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Economy

McCain Adviser Holtz-Eakin Ludicrously Asserts Obama Would Be A Third Bush Term

Our guest bloggers are Center for American Progress Action Fund fellows James Kvaal and Robert Gordon.

dhe.jpgApparently the McCain campaign is feeling the sting of comparisons to George Bush. McCain describes himself as the strongest support of the war in Iraq. His answer to $4.00 gasoline is to cut oil company taxes by $4 billion a year. And McCain has embraced a Bush proposal to radically change our health care system. (These and other similarities are described in a memorandum released today by the Center for American Progress Action Fund.)

Swimming upstream, McCain policy advisor Douglas Holtz-Eakin now argues that it is Senator Obama – not McCain – who wants to continue Bush’s fiscal policies. Obama’s budget “is dedicated to the recent Bush tradition of spending money on everything,” he said.

This is exactly backwards. Consider:

Like Bush, McCain has proposed massive tax cuts that primarily benefit high-income households. McCain’s $300 billion a year in tax cuts – over and above the cost of extending the Bush tax cuts when they expire in 2010 – would essentially double the size of the Bush tax cuts and make them even more regressive.

Like Bush, McCain’s massive tax cuts and spending on security leaves little for other priorities. Over the past eight years, other types of discretionary spending have remained essentially unchanged after inflation and population growth. McCain would continue the pattern of putting huge tax cuts and defense spending ahead of other needs, like preschool and renewable energy.

Like Bush, McCain rails against wasteful spending in the abstract but fails to target any actual programs. His promises to eliminate earmarks and freeze spending could save $30 billion a year or even less. That leaves him short the quite noticeable sum of $270 billion a year. (Holtz-Eakin told Bloomberg that McCain has a secret plan to balance the budget, but he hasn’t shared it with the Concord Coalition — or those of us at the Center for American Progress Action Fund, for that matter.)

Like Bush, McCain is likely to drive up the national debt by trillions of dollars. Bush took a debt of $3.4 trillion – and headed down – up to $5.4 trillion. McCain’s budget plan would drive the deficit to $12.7 trillion.

Obama also has expensive proposals, such as his health care coverage plan and middle-class tax cuts. But he is clear where the money is coming from: higher taxes on high-income families, ending the war in Iraq, selling the right to emit greenhouse gases, and cutting subsidies to oil and gas companies, health insurers, drug companies, and the student loan industry.

That’s why the Wall Street Journal concluded that Barack Obama’s budget “adds up, probably.” But McCain’s plan, it concluded, “would either cause the federal deficit to explode or would require unprecedented spending cuts.”

Digg It!

Politics

Congressional Black Caucus Foundation receives racist Obama t-shirt in the mail.

On Wednesday, the Congressional Black Caucus Foundation (CBCF) received an offensive t-shirt in the mail; the shirt had “a cartoon image of Curious George, the beloved children’s character, with a paper bag over his head holding a sign that says ‘A Truth We Can Believe in ’08!!!’ written underneath.” The Washington Post describes the back of the shirt:

obamat.gif The back of the shirt lists several African American organizations. … It prints the United Nations’ definition of “racial discrimination” and states, underneath the listing of all the black organizations, “Who is really causing the Racial Division.

The t-shirt also says: “There are over 1,000 African American, Hispanic and other minority organizations in America. How many white organizations can you find? Or can you imagine what would happen every time one was made?” Mingled with the listing of the numerous black organizations is the Ku Klux Klan and two Hispanic groups.

CBCF president Elsie Scott was disturbed by the image of Curious George with a bag over his head, which reminded her of a lynching. Recently, other controversial t-shirts featuring Curious George and Obama ’08 logos have also appeared.

Politics

Labor Secretary Chao Blames High Unemployment Rate On America’s Youth

ap02051704135.jpg According to new Department of Labor data released today, the U.S. unemployment rate rose from 5.0 to 5.5 percent in May, which was higher than the expected 0.1 percent jobless rate increase. It was also the largest jump in unemployment since 1986. Labor Secretary Elaine Chao put out a statement today, attempting to explain the jump. Her answer? Blame America’s youth:

Today’s increase in the unemployment rate reflects the fact that unusually large numbers of students and graduates are entering the labor market.

Chao is just trying to hide bad news. These unemployment numbers are not good, nor are they normal. As Center for American Progress Director of the American Worker Project David Madland told ThinkProgress, unemployment isn’t just for young people:

The unemployment rate for prime-working age adults – people from 25 to 54 – also increased in May, rising from 4.2 percent to 4.4 percent. In addition, the share of this age group that was employed fell slightly from 79.6 percent to 79.5 percent.

Similarly, Jared Bernstein at EPI noted that “even if we take teenagers out of the data, unemployment still rises from 4.5% to 4.8%, a considerable 0.3% increase, and well above the 4.0% adult rate of one year ago.”

New workers are always entering the market. A healthy economy can absorb them; a Bush economy can’t.

Politics

NYT on Hastert’s new lobbying gig: ‘Old incumbents never die; they just backslap away.’

Former Republican House speaker Dennis Hastert recently joined Dickstein Shapiro, a “powerhouse Washington law and lobbying firm.” He will cash in on his time as a lawmaker and is estimated to make more than $500,000 a year. Today, the New York Times has an editorial on this troubling revolving door:

We never really expected Mr. Hastert to indulge the Jeffersonian fantasy and humbly return to his old calling as a high school wrestling coach. Still, his new job as access-enabler highlights the capital reality that old incumbents never die; they just backslap away.

More than 200 former members of Congress have crowded through the revolving door to lobby in recent years. More are lining up at the pay window. Congress’s designated ethics monitors already are bending the rules to let incumbents job shop their private-sector value while still on the privileged elected perch.

(HT: CREW)

Politics

Beck Dons Soviet-Style Hat With Obama ’08 Logo

Yesterday, CNN Headline News host Glenn Beck joined in on the right-wing meme that Sen. Barack Obama (D-IL) may be a Marxist. As proof, Beck showed his guest, National Review contributing editor Jonah Goldberg, some things he had “found on the Internet.” These “things” included a poster of Obama that looked like “revolutionary art” and one of his campaign workers allegedly with a Che Guevara flag.

But perhaps the most ridiculous moment came when Beck pulled out a hat one of his listeners had sent him. The winter hat had earflaps and a red star, similar to Soviet insignia. It also said, “Obama ’08.” Watch it:

[flv http://video.thinkprogress.org/2008/06/jonahbeckhatobam.320.240.flv]

As ThinkProgress first reported, former House speaker Tom DeLay also yesterday went on Mike Gallagher’s radio show and said, “I have said publicly, and I will again, that unless he [Obama] proves me wrong, he is a Marxist.”

In April, after Obama made his now-infamous “bitter” remarks, Weekly Standard editor Bill Kristol claimed in his New York Times column that it was a reiteration of “Marx’s famous statement about religion.” Karl Rove agreed, calling the comments “almost Marxian.” Sen. Joe Lieberman (I-CT) told Fox News Radio that it was “a good question” to ask if Obama is “a Marxist,” though he said he would “hesitate” to call him one himself.

(HT: TP commenter Mary)

Transcript: Read more

Yglesias

McCain Hates War

Does anyone else find it a bit absurd that we’ve reached a point where a major party presidential nominee needs to protest defensively that he hates war:

At any rate, as is often the case the issue here isn’t John McCain’s subjective attitude toward war. The issue is the likely consequences of his policies. McCain’s stated policy toward Iran is likely to lead to war. McCain has in the past called for a policy toward North Korea that he admitted at the time might well lead to war. McCain’s Iraq policy will lead to a prolongation of an ongoing war. McCain’s vision of a “League of Democracies” would create a Cold War-style standoff which would likely fuel proxy wars around the world. Whether or not McCain hates war, if you would like to see a president likely to try to avoid getting the country into further wars, you don’t want McCain in the White House.

Economy

We Can Build An Inclusive Green Economy

Our guest bloggers are Jason Walsh and Van Jones from Green for All.

Van JonesThis morning, Senate debate on the Lieberman-Warner Climate Security Act came to an end. It was a missed opportunity to robustly debate a critical issue facing the country. The bill had the potential, particularly if strengthened during the amendment process, to affect profound and positive change for both the American people and the planet.

It is a shame that political gamesmanship paralyzed the Senate on such a crucial piece of legislation. Many of the arguments against the legislation were patently false. It was particularly ironic that some senators chose to argue against this bill on the basis that it does not protect those less fortunate; their voting records clearly indicate that the poor are not the constituents with whom they are most concerned.

Hypocrisy aside, the claim that the bill hurts the underserved ignored the assistance for low-income families and workers already in the legislation — which could and should have been strengthened by an amendment filed by Sen. Sheldon Whitehouse (D-RI) — and the critical investments that the bill makes in providing economic opportunities for low-income workers and building the wealth and health of low-income communities.

The fact of the matter is that this issue is far too important to employ scare tactics and play politics with. The effects of global warming, which hit low-income people first and worst, are real and they warrant a genuine discussion and substantive action.

We do, however, want to commend Senator Barbara Boxer (D-CA). She has proven herself to be the national leader and voice that we have been longing for in the Senate. She is a true heroine, and the nation will owe her an incalculable debt when we finally win sane climate policy in the United States.

We hope to continue the conversation, and insist that any federal climate legislation must: Read more

Politics

McCain Wouldn’t Vote For Everglades Because Of Pork But Will Fund Iraq At Any Cost

mca.gifDuring a conference call with reporters today, the McCain campaign tried to push back against Florida environmental groups who have criticized Sen. John McCain (R-AZ) for opposing a bill that would have allocated $2 billion for Everglades restoration. The campaign claimed that the senator has strong environmental credentials and argued that he has “always stood for Everglades restoration,” and only opposed the 2007 Water Resources Development Act because it included “other spending”:

REP. MARIO DIAZ-BALART (R-FL): The only thing that cannot be said is that he voted against that bill because he is against Everglades restoration. … He has always been in favor of Everglades restoration. … He voted against it because of other spending. … What is totally inaccurate is to say that he voted against Everglades restoration.

But McCain’s argument that he often votes against causes he supports because those bills contain “wasteful earmarks” does not hold water. In May 2007, by his own admission, McCain voted for a $120 billion dollar Iraq war funding measure, despite the fact that it contained $17 billion in “other spending.” Speaking on the floor of the Senate the day the bill passed, McCain said he was voting for the bill “with deep reservations”:

McCAIN: We are about to pass a bill that while better than the last version, still contains billions of dollars that have nothing to do with the War on Terror. We can do better than this. The American taxpayers deserve and expect more.

During his speech McCain even listed “some of the un-requested and un-authorized items contained in this bill”:

– $110 million in aid to the shrimp and fisheries industries;

- $11 million for flood control projects in New York and New Jersey;

- $37 million to modernize the Farm Service Agency’s computer system;

- $13 million for the Save America’s Treasures program; and,

- $3 billion in agriculture disaster assistance, including $22 million to support the Department of Agriculture in implementing programs to provide this un-requested and unauthorized funding.

Despite the bill’s “irresponsible” spending, McCain promised to “vote for it nonetheless in order to support our brave men and women fighting for freedom in Iraq and Afghanistan.”

McCain thinks funding the environment is too pricey, but he is willing to support the Iraq war at any cost.

Cross-posted at the Wonk Room.

Update

Sam Stein reports that Diaz-Balart, in explaining why he voted for a bill that McCain opposed, was attempting to argue that McCain is more principled than him.

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