Tag Archives: Entitlement Programs

SYNDICATED COLUMN: Finding Privatizer Ryan

If Romney Loses, Blame His Running Mate

      Unless something surprising and dramatic happens, Obama will win the election. Earlier this week the Associated Press released an analysis of public and private polls that put “within reach of the 270 electoral votes needed to win a second term.” Obama is running ahead in many major swing states, including Ohio—a necessity for a GOP candidate to win. Yeah, yeah, this week’s presidential debates could make a difference—but they rarely do.

What went wrong with the Romney campaign? (Insert the usual fat-lady-not-over-blah-blah-anything-could-happen disclaimer here.)

All things being equal, this should have been a cakewalk for Romney—or any half-decent Republican. The economy is still awful. The official unemployment rate is over 8%, a magic number that historically kills reelection campaigns. Since Obama hasn’t promised any big jobs programs, neither Hope nor Change is on offer. And Romney has/had a sales pitch tailored for hard times: he turned around companies; his business experience will/would help him turn around the U.S. economy.

This election is/was Romney’s to lose—and apparently he has. The cause can be summed up in two words: Paul Ryan.

Sure, there were plenty of other missteps. His bizarre “47%” remark turned out to be a game changer that alienated swing voters. Like the (unfair) story about how George H.W. Bush was so out of touch that he’d never seen a supermarket price scanner (no wonder that preppy pipsqueak didn’t care about Americans who’d lost jobs under the 1987-1992 recession), Romney’s 47% slag fit neatly with our overall impression that Romney is a heartless automaton of a CEO who doesn’t feel our pain. Worse, he’s a man with something to hide; his refusal to release his taxes proves it.

Though greeted by Very Serious pundits as a canny combination of intellectual heft and Tea Party cred, the selection of running mate Paul Ryan has been a bigger disaster than Sarah Palin in 2008. (To be fair to John Cain, Palin was a Hail Mary pass by a campaign that was way behind.) As Paul Krugman pointed out in the New York Times, the selection is beginning to shape up as a “referendum” on the legacy of the New Deal and the Great Society, on Social Security, Medicare and, yes, Obamacare, which represents an extension of that legacy.”

Which is Ryan’s fault.

Before the veep announcement, the campaign was a referendum on Obama’s stewardship over the economy. Which was good for Romney. Since August it has been about Paul Ryan, known for his plan to trash reform entitlement programs. Misfire! The one time you don’t attack the safety net is when people are feeling squeezed and pessimistic about the future.

Sensing resistance, Republicans walked back Ryan’s extreme agenda using the classic “divide and conquer” approach, guaranteeing that people over 55 would keep their Medicare and Social Security. No sale. Romney-Ryan forgot something: senior citizens have children and grandchildren.  Older Americans want younger people to enjoy the same benefits they’re getting now. Many senior citizens no doubt see the slippery slope of austerity: taking away Social Security for people under 55 next leads to going after those over 55. Finally, with the U.S. Treasury squandering trillions of dollars on wars, it’s hard to argue that the sick and old ought to resort to Dumpster-diving.

The Romney–Ryan campaign understood that voters were pissed at Obama. But they didn’t understand why.

There were two types of anger against Obama. Mostly prompted by Obamacare, right-wingers hate the president for growing an intrusive federal government. But there is also liberal resentment—shared by many moderates—at Obama’s refusal to help the jobless and foreclosure victims. Lefties also dislike Obamacare—but because, minus a public option, it’s a sellout to the insurance conglomerates. Romney could have seduced these voters with his own plans to help the sick and poor. Instead, he went with Ryan—who would destroy programs that are already too weak—and frightened disgruntled Democrats back into Obama’s camp.

Romney ignored the time-tested tactic of moving to the center after winning your party’s nomination. Romney repackaged himself as a right-winger to win the GOP nomination. In the general election, he needed to appeal to Democrats and swing voters. Choosing Paul Ryan sent the opposite signal.

This is not to say that President Obama will have an easy second term. Unlike 2008, when the vast majority of Americans felt satisfied that they had made the right choice, Obama is only likeable enough (the words he used to describe Hillary Clinton) compared to Romney. The only reason Obama seems headed to victory this November is that he was lucky enough to run against one of the most staggeringly inept campaigns in memory, headed by an unbelievably tone-deaf plutocrat.

(Ted Rall‘s new book is “The Book of Obama: How We Went From Hope and Change to the Age of Revolt.” His website is tedrall.com. This column originally appeared at NBCNews.com’s Lean Forward blog.)

COPYRIGHT 2012 TED RALL

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Pre-Old Blues

Paul Ryan says he won’t reduce Social Security or Medicare benefits if the Republicans win–at least not for people who are currently elderly. What about people under 55 years old–the pre-old? How are they supposed to avoid a future of dumpster-diving?

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SYNDICATED COLUMN: Yes, I Can

Straight Talk on Balancing the Budget

The federal budget deficit is like the weather. Everybody talks about it; except for Bill Clinton, no one ever does anything about it.

President Obama’s bipartisan Fiscal Debt Commission has released a draft report that starts out with a big problem: even talking about reducing spending is insane when you’re in the midst of a Depression. The real unemployment is over 20 percent. Creating jobs ought to be the feds’ top—perhaps sole—priority.

Let the insanity commence.

Triumphant Republicans say they want to balance the budget. So does Obama. Are they serious? Of course not.

Still, theoretical budget-balancing exercises help enlighten us about where our taxdollars really go. So let’s roll up our sleeves and start some back-of-the-envelope slashing.

The 2010 federal budget shows $3.6 trillion in spending and $2.4 trillion in revenues. Net deficit: $1.2 trillion. It’s a doozy, too. It nearly 13 percent of GDP. It’s the highest since 1943, during World War II.

The goal, then, is to close a $1.2 trillion budget gap. Can we find at least $1.2 trillion in budget cuts? News flash: getting rid of the National Endowment for the Arts ($161 million in 2010, or about 0.01 percent of the deficit), ain’t gonna do the trick.

Any serious budget cutter has to start with defense. The reason is simple: it accounts for 54 percent of discretionary (i.e., optional) federal spending. It’s the biggest piece of the pie by far.

(Mainstream news reports usually state that defense accounts for 20 percent of federal outlays. But they’re fudging the facts in order to pretty up the military-industrial complex. For example, they include budget items like Social Security that no one can do anything about—they’re in a trust fund.)

Of that 54 percent, 18 percent is debt service on old wars. There’s nothing we can do about that—though that number should probably give us pause the next time a president wants to invade Panama or Grenada.

Anyway, that leaves 36 percent, or $1.3 trillion to play with. $200 billion a year goes to Afghanistan and Iraq.

Let’s pull out. We’re losing anyway.

New Deficit: $1.0 trillion.

In 2007 Chalmers Johnson wrote a book about the staggering costs of American imperialism. “The worldwide total of U.S. military personnel in 2005, including those based domestically, was 1,840,062 supported by an additional 473,306 Defense Department civil service employees and 203,328 local hires,” he wrote. “Its overseas bases, according to the Pentagon, contained 32,327 barracks, hangars, hospitals, and other buildings, which it owns, and 16,527 more that it leased. The size of these holdings was recorded in the inventory as covering 687,347 acres overseas and 29,819,492 acres worldwide, making the Pentagon easily one of the world’s largest landlords.”

We’re broke. It’s time to bring those 2.3 million men and women home. At an average cost of $140,000 per employee—crazy but true—we could save $322 billion annually.

New Deficit: $676 billion.

After Defense, the other big costs are Social Security, Medicare and Medicaid.

The obvious place to start slashing is wealthy recipients. Why should Bill Gates, worth $58 billion, get Social Security or Medicare benefits? Dean Baker sums up the traditional liberal argument in favor of giving tax money to people who don’t need it: “Social Security enjoys enormous bipartisan support because all workers pay into it and expect to benefit from it in retirement. Taking away the benefits that better-off workers earned would undoubtedly undermine their support for the program. This could set up a situation in which the program could be more easily attacked in the future.”

Yeah, well, whatever. We. Are. Broke. “Means testing”—for example, eliminating benefits for the approximately one percent of families over age 65 who earn over $100,000 a year—could save $150 billion a year.

New deficit: $526 billion.

Now let’s talk about the other side of the equation: income. How can the U.S. government scare up some extra cash?

Allowing the Bush tax cuts for the richest three percent of Americans to expire on schedule would bring in $70 billion a year. Seems like a no-brainer: anyone earning over $250,000 a year is doing awesome. Moreover, if Democrats don’t insist on the expiration of at least some of those “temporary” tax cuts, what’s the point of the deal they cut with the GOP back in 2001?

New deficit: $456 billion.

When it comes to revenues, you have to go where the money is: the wealthy. The rich have gotten richer, which is a big part of the reason we’re in a Depression again. They’re hogging all the goodies. The rest of us can’t spend.

Despite the miserable economy, there are still 2 million American households earning a whopping $250,000 or more per year. (Their average income is $435,000.) If we were to increase these super-rich Americans’ marginal income tax rate from 35 to 50 percent—the same it was during the early 1980s under Reagan—we’d bring in an extra $131 billion a year. If we raised it back to 91 percent—the top rate during the boom years between 1950 to 1963—the Treasury would collect $487 billion.

Budget SURPLUS: $31 billion.

And we haven’t started on corporate taxes.

(Ted Rall is the author of “The Anti-American Manifesto.” His website is tedrall.com.)

COPYRIGHT 2010 TED RALL

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