Can You Accept Simpson Bowles-Sh!t and Still Call Yourself a Democrat?

Cross posted in Orange and the Stars Hollows Gazette.

No, unless you somehow think RW DLC and third way Democrats forever have the right to dictate their failed policies and complicity in the Great Divergence. No. Real Democrats, if any exist anymore, don’t believe in austerity or the coming GRAND SELLOUT in Congress after the President likely wins reelection. We warned it was coming as soon as the Bush Tax Cut Sellout was passed by Democrats. It was easy to see, but none are as blind as those that refused to see. You know who you are.

It would be different of course if partisans didn’t let Democrats enable Republican lies and ignorance about deficits and national accounting, but they do as Bill Clinton did in his speech at the DNC sticking the part about Simpson Bowles at the end. Deficits are only dangerous political tools as long as Democratic voters are complicit in accepting the whole stupid debate about who rung up the debt. He was probably hoping you wouldn’t pay attention to that part, but maybe not. After all, he once told us how he really felt.

Former President Bill Clinton has quite the skewed view on interest rates (Interest rates went up as he was balancing the budget, not down) regarding deficits and his disastrous surpluses he brags about. As the great Stephanie Kelton, Associate Professor of Economics at the University of Missouri-Kansas City took note of, even mainstream "progressive" journalists are now admitting reality so why must we indulge these deficit fantasies or sit through another convention full of them?

We’re Not Broke and the Clinton Surpluses Destroyed the US Economy

Two of our nation’s most influential progressive journalists — Slate’s Matt Yglesias and Business Insider’s Joe Weisenthal — just took on two powerful economic myths.

1. The Myth that The US Government is Out of Money

2. The Myth that A Government Surplus is a Sign of Fiscal Responsibility

It’s hard to imagine a more empowering message. As word spreads, elected officials in both parties will lose their primary excuse for inaction on on a whole range of neglected and underfunded programs. “I’d love to help, but I’m all tapped out,” simply won’t sell.

There is no conceivable time in this new normal of high unemployment that there will ever be a need to balance the federal budget or tackle the debt because there would have to be full employment in order for deficit spending to drive prices up; that’s it. Anything else sputtered is absolute garbage and it hurts real people whose productive capacity and dignity is then wasted for a lie. Unless Democrats want to try to directly hire people via the employer of last resort (which they proudly don’t have the stomach for) then the long term unemployed might as well be garbage to them as they are to the Republicans.

After all, structural unemployment was another lie told by a number of speakers at the DNC. You see, just because the Republican convention was 100% BS, doesn’t mean Democrats can’t be honest with themselves about their own deficit lies at the DNC affecting the lives of Democratic voters now and in future elections as far as the eye can see. Pointing these painful political and economic realities out is essential so we can get a conversation going about the right things. Therefore, progressive Democratic critics are an essential part of the base and always have been whether some people like it or not, but it’s not our fault some proudly forgot their history.

The hard fought battles won that changed peoples lives via the New Deal banking reforms of 1933 were waged and won by those that swam upstream even against their own party apparatus, not the brain dead fish that went with the flow while bragging about how fast they were moving but didn't even know. So unlike those fakers, the gains from the past to the future belong to movers, shakers, and muckrakers.

Like the great Neo Chartalist Keynesian economist James K. Galbraith and populist Jim Hightower that hales from my state, the late great Molly Ivins once wrote eloquently about this dynamic; a major problem within the Democratic party that still exists is that they have all collectively lost their inner Eugene McCarthy. It’s time we remembered this lesson again like the separation of powers curbing the executive and actually representing Democratic constituents instead of enabling undemocratic gangs of six or eight and sellout backroom deals.

I will not support Hillary Clinton for president

Enough. Enough triangulation, calculation and equivocation. Enough clever straddling, enough not offending anyone This is not a Dick Morris election. Sen. Clinton is apparently incapable of taking a clear stand on the war in Iraq, and that alone is enough to disqualify her. Her failure to speak out on Terri Schiavo, not to mention that gross pandering on flag-burning, are just contemptible little dodges.

The recent death of Gene McCarthy reminded me of a lesson I spent a long, long time unlearning, so now I have to re-learn it. It's about political courage and heroes, and when a country is desperate for leadership. There are times when regular politics will not do, and this is one of those times. There are times a country is so tired of bull that only the truth can provide relief.

If no one in conventional-wisdom politics has the courage to speak up and say what needs to be said, then you go out and find some obscure junior senator from Minnesota with the guts to do it. In 1968, Gene McCarthy was the little boy who said out loud, "Look, the emperor isn't wearing any clothes." Bobby Kennedy -- rough, tough Bobby Kennedy -- didn't do it. Just this quiet man trained by Benedictines who liked to quote poetry.

There was a lot of pressure to fall in line back in 1968 too before LBJ declined to run after Eugene McCarthy's strong showing in the Democratic primary in NH. You have to wonder what would have been had he not stepped up to run given the massive toll Vietnam was taking, specifically on the poor, who had no other options. It was a brave bold step Eugene took with lots of risk, and I'm sure many would say ill advised, even traitorous, as the hard hats were not fond of the antiwar movement back then. However, It was a risk worth taking even criticizing the Democratic President that passed the Great Society and the Civil Rights Acts. MLK took a similar even bolder step in his famous anti-Vietnam speech.

From that speech, we all need to remember even today that at a certain point silence becomes betrayal. In that sense, Eugene and MLK held the same POV when it came to the war in VIetnam. The general consensus back then, much like today, was that there was much to lose and not much to gain for going against the grain of the Democratic party apparatus; specifically if you were a part of it or gained favor from working with it. That made speaking out against it all the more courageous. Today that courage is gone.

We can hear the loss of our party's inner Eugene McCarthy through every quiver of every word spoken by every Democratic politician in defense of their President, Majority Leader, and House Speaker right or wrong; even the most progressive Congressman or Senator falls prey to this. It's as if they are not working for their constituents, but for the political party apparatus in D.C whatever that turns out to be; even if it's cutting Social Security. So basically those on the blogosphere telling Democratic critics of Democrats to STFU and GTFO of the party have a lot of studying to do, as usual.

Perhaps they don’t even know the history of the party they claim or why Bobby Kennedy picked up the anti-war message now forgotten and changed for the better (on his way to win the nomination and likely general election) before his tragic assassination? Perhaps they don’t remember know Hubert Humphrey took the safe route continually supporting the Vietnam War until it was too late. However, Republicans never took the House or Senate in 1968 or 1972 and you can partially thank Eugene for that as well as LBJ’s domestic achievements (which McGovern didn’t speak well enough of ignoring working class concerns in 72) despite his failings on foreign policy.

And despite Vietnam, Hubert Humphrey was a real Democrat who tried to get President Jimmy Carter to reject the neoliberal third way deficit fetishist destruction that won the 1980 election for Reagan early. This would start the Great Divergence in tandem with the sellout Democrats and Republicans that passed Taft Hartley from years earlier over Truman’s veto coming to fruition. Rick Perlstein(author of Nixonland) has a good account of this.

America’s Forgotten Liberal

For progressives today, however, the joke’s on us. In the 1970s the Democratic Party turned its focus from a New Deal-inspired politics of economic security toward a Watergate-inspired embrace of institutional reform. The move was explicitly anti-you-know-who: “We’re not a bunch of little Hubert Humphreys,” proclaimed Gary Hart, the leader of the “Watergate Babies” Democratic Congressional class of 1974.

Their reforms, however, largely failed in their intention to liberalize the nation. Conservatives and business interests were able to bend the new campaign finance rules and Congressional committee systems to their own ends. That, in turn, helped bring about what Paul Krugman calls the “Great Divergence”: the economic inequality that has made a mockery of ordinary Americans’ aspirations to join and stay in the middle class.The trends were already in evidence during the presidential season of 1976. The only thing missing was any organized Democratic response among the candidates — besides, that is, Hubert Humphrey, who was once more an also-ran for the Democratic nomination.

[……………….]

In 1976 he joined Representative Augustus Hawkins, a Democrat from the Watts section of Los Angeles, to introduce a bill requiring the government, especially the Federal Reserve, to keep unemployment below 3 percent — and if that failed, to provide emergency government jobs to the unemployed.

It sounds heretical now. But this newspaper endorsed it then, while 70 percent of Americans believed the government should offer jobs to everyone who wanted one. However, Jimmy Carter — a new kind of Democrat answering to a new upper-middle-class, suburban constituency, embarrassed by industrial unions and enamored with the alleged magic of the market — did not.

Smiley faceThese new kinds of Democrats allured with magical markets, structural unemployment lies, bond vigilantes, and confidence fairy tales have largely failed to live up to the New Deal and Great Society at a time when these platforms need to be expanded on and even better. You would think that would bother more people who call themselves Democrats. You would think the memories of FDR, LBJ, Truman, Eugene McCarthy, and Hubert Humphrey would elicit the same kind of knee jerk defenses as the guy who hired the men who ruined the world in his cabinet.

But sadly you would be wrong. These things matter whether we’re in an election or not. It doesn’t hurt any Democrats’ chances if they are discussed. In fact, it’s why candidates like Senator Sherrod Brown of Ohio are probably going to pull it out despite being against so much big money, because he has these discussions with his constituents that don't want more free trade agreements the President pushed at the DNC. They also want the banks broken up and support his reintroduced Safe Banking Act as they did in 2010 before the President worked to defeat it.

There’s really nothing besides an unenlightened herd mentality that states we all must dance to the beat of the same drum, even though that third way “New” Democratic sound is directly in tune with Republican free market fantasies that have led us all astray.

But today neoliberalism is still over if you want it.

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Indeed, as Steve Keen has argued ...

BruceMcF's picture

... the "Great Moderation" is a symptom of a long term bubble inflating. However, even though a financial crisis of the magnitude of the Panic of 2008 cannot conceivably be entirely generated within a mere eight years, the convenience of it hitting at the end of an already unpopular administration allows the Clinton Administration to get off scot free under neoliberal propagandizing.

Its like someone jumping off a two story building and blaming the ground floor for the trip to the hospital. "There wasn't nothing wrong for the second floor part of the trip".

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Those are Keen Insights, BruceMcF

priceman's picture

Orthodox economic history is written by Neoliberals that hang facts out to dry so they can try to show up at Democratic conventions and everybody still loves them because the timing was right after the Bush administration even though the conditions had to be built up over certainly not just 8 years but in the early 90s to 2008 and the conditions putting people into it and other private debt much longer. Sadly this is the case.

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This is a must read essay.

sartoris's picture

Excellent essay, Priceman. Any democrat that believes we need to implement austerity is a disgrace to the party. I hope that the progressive caucus begins exercising its power. It's long overdue for the progressive caucus to take over the party. Nearly one third (5 trillion dollars) of the debt is money owed to other governmental agencies. The federal reserve owns more than 1.5 trillion of the debt. Want to fix the debt crisis? The US govt can realistically cut 300 billion from the DOD without any difficulty. Let the Bush Tax cuts expire. Close the overseas empire. This is a made up crisis. Here is a link to a very good breakdown of the debt.
http://useconomy.about.com/od/monetarypolicy/f/Who-Owns-US-National-Debt...

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Thanks, Sartoris! I appreciate that

priceman's picture

That is a good breakdown. Remember this when we go through the debt ceiling crap again. Wall St owns a ton of US debt so a self induced political default(the only way it could happen for a currency issuing country like us or Japan) was always unlikely to happen because of their power over the government they bought, ours.

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On the title question ...

BruceMcF's picture

... you cannot support Simpson Bowles and pretend to be center, center-left or left unless you indulge in believing neoliberal fantasy economics ... as all Very Serious People do (by the current definition of being a Very Serious Person).

However, a good chunk of Democratic party has long been center-right or right. For those, sure, catfood for seniors "for the good of the party".

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Center right Republicans ...

BruceMcF's picture

... used to fear touching SS. That was the purpose of the four decades in propagandizing a phony crisis in Social Security.

And, as I noted, the Reagan / Tip O'Neill deal to shift from progressive personal income, corporate income and capital gains taxes to regressive payroll taxes requires the Trust Fund to always be "saving money" for the future and never "spending down", which is doubly evil to the neoliberals since it requires the progressive taxes to be raised in service of progressive spending.

That requirement has made it urgent to pretend that there is an urgent crisis.

The levy on unearned income over 5x median earned income required to keep the Disability Insurance "solvent" five year ahead is quite low, and there is no need to top up the Social Insurance Fund in this decade. We can fucking well cross that bridge if and when it is on a ten year horizon.

Economic projections fifty years into the future are backwards science fiction: pretending that there will not be top to bottom change in the economy the nature of which we cannot possible predict, though every fifty years since the founding of the country there has been.

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Bowles Simpson

thegreytiger's picture

I am a political atheist so I can go with any plan I think is right.. but so far there are none that I can support.

Take Social Security which is high on the target list.. They want hit it with the ultimate goal of making it a 401k type of account, which will be a disaster.. The thing that makes me furious is you can fix the SS problem by raising the caps on deductions.POOF the problem goes away. I think that the fact that this is not even on the table clearly shows the intent of all .Wall street wants the money.

Medicare and Medical.. both side are going to hack the programs for all..Ask most doctors if they take Medicaid today most say no and if you bother to ask why you'll find out if Medicare pays $100 for a visit Medicaid pays $10. One side want to turn Medicare into a voucher program ..Do the math it would kill you financially... cuts from the other side but we don't know how much yet.. and both would probably destroy Medicaid where 2/3 of the money is spent on long term care for senior..

Once again there is a slimple answer..Medicare for all ..according to the CBO a single payer program would give everyone health care and take care of a large part of the deficit problem...

If there was another choice for president I would take it..Perhaps next time as alternative will exist.

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I agree with you.

Glinda's picture

I've been a registered Democrat my whole adult life and have 99.999999999% of the time voted for Democrats.

The problem is that I haven't changed, but the party I'm a member of has changed.

I am now 100% committed to supporting issues and policies.
That's pretty much the reason a group of people created this website -- to talk exactly about issues and policies and what we can do to effect change.

I think it's pretty simple: Raise the cap on paying SS taxes.

Medicare for all.

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Welcome to VOTS

priceman's picture

Elena Kagan dealt a big blow to Medicaid in the ACA decision. the reality is that since we create our own currency, we can decide SS is too big to fail. We can also capture 90% of wages again before messing with the cap; I think we need to be careful about the political danger before we start messing with the cap. But it's a false dynamic. After all, you don't find the kind of hysteria involved with people thinking the military is going to go bankrupt.

Reimbursement rates for both need to be higher and indexed correctly to health care costs, but we do need Medicare for all and possibly a nationalized fully federal operational version of Medicaid.

I think they never officially scored Medicare for All because they were afraid of the political support it would gain.

Great to see a new face here always.

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You can fix it by putting a floating levy ...

BruceMcF's picture

... over the cap, kicking in when needed to keep the DI and SI funded solvent fire years ahead ... and not only, in the make believe distant future part of the projection will we "fix it" ... but we'll fix it with only a percentage point or two of levy for twenty years or more, since only the DI fund is under any pressure in the coming decade.

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Rahm and the teachers strike is the best example

sartoris's picture

If one wants to see what happens when democrats start acting like republicans then one need look no further than Chicago. Rahm (still running as a democrat, Rahm, come out of the closet already) has virtually declared war on the Chicago Teacher's Union. I'm in Chicago and I can see that this has become personal for Emanuel. I can see him running for President in 2020. A real democrat would be engaging the union in honest negotiations, and not attacking the workers. The party needs to seriously reevaluate it's core beliefs.

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