Spending and the deficit

There is a lot of information floating around out there, but I just got these charts from my Congressman, Mike Capuano, and I wanted to share them.

The Bottom Line
The statistics and chart below will prove two points despite any rhetoric to the contrary:
  1. Federal spending is headed towards the lowest share of GDP in memory;
  2. The federal government is making great progress towards reducing our annual deficit.
A Note about Federal Spending
If you listen only to a few talking heads you might think that the federal government is engaged in a spending frenzy.  That is actually not the case.  In fact, our government is currently spending LESS than it did in 1974 on discretionary spending programs, the year that detailed economic records were first compiled.
We all know that a dollar doesn’t go as far as it once did – so measuring any spending over a 40 year period demands adjustment.  One way to do this is to look at government spending as a percentage of the Gross Domestic Product (GDP). The chart below with data from the Congressional Budget Office (CBO) illustrates that in 1974, federal government spending under the Nixon Administration equaled 9.3% of ALL spending in the country (the GDP).  Discretionary spending peaked in 1983 under the Reagan Administration at 10% of GDP.  The most recent figures show that federal spending last year under President Obama fell to just 7.2% of GDP and is estimated to decline even further over the next several years.
Historically, the lowest level of discretionary government spending in the last 40 years occurred in 1999 under the Clinton Administration, and it rose steadily from 6.1% to 7.7% during the George W. Bush Administration.
The point I am trying to make is that it is important to keep federal spending in perspective.  Your federal government today is spending a much smaller share than President Reagan ever did and more spending cuts are coming.  Many of us think it is long past time to face reality and truly consider the future of our country. Do we want good roads? Do we want good schools?  If the answer is yes, then it’s time to start paying for them.
At this point in our nation’s history, we should be investing again in our future. Our economy is improving and the federal budget has stabilized. The notion that federal spending is out of control just isn’t accurate. Take a look at the chart (or click here for a larger version) and table below, which illustrate my argument:
Discretionary Outlays Since 1974
as % of Gross Domestic Product (GDP)

FY

Defense

Nondefense

Total

Nixon 1974

5.4

3.9

9.3

Ford 1975

5.4

4.4

9.8

Ford 1976

5.0

4.8

9.8

Carter 1977

4.8

4.9

9.7

Carter 1978

4.6

5.0

9.6

Carter 1979

4.5

4.8

9.3

Carter 1980

4.8

5.1

9.9

Reagan 1981

5.0

4.8

9.8

Reagan 1982

5.6

4.2

9.8

Reagan 1983

5.9

4.1

10.0

Reagan 1984

5.8

3.8

9.6

Reagan 1985

5.9

3.8

9.7

Reagan 1986

6.0

3.6

9.7

Reagan 1987

5.9

3.4

9.3

Reagan 1988

5.6

3.4

9.0

Bush 1989

5.5

3.3

8.8

Bush 1990

5.1

3.4

8.5

Bush 1991

5.2

3.5

8.7

Bush 1992

4.7

3.6

8.3

Clinton 1993

4.3

3.6

7.9

Clinton 1994

3.9

3.6

7.5

Clinton 1995

3.6

3.6

7.2

Clinton 1996

3.3

3.3

6.7

Clinton 1997

3.2

3.2

6.4

Clinton 1998

3.0

3.1

6.2

Clinton 1999

2.9

3.1

6.0

Clinton 2000

2.9

3.1

6.1

GW Bush 2001

2.9

3.2

6.1

GW Bush 2002

3.2

3.5

6.7

GW Bush 2003

3.6

3.7

7.3

GW Bush 2004

3.8

3.6

7.4

GW Bush 2005

3.8

3.7

7.5

GW Bush 2006

3.8

3.6

7.4

GW Bush 2007

3.8

3.4

7.3

GW Bush 2008

4.2

3.5

7.7

Obama 2009

4.6

4.0

8.6

Obama 2010

4.7

4.5

9.1

Obama 2011

4.5

4.2

8.8

Obama 2012

4.2

3.8

8.0

Obama 2013

3.8

3.5

7.2

Obama 2014 EST

3.5

3.4

6.9

Obama 2015 EST

3.3

3.2

6.6

Obama 2016 EST

3.2

3.0

6.2

2017 EST

3.1

2.9

6.0

2018 EST

3.0

2.8

5.8

2019 EST

2.9

2.7

5.7

2020 EST

2.9

2.7

5.6

2021 EST

2.8

2.6

5.4

2022 EST

2.8

2.6

5.4

2023 EST

2.7

2.5

5.3

2024 EST

2.7

2.5

5.2

Sources: Cong Budget Office; Office of Management and Budget

The Federal Deficit
We have heard a lot of talk about the federal deficit. The chart belowshows the amount of the annual deficit, or in some cases, surplus,generated by the federal government.  There are many ways to interpret these statistics and I would like to offer a few comments.
You can see there have been only four years since 1974 wherea surplus was generated– the last three years under PresidentClinton and the first year under PresidentGW Bush.  One could argue that the 2001 surplus should be credited to Clinton policies – butI will leave that aside.  However, it is clear that the federal governmentstarted regenerating deficits under Bush policies – most notably his first tax cut in 2001 (before the 9/11 attack).  Certainly, the terrorist attacks on September 11th and the country’s decision to engage in Afghanistan impacted the economy. However,the federal government made a conscious decision to turn away from fiscal discipline BEFORE September 11th.
One can quickly notice the impact of the 2008 economic crisis and our reaction to it.  Regardless of how you might feel about the stimulus and the bailouts – at least it was clearwhat the short term effect would be on the federal deficit.  I happen to think BOTH those actions were necessary and appropriate to save our economy from an even worse fate. Certainly the bailout should have had more teeth. Remember though it was passed under the Bush Administration so those of us calling for more teeth were drowned out.The only choice we faced was action or inaction, and we chose action. I also believe that the stimulus should have been more targeted on creating jobs.  Unfortunately, Congress never has a choice between perfect options – it is always a choice between imperfect plans.  I understand thatmost people have formed pretty strongopinionsabout the actions that the government took and I will let history decide whether those actions were appropriate.
Since the economic crisis in 2008, the federal government has been making significant and steady progress towards reducing our annual deficit.  The average deficit over the 43 years covered by this table equals 3.1% of the GDP. This chart doesn’t show it, but by the end of the Obama Administration it will be below that historic average. Remember, absolute numbers like these only tell a portion of the story.
My final note on this is historic.  This chart shows the deficits and surpluses under 20 years of Democratic Presidents and 22 years of Republican Presidents … good times and bad … war and peace.  I think the most important measure is the change from one year to the next. Maybe we cannot achieve our goals in one year, but are we making progress?  Based on this chart you can calculate that under Democratic Presidents, the deficit was REDUCED by an average of $22.3 billion each year … under Republican Presidents that Deficit has been INCREASED by an average of $44.5 billion each year.  I’ll let you decide which course is the better one.

Revenues

Revenues Change %

Outlays

Outlays Change %

Total Deficit / Surplus

Change $

Nixon 1974

263.2

269.4

-6.1

Ford 1975

279.1

6%

332.3

23%

-53.2

-47.1

Ford 1976

298.1

7%

371.8

12%

-73.7

-20.5

Carter 1977

355.6

19%

409.2

10%

-53.7

20.1

Carter 1978

399.6

12%

458.7

12%

-59.2

-5.5

Carter 1979

463.3

16%

504.0

10%

-40.7

18.5

Carter 1980

517.1

12%

590.9

17%

-73.8

-33.1

Reagan 1981

599.3

16%

678.2

15%

-79.0

-5.1

Reagan 1982

617.8

3%

745.7

10%

-128.0

-49.0

Reagan 1983

600.6

-3%

808.4

8%

-207.8

-79.8

Reagan 1984

666.4

11%

851.8

5%

-185.4

22.4

Reagan 1985

734.0

10%

946.3

11%

-212.3

-26.9

Reagan 1986

769.2

5%

990.4

5%

-221.2

-8.9

Reagan 1987

854.3

11%

1,004.0

1%

-149.7

71.5

Reagan 1988

909.2

6%

1,064.4

6%

-155.2

-5.4

Bush 1989

991.1

9%

1,143.7

7%

-152.6

2.5

Bush 1990

1,032.0

4%

1,253.0

10%

-221.0

-68.4

Bush 1991

1,055.0

2%

1,324.2

6%

-269.2

-48.2

Bush 1992

1,091.2

3%

1,381.5

4%

-290.3

-21.1

Clinton 1993

1,154.3

6%

1,409.4

2%

-255.1

35.3

Clinton 1994

1,258.6

9%

1,461.8

4%

-203.2

51.9

Clinton 1995

1,351.8

7%

1,515.7

4%

-164.0

39.2

Clinton 1996

1,453.1

7%

1,560.5

3%

-107.4

56.5

Clinton 1997

1,579.2

9%

1,601.1

3%

-21.9

85.5

Clinton 1998

1,721.7

9%

1,652.5

3%

69.3

91.2

Clinton 1999

1,827.5

6%

1,701.8

3%

125.6

56.3

Clinton 2000

2,025.2

11%

1,789.0

5%

236.2

110.6

GW Bush 2001

1,991.1

-2%

1,862.8

4%

128.2

-108.0

GW Bush 2002

1,853.1

-7%

2,010.9

8%

-157.8

-286.0

GW Bush 2003

1,782.3

-4%

2,159.9

7%

-377.6

-219.8

GW Bush 2004

1,880.1

5%

2,292.8

6%

-412.7

-35.1

GW Bush 2005

2,153.6

15%

2,472.0

8%

-318.3

94.4

GW Bush 2006

2,406.9

12%

2,655.1

7%

-248.2

70.2

GW Bush 2007

2,568.0

7%

2,728.7

3%

-160.7

87.5

GW Bush 2008

2,524.0

-2%

2,982.5

9%

-458.6

-297.9

Obama 2009

2,105.0

-17%

3,517.7

18%

-1,412.7

-954.1

Obama 2010

2,162.7

3%

3,457.1

-2%

-1,294.4

118.3

Obama 2011

2,303.5

7%

3,603.1

4%

-1,299.6

-5.2

Obama 2012

2,450.2

6%

3,537.1

-2%

-1,087.0

212.6

Obama 2013

2,774.0

13%

3,454.3

-2%

-680.3

406.7

Obama 2014 EST

-514.0

166.3

Obama 2015 EST

-478.0

36.0

Obama 2016 EST

-539.0

-61.0

 

 My bottom line? Let’s spend some money and create some jobs.

Post is cut and pasted from an email update from Congressman Michael Capuano. 7th CD, Massachusetts.

Winners and losers

Not talking about baseball today but about  the 16 day drive toward the fiscal cliff.   One of my favorite commentators, Ana Marie Cox, has compiled a list that you can see in its entirety here in the Guardian.  You can agree with her or not about her choices, but she gives us some things to think about.  Here are my favorites among Cox’s choices.

Winners

Ted Cruz

Ted Cruz. The punchline for a thousand Twitter humorists and the lead for most of the many stories about GOP dysfunction, Cruz is laughing in that whiny way of his all the way to the campaign war chest. He raised over $1m in the third quarter that ended 1 October, before the shutdown, half of it through the new “Ted Cruz Victory Committee” formed last year specifically to benefit from Cruz’s “defund Obamacare” petition. Cruz’s floor speech before the Senate vote seemed to imply that the fundraising was continuing at that pace; he referred to the “millions of millions [sic] of American people rising up across this country, over two million people signing a national petition to defund Obamacare”. The online petition is also an email harvesting gambit from the Senate Conservative Fund, the PAC that helped bring Cruz to Washington in the first place.

Harry Reid

Harry Reid. The former pugilist only won a technical knockout, but that’s probably the way the Senate majority leader likes it. That Reid’s compact and focused rage held Democrats together and in chorus was obvious from the outside. Senator Dick Durbin’s insinuation that we will “never know, you will never know, how much he put in to accomplish this” only ups the suspicions about the incredible power Reid wields.

Speaker Pelosi

Nancy Pelosi. Drudge called it, naming the Democratic congresswoman from California the once and future Speaker of the House. In other words, Matt Drudge thinks the Democrats have a serious chance of winning back the House of Representatives in the 2014 midterms. Or, you know, he could have been trolling us.

John McCain

John McCain. The septuagenarian’s bipolar relationship with the media started on the upswing with his early ridicule of Cruz (though now Cruz wears “wackobird” as a badge of honor). With the threat of a shutdown, the love affair really flared back up. McCain gave both earnest indictments of the strategy and exasperated quips. He dusted off the chestnut that congressional popularity is down to “paid staffers and blood relatives” and declared sarcastically of the GOP, “We’re livin’ the dream.”

And now the

Losers

majority rule

Majority rule. While the fundamental principle of democracy seems to have survived the 16-day crisis, the fact of the shutdown and the tiny minority of congressmen that created it, the Tea Party Republicans of the House have nonetheless managed to poke serious holes in the constitution they hold so dear. Presumably, the second amendment was left unscathed.

economic principles

Economic principles. People who didn’t even know what the debt limit was last month now think it’s some kind of conspiracy. Even as the US dodged a bullet this time – though suffering the collateral damage of further credit-rating downgrades – one can’t help feeling that we haven’t heard the last of the GOP’s new caucus of “debt default skeptics”.

apples and oranges

“False equivalence” reporting. James Fallows at the Atlantic documented some of the worst offenders and as “it’s everybody’s fault” became a Republican talking point, many media critics joined him in denouncing the faux-even-handedness as actually putting a finger on the scale. The “serious people” trope (as in, “serious people are above partisan bickering”) popularized by op-ed writers such as Michael Kinsley and Ron Fournier became especially ridiculous as the crisis wore on. Kinsley’s column beseeching Obama to “give in” to Republicans “for the sake of the country” (“media will no doubt call Obama weak”!) should be taught as a cautionary example against this desire to be “taken seriously”.

gop logo

The GOP. I mean, really.

This effort has only cost us an estimated 24 Billion dollars (and counting) and there is no saying that it won’t happen again in January.  It drives me nuts that the President is blamed by many while Ted Cruz used me – and everyone else who pays taxes and needs government services – to raise money for his 2016 Presidential bid.  But the silver lining is that if the Democrats get to work, it looks like they can hold on to the Senate and take back the House.  And then John Boehner will really have something to cry about.

Moving toward the cliff

Yesterday I had lunch with a friend, a federal employee, who is not working because of the shutdown.  She can’t check her work email or phone messages and fears the backlog of problems that awaits her when she does get back to work.  She said the only way she was fortunate was that she was not one of the essential employees who had to work anyway.  We speculated on how people will get to work if October moves to November and people’s monthly transit passes run out.  Will they be expected to shell out money they don’t have to get to a job they aren’t paid for?  All her friends can do is to buy her lunch.  Fast forward 24 hours and we still have no deal.  Even if the Senate comes up with a solution it is not clear if 1) the House will even vote on it and 2) if they do, if this is just another short term postponement.  All my friend hopes is that the next deadline is past the holidays and that there is back pay.

I was trying to find some humor in the whole situation, but find that I actually feel very sorry for John Boehner.  John Cassidy posted this for the New Yorker.

Give the Republicans on Capitol Hill one thing: they don’t leave a job half done. Evidently disturbed by polls showing Congress with a single-digit approval rating, they appear intent on driving it to zero.

What other explanation can there be for Tuesday’s farcical maneuvers, which saw the House Republican leadership try and fail to seize the initiative in the debt-ceiling standoff from the Senate, in the process humiliating Speaker Boehner yet again. By the end of the day, facing renewed opposition from some of his own members, Boehner had dropped his efforts to pass a bill that would have ended the shutdown and raised the debt ceiling until February, but one with more riders than an agreement that Mitch McConnell, the Republican leader in the Senate, and Harry Reid, the Democratic leader, have been working on.

From the point of view of the country, that’s good news. Overnight, officials representing McConnell and Reid were rushing to complete their negotiations, which were called off on Tuesday after Boehner’s unwise intervention. As it stands now, the Senate agreement would reportedly fund the government until January 15th and raise the debt ceiling until February 7th, with the only concession from the Democrats being an agreement to toughen up the policing of eligibility requirements for obtaining federal subsidies to buy health insurance under the Affordable Care Act.

Boehner is in a box.  He can’t control his own party caucus and can’t turn to Democratic votes because then he would lose his Speakership.  If the country goes into default, he will likely lose it anyway.

Once the Senate passes a bill and sends it to the House, the Speaker will face the unenviable choice of allowing it to pass with Democratic support or exercising the nuclear option of forcing a default. Having already ruled out this second option in public comments, there were reports on Tuesday night that Boehner was prepared to bring the Senate bill to the floor, which would probably insure its passage. That wouldn’t end the budget crisis—it’s never-ending—but it would put off the next showdown until the new year, whilst ensuring that the Republican ultras had gained almost precisely nothing for their willingness to shut down the government and raise the prospect of a debt default. (In another development on Tuesday, Fitch, one of the big ratings agencies, placed U.S. government debt on watch for a potential downgrade, saying that “the prolonged negotiations over raising the debt ceiling (following the episode in August 2011), risks undermining confidence in the role of the U.S. dollar as the preeminent global reserve currency by casting doubt over the full faith and credit of the U.S.”)

From the point of view of the Republican Party, things have been going from bad to worse. With the party divided, its poll ratings tanking fast, and its leadership unwilling to risk an actual default, it has been clear for some time that it was in a losing position. The discussions in the past few days have been about the terms of surrender, with the White House and Reid pressing for something close to an unconditional capitulation.

So here are a few cartoons to weep at as we proceed at a Senate’s slow pace, to the edge.

From Tony Auth

From Tony Auth

Tom Toles

Tom Toles

Signe Wilkerson

Signe Wilkerson

And Wilkerson, again.

Wilkinson2

Can we hope that there are still some adults who won’t drive us over the edge?

Can we send David Ortiz to the budget negotiations?

It has been a discouraging last few days with the only real bright spot being Friday (and then we went back Saturday) at Symphony Hall with the Boston Symphony Orchestra. We wanted to hear Thomas Ades, Polaris a second time and Friday night the BSO did not do Franck’s Symphony in D Minor which my husband loves.   But we came home Saturday night to no budget/debt ceiling deal and the Red Sox striking out, also.  I often tune in to some of the Sunday news shows, but couldn’t stand to hear any more Republican Congresspersons who have no clue about what the debt ceiling is much less understand any thing about the economy.  One of my friends posted this on Facebook the other day

Despite their lofty status in managing American affairs, it appears to me that few Congresspersons have any meaningful understanding of how their chronic politicization of economic policies substantially degrades, perhaps permanently, the dollar’s status as the global reserve currency. Evidence of the dollar’s decline to a commodity status is increasingly apparent. In time, every American will feel a crippling pain that no amount of political negotiating can cure.

Given this state of things, I retreated to a game of Civilization V where I could control, more or less, my own universe until after Sunday dinner when the Red Sox could take over.  But, after watching strike out after strike out with Clay Buchholz pitching sooo very slowly while getting slammed around in the sixth, I retreated.  I woke up just before 6 am this morning having just had a dream that I woke up and the Sox had come back.  I turned on the radio, I found that is was true!

Peter Abraham explains

In what has been a season full of memorable late-inning victories at Fenway Park, the Red Sox saved the best for when they needed it the most in Game 2 of the American League Championship Series Sunday night.

Trailing by four runs against the Detroit Tigers, the Sox tied the game on a grand slam by David Ortiz in the eighth inning then won it, 6-5, when Jarrod Saltalamacchia singled to drive in Jonny Gomes in the ninth.

The remarkable victory had the players chasing Saltalamacchia across the outfield and the sellout crowd of 38,029 chanting “Let’s Go Red Sox!” as they left Fenway.

“When you back us into a wall, you either do two things: cave or fight. We’re gonna fight,” Dustin Pedroia said.

That wall was hard to get over. The Sox had scored one run through the 16 innings in the series, going 3 for 51 at the plate with 30 strikeouts. Detroit starter Max Scherzer allowed one run on two hits over seven innings and struck out 13.

And then.

Will Middlebrooks doubled to left field off Jose Veras to start the rally. Then Jacoby Ellsbury drew a walk off Drew Smyly.

Al Albuquerque was next out of the Detroit bullpen. He struck out Shane Victorino for the second out, but Pedroia singled to right. Third base coach Brian Butterfield held Middlebrooks, wanting to make sure Ortiz got his chance.

Ortiz swung at the first pitch, a changeup away, and was strong enough to pull it into the Red Sox bullpen in right field for his first career postseason grand slam and the fourth in Red Sox history.

Right fielder Torii Hunter tumbled over the wall trying to make a catch as Boston police officer Steve Horgan raised his arms in joy. Bullpen catcher Mani Martinez, who was warming up Koji Uehara, casually turned and caught the ball.

It was bedlam at Fenway and the crowd kept cheering until Ortiz emerged from the dugout and tipped his helmet to them.

“My idea wasn’t to go out and hit a grand slam,” Ortiz said. “If I was telling you about thinking about hitting a grand slam, I’d be lying to you now.”

A hero of postseasons past, David Ortiz rounds third base — as the Tigers’ Miguel Cabrera looks on — to a standing ovation after his grand slam in the eighth inning tied Game 2 at 5.

A hero of postseasons past, David Ortiz rounds third base — as the Tigers’ Miguel Cabrera looks on — to a standing ovation after his grand slam in the eighth inning tied Game 2 at 5.

Gotta love David.

There was still a game to win. After Uehara retired the Tigers in order, Gomes was again the catalyst.

He reached on an infield single off Rick Porcello and took second on a throwing error by shortstop Jose Iglesias, the former Sox player known for his defensive skills.

“No is not an option for this team,” Gomes said. “Once I got on second, I was going to do anything I could to score.”

Gomes advanced on a wild pitch and scored when Saltalamacchia singled to left field.

“I felt good,” Saltalamacchia said. “Trying to hit the ball up the middle and take your chance.”

It was the 12th walkoff win of the season for the Red Sox.

So now we have something to watch on the highlight reels other than strike out after strike out.  There is joy in Mudville after all.  The Red Sox head for Detroit to face Justin Verlander, still another one of the Tigers’ great pitchers.  Let’s end this with something to ponder.  My husband heard Verlander ask this question:  If a pitch grazes a Red Sox’s beard, did he get hit by the pitch?

Now if only someone would hit a grand slam on the budget and knock out Ted Cruz and his friends.

Photograph:  Jim Davis/Globe Staff

Cartoonists view the government shutdown

We need to keep a sense of humor about things so we can survive this Republican tantrum.  Here is my contribution.

Dan Wasserman from the Boston Glove.

101toon_wasserman

 

 

 

 

 

 

 

 

Nick Anderson on Ted Cruz.

Anderson on Cruz

 

 

 

 

 

 

 

 

Carlson on Infant nutrition.

Carlson

 

 

 

 

 

 

 

 

The new axis of evil?

luckovich

Trying to made sense of it all

I think I may be ready to retreat to my cocoon to read trashy books and watch baseball and reruns of NCIS before my head explodes from trying to make sense of what is going on out there.

Yesterday, Boston Globe columnist Adrian Walker had a little anecdote from my Congressperson, Mike Capuano.

…Capuano said he was in an airport last weekend flying home from Washington when a TSA screener stopped him and said, “You really need to cut our taxes!” Capuano was incredulous to hear that from a federal employee, though he probably shouldn’t have been.

“I asked him, ‘Do you know taxes pay your salary?’ ” Capuano said with a laugh.

I wish I knew what the silly TSA screener said then.  It is an example of how divorced from reality so many people are.  Maybe we should expand the shut down to include furloughs for half of the screeners.  This would cut flights so many of the members of Congress would have trouble getting home.  I don’t think this would be a bad thing.  Maybe if they stayed in Washington more, they would figure out how to talk to each other informally over a beer.  That could only help.  Maybe some of them would get a grip on reality.

As I was getting ready to write this, I Googled  both “Republican Alternate Reality” and “Republican Alternate Universe”.  Turns out people have been writing about the topic for a number of years now.  It is one thing to talk sans facts, but another to act.  And what is happening now is the action that they have all wanted:  a government shutdown.  I think they are hoping that a few weeks without government will show people they can live without it.  Maybe a good plan except that there are already Republicans complaining that monuments in Washington are closed so veterans can’t visit them.  Duh!

Back in August 2012 (2012 not 2013), Michael Cohen wrote a piece in the Guardian about the Presidential campaign.  If you recall, they had a slogan “You didn’t build that”.

On 17 July, President Barack Obama spoke at a campaign rally in Roanoke, Virginia. It was a typical event for an incumbent president who is seeking a second term. In his remarks, he offered his vision of government’s role in spurring entrepreneurship and creating jobs in the United States:

“If you were successful, somebody along the line gave you some help. There was a great teacher somewhere in your life. Somebody helped to create this unbelievable American system that we have that allowed you to thrive. Somebody invested in roads and bridges. If you’ve got a business – you didn’t build that. Somebody else made that happen. The internet didn’t get invented on its own. Government research created the internet so that all the companies could make money off the internet.”

This is all fairly boilerplate rhetoric – a basic recitation of how Democrats view the role of government and its interplay with the private sector. But in this statement, there was one phrase that Republicans have grabbed on to like a famished dog with a new bone:

“You didn’t build that.”

That single phrase, taken out of context by Republicans, has become the GOP’s symbol of Obama’s supposed contempt for the free market and entrepreneurship, and for his socialist assault on America.

The Affordable Care Act is a prime example of government overreach and socialism even though it is built on private insurance companies.

“You didn’t build that” became “We built that”

And so, the Republicans made “We built that” the theme of Tuesday’s convention proceedings. Speaker after speaker hammered on this theme, accusing Obama of disrespecting small business. But they did so with almost a wilful sense of hypocrisy. For example, Delaware lieutenant governor candidate Sher Valenzuela attacked Obama for the line despite the fact that, just a few months ago, she gave a detailed speech to a business group about how they could do a better job getting government contracts.

Cohen goes on to detail a number of instances where the speakers at the Republican Convention ignored facts and concludes

But all of this is at pace with a conservative worldview that considers government to be nothing more than malevolent interference with the smooth operation of the private sector – except when it’s not. “Jobs don’t come from government,” said Texas Senate candidate Ted Cruz last night, a view that basically sums up GOP economic thinking. But if you listened to Republican governors on Tuesday, you might have found yourself surprised to discover that, in their states, the government has played an oddly integral role in spurring job creation. If you listened to Mary Fallin, governor of Oklahoma, extol the virtues of the energy industry in her state and bemoan “more government, bigger spending and more regulation”, you might never know that the oil and gas industry is deeply reliant on – and spends millions lobbying for – tax breaks from the federal government.

One can believe that government should play a less direct role in the workings of the private economy – clearly, this is a defensible notion. But to listen to Republicans harping on Obama’s “you didn’t build that” line is to hear a party that views “government” in the most simplistic imaginable terms. This isn’t a governing philosophy; it’s a caricature of how the economy actually works.

To be sure, it’s hardly unusual for political rhetoric to take liberties with the truth, or to stretch an argument to breaking-point, but with Republicans today, the issues runs much deeper. Very simply, the way they talk about what the federal government does or should do, and about the role of spending, taxation and regulation, is more than just a compendium of lies: it describes an alternate reality.

In the GOP’s defense: at least they can argue they built that.

So now they have shutdown the federal government which was a goal all along.  They built it.  And in their alternate universe, President Obama and the Democratic congressional leadership should negotiate with them.  Nancy Pelosi has tried to explain what she calls “regular order”:  The Senate passes a bill.  Then the House passes one.  Then there is a conference committee.  Budget bills were passed back in March, but the House declined to appoint members to a conference committee.  Contrary to what some members of Congress seem to believe there are rules and conventions as to how to proceed.

Gail Collins has a response in the New York Times.

On Wednesday, House Republicans pushed to refund bits and pieces of the government that the members particularly like, such as veterans and the National Guard. Also anything that lends itself to a dramatic press conference, such as national parks and cancer treatment for children. Since the House proposals are never going anywhere in the Senate, there’s a limit to what you want to know about what went on during the debate. Let’s summarize:

Democrats: “Meaningless political theater!”

Republicans: “Come to the table!”

Coming to the table has now replaced strangling Obamacare as the most popular G.O.P. war cry. There is a longstanding political rule that when all else fails, you demand more talking. If you’re running for office against a guy who’s got 70 percent in the polls, it’s time to call for a debate. If you’re already having four debates, it’s time to call for six.

“Why don’t we sit down and have a conference committee about how we’re going to fund the federal government?” demanded Representative Ander Crenshaw of Florida. Republicans have posed this question a lot, and it would be an excellent one if they were not the same folks who have spent the last half-year refusing to sit down and have a conference committee about the federal budget.

Representative John A. Boehner, the House speaker, arrived at the Capitol on Thursday with his security personnel on the third day of the government shutdown.

Representative John A. Boehner, the House speaker, arrived at the Capitol on Thursday with his security personnel on the third day of the government shutdown.

I’ll give the final word on reality to Elizabeth Kolbert in her New Yorker posted this morning.

…Shuttering the government is a dumb idea under pretty much any circumstances. Still, the objections that Republicans in Congress raise to the health-care law might be worth considering if they bore any relationship to the law in question. Rarely do they.

Some lawmakers’ comments have been so off the wall that they defy parody. A few months ago, for example, Representative Michele Bachmann announced on the House floor that Obamacare needed to be repealed “before it literally kills women, kills children, kills senior citizens.”

“Let’s not do that,” she added helpfully. “Let’s love people.”

“All of this would be funny,” President Obama noted the other day, after bringing up the Bachmann line, “if it weren’t so crazy.”

The crazy list goes on and on. As the economist Paul Krugman has repeatedly pointed out in his Times column, congressional Republicans these days seem to think that they can override not just the laws of physics but also the rules of arithmetic. They insist that the federal budget is so bloated it could easily be cut by hundreds of billions of dollars. But when a transportation bill was drafted this summer that would have actually reduced spending, they refused to vote for it. (The bill had to be pulled from the floor.) It’s hard to cut the federal budget if you’re not willing to reduce the amount of money the government spends. “What Republicans really want to do,” Krugman wrote recently, is “repeal reality.”

It’s been so long since reality has made much of a difference on Capitol Hill that it sometimes seems it genuinely has been repealed. But the thing you can always count on with reality is that it has staying power.

I hope I can hold out until reality and fact make a comeback.

Photograph: Doug Mills/The New York Times

Economic justice and the March on Washington

Correction:  I refer to today as if it were the 28th.  The date I posted this is the 27th.  I seem to not know what day it is!

 

The official name of the march we celebrate today is the March on Washington for Jobs and Freedom.  Notice what comes first.  Jobs.  And while no one can deny that Martin Luther King, Jr. was a brilliant leader who served as a public face for the civil rights movement, we tend to forget that when he was assassinated in Memphis he was there to support sanitation workers striking for higher wages and employment rights.  Dr. King had moved past the simple movement for integration of public facilities and voting rights to understand that gaining equality meant a great deal more that sitting at a lunch counter or riding in the front of a bus.  Yes, those were monumental achievements, but true equality also means economic justice.

One man to whom we owe the March on Washington 50 years ago today is someone few have heard of:  Asa Philip Randolph.  Jack Curtis celebrated him in last Sunday’s Boston Globe.  The headline and subhead kinda of say it all:

Economic equality: What the March on Washington didn’t win

Fifty years later, why we remember King and not A. Philip Randolph

Rep. Byron Rushing (left) from Roxbury and John Dukakais at the unveiling of the A. Phillip Randolph statue in Boston’s Back Bay Station.

Rep. Byron Rushing (left) from Roxbury and John Dukakais at the unveiling of the A. Phillip Randolph statue in Boston’s Back Bay Station.

Today we can still point to the high unemployment rates, the lack of health care in many places, the failing schools and know that black Americans suffer the most.

The director of the march and its opening speaker, A. (for Asa) Philip Randolph (1889 – 1979) was established by 1963 as the century’s preeminent force on black labor and the dean of American civil rights leaders. Born in Crescent City, Fla., the son of a minister and a seamstress, Randolph moved in 1911 to Harlem, where he became a staunch socialist, a labor organizer, and a renowned soapbox orator. In 1925, Randolph was named the first president of the Brotherhood of Sleeping Car Porters, which he guided for over four decades.

In 1941, Randolph leapt onto the national stage. He and his fellow activist Bayard Rustin initiated what they called the March on Washington Movement, or MOWM, with the goal of staging a massive march to protest racial discrimination in the armed forces and defense industries. An alarmed Franklin Roosevelt summoned Randolph to the White House. Just one week later, Roosevelt issued an order prohibiting workplace discrimination throughout the nation’s defense industries, which led Randolph to call off the scheduled march
MOWM lasted only through 1946. But in the 1960s, as the nation’s African-Americans faced high unemployment and low wages and the country was shocked by violent attacks on civil rights demonstrators in the South, Randolph and Rustin turned to the same organizing tactics. In early 1963, Rustin and three associates addressed a memo to Randolph, then 74, calling for “mass descent” upon Washington, with 100,000 participants protesting “the economic subordination of the American Negro.” They envisioned a groundswell of protest calling for freedom and jobs.  Randolph and Rustin, aided by labor organizers and civil rights activists, organized the march with the dual goals of ending racial segregation and discrimination in the Jim Crow South and achieving economic equality for all Americans.
Randolph was a union organizer and Bayard Rustin (someone else you may never have heard of), often called “brother outsider” was a pacifist and gay.  Together they put together the event now best known for Martin Luther King, Jr.’s “I have a dream speech.  Rustin was also a major influence in bringing Dr. King  to embrace non violence.
Bayard Rustin with Martin Luther King, Jr.  in 1956

Bayard Rustin with Martin Luther King, Jr.
in 1956

In February 1956, when Bayard Rustin arrived in Montgomery to assist with the nascent bus boycott, Martin Luther King, Jr. had not personally embraced nonviolence. In fact, there were guns inside King’s house, and armed guards posted at his doors. Rustin persuaded boycott leaders to adopt complete nonviolence, teaching them Gandhian nonviolent direct protest.
Rustin was the speaker who read the list of the marcher’s demands.  You can read or listen to the transcript of Rustin reading the list of the demands in this link from WGBH radio.   They were seen as quite militant and including a living minimum wage. We all recited the pledge that committed ourselves to action.  I think it was in our programs.  (I found my button but so far haven’t located my program.)
As you watch the 50th anniversary coverage, remember A. Phillip Randolph and Bayard Rustin.  Without them, we would not be celebrating this important milestone today,  We can honor them by supporting the continuing fight for economic justice.
Jack Curtis concludes

But King’s emphasis on integration and legal equality gradually came to be seen as the primary impetus for the movement. In the years since, the optimistic and basically patriotic appeal of King’s speech has served to eclipse the march’s agenda and distort the popular understanding of its significant challenge to the status quo. The standard narrative skirts the more controversial, no less patriotic, themes of the march, and the radicalism that was front and center that day.

Randolph’s legacy is not forgotten, including in Boston. In the waiting area of Back Bay Station sits a larger-than life statue of Randolph by sculptor Tina Allen, dedicated in 1988 by Governor Michael Dukakis. Speakers at the dedication ceremony, including state Representative Byron Rushing, hailed the contributions to the railroad industry by porters and waiters from the black community, many of whom had lived in the Roxbury and South End neighborhoods by the station. A quote inscribed in the monument’s base attests to Randolph’s militant stance: “Freedom is never granted; it is won. Justice is never given. It is exacted.”

As we look back over the last 50 years, and look around at a country with rising and racially inflected economic inequality, that revolutionary spirit sits less easily than the hope of King’s “dream speech.” We embrace King’s dream in part because we sense that the country has indeed gone some way down that long road to freedom, and his vision can still set us dreaming and move us forward. But focusing on the demands by Randolph that fell to the wayside, we see even more glaringly that the march’s core aims of economic justice are not close to fruition; even today, we stand at the start of that path. It’s been a long time coming, and it may be a long time yet to come.

Photograph:  Randolph Statue John Tlumacki/Globe staff
Photography:  Rustin and King Associated Press