean, 1980 in this country, we have been in the grip of, you know, of this pursuit of ever-purer free markets. That’s what American politics has been about. That’s what has delivered this, you know, the awful circumstances that we find ourselves in today. And to think that that’s what’s missing, that’s what we need to get back to, is–

BILL MOYERS: That’s more than nostalgia. What is that?

THOMAS FRANK: Well, that’s the disease of our time. You know, that sort of instant forgetting.

BILL MOYERS: But what does it do to our politics when the very spokesmen for what some people have called a decade of conservative failure. I mean, remember before Obama, they turned a budget surplus into a deficit. They took us to war on fraudulent pretenses. They borrowed money to fight it. They presided over a stalemate in Afghanistan. They trashed the Constitution. They presided over the weakest economy in decades–

THOMAS FRANK: Not weak for everybody.

BILL MOYERS: No, no.

THOMAS FRANK: Some people did really well.

BILL MOYERS: Okay, they compiled the worst track record on jobs in decades. And they ended up with the worst stock market in decades. I mean, it was a decade of conservative failure. And yet, Obama’s their villain?

THOMAS FRANK: Think of all the crises and the disasters that you’ve described. And I would add to them things like the, what happened in New Orleans after Hurricane Katrina. And the Madoff scandal on Wall Street. And, you know, on and on and on. The Jack Abramoff scandal. The whole sordid career of Tom DeLay.

All of these things that we remember from the last decade. I mean, some of them that we’re forgetting. Like who remembers all the scandals over earmarking, anymore? And who remembers all the scandals over Iraq reconstruction? All that, you know, disastrous, when we would hand it off to a private contractor to rebuild Iraq. And it would, you know, of course, it would fail.

Those things have all sort of been dwarfed by the economic disaster and the wreckage on Wall Street. But I would say to you that all of these things that we’re describing here are of a piece. And that they all flow from the same ideas. And those ideas are the sort of conservative attitude towards government. And conservative attitudes towards governance. Okay?

….

What conservatism in this country is about is government failure. Conservatives talk about government failure all the time, constantly. And conservatives, when they’re in power deliver government failure.

BILL MOYERS: Not merely from incompetence, you say, but from ideology, from philosophy, from a view of the world.

THOMAS FRANK: And sometimes from design.

BILL MOYERS: From design? What do you mean?

THOMAS FRANK: Not always from design, but often. The Department of Labor, for example, the conservatives when they in office, routinely stuff the Department of Labor full of ideological cranks. And people that don’t believe in the mission.

And the result is that it doesn’t– they don’t enforce anything. Towards the very end of the Bush-era, the Department of Labor had been whittled down. It was a shell of its former self. And at the very end of the Bush Administration, one of the government accountability programs did a study of the Department of Labor. And, I’m smiling, because it’s kind of amusing. It was like an old spy magazine prank.

They made up these horrendous labor violations around the country and phoned them in as complaints to the Department of Labor to see what they would do, okay? They responded to one out of ten of these, you know, where they called in as like, “Well, we got, you know, kids working in a meat packing plant during school hours. You know, can you, you going to do anything about that?” “No.” Or you look at something like the Securities and Exchange Commission. These guys are supposed to be regulating, you know, the investment banks, okay? Goldman Sachs, Morgan Stanley, that sort of thing. These guys were so under-funded, and not just under-funded, but you had people in charge of it who didn’t believe in regulating Wall Street.

BILL MOYERS: So, they made the Securities and Exchange Commission a laughing stock, if you will. They really did.

THOMAS FRANK: Right. Well, there’s these horrible stories that came out. Once Bush was out, there was a study done of the SEC, as well. These people didn’t even have like their own functioning photocopiers, okay? So, we’re talking about the lawyers that are supposed to be protecting us from Wall Street. And they have to go stand in line at Kinko’s to do their own photocopying. And they’re going up against the best paid, you know, best educated lawyers on planet Earth, who represent the investment banks. And they’re supposed to be defending us.

BILL MOYERS: The curious thing about this is that you and I and my audience knows that our ancestors believed that capitalism needed to be supervised. But when the conservatives came to power, they begin to muzzle the watchdog.

THOMAS FRANK: Yeah. Well, or you know, do away with it altogether, de-fund it. Look, the beginning in the 1980s, President Reagan came to office and came to power, and you remember the kind of rhetoric that he used to use in denouncing the Federal workforce. He hated the Federal workforce. And this is an article of faith among conservatives.

There’s something called the pay gap that they used to talk about a lot in Washington, D.C. Which is, back in the ’50s, ’60s, and up into the 1970s, Federal workers were paid a comparable amount to what people in the private sector earned. Okay? So, if you’re a lawyer working for the government, you got about as much as a lawyer working in the private sector.

Not as much, because government benefits are considered to be much better. Okay. Under Reagan, you had this huge gap open up between Federal workers and the private sector. I asked around. And I found out a government attorney makes $140,000 a year on retirement. After he’s been there all his life. In the private sector law firm in Washington, you’d be making $160,000 starting salary. That’s first year. Right out of law school.

BILL MOYERS: So what’s the consequence of this pay gap you described? Or, do we get inferior government because of it?

THOMAS FRANK: Absolutely. It keeps the best and the brightest out of government service, unless you’re really dedicated to a cause.

But let me go one step further with this, Bill. When I say this is done by design, I’m not exaggerating. And this is one of the more surprising things that I found when I was doing the research for “The Wrecking Crew,” is that there’s a whole conservative literature on why you want second-rate people in government, or third-rate.

THOMAS FRANK: Yes. And we can summarize that very briefly. That the market is the, you know, is the universal principle of human civilization. And that government is a kind of interloper, if not a, you know, criminal gang. And getting in the way.

BILL MOYERS: But we saw with this collapse and this bailout, we saw the failure of that.

THOMAS FRANK: Of course.

BILL MOYERS: And yet there’s no sense of contrition. What’s amazing to me, and you wrote this, that the very people who brought us this decade of conservative failures, the party of Palin, Beck, Hannity, Abramoff, Rove, DeLay, Kristol, O’Reilly, just might stage a comeback.

THOMAS FRANK: I think they might. I think there’s a very strong chance of that.

BILL MOYERS: After only 11 months out of power, because of the record. I mean–

THOMAS FRANK: Look, well, the stuff–

BILL MOYERS: –it’s crazy.

THOMAS FRANK: –the stuff we’ve been talking about here today. The stuff in “The Wrecking Crew,” that’s all forgotten. The financial crisis had that effect of– that stuff is now off the– down the memory hole.

BILL MOYERS: Do you really think they believe that unfettered capitalism, unregulated markets, will deliver an ideal democracy and prosperity for everybody?

THOMAS FRANK: No, I don’t. I think that they believe that, and to some degree, they’re sincere in that belief. But the conservative movement in Washington, I’m not talking about grassroots voters in Kansas here. I’m talking about the conservative movement in Washington. And the whole constellation of think tanks and lobby shops and not-for-profits. And, you know, newspapers and fundraisers and all of this stuff.

They believe this is an industry, okay? This is an industry that churns out this product. And one of the things that, I mean, it’s one of the things that they’re doing now is they excommunicate George W. Bush, deeply unpopular, so therefore, not a true conservative, right? So, that way they get to start over fresh. The problem with George W. Bush, the reason we’re in such a deep hole is that we never went far enough.

As Tom DeLay has said, in his newspaper column, and I’m paraphrasing here. The problem with conservatism isn’t that it was tried and failed. It’s that it never really got– we never really tried it in the first place. So, what we have to do — and I’ve heard, conservatives have said this. “What we have to do is go back and deregulate all the way. We have to, you know, slash government. We have to tear that thing down. That’s what it’s all about.”

And the amazing thing about this. This allows them to represent themselves as dissidents against the sort of established order in Washington. Even though they ran the established order for years and years and years and years.

BILL MOYERS: Here’s something else that’s bizarre to me. And I wonder what you think about it, as a historian. I mean, right after the failed terrorist threat of Christmas, Obama’s critics went to work scrubbing what happened when the Bush White House was out to lunch in the weeks and days leading up to 9/11.

I mean, you know, there were terrorists sneaking into the country. There were warnings from the intelligence community about something– an attack on an American city coming. And that’s all been flushed down the memory hole. Giuliani goes on the air and says, “We didn’t have any terrorist attacks when Bush was President.”

THOMAS FRANK: Yeah, and that’s another– we also forget the anthrax episode which happened right after 9/11. Look, this is not an argument that I have made. That other people have– that all of these things need to be added to the list of government failures. And if you want to talk why does government fail? You know, there’s two answers out there.

One is the conservative answer. Government fails because that’s the nature of government to fail. And if you want to look a little bit deeper, you know, why does government fail? Because government has been systematically destroyed. When we, whether you’re talking about the, you know, the pay gap and making– deliberately making government an unattractive career option. Or you’re talking about outsourcing.

This is another conservative strategy for dealing with the state. If you hate and despise government employees. And you understand them as, you know, unbelievable human wickedness, right? What do you do about them? Well, the answer’s obvious. And at the same time, you believe in the market. You believe that private industry does everything better. You outsource the Federal workforce.

BILL MOYERS: Have we reached a stage where you make things bad enough that people despair and then you manipulate their despair into– to your own advantage in the next election?

THOMAS FRANK: It’s a cynical town, Washington, D.C. And the conservative movement tends to be deeply, deeply, deeply cynical about government. Now, it’s also, I mean, deeply idealistic about the market. I mean, the market can do no wrong, almost by definition. But government they regard as a criminal gang. I mean, many, many conservatives have compared– oh, they always do, compare government to criminals. All the time.

Taxation is a form of theft. It’s as bad as a mugger in the street saying, “Give me your money.” And America is pretty much unique among the nations in that our political system, half of our political system is basically dedicated to the destruction of the government from within. I don’t know any other country where that’s the case. But there’s plenty of countries where government works really, really well. I mean, even, for God’s sake, in India, you know, which we don’t think of as being an advanced industrial society, their banks didn’t all go bust in the latest downturn. Now, why is that?

Because their equivalent of the Federal Reserve was not, you know, deregulating, stopping enforcement. They weren’t doing any of those things. They were keeping a very tight lid on it. Government can work. It works all the time.

BILL MOYERS: You wrote “What’s the Matter with Kansas?” Let me ask you to broaden that canvas and ask, with the answer to the question, what’s the matter with America that we tolerate all of this?

THOMAS FRANK: I think a large part of it is that– well, it’s the chronic historical forgetting, you know? We just elected Barack Obama in this– you know, he had quite a mandate. You know, biggest majority of any President since Reagan. And now a year later, and the public is already turning on him. And that’s a part of the problem.

But, you know, another part of it is that the conservative argument about government and freedom is very compelling when they say that something like, you know, the national, you know, any proposal for a national health program is a violation of our freedom. Americans don’t like to hear that their freedom is being violated. That is a hot button argument. Now, the obvious– look, there’s an obvious response that Democrats could make. Which is no, this is a way of growing our freedom. This will actually expand human freedom, not limit it. They never say that.

BILL MOYERS: Why? So, part of the problem with America is the Democratic Party?

THOMAS FRANK: A huge part of the problem, because look, the conservatives have for decades now made their– the whole point of their party is to attack government, attack the state, encourage cynicism about government. And then wreck it when they’re in charge, right?

Democrats never defend the state. They never come out and say, “No, no. It’s important to have, you know, government. It’s important to have a Department of Labor. These are, you know, having government actually– a good government increases your freedom. It doesn’t ruin it.” They never fight back consistently.

BILL MOYERS: Why?

THOMAS FRANK: I think they’re– some of them do. You’ve got members of Congress here and there that do. But by and large, the prominent leading Democrats in our society don’t do that. Why is that? Because I think that would get them in trouble with their funders. I mean, the power of money is huge in the political system. You know, despite all the efforts that have been made over the years to get money out of politics. It’s still immensely powerful.

BILL MOYERS: The book is Thomas Frank, “The Wrecking Crew.” The literary journal is “The Baffler.” Congratulations on both of them. And thanks for being with me on the Journal.

THOMAS FRANK: It was my pleasure.

Bill Moyers is president of the Schumann Center for Media and Democracy.

© 2010 Bill Moyers Journal All rights reserved.
View this story online at: http://www.alternet.org/story/145249/

see: http://www.alternet.org/story/145249/bill_moyers_%26_thomas_frank%3A_how_america%27s_demented_politics_let_the_gop_off_the_hook_for_their_giant_mess

Socialist Health Care System

American medicine is superb–for those who can get it

By Paul Abrams, HuffPost:

“According to Rush Limbaugh, the health care reform that may be passed by Congress is socialism. Yet, it bears a striking resemblance to the universal healthcare system that just treated him in Hawaii that prompted his remark: “there is nothing wrong with the American health care system. I received no special treatment.”

Yes, Rush. That’s the point! American medicine is superb–for those who can get it. And, in Hawaii, no one gets special treatment, because everyone can get it.

[Er, by the way, just to help you out, Rush, a fair percentage of your listeners do not know Hawaii is part of the United States, so clarify that for them…otherwise, they will wonder about you]

By accepting socialist medical treatment in Hawaii, therefore, Rush Limbaugh has shown that, when one is ill, what matters is the availability of quality health care, even if it is socialist.

Rush follows a long litany of conservatives, such as all Members of Congress that have a medical office paid for by taxpayers available in the Capitol, by Dick Cheney who had socialist pacemakers implanted paid for by the government, and George W who had a government-paid socialist colonoscopy while in office. Members of Congress over 65 get single-payer socialist medical care from Medicare.

Hawaii has had nearly-universal employer-mandated health insurance since 1974. Although its Pacific Island location makes the costs of everything–from gasoline to milk to ice cream to housing–the highest in the nation, health care premiums in Hawaii, for comprehensive care with small co-pays and deductibles, are nearly the lowest and their costs per medicare beneficiary are the lowest in the nation.

Why? There are a variety of reasons, most traceable to universality. With everyone covered by primary care, emergency room visits tend to be for real emergencies, not the non-emergent care mainland ERs dispense for people without coverage. That reduces the costs of ERs and the costs of non-emergent medicine since patients can be handled less expensively and more effectively by their primary docs. Hospitals have not overbuilt, acquiring expensive machines to compete with their neighbors for patients. Insurance companies have instituted screening and other measures to improve wellness among their covered populations.

We can all be pleased that Rush appears to have survived his encounter with socialist medical care. He seems to be very happy himself, commenting on the results of a socialist angiogram that showed no disease in the arteries that feed his heart muscle.

Now, of course, Rush does not live in Hawaii and so his costs are not covered by the Hawaiian insurance system, but having that “socialist” system for more than 3 decades has not reduced the quality of the care he received. Who would have thunk it!

If Hawaii-style medical care is good enough for Rush Limbaugh, it is good enough for me.

Thanks Rush, and with it my hopes that your medical insurance covers all your costs and that the greatest country in the world can make that same care available to everyone.

Happy New Year!

see: http://www.huffingtonpost.com/paul-abrams/limbaugh-lauds-socialist_b_409378.html

Conservative Radicals and the Politics of Vengeance

Bill Moyers: In the following interview, Bill Moyers and powerhouse NYT editor and author of “The Death of Conservatism Sam Tanenhaus discuss the last gasps of the conservative movement. Tanenhaus says that far from signifying a resurgence of conservative ideals, the Tea Party protesters and shock jocks like Glenn Beck and Rush Limbaugh spell the doom of the conservative movement.

BILL MOYERS: Conservatives were out in force in Washington last weekend. They had come to express their opposition to big government, to taxes and wasteful spending, and health care reform they fear would lead to a nightmare of bureaucracy. Max Blumenthal, author of REPUBLICAN GOMORRAH waded into their midst to sample opinions.

MAX BLUMENTHAL: So you’re saying if the government eliminates Social Security and Medicare then you’ll get out of the program?

WOMAN: No, I said if they get out of my life.

MAX BLUMENTHAL: Out of your Social Security and-

WOMAN: No, out of everything.

BILL MOYERS: But they had also come to deplore and denounce President Obama- in their minds a tyrant akin to Stalin, Mussolini, Hitler, and Saddam Hussein.

MAN: I’m afraid he’s going to do what Hitler could never do and that’s destroy the United States of America.

MAX BLUMENTHAL: And what’s the Obama revolution, what’s going to happen?

MAN: Similar to Germany, like what Hitler did. He took over the auto industry, did he not? He took over the banking, did he not? And Hitler had his own personal secret service police, Acorn is an extension of that.

BILL MOYERS: They had found a new hero in Joe Wilson, the South Carolina Republican whose shout heard ’round the world was now the rallying cry of the weekend.

CROWD: You lie! You lie!

BILL MOYERS: Glenn Beck, their favorite pundit, had promoted this march and was reveling in its success….

So what do we make of this new book titled THE DEATH OF CONSERVATISM? Has the author Sam Tanenhaus spent his time and considerable talent on a premature obituary?

Sam Tanenhaus edits two of the most influential sections of the Sunday NEW YORK TIMES – the Book Review and the Week in Review. He’s has had a long fascination with conservatives and conservative ideas. He wrote this acclaimed biography of Whittaker Chambers, the journalist who spied for the Russians before he became fiercely anti-communist and a hero to conservatives. Now Tanenhaus is working on a biography of the conservative icon William F. Buckley JR.

BILL MOYERS: Welcome to the JOURNAL, Sam Tanenhaus.

SAM TANENHAUS: Oh my pleasure to be here, Bill.

BILL MOYERS: So, if you’re right about the decline and death of conservatism, who are all those people we see on television?

SAM TANENHAUS: I’m afraid they’re radicals. Conservatism has been divided for a long time — this is what my book describes narratively — between two strains. What I call realism and revanchism. We’re seeing the revanchist side.

BILL MOYERS: What do you mean revanchism?

SAM TANENHAUS: I mean a politics that’s based on the idea that America has been taken away from its true owners, and they have to restore and reclaim it. They have to conquer the territory that’s been taken from them. Revanchism really comes from the French word for ‘revenge.’ It’s a politics of vengeance….

And this is a strong strain in modern conservatism. Like the 19th Century nationalists who wanted to recover parts of their country that foreign nations had invaded and occupied, these radical people on the right, and they include intellectuals and the kinds of personalities we’re seeing on television and radio, and also to some extent people marching in the streets, think America has gotten away from them. Theirs is a politics of reclamation and restoration. Give it back to us. What we sometimes forget is that the last five presidential elections Democrats won pluralities in four of them. The only time the Republicans have won, in recent memory, was when George Bush was re-elected by the narrowest margin in modern history, for a sitting president. So, what this means is that, yes, conservatism, what I think of, as a radical form of conservatism, is highly organized. We’re seeing it now– they are ideologically in lockstep. They agree about almost everything, and they have an orthodoxy that governs their worldview and their view of politics. So, they are able to make incursions. And at times when liberals, Democrats, and moderate Republicans are uncertain where to go, yes, this group will be out in front, very organized, and dominate our conversation.

BILL MOYERS: What gives them their certainty? You know, your hero of the 18th Century, Burke, Edmund Burke, warned against extremism and dogmatic orthodoxy.

SAM TANENHAUS: Well, it’s a very deep strain in our politics, Bill. Some of our great historians like Richard Hofstadter and Garry Wills have written about this. If you go back to the foundations of our Republic, first of all, we have two documents, “creedal documents” they’re sometimes called, more or less at war with one another. The Declaration of Independence says one thing and the Constitution says another.

BILL MOYERS: The Declaration says–

SAM TANENHAUS: …says that we will be an egalitarian society in which all rights will be available to one and all, and the Constitution creates a complex political system that stops that change from happening. So, there’s a clash right at the beginning. Now, what we’ve seen is that certain groups among us– and sometimes it’s been the left– have been able to dominate the conversation and transform politics into a kind of theater. And that’s what we’re seeing now.

BILL MOYERS: When you see these people in the theater of television, you call them the insurrectionists, in your book, what do you think motivates them?

SAM TANENHAUS: One of the interesting developments in our politics, in just the past few months, although you could see signs of it earlier, is the emergence of the demographic we always overlook in our youth obsessed culture: the elderly. That was the group that did not support Barack Obama. They voted for John McCain. It was also the group that rose up and defied George W. Bush, when he wanted to add private Social Scurity accounts. It was a similar kind of protest.

BILL MOYERS: There’s a paradox there, right? I mean, they say they’re against government and yet the majority of Americans, according to all the polls, don’t want their government touched. You know, there were people at these town hall meetings this summer, saying “Don’t touch my Medicare.” You know, keep the government out of my Social Security.

SAM TANENHAUS: Yes. This is an interesting argument. Because it’s very easy to mock, and we see this a lot. “Oh, these fools. These old codgers say the government won’t take my Medicare away. Don’t know Medicare is a government program?” That’s not really what’s going on, I think. I think there’s something different. A sense about how both the left and the right grew skeptical of Great Society programs under Lyndon Johnson, and the argument was everyone was becoming a kind of client or ward of the state. That we’ve become a nation of patron/client relationships. And a colleague of yours, Richard Goodwin, very brilliant political thinker, in 1967 warned, “We all expect too much from government.” We expect it to create all the jobs. We expect it to rescue the economy. To fight the wars. To give us a good life”. So, when people say, “Don’t take my Medicare away,” what they really mean is, “We’re entirely dependent on this government and we’re afraid they’ll take one thing away that we’ve gotten used to and replace it with something that won’t be so good. And there’s nothing we can do about it. We’re powerless before the very guardian that protects us.”

BILL MOYERS: So, how do you see this contradiction playing out in the health care debate? Where what’s the dominant force that’s going to prevail here at the end? Is it going to be, “We want reform and we want the government involved?” Or are we going to privatize it the way people on the conservative side want to do? The insurance companies, the drug companies, all of that?

SAM TANENHAUS: I think what we’ll see is a kind of incremental reform. Look, we know that health care has become the third rail of American politics, going back to Theodore Roosevelt. The greatest retail politician in modern history, Bill Clinton, could not sell it. But here’s another thing to think about. In the book I discuss one of the most interesting political theories of the modern era, Samuel Lubell’s theory of the solar system of politics. And what he says is what we think of as an equally balanced, two-party system, is really a rotating one-party system. Either the Republicans or Democrats have ruled since the Civil War for periods of some 30-36 years. And in those periods, all the great debates have occurred within a single party. So, if you go back to the 1980s, which some would say was the peak of the modern conservative period, the fight’s about how to end the Cold War, how to unleash market forces– were really Republican issues.

Today, when we look at the great questions — how to stimulate the economy, how to provide and expand and improve a sustainable health care system, the fight is taking place among Democrats. So, in a sense what Republicans have done is to put themselves on the sidelines. They’ve vacated the field and left it to the other party, the Democratic Party, to resolve these issues among themselves. That’s one reason I think conservatism is in trouble.

BILL MOYERS: You write in here that they’re not simply in retreat, they’re outmoded. They don’t act like it, you know?

SAM TANENHAUS: They do and they don’t. What I also say in the book is that the voices are louder than ever. And I wrote that back in March. Already we were hearing the furies on the right. Remember, there was a movement within the Republican Party, finally scotched, to actually rename the Democrats, “The Democrat Socialist Party.” This started from the beginning. So, the noise is there. William Buckley has a wonderful expression. He says, “The pyrotechnicians and noise-makers have always been there on the right.” I think we’re hearing more of that than we are serious ideological, philosophical discussion about conservatism.

BILL MOYERS: How do you explain the fact that the news agenda today is driven by Fox News, talk radio, and the blogosphere. Why are those organs of information and/or propaganda so powerful?

SAM TANENHAUS: Well, there’s been a transformation of the conservative establishment. And this has been going on for some time. The foundations of modern conservatism, the great thinkers, were actually ex-communists, many of them. Whittaker Chambers, the subject of my biography. The great, brilliant thinker, James Burnham. A less known but equally brilliant figure, Willmoore Kendall, who was a mentor, oddly enough, to both William Buckley and Garry Wills. These were the original thinkers. And they were essentially philosophical in their outlook. Now, there are conservative intellectuals, but we don’t think of them as conservative anymore– Fareed Zakaria, Francis Fukayama, Andrew Sullivan, Michael Lind, the great Columbia professor, Mark Lilla– they’ve all left the movement. And so, it’s become dominated instead by very monotonic, theatrically impressive voices and faces.

BILL MOYERS: Well, what does it say that a tradition that begins with Edmund Burke, the great political thinker of his time, moves on over the years, the decades, to William Buckley, and now the icon is Rush Limbaugh?

SAM TANENHAUS: Well, in my interpretation it means that it’s ideologically depleted. That what we’re seeing now and hearing are the noise-makers in Buckley’s phrase. There’s a very important incident described in this book that occurred in 1965, when the John Birch Society, an organization these new Americanist groups resemble — the ones who are marching in Washington and holding tea parties. Essentially, very extremist revanchist groups that view politics in a conspiratorial way.

And the John Birch Society during the peak of the Cold War struggle was convinced, and you’re well aware of this, that Dwight Eisenhower was a communist agent, who reported to his brother Milton, and 80 percent of the government was dominated by Communists. Communists were in charge of American education, American health care. They were fluoridating the water to weaken our brains. All of this happened. And at first, Buckley and his fellow intellectuals at NATIONAL REVIEW indulged this. They said, “You know what? Their arguments are absurd, but they believe in the right things. They’re anti-communists. And they’re helping our movement.”

Cause many of them helped Barry Goldwater get nominated in 1964. And then in 1965, Buckley said, “Enough.” Buckley himself had matured politically. He’d run for Mayor of New York. He’d seen how politics really worked. And he said, “We can’t allow ourselves to be discredited by our own fringe.” So, he turned over his own magazine to a denunciation of the John Birch Society. More important, the columns he wrote denouncing what he called its “drivel” were circulated in advance to three of the great conservative Republicans of the day, Ronald Reagan, Barry Goldwater, Senator John Tower, from your home state of Texas, and Tower read them on the floor of Congress into the Congressional record. In other words, the intellectual and political leaders of the right drew a line. And that’s what we may not see if we don’t have that kind of leadership on the right now.

BILL MOYERS: To what extent is race an irritant here? Because, you know, I was in that era of the ’60s, I was deeply troubled as we moved on to try to pass the Civil Rights Act and the Voting Rights Act of 1965 by William Buckley’s seeming embrace of white supremacy. It seemed to me to taint– to leave something in the DNA of the modern conservative movement that is still there.

SAM TANENHAUS: It is. And one of the few regrets Bill Buckley ever expressed was that his magazine had not supported the Civil Rights Act–…Look who some of the great protestors are against Barack Obama. Three of them come from South Carolina, the state that led the secession. Joe Wilson and Senator DeMint, Mark Sanford who got in trouble. These are South Carolinians. And there’s no question that that side of the insurrectionist South remains in our politics.

see: http://www.alternet.org/module/printversion/142754

Obama (And America) won August!

The worst thing that could have happened to Democrats — and the one thing that needed to happen in order to kill health reform — did not happen

Why? How? When?

Marc Ambinder, the Atlantic: “…the White House was taken aback by the ferocity of the health care debate, the media was confused, activists were alarmed, and Republican enthusiasm shot up. But a funny thing happened on the way to the morgue…

The worst thing that could have happened to Democrats — and the one thing that needed to happen in order to kill health reform — did not happen. The Democrats held together. Moderates were not intimidated. Don’t confuse their constituent meeting pander with changed minds.

Did more than a handful — if any — Democrats who were leaning towards voting “yes” on health care before August change their minds during August? Probably not. Another irony: the public option debate helped. It helped by offering itself up as a sacrifice. The new Maginot line, drawn by advocates of a single payer system, turned out to be a bit of a feint because it was never the sine qua non of reform.  Initially, given the GOP success (aided by progressive elites who essentially agreed) in framing the option as essential to health care, its putative failure and demagoguery seemed to be a significant blow to the White House. But — and here is the key point — it became something for the Blue Dogs to “oppose” and thus satisfy their constituents’ concerns about reform in general…the White House would rather have the bill they’re probably going to get now and worry about Netroot anxiety later. From the start, the least convincing argument made to the White House about strategy starts with the premise that compromising with recalcitrant Republicans is inherently bad.
After August, under the worst case scenario, there is majority support for the following major changes to health care: real (albeit limited) competition in the insurance industry (even absent a public plan). A cap on what a person pays for catastrophic illnesses. An end to insurance company recision policies. Guaranteed issue. A basic benefit package. Significant subsidies to help people who earn as much as $64,000 a year pay for health insurance. Better cost and coverage incentives. And lots more. Say what you will about these reforms — maybe they’re incremental — but they’re a foundation for center-left policy in the future.”
My anxiety is reduced – thanks!

see: http://politics.theatlantic.com/2009/09/why_obama_won_august_really.php

The Brownshirts are back – where is HUAC when we need it?

insurance industry funded fascism.

Perhaps HUAC should come back and investigate these folks…

Insurance industry funded fascism, from Frank Schaeffer, alternet: ” The Republican Old Guard are in the fix an atheist would be in if Jesus showed up and raised his mother from the dead: Their world view has just been shattered. Obama’s election has driven them over the edge. Consider Former Congressman Dick Armey. Several far right foundations and the multitrillion dollar health-insurance industry have teamed up with him  to organize the far right foot soldiers of the Republican Party to  intimidate people speaking on behalf of health-care reform.  They are using my old shock troops — given many of these folks were first energized by the Evangelical pro-life movement that my late father and I started in the 1970s. What we did to clinics they are now doing to congressmen and others speaking out for health care reform.

Having failed at the ballot box, having watched their Fox News-organized “tea parties” fizzle the intimidation tactics which the Republicans have embraced are being used in a well-financed, top-down orchestrated fake grass roots campaign by corporate interests to try and protect  the profits of the insurance business. Armey’s FreedomWorks is  organizing against health care reform. Armey’s lobbying firm represents pharmaceutical companies including Bristol-Myers Squibb. Armey’s lobbying firm also represents the trade group for the life insurance industry.  FreedomWorks is supporting the status quo at all costs. (They are also fans of fossil fuels. Armey’s lobbying firm represents Sheikh Mohammed Bin Rashid Al Maktoum, Prime Minister of the UAE, on energy related issues.)…I think I know what happened to him, Gingrich and the rest: They can’t compute that their white man-led conservative revolution is dead. They can’t reconcile their idea of themselves with the fact that white men like them don’t run the country any more — and never will again. To them the black president is leading a column of the “other” into their promised land. Gays, immigrants, blacks, progressives, even a female Hispanic appointed to the Supreme Court… for them this is the Apocalypse.

The last presidential election (to paraphrase Bart Simpson)  “broke their brains.” What else could explain their embrace of intimidation — rather than discourse — over the health care debate and such unsavory moments of madness as the Republicans accusing Obama and Judge Sonia Sotomayor of racism, knowing full well that they’d just destroyed their chances with the Hispanic community forever?…Dick Army and company have been driven mad by their reversal, not just of political fortunes but of seeing that they’ve wasted their lives. They now know they were wrong: about the country, the free market, war for fun and profit, and what the American people really want. They made their best case and were rejected by the American people —  and by history. Bush was their man and he turned out to be a fool. So now all the the Republican gurus have left is what the defeated Germans of World War Two had: a scorched earth policy. If they can’t win then everyone must go down. Obama must fail! The country must fail!…A barrage of outright lies, wherein the Democrats are being accused of wanting to launch a massive euthanasia program against the elderly, free abortions for everyone, and “a government takeover” of health-care is now being combined with physical intimidation that in several cases has required police escorts to protect pro health-care reform speakers… It’s time that this whole shabby (and insane) business be exposed, vilified in run out of town on a rail by whatever responsible Republicans — if any — that are still in the party and who want to see the fortunes of their party revived. Republican leaders taking insurance industry money via lobbying firms and using it to organize what amounts to roving bands of thugs not only need to be exposed but thrown out of the public debate forever.  They should become absolute pariahs.

It’s time to give this garbage in name: insurance industry funded fascism.

N.B.: Frank Schaeffer – and his father Francis – was a right wing “pro life”zealot”.

Emphasis mine.

see: http://www.alternet.org/healthwellness/141833/right-wing_turncoat_gives_the_inside_scoop_on_why_conservatives_are_rampaging_town_halls/



Factually Challenged Fat Boy deja vu all over again

From Media Matters: “Rush Limbaugh’s recent attacks against Sonia Sotomayor are NOT the first time he has gone after the judge or spoken for other conservatives in denouncing her…  According to The New York Times, Limbaugh criticized Sotomayor’s nomination to the 2nd U.S. Circuit Court of Appeals more than a DECADE ago. The Times reported on June 13, 1998: “On Sept. 30, the day of her confirmation hearing, Rush Limbaugh, the conservative radio talk show host, warned the Senate that Judge Sotomayor was an ultraliberal who was on a ‘rocket ship’ to the Supreme Court. That day, Judge Sotomayor was questioned closely by Republicans.”

The Times further reported:

Senate Republican staff aides said Trent Lott of Mississippi, the majority leader, has agreed to hold up a vote on the nomination as part of an elaborate political calculus; if she were easily confirmed to the appeals court, they said, that would put her in a position to be named to the Supreme Court. And Senate Republicans think that they would then have a difficult time opposing a Hispanic woman who had just been confirmed by the full Senate.

”Basically, we think that putting her on the appeals court puts her in the batter’s box to be nominated to the Supreme Court,” said one senior Republican staff aide who spoke on the condition of anonymity. ”If Clinton nominated her it would put several of our senators in a real difficult position.”

In its July 6, 1998, issue (accessed via nationalreview.com), the National Review asserted that “Judge Sonia Sotomayor, although liberal, would be particularly DIFFUCULT to oppose since George Bush appointed her. All the more reason to block her elevation, now pending, to the Second Circuit Court of Appeals.”

On the May 27 broadcast of his nationally syndicated radio show, Limbaugh read from a Hill articlethat cited the Times, stating, “I had FORGOTTEN  this. The Hill, Capitol Hill newspaper, recalled that in 1997 I predicted that Sonia Sotomayor was on a ‘rocket ship’ for the US Supreme Court.” He went on to read: “The conservative radio host said, on the day of Sotomayor’s confirmation hearing, September 30, 1997, that she was extremely liberal and was on a ‘rocket ship’ to the high court, according to a 1998 New York Times story on GOP efforts to stop her confirmation.”

N.B.: He said he had forgotten about this. 

EMPHASIS MINE

see; http://mediamatters.org/research/200906010019?lid=1040208&rid=28832467

Limbaugh’s success is based on:

Giving it away!

Bill Mann reports in HuffPost: “Did Rush accrue hundreds of local radio affiliates across the country because his political views are mainstream? That’s obviously not it. OK, so why IS his show so “popular?” Why do hundreds of stations around the country carry his show, the most widely syndicated talkfest in the country?  Glad you asked.

The real story is not generally well-known. The only reason I know is through my covering the business of radio for years for several major daily newspapers and also, for industry trade magazines like Radio World.

It’s because — ready for this? — Rush’s show was, and presumably still is, GIVEN AWAY FOR FREE to many local radio stations.

This shocker is because of a little-known practice in broadcast syndication called a “barter deal… Major-market right-wing talk stations, like San Francisco’s KSFO-AM (“Reichstag Radio”) have to pay actual money, of course, to carry Boss Limbaugh’s daily proclamation-a-thon. (Note: KSFO, which I referred to as “Sieg Heil on Your Dial” in my column when it first switched to righty talk, is the same station that gave hatemonger Michael Savage his first radio megaphone).

Radio sources say that small- and medium-market stations STILL GET Limbaugh’s show for free, or pay only a token amount of cash for it….So, when you hear Rush bellowing as you’re passing through Birdseed Junction, Beanblossom, or Pyrite, just remember: The radio station’s getting what it paid for. Or, more accurately, DIDN’T pay for.”

(SOME EMPHASIS MINE).

see: http://www.huffingtonpost.com/bill-mann/limbaughs-dirty-little-se_b_185965.html