The Liberals' Spending Delusions and the 2010 Elections

October 26, 2010 RSS Feed Print
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The churn building toward Election Day is achieving a kind of cannibalistic feeding frenzy as liberal pundits, Democratic strategists, and MoveOn activists try to spin the public’s coming rejection of the Obama agenda. It’s not that the White House and Democratic Congress tried to cram left-wing policies down the esophagus of a center-right nation; it’s that they didn’t cram hard enough.

Here is a typical lament from former Clinton Labor Secretary Robert Reich: “A stimulus too small to significantly reduce unemployment, a TARP that didn't trickle down to Main Street, financial reform that doesn't fundamentally restructure Wall Street, and healthcare reforms that don't promise to bring down healthcare costs have all created an enthusiasm gap. They've fired up the right, demoralized the left, and generated unease among the general population.”

Building upon an already unsustainable deficit, engaging in more spending to bail out reckless banks, issuing more regulation on the business community, and creating a true government-run healthcare system: This, he says, would have changed the election year dynamics--firing up liberal voters and demoralizing conservatives, resulting in victory for the Democratic majority. Nevermind that the Democrats are in trouble for exactly such thinking. Nevermind that the vast number of American voters have made clear--through polls, through votes in Virginia, New Jersey, and Massachusetts, and through riotous town hall meetings--that they want less of this, not more.

Call it the Titanic Delusion. If only the ship had barreled faster toward the iceberg, it would have broken through to safety.

You hear this theory most frequently applied to healthcare reform. Americans were all for the reform, we are reminded. Until they weren’t. What happened in between? According to the Delusionists, Obama backed away from his promises and choked when he had the opportunity to create a single-payer (translation: government-run) healthcare system. And in the process of his retreat, he alienated his base and merely stirred up conservatives.

His base? That expansive voting coalition of academics, Code Pink, and California? Heck, you can’t even include the voters of Massachusetts in the mix, as those poor dupes were the first of the guinea pigs to get a taste of Obamacare. In the special election showdown of Scott Brown-Republican vs. Martha Coakley-Obamacare, Brown’s upset victory was an unmistakable statement of anxiety about the direction the Democrats were taking this country.

Except to the left. They are like narcissistic actors on the stage who mistake the rotten tomatoes hurled at them as kind-hearted gifts from people who can’t afford better, bless their hearts.

You see the same delusions applied to federal spending and the stimulus plan. Just as few Democrats dare to campaign on the issue of healthcare, you see just as few trotting out their votes for the stimulus. The public is in a rage over ever-expanding, ever-intruding government funded by breathtaking taxing, borrowing, and spending. When the Obama White House started floating the idea of a Stimulus II package--that is, more spending with no serious effort to cut elsewhere--Democrats in tough election battles began gathering their own rotten fruit in the form of television ads denouncing all things Washington--a town run by Nancy Pelosi and Barack Obama. (Can Harry Reid, a man who cannot run his own campaign without stumbling over hideous gaffes, be said to be part of the ruling Triumvirate?)

[See where Pelosi gets her campaign money.]

We were told about all the shovel-ready jobs that would be funded by the stimulus. How unemployment would drop. What we got was funding for wasteful pet projects, more transference of wealth, and a new term for the American lexicon: “saved jobs.” But no new jobs. Unemployment went up. Taxes went up for job creators. Debt went up. And the deficit is going the way of Europe.

Evidently the problem is not that we now face historic levels of debt but that we haven’t spent ourselves into more debt, according to the liberal intelligentsia. Had Obama only spent more, borrowed more, taxed more … we would be on our way to economic recovery. And he to adulation and victory.

The New York Times’s Paul Krugman is the latest to voice this monotony. It’s not that Obama spent like a drunken sailor, he writes; it’s that he didn’t spend drunkenly enough. We didn’t even bother to bail out state governments that had gorged on programs they couldn’t afford for years, Krugman laments. The logic, I suppose, being that if the federal government isn’t spending with enough reckless abandon, then it should subsidize those governments that are. As long as there is spending, dammit, all will be well.

This, we are told, would surely have changed things at the polls.

The Krugmans of the world don’t believe it’s possible that regular voters, most of whom don’t boast a Nobel Prize in economics, could harbor a fundamental skepticism toward deficit spending. That they fear what they see taking place in Europe, where Obama-esque governments for years refused to cut any program and have now sunk under such a burden of debt that they are forced to slash at the worst possible time imaginable. Riots in France. Entire government agencies eliminated in Britain. And Greece? Should we even dare mention the unholy spectacle of Greece?

The American voter can’t possibly be worried about these things, say the Delusionists. Give them bread and circuses and they will move on their mindless way. Except they’re not. They are speaking with greater force at the polling booth.

The Delusionists are undeterred. Full steam ahead, fellows--these people will thank us afterwards!

Tags:
Democratic Party,
Wall Street,
2010 Congressional elections,
Scott Brown,
Greece,
Congress,
Republican Party,
deficit and national debt,
Nancy Pelosi,
healthcare,
Harry Reid,
economic stimulus,
healthcare reform,
unemployment,
Barack Obama

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...towards a ditch at full electric speed (35MPH) with no hands on the wheel because one hand is holding a 40 ounce "O.E.800" and the other is holding a crack pipe. With the gangsta rap loudly thumping and crackling through the crummy sound system, this soon-to-be wreck almost hurtles itself over a cliff when all of a sudden... its batteries die! Teetering there on the brink of assured destruction, suddenly the screaming occupants hear the sound of an unmuffled, gas-guzzling SUV approaching, full of tea-partiers. "Hooray, we be saved!" they all chortle, just before the SUV taps the electro-crap-mobile just enough to send it down to the jagged rocks and alligators below. And bummer! Just then I woke up and realized it was all just a dream!

Ford Man of MI 7:53PM October 27, 2010

Can't prove to someone who can not comprehend.

You think Juan Williams is a conservative after all. You think 40% + 50 % = 100 %. You are chump # 1 erased.

Enjoy Nov. 2.

Bill Hedges of MO 10:04PM October 26, 2010

Here is the BEA's data which you willfully ignore. This is because you are quite dishonest. In 2001, the year of the tax cuts, the federal government collected $1.25 trillion in all federal taxes. In 2008, the federal government collected just under $1.45 trillion in revenue; down from the previous year which peaked at $1.6 trillion. Even assuming these are inflation adjusted figures (most government data is) this amounts to less than a two percent average annual rate of growth of federal revenues; the lowest average in post WWII history!

http://www.bea.gov/national/nipaweb/TableView.asp?SelectedTable=87&ViewSeries=NO&Java=no&Request3Place=N&3Place=N&FromView=YES&Freq=Year&FirstYear=2001&LastYear=2009&3Place=N&Update=Update&JavaBox=no

The tax cuts cost more than Obama's health care bill passed earlier this year.

"Newly revised estimates from Citizens for Tax Justice show that the Bush tax cuts cost almost $2.5 trillion over the decade after they were first enacted (2001-2010).1 Preliminary estimates from the non-partisan Congressional Budget Office show that the House Democrats’ health care reform legislation is projected to cost $1 trillion over the decade after it would be enacted (2010-2019)."

http://www.ctj.org/pdf/bushtaxcutsvshealthcare.pdf

Bush's tax cuts delivered no new net private sector jobs and no real net federal revenue growth. The Bush years also had the slowest GDP growth rates since the late 1940s.

"...the 2001-2007 economic expansion was among the weakest since World War II with regard to overall economic growth. Moreover, revenue growth was very poor during 2001-2007. Real per-capita revenues fell deeply in 2001, 2002, and 2003 and have since risen to barely 2 percent above their 2001 level. Over the course of other postwar economic expansions, they grew by an average of 12 percent."

http://www.cbpp.org/cms/?fa=view&id=507

The GOP/TP call for further tax cuts for the rich to restart the economy will succeed no better than Bush's tax cuts for the rich; the top five percent of income earners received over half the tax cuts and there was record SLOW GDP growth. There was also a massive financial crisis. This is because trillions in revenues found its way back to the rich with no profitable outlet for investment other than financial speculation. The only REAL way forward is to tax idle wealth and create a new economy based on high paying green jobs that can't be outsourced.

steve of IL 8:52PM October 26, 2010

Chris Battle

Chris Battle

Chris Battle is a partner at Adfero Group, a public relations firm in Washington, D.C. He was a former political reporter and editorial writer at daily newspapers before entering politics and government. He has worked as a campaign manager, communications strategist, and chief of staff on Capitol Hill. Off the Hill, Battle has served as chief of staff at U.S. Immigration and Customs Enforcement and head of congressional and public affairs at the DEA. He is also the editor of Security Debrief, a blog focused on homeland and national security issues.

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