The Greed of the “Bottom Half”

We’ll shortly be hearing the objections of deficit hawks to the deficit reduction package Demos, The Century Foundation, and the Economic Policy Institute. No doubt they’ll echo the criticisms that have already been leveled at the deficit-shrinkage roadmap Rep. Jan Schakowsky put on the table earlier this month. To get a sense of what those criticisms are likely to be, I recently had a close look at a Schakowsky critique by The Atlantic’s resident deficit hawk, Derek Thompson.

The first thing that makes Thompson’s November 16 piece interesting is that it actually acknowledges the existence of Schakowsky’s plan. The second thing, only slightly less extraordinary, is that Thompson makes an effort to analyze and understand the proposal. It took the New York Times nearly two weeks after Schakowsky released it to even note that it was there (and even then, didn’t provide details).

What’s most remarkable about Thompson’s analysis, however, is that he lectures Schakowsky for not squeezing poor and low-income workers hard enough. Continue reading The Greed of the “Bottom Half”

Schakowsky’s Deficit Reduction Plan Is Game Changer

Rep. Jan Schakowsky’s deficit reduction proposal is a game changer: a serious, moderate, balanced blueprint for addressing the nation’s long-range fiscal challenges, by a leading progressive lawmaker. How her colleagues on the president’s deficit commission respond to it will be a test of how serious they really are about solving the deficit puzzle in a fair and equitable way.

Jan Schakowsky is sometimes described as “one of the most liberal members” of the commission. But the deficit reduction plan she released on Tuesday is moderate, sensible, and actually more effective at lowering the deficit over the next few years than the plan co-chairs Alan Simpson and Erskine Bowles tabled last week ($427 billion in savings by 2015, vs. $250 billion). Continue reading Schakowsky’s Deficit Reduction Plan Is Game Changer

Bowles-Simpson: The Unequal Marriage of Reaganomics and Rubinomics

The Bowles-Simpson plan isn’t a fair and equitable way to reduce the long-term federal deficit, whatever its co-authors might claim. In fact, it’s the biggest proposed experiment in supply-side economics since early Reagan.

Long story short: The proposal put on the table last week by the co-chairs of the president’s National Commission on Fiscal Responsibility and Reform is essentially a wedding of Rubinomics and Reaganomics. As such, it’s what we might get if Bill Clinton and the late Ronald Reagan were locked in a room together and required to cut the long-term budget deficit – without any regard for the impact of their handiwork on low- and middle-income people.

You’ve probably guessed which partner has the upper hand in this deal. And we’ll explore that in a moment. But first, some background.

This wasn’t an overnight meet-court-marry. The supply-siders and the deficit hawks – as the two lovebirds are also known – have been trying to join hands even since 1985, Continue reading Bowles-Simpson: The Unequal Marriage of Reaganomics and Rubinomics

Hail Mary! Co-Chairs Spin While Deficit Commission Staggers Toward Deadlock

I’ve been saying for months that the National Commission on Fiscal Responsibility and Reform is probably doomed. The co-chairs, Alan Simpson and Erskine Bowles, appear to agree.

So my first real question is, What have these people been doing with $500,000 of the taxpayers’ money for the past nine months? Lori Montgomery in the Washington Post reports that many of the commission’s 18 members were “startled” by the Bowles-Simpson plan, which Bowles himself called a “starting point.”

Starting point? Are you kidding? This commission was empaneled in February and held its first – official – meeting in May. It’s now less than three weeks Continue reading Hail Mary! Co-Chairs Spin While Deficit Commission Staggers Toward Deadlock

The Tax Expenditure Debate

Now that the midterm elections are over – and I’ll have more to say about the results next week – Washington is getting back to its endless debate concerning what’s to be done about the deficit and the national debt. Tax expenditures have become a popular target, at least potentially. But there are tax expenditures and there are tax expenditures.

My favorite Election Day quote thus far is from Alice Hatfield, a Las Vegas Republican who voted for Reid. She told the Las Vegas Sun, Continue reading The Tax Expenditure Debate