Showing posts with label debt ceiling. Show all posts
Showing posts with label debt ceiling. Show all posts

Saturday, January 26, 2013

The Joni Mitchell Fallacy

I've looked at life from both sides now
From up and down and still somehow
It's life's illusions I recall
I really don't know life at all
One of the worst characteristics of modern journalism is the "both sides" reflex. If there is a political problem, we need to acknowledge the way "both sides" have something to do with it.

But sometimes it simply isn't so.

Last week, James B. Stewart, writing in the New York Times about the budget talks, gave us one of the more egregious and demonstrably false examples of this tendency:
What dismayed all the experts I spoke to was that the hostile tone was obscuring the fact that both sides agreed on the two most fundamental issues; the debt ceiling needs to be raised and a government default avoided, and the long-term deficit needs to be addressed through some combination of spending cuts and tax increases.
This is not a description of what "both sides" believe. It is a description of President Obama's position. 

We do not have an agreement because that is NOT the position of the Republican Party. The position of the Republican Party is that the deficit should be reduced with spending cuts only and with no tax increases, and that the threat of reaching the debt ceiling and causing default is a good way of getting what they want.

The Republican position for the last two years has been that we should not raise the debt ceiling without cutting spending--even if that means government cannot pay all of its bills. South Carolina Rep. Mick Mulvaney said just last week that the government could merely pay Social Security benefits and interest on the debt: “Whether or not we keep the national parks open is not what people think of when they hear default,” said Mulvaney. “It’s certainly not what the markets think.”

Translation: as long as the banks and AARP members get paid, default is no big deal.
This past week, the House GOP recognized that its position was politically untenable and approved a three-month extension of the debt ceiling. But if it truly believed that the threat of default was unthinkable, it would never have created these debt ceiling showdowns. The House could have raised--or even better, abolished--the debt ceiling. If it truly believed in the need for spending cuts and tax increases, it could have gotten that deal from the president at several points in the past. When that deal was on the table, they said "no." Their entire negotiating posture is this: we prefer default to not getting our way on spending.
In reality, this is not a case of "both sides." We Americans want to believe that both of our political parties are, deep down, made up primarily of reasonable people. There are still reasonable people in the Republican Party, but they are being bullied by Tea Party extremists and purists. 
Perhaps John Boehner's decision to accept the so-called "fiscal cliff" deal (and its tax increase on incomes over $400,000) and the recent three-month debt ceiling extension represent an end to the Tea Party's dictation to the allegedly responsible leadership, but I doubt it. We'll know better in about three months.

Tuesday, August 9, 2011

The Great Compromisers


As much as anything, Barack Obama has tried to cultivate an image as a reasonable man of compromise. As I noted in my last post, he has even made the case that his model for presidential leadership, Abraham Lincoln, compromised in the act of emancipation.

Lincoln himself had a political role model, Henry Clay. According to Lincoln biographer David Herbert Donald, Lincoln "almost worshipped Henry Clay." Clay was Lincoln's "beau ideal of a statesman," and Lincoln referred to himself as "an avowed Clay man."
Henry Clay, "The Great Compromiser"


Clay is best known as "The Great Compromiser" for his central role in the three most dangerous political crises of the antebellum era. In 1820, he engineered the Missouri Compromise. In 1833, he worked on a tariff compromise that allowed South Carolina to back down from its nullification and prevented the use of force against the state by Andrew Jackson.  And in 1850, he put together the package of proposals that later became the Compromise of 1850.

As a Clay man and compromiser, Lincoln exhibited the same kind of frustration with ideological purity that Obama does. In 1845, he took to task the abolitionists for their purist attitude in the election of 1844. Clay was the Whig nominee, and barely lost the election to James K. Polk. New York (the largest state at the time) made the difference in the electoral college: "If the whig abolitionists of New York had voted with us last fall, Mr. Clay would now be president, whig principles in the ascendant, and Texas not annexed."

Lincoln showed clear disdain for the abolitionist rationale: "We are not to do evil that good may come." Why did they see voting for Clay as evil? Clay had, for political reasons, suggested he might be open to the annexation of Texas (thereby increasing the number of slave states), so abolitionists had opposed his candidacy and thrown their votes to a third party, thus giving the presidency to the clearly pro-annexation and pro-slavery Polk. To Lincoln, this was utterly foolish: "An evil tree cannot bring forth good fruit. If the fruit of electing Mr. Clay would have been to prevent the extension of slavery, could the act of electing have been evil?" Abolitionists, he said, "could have prevented" the evil of annexation "without violation of principle, if they had chosen."

Lincoln himself could put political expediency over his personal preferences. Four years later, in 1848, Lincoln threw his support to Gen. Zachary Taylor, favoring him over Clay for purely practical political reasons:
I am in favor of Gen. Taylor as the whig candidate for president because I am satisfied we can elect him.... I go for him, not because I think he would make a better president than Clay, but because I think he would make a better one than [any of the potential Democratic candidates] one of whom is sure to be elected if he is not. 
(With murmurs of a primary challenge to Obama rising from the left, this is one Lincoln quotation the president might want to see spread widely.)

This is the Lincoln that Obama finds so appealing, because he is so much like Obama himself. We can hear in Lincoln's reproach to the abolitionists Obama's complaints about the Huffington Post, and his press secretary's grousing about the "professional left." This is the rational, deliberate, cautious politician who always keeps his eyes on the political prize, who chooses the greater, long-term good over the immediately satisfying act of self-righteousness.

Lincoln, like Obama, had faith in the ultimately rational nature of his political opponents. When he was running for president in 1860 and the fire-eaters threatened secession were he to be elected, Lincoln dismissed the possibility: "The people of the South have too much of good sense, and good temper, to attempt the ruin of the government, rather than see it administered as it was administered by the men who made it. At least, I hope and believe."

This is the same attitude Obama expressed last December when he was asked about the possibility of Republicans using the threat of not raising the debt ceiling to force acceptance of their policies: "Here's my expectation, and I'll take John Boehner at his word, that nobody, Democrat or Republican, is willing to see the full faith and credit of the United States government collapse."

Neither Lincoln nor Obama could really imagine political opponents who would not, in the end, be reasonable.

Lincoln was convinced that Southerners would never go through with secession, because secession would mean civil war, with the South losing. In a speech in Cincinnati in September 1859, Lincoln presciently explained the likely outcome of such a war:
man for man, you are not better than we are, and there are not so many of you as there are of us. You will never make much of a hand at whipping us. If we were fewer in numbers than you, I think that you could whip us; if we were equal it would likely be a drawn battle; but being inferior in numbers, you will make nothing by attempting to master us.
To Lincoln, this scenario was so obvious that it all but precluded secession--secession would be self-defeating and thus irrational--just as Obama believed that no one would risk the self-destructive consequences of failing to raise the debt ceiling.

Lincoln clung to the hope of an eventual return to rationality even after secession was a fact. According to James McPherson, during the early weeks of his presidency, prior to Fort Sumter, Lincoln agreed with Secretary of State Seward's proposal that the administration "ought to be conciliatory, forbearing and patient, and so open the way for the rise of a Union party in the seceding states which will bring them back into the Union."

"As late as July 1861," McPherson writes, "Lincoln expressed doubt 'whether there is, to-day, a majority of the legally qualified voters of any State, except perhaps South Carolina, in favor of disunion.'"

Lincoln kept hoping that reason would prevail. But it did not.

Despite two and half years of obstruction and brinksmanship, Obama remains convinced reason will prevail among Republicans in Congress. Just yesterday, he appealed yet again for "common sense and compromise." He once more tried to be bipartisan: "Republicans and Democrats on the bipartisan fiscal commission that I set up put forth good proposals. Republicans and Democrats in the Senate’s Gang of Six came up with some good proposals." The problem, he said, is "the insistence on drawing lines in the sand, a refusal to put what’s best for the country ahead of self-interest or party or ideology."

Obama seems determined to refuse to give up this belief in the possibility of compromise, no matter how unreasonable his opposition is. That is admirable. I'm sure it is what he thinks Lincoln would do. But in agreeing to Seward's appeal to be "conciliatory, forbearing and patient," Lincoln also said the following: "We mean to be as deliberate and calm about it as it is possible to be, but as firm and resolved as it is possible for men to be."

For Lincoln, that meant being unmovable on principle: he would not allow the extension of slavery into new territories (he would agree to "no compromise which assists or permits the extension") and he would not accept secession. "By no act or complicity of mine," Lincoln said during the secession crisis, "shall the Republican party become a mere sucked egg, all shell and no principle in it."

When faced with the implacable opposition of ideologues, people who had abandoned rational politics, Lincoln knew he had to stand firm.

Obama, if he is to be a successful president, needs to decide what, for him, is essential. He then needs to tell all of us, supporters and detractors alike, what that is. And he must stick to it.

Last month, in the midst of tense negotiations, Obama is reported to have said to House Minority Leader Eric Cantor: "Eric, don't call my bluff. I'm going to the American people on this." At issue was Cantor's resistance to any tax increase: "[The president] said Cantor could not have it both ways of insisting on dollar-for-dollar and still not being open to revenues."

We now know, of course, that there would be no new revenues in the deal Obama eventually accepted. Cantor called his bluff, and it was a bluff.

We can disagree on how great a compromiser Lincoln was, but one thing I think is certain: he did not bluff. He made clear what he would accept, and what he would not.  Then he followed through. As his wife, Mary Todd Lincoln, once put it: "He was a terribly firm man when he set his foot down."

Obama needs to emulate that side of Lincoln, too.

Thursday, August 4, 2011

"Stand Firm. The Tug Has to Come": Obama, Lincoln, and the Debt Ceiling

The Great Debt Ceiling Debacle is ended at last. So the angst-ridden grousing has commenced in earnest.

On what passes for the "left" in America, the main topic has been what many see as President Obama's capitulation to Republican intransigence. Many other observers, with far greater mastery of the policy details and political angles, will be hashing that matter out for weeks and months to come.

What I have found fascinating is how much Abraham Lincoln has been drawn into this. I've done it myself, in my last post.

More importantly, Obama himself did, in this video from March which the White House released in the midst of the debt ceiling negotiations.



In the most widely quoted section, Obama notes that Lincoln even compromised on the subject of slavery, since the Emancipation Proclamation exempted slaves still in the Union: "This notion that somehow if you're responsible and you compromise, that somehow you're giving up your convictions -- that's absolutely not true," Obama told the students.

Salon's Joan Walsh supported Obama on this point, despite her dissatisfaction with the then-emerging debt deal: "So if you're Obama looking to Lincoln as the man who tried to steer the United States through its worst domestic political crisis, and keep that crisis from destroying the country, what do you see? First, you see plenty of compromise."

John B. Judis in The New Republic disagreed, and argued that Obama got it wrong: "Obama turned one of Lincoln’s uncompromising acts of courage into a justification for compromise."

But Andrew Sullivan countered Judis, seeing Lincoln as a compromiser, too: "Funny, but my memory was that, for a long time, Lincoln did all he could to appease the South without conceding the whole ball-game. I see Obama in Lincoln's position. Not for the first time."

Perhaps the most eminent living historian of the Civil War, James McPherson, also backed up Obama: "Lincoln made a lot of compromises on other issues too. In fact, he was famous for knowing the art of the possible."

It is probably terribly unwise to do so, but I have to disagree (at least somewhat) with McPherson. Yes, Lincoln could and did compromise on many things. But he also knew when to stand firm. And that time is when you are faced with people who reject the legitimacy of the process.

The time when Lincoln faced the greatest pressure to compromise was actually before he became president. The mere election of a Republican president had sent the fire-eaters into a secessionist frenzy. A Congressional "Committee of Thirteen" (one more than the "super-Congress" committee set up by the debt ceiling deal) proposed a series of amendments to the Constitution meant to mollify the South (all touched on slavery, none involved a balanced budget) and which were to be, in a bizarre twist, unamendable in the future.

So what was Lincoln's attitude toward these proposals? On Dec. 10, 1860, only ten days before South Carolina would pass its ordinance of secession, he wrote to Sen. Lyman Trumbull of Illinois:
Let there be no compromise on the question of extending slavery. If there be, all our labor is lost, and ere long, must be done again.... Have none of it. Stand firm. The tug has to come, & better now, than any time hereafter.
Why was Lincoln so uncompromising? It was due to the specific stakes in this crisis. Southerners were threatening to leave the Union simply because Lincoln had been elected. They were rejecting the result of the constitutional process. That, Lincoln could not abide. On Jan. 11, 1861, he explained this to James T. Hale, a Republican member of the House from Pennsylvania:
We have just carried an election on principles fairly stated to the people. Now we are told in advance, the government shall be broken up, unless we surrender to those we have beaten, before we take the offices. In this they are either attempting to play upon us, or they are in earnest. Either way, if we surrender, it is the end of us, and of the government.
To compromise in this situation, he believed, was effectively to reverse the outcome of the election.

It would also, he argued, leave his administration open to endless repetition of the same political blackmail:
They will repeat the experiment upon us ad libitum. A year will not pass, till we shall have to take Cuba as a condition upon which they will stay in the Union.... they shall never have a more shallow pretext for breaking up the government, or extorting a compromise, than now.
Lincoln saw the proposals for compromise in those dreadful months between his election and his inauguration for what they were: extortion. And he would have none of it.

Clearly the debt ceiling nonsense does not quite rise to the same level of seriousness as secession. But the tactics used by the Tea Party right were not dissimilar. It is already apparent that the lesson conservatives have taken from this deal is the one Lincoln predicted.

The Republican Senate Minority Leader, Mitch McConnell, has already said so. This dispiriting, manufactured crisis, he said, has "set the template for the future. In the future, Neil, no president — in the near future, maybe in the distant future — is going to be able to get the debt ceiling increased without a re-ignition of the same discussion of how do we cut spending." He also made clear that the Republican representatives to the "super-Congress" committee will not agree to any tax increases.

And, largely unnoticed because of the threat of financial meltdown, a smaller version of this crisis is ongoing with the FAA which, technically, is no longer authorized to operate. Air traffic controllers remain on duty, but airfare taxes are not being collected (at a cost to the government of about $200 million a week), and construction has been halted on 200 projects.

Why? Because Republicans decided to use the heretofore routine reauthorization of the agency to force a diminution of union rights (sound familiar?).  The attitude of House Republicans will come as no surprise to anyone who has followed the debt ceiling crisis: "Our position is the Senate has had our bill for weeks and they need to pass it," a senior House GOP source told Fox News. "There is no chance we'd take something different up."

We see the same utterly uncompromising attitude that typified the debt ceiling crisis: Give us what we want, or we'll shut the whole thing down. The stakes are lower (though real), but the tactic is the same.

We can expect the same thing from now on, every chance they get. Until it stops working. At some point, Obama, if he means to be like Lincoln, will need to decide that he will have none of it and stand firm. That the tug has to come, & better now, than any time hereafter.

[In my next post, I'll focus on Lincoln's compromising nature and its appeal for Obama.]

Saturday, July 30, 2011

The Highwaymen of South Carolina

[Y]ou will destroy the Union; and then, you say, the great crime of having destroyed it will be upon us! That is cool. A highwayman holds a pistol to my ear, and mutters through his teeth, "Stand and deliver, or I shall kill you, and then you will be a murderer!"--Abraham Lincoln, February 27, 1860, Address at Cooper Institute
Lincoln was speaking of the secessionist fire-eaters who would, with South Carolina in the lead, try to destroy the Union later that same year. Last night, that same attitude was on vivid display in the United States Congress, and once again, South Carolina played a prominent role.

All seven Republican members of Congress from South Carolina voted against Speaker John Boehner's debt ceiling bill. The bill passed the House by the bare minimum, with 22 Republicans voting against it and no Democrats voting for it. It then went to the Senate, where Senators Jim DeMint and Lindsey Graham joined the Democrats in voting it down.

Although they voted with the Democrats, they did so for different reasons. The Democrats opposed the bill primarily because it would return us to this debt ceiling nightmare again in another six months. The highwaymen of South Carolina did so because its spending cuts were not draconian enough, its demand for a balanced budget amendment to the Constitution not iron-clad enough.

On the CBS Evening News last night, the four freshmen Republican House members from South Carolina (the veteran Joe "You lie!" Wilson excepted) were featured in a story about opposition to raising the debt ceiling.



They spoke with apparent sincerity about the need to make fundamental change. Jeff Duncan spoke about the potential problems of the future: "I've got three young boys ... and I don't want them ten years from now to say, 'Dad, when y'all were at the brink, what did you do?' ... I don't want to have to answer him, 'I didn't do enough.'"

Touching as that is, it shows no concern at all for the very real consequences of failing to compromise. When asked about the potential disaster of failing to raise the debt ceiling, Trey Gowdy, who is my representative from the 4th Congressional district, rather self-righteously dismissed the question: "What is one person's intransigence is another person's deeply held conviction."

What Gowdy is really saying is that he values his own "convictions" above the national interest. He will follow his convictions, and if the result is financial disaster, and another Great Depression, that's not his responsibility. He is only responsible to his personal convictions.

Gowdy's refusal to accept any responsibility for his actions is stunning, and as I've noted before (here and here), typical of the baneful influence of South Carolina's most famous senator, John C. Calhoun.

In the same speech quoted above, Lincoln succinctly summed up this mindset:
Your purpose, then, plainly stated, is, that you will destroy the Government, unless you be allowed to construe and enforce the Constitution as you please, on all points in dispute between you and us. You will rule or ruin in all events.
This attitude is deeply, fundamentally, undemocratic. That is what is so dangerous politically about the situation in which the United States finds itself today. Above and beyond the financial dangers, we are facing a test of our political system. That system values process over any specific outcome.  Whether they realize it or not, these freshmen representatives, and the rest of the Tea Party radicals, value results over process.

There is no need for the nation to be staring into the abyss of financial chaos. Like the pre-Civil War fire-eaters, they have created a crisis, confident that they can get their way--one, by the way, which they know--they know--they cannot get through the normal democratic process--by putting a gun to the nation's head.

They blithely, like Lincoln's highwayman, tell us that the rest of us will be to blame if we force them to wreck the economy because our "deeply held conviction" tells us compromise, not blackmail, is the right way to go.

There is an extremely important principle at stake here: that the American government should not be forced to function with a gun to its head. If the highwaymen get their way, they will do incalculable damage to the nation's political system. It is well past time for leaders in both parties, not just one, to recommit to process over results, and put an end to this unnecessary, dangerous, and manufactured crisis.

Wednesday, July 27, 2011

The Economic Equivalent of the Civil War?

I made the mistake of watching some cable news while eating lunch today, and heard Rep. Paul Broun (R-GA), member of the House Tea Party Caucus, say that not only will he refuse to vote to raise the debt ceiling under any circumstances, he thinks Congress should lower it.  Andrea Mitchell was dumbstruck, and like a teacher with an amazingly dense six year old student, tried to explain to him that raising the debt ceiling was necessary to account for spending already appropriated by Congress. Broun was unmoved by this appeal to reality.

Broun seems either unaware or unconcerned that his position would require an immediate cut of about 40% in government spending. And since things like interest on the debt cannot be cut, it would really mean a larger cut on the rest of government spending. Does Broun want an immediate 40+% cut in defense spending? No? Then we have to cut even more from everything else.  Next week.

Tea Party activists gather on Capitol Hill for a 'Hold the Line' rally, June 27, 2011 in Washington, DC.
(Photo by Win McNamee/Getty Images)
You could not find a single economist in the country, no matter how conservative, who would tell you such a massive and instant cut in government spending would do anything but plunge the U.S. into another Great Depression in a matter of months, if not weeks.

But Broun does not seem to care. In his world, all that matters is paying down the debt. Everything else will just work itself out. He lives in a fantasy land of ideology, where facts can be made to conform with beliefs.

Broun and other reality-denying Republicans like presidential candidate Michele Bachmann insist that the debt ceiling should not be raised. Period. They are on the verge of causing a financial cataclysm.  Speaker John Boehner may not be able to pass debt ceiling his bill through the Republican-controlled House tomorrow because of them.

And it is his own fault.

Last December, in the wake of the November elections, I wrote that the GOP had become John C. Calhoun's party--the party of no compromise, of standing on principle come hell or high water, consequences be damned. I concluded then:
A decade later, Calhoun's irresponsible mindset would lead to the Civil War. Today's Republicans will not, one must hope, produce any calamity on such a dramatic and grand scale. But they embody the same narrow, anti-majoritarian, self-destructive approach to politics that the senator from South Carolina did. And the results of that will not be pretty.
Well, it has now gotten ugly. It may not be the economic equivalent of the Civil War, but it's close enough.

I noted then that Boehner had adopted the "no compromise" rhetoric of the Tea Party in his "60 Minutes" interview. That was the first sign that he would attempt to appease and co-opt rather than lead the Tea Party caucus.

Then in February on "Meet the Press," when confronted with the birther nonsense so prevalent among Republicans, he said:
It’s not my job to tell the American people what to think. Our job in Washington is to listen to the American people.... the American people have the right to think what they want to think.
No, it isn't the job of a leader to "tell the American people what to think." But it IS the job of a leader to educate people about the difference between the truth and a lie. Boehner treated the question of Obama's citizenship as a mere matter of opinion. I don't believe it, he said, but it's OK if other people do. No, it isn't. Not when we are talking about matters of fact and not of opinion.

And that bring us to where we are today. Boehner's caucus is filled with people so economically ignorant that they really don't think we need to increase the debt ceiling, that we can let it go by, only pay some bills, and thereby, by default, balance the budget now. Boehner knows that this is not true, and he has said so.

But he has spent the last 8 months appeasing the Tea Party know-nothings. He has treated matters of fact as matters of opinion. He has played their game, and now that it is coming down to the wire, he cannot suddenly get them to see reality. Today a Tea Party leader called for Boehner to be replaced as Speaker for not reducing spending right now.

Boehner will have a choice over the next few days. He can either continue to bow to the Tea Party radicals who have no sense of economic reality, or he can make common cause with Democrats and pass a bill that gets us beyond this manufactured crisis and thereby incur Tea Party wrath. He can be John C. Calhoun and go down in flames, or he can be Henry Clay and put the good of the nation first, ahead of party unity and personal ambition.

I hope he chooses the latter, but I wouldn't bet the farm on it.

Friday, July 22, 2011

Chairman Ron

Six years ago, my colleague Li Qing Kinnison and I led a group of students on a three-week trip to China during the January interim. Everywhere we went, there were signs of American corporations: McDonald's, Pizza Hut, Kentucky Fried Chicken, and my favorite example of all—in Beijing, in the Forbidden City itself, a Starbucks. You could hardly ask for a clearer picture of the triumph of global capitalism.

A Starbucks in Shanghai
The other ubiquitous image, of course, was the leader of the Communist revolution, Mao Zedong. His huge portrait still looms over Tiananmen Square in Beijing, and on t-shirts, posters, and wristwatches.


The contradiction is obvious. Mao was not just a communist, he was a particularly radical one. His hostility to any semblance of capitalist enterprise nearly destroyed China, especially in the late 1950s and mid-1960s. Yet he is still venerated in China, even as the state pursues policies that would (were his body not preserved and on display) have him spinning in his grave.

So what gives? Once historical figures leave the stage, there is an inevitable tendency for the historical record to morph into myth. Memory becomes selective. We forget the part of the record that's inconvenient and elevate what is useful. So the horrors of the Great Leap Forward and the Cultural Revolution disappear, and instead many Chinese remember Mao only as the leader of the revolution that ended decades of political chaos and founded the modern Chinese state.

The reason I note this now is that we are seeing a version of this, albeit a milder one, in American politics today. In the Republican Party, Ronald Reagan has been raised to sainted status. But every day, we see Republicans espousing positions and using tactics that Reagan's actual historical record directly contradicts.

The current debt ceiling debate is a case in point. As president, Reagan requested 17 increases in the debt ceiling. Not only that, but in doing so he spoke in terms indistinguishable from those used today by President Obama. On November 16, 1983, Reagan wrote to the Senate:
[T]he Treasury Department cannot guarantee that the Federal Government will have sufficient cash on hand on any one day to meet all of its mandated expenses, and thus the United States could be forced to default on its obligations for the first time in its history….The full consequences of a default—or even the serious prospect of a default—by the United States are impossible to predict and awesome to contemplate … the Senate must pass this legislation before the Congress adjourns.
In his diary, he was more direct:
Last night the Repub. Sen. very irresponsibly refused to pass an increase in the debt ceiling which is necessary if we’re to borrow & keep the govt. running…. I sounded off & told them I’d veto every d--n thing they sent down unless they gave us a clean debt ceiling bill. That ended the meeting. (The Reagan Diaries, p. 192)
In 1987, Reagan wrote in his diary:
If we don’t have an extension of the debt ceiling by the 15th we will have to sell gold or default on bonds.  D--n their hides (the Cong.), we’ll default for the first time in our history. Something has to wake those d--n prima donnas up. (The Reagan Diaries, p. 365)
On his radio broadcast that year, Reagan said:
Congress consistently brings the Government to the edge of default before facing its responsibility. This brinkmanship threatens the holders of government bonds and those who rely on Social Security and veterans benefits.
Reagan could not have been clearer: playing political games with the debt ceiling was highly irresponsible. Yet today’s Republicans, who claim to venerate Reagan, are doing precisely that, and some even call President Obama a liar for saying the same things Reagan did. Republican Rep. Joe Walsh of Illinois said:
President Obama, quit lying. You know darn well that if August 2nd comes and goes there is plenty of money to pay off our debt and cover all social security obligations. And you also know that you and only you have the discretion to make those payments.
The reason we have no deal is that Republicans refuse to entertain any compromise that includes any increase in tax revenues. But Ronald Reagan signed 11 bills raising taxes (more times than he cut them). Republicans today insist that no deal that raises any revenues, in any way, is acceptable—even if it is eliminating tax subsidies for corporations, even if those new revenues get in return tremendous spending cuts.

In 1982, writing in his diary of Rep. Jack Kemp’s opposition to one of those tax increases, Reagan said: “He is in fact unreasonable. The tax increase is the price we have to pay to get the budget cuts.” (An American Life, p. 321)

Reagan, for all of his conservative principles, was an inveterate compromiser. In his autobiography, he denounced the "radical conservatives" when he was California governor for whom "'Compromise' was a dirty word." He was impatient with their zealotry:
they wouldn't face the fact that we couldn't get all of what we wanted today. They wanted all or nothing and they wanted it all at once. If you don't get it all, some said, don't take anything…. If you got seventy-five or eighty percent of what you were asking for, I say, you take it and fight for the rest later. (An American Life, pp. 170-171)
Reagan's description fits well the deal Obama offered Republican Speaker John Boehner: $4 trillion in deficit reduction, with $3 trillion in spending cuts and $1 trillion in new revenue. He offered Republicans 75 percent. They said no, they wanted all or nothing. And they continue to raise the specter of a default that Reagan regarded as irresponsible.

Reagan's record as president would make him utterly unacceptable as a Republican candidate for office today, because Republicans today venerate not Reagan, the historical figure, but Reagan the conservative icon. The latter bears only a passing resemblance to former, and is being used in ways that the historical Reagan explicitly rejected.

Well, it could be worse. He could be on public display in Washington. At least Reagan, unlike Mao, gets to spin in his grave.

Tuesday, July 12, 2011

The Tea Party's Real Founder


In my last post, I compared the current debt ceiling crisis to the political paralysis that led to the Compromise of 1850. It was the last slavery crisis that was resolved peacefully. The spirit of compromise was exhausted. The difficulty of resolving the issues in 1850 was a harbinger of the utter inability to find a compromise a decade later.

The most interesting part of that crisis was South Carolina Senator John C. Calhoun 's final address to Congress. Calhoun's 1850 speech was historical foreshadowing, indicating that Southern Democrats were ceasing to be "normal" (as David Brooks would put it). Ten years later, the mere election of a president without Southern votes would appear to them reason enough to destroy the Union.

The most prominent part of the address is Calhoun's utter rejection of compromise. And that makes him the Tea Party's real Founding Father.

Speaking of his section, the South, Calhoun said: "She has no compromise to offer but the Constitution, and no concession or surrender to make." He insisted that if the Union were endangered, it was not because of the atrocious institution of slavery that he spent most of his career defending, but due to the "agitation" of the opponents of slavery.

Having himself raised the specter of secession, Calhoun demanded that the North show that it loved the Union by surrendering unconditionally to southern demands.

Calhoun's tone finds its modern parallel in the current uncompromising attitude of the Tea Party Republicans on the debt ceiling. The crisis of 1850 was a crisis because slaveholders threatened secession if they did not get their way. Today the debt ceiling is a crisis because Tea Party Republicans have decided to take the previously uncontroversial vote and use it for leverage to impose an ideological agenda.

Southerners in 1850 were in the minority, but stood in the way of everything, blocking majorities from passing legislation of which they did not approve. Today, Republicans control the House, but are in the minority in the Senate and do not control the Executive branch. Yet they insist on a one-sided deal and threaten to cause default if they do not get their way.

Rather than accepting that their minority position meant that they were in no position to dictate, Southerners turned their weakness into a strength. They were willing to bring the house crashing down if they did not get their way. If the North did not give the South everything it wanted, Calhoun said, it would mean that "her love of power and aggrandizement is far greater than her love of the Union." This, coming from a man who raised the prospect of secession in the very first sentence of this speech!

For Calhoun, his support of slavery had become an inviolable principle. Any limit on the growth of the institution was, for him, a deal-breaker.

So it seems today with taxes and the Tea Party. Rep. Tom Graves, Republican and self-identified Tea Party Congressman from Georgia, said: "You know, when we hear the word 'compromise' on Capitol Hill, that's what got us into this mess over the last several decades…. This is no time for compromise."

Conventional wisdom has it that Speaker John Boehner wants a deal, and that fear of the Tea Party caucus is what prompted Majority Leader Eric Cantor's temper tantrum when taxes were raised in the bipartisan deficit reduction talks. It seems that Speaker John Boehner had to back away from a "grand bargain" this past weekend because he could not sell the Tea Partiers on a deal that included any increases in revenue.

Calhoun sought leverage in the South's willingness to destroy the unity of the nation over the issue of slavery. Today's anti-tax fanatics find leverage in their willingness to push the nation to the brink of financial disaster and debt default.

Being so committed to principle that you would prefer disaster to compromise is liberating, if reckless and irresponsible. Calhoun finished his address, and his political career, with these words: "I shall have the consolation let what will come, that I am free from all responsibility."

The next two weeks should tell whether Tea Party Republicans prefer flirting with disaster to governing with responsibility.

Friday, July 8, 2011

The Impending Crisis


Washington, D.C. is full these days of talk of impending crisis and "grand bargains." For an American historian, those terms inevitably are reminiscent of the great compromises of the pre-Civil War era, all of which had something to do with the great divisive issue of the day, slavery. Can those crises tell us anything about today's events?

At first glance, the answer would seem to be "no." Slavery divided the country along sectional, not party, lines. But there are aspects of those crises that do provide some insight into the Republican, or more accurately, Tea Party approach to the debt limit.

And that pattern involves raising issues of policy to matters of dogmatic principle.

Earlier this week, New York Times columnist David Brooks wrote that if the Republicans do not take the deal that the Democrats are currently offering, it will mean that they are no longer a "normal" party. Yesterday, David Frum argued that the

coming vote [on the debt ceiling] is one where almost every House Republican will want to be on the losing side. But if they all get their wish – then they win. And of course … the country and the world loses, and loses horribly.

This idea of a compromise where everyone wants to be on the “losing side” is reminiscent of the Compromise of 1850, which preceded the Civil War by little more than 10 years. The difficulty of resolving the issues in 1850 were a harbinger of the utter inability to find a compromise a decade later.

The mindset today is similar to the one that prevailed in 1850.  This morning on NPR's "On Point," Major Garrett of the National Journal said that the idea now is for a "too big to fail" or "big bang" deal; i.e., if everything is included, if all outstanding issues are addressed, then members of Congress will have to vote for it.

That was how Congress initially approached the problems of 1850.  The "Great Compromiser" Henry Clay, leader of a special Senate committee, proposed what was called an "Omnibus" bill.  According to James McPherson, in his Pulitzer Prize-winning Battle Cry of Freedom, "this package was designed to attract a majority from both sections by inducing each to accept the parts it did not like in order to get the parts it wanted."

It sounded like a good idea. The problem was, "as the legislators labored through the heat of a Washington summer" (sound familiar?), most congressmen "signified their intention to vote against the package in order to defeat the parts they opposed."  Clay's Omnibus bill was defeated.

It is not a stretch to see the same thing happening to any "too big to fail" deal today. Republican leaders like Speaker John Boehner have been saying that a deal that includes any increase in tax revenue cannot pass the House. Minority leader Nancy Pelosi yesterday reacted strongly against any agreement that cut Social Security or Medicare.

So the prospects are not bright.

But there was a Compromise of 1850. Perhaps that holds out some path forward? Sadly, probably not. 

After his bill was voted down on July 31, Clay left Washington in despair, fearing that the failure of his bill would mean disunion. Stephen Douglas, as McPherson puts it, decided to "pick up the pieces" and pass the bill--"in pieces." He divided the Omnibus into five parts, and then assembled ad hoc majorities for each of the five parts. This allowed most members of Congress to vote against the parts they did not like, while voting for those they did like.

In 1850, there were enough legislators willing to oppose the pull of sectional loyalty to make compromise possible. It is questionable whether such a strategy could prevail today. As stunning as it may be to say, today's uncompromising attitude, particularly coming from Tea Party types, seems even greater than the sectional stubbornness of 1850.

The next few weeks should tell us whether we are in worse shape than we were in 1850. Most Republicans in Congress (41 in the Senate and 236 in the House) have signed Grover Norquist's pledge not to raise any tax ever. Perhaps they will revolt, as some did in the recent vote on ethanol subsidies, and show themselves to be a "normal" party. But if not, there will be no "grand bargain."

[In my next post, I will examine the similarities between the Tea Party's demonization of compromise and the mindset of the leading opponent of compromise in 1850, John C. Calhoun.]