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Yglesias

Stimulus in Trouble?

by Ryan Avent

Who knows whether Senate Republican leader Mitch McConnell is blowing smoke in predicting that the Senate will defeat the stimulus bill — I don’t know where the vote counting stands at the moment — but it’s certainly possible that the bill could go down. Democrats, recall, need to keep their caucus together and get a defection or two from the GOP to get past a filibuster.

Typically, it’s assumed that Republican Senators are less nutty than their House counterparts, and will presumably be more alive to the economic threat we’re facing. There are other reasons to suspect that a party-line vote will be difficult to achieve for the GOP. A handful of key Senators have already announced their retirement and needn’t worry about their long-term position in the party. Others may realize that with output tumbling and a nasty unemployment number about to make headlines this Friday, opposition to the stimulus bill may not be nearly as popular as was opposition to the Wall Street bail-out passed last fall.

But Democrats are ready to assume the worst and play ball with Republicans according to a story in today’s New York Times, despite the fact that the GOP is pretty adament that only major changes, including more tax cuts and reduced spending, could earn their support. All of which points to a scenario eerily similar to that in the House — Democrats water down the stimulus with sops to the GOP, only to find themselves with little to no Republican support when it comes time to vote.

Nobody wants to play chicken with the fate of the economy hanging in the balance, but it may be time to call the opposition’s bluff. An actual defeat for the stimulus would cause havoc on Wall Street that would make the market’s plunge in the wake of the bail-out’s initial defeat look pleasant. A scare like that might shatter GOP solidarity once and for all. The alternative, in any case, is an empowered GOP minority, that will kill or maim legislation for the rest of the Congressional term.

Health

Atul Gawande On Health Reform: ‘On A Practical Level’ We ‘Would All Suddenly Become Incrementalists’

From January 29 to 30th, I attended Family USA’s 14th annual Health Action Conference. This is the first in a series of posts about that event.

atul2.jpgAtul Gawande, a former senior health policy advisor in the Clinton presidential campaign and White House, didn’t want to talk about health politics. When I asked him about the role single-payer advocates play in fighting for comprehensive health reform — that is, do they create the political space in which multi-payer plans seem more politically attractive — Gawande did not dwell on political strategy.

He didn’t explain away the single payer folks as politically naive or impractical. Nor did he suggest that they broadened the spectrum of debate to include more policy options. No, Gawande didn’t really choose sides in the epic health care debate. Instead, he calmly suggested that if we simply thought about what health reform should look like on day one, we would all become incrementalists:

I can see the argument for saying there is a dialectic here and you see people pushing for single payer and it will come out somewhere in the middle….very few of us have been in the process of trying to think in nuts and bolts: what is it that we want to happen on January 1? What is it we really want to happen? And I think even the most idealistic, whether it is the single payer who wants to make on January 1, 2011 all private insurance illegal to the free marketer who wants to end employer-sponsored coverage, put people in the individual market and have everybody competing. On a practical level when they start thinking about what they would do to people on January 1, I think they would all suddenly become incrementalists.

Perhaps that’s the lesson for the upcoming reform battle. While the current economic crisis has opened the door towards transformational change, we shouldn’t let the perfect be the enemy of the good. Building on our current structures, and focusing on the practicality of workable reform, we can construct a solution that gets us towards a system that covers more people at lower costs without disrupting coverage.

It won’t be ideologically perfect, but it will be something that actually works and something that actually passes.

Transcript: Read more

Climate Progress

Podesta Cautions Industry: Obama ‘Intends To Fulfill’ His ‘Promise Of Energy Transformation’

National Journal: Carol BrownerThe influential Washington publication National Journal has dedicated its cover story to Carol Browner, President Obama’s incoming climate and energy adviser. The EPA administrator under President Clinton and a former board member of the Center for American Progress, Browner is a leading voice in progressive environmental policy. As former transition chief and current CAP president John Podesta explains, Browner’s selection reflects President Obama’s goal to change business in Washington:

If people want to continue in practices that were more appropriate in the 1950s than today, then I think that they’re going to have to understand that Obama campaigned on a promise of energy transformation. And he intends to fulfill it.

Obama’s ambitious campaign goals include five million green-collar jobs, “the implementation of an economy-wide cap-and-trade system to reduce carbon emissions by the amount scientists say is necessary,” and a “whole new electricity grid.” With less than two weeks in office, his administration has already made major commitments toward the creation of a smart grid and the green collar jobs in the economic recovery package. The focus of the first meeting of Vice President Joe Biden’s middle-class task force will be green jobs. And Obama has signed directives to the EPA to begin the process of complying with the Supreme Court mandate to regulate greenhouse gases — hopefully spurring Congressional action to develop a cap and trade system.

Just as critically, Obama has already put in place a powerful team with the likes of Browner, EPA administrator Lisa Jackson, Council of Environmental Quality head Nancy Sutley, and top scientists Secretary of Energy Steven Chu, NOAA Director Jane Lubchenco, and White House science adviser John Holdren. These experts on climate policy will have to work with the other members of Obama’s Cabinet to achieve that “promise of energy transformation.”

And that’s where Browner comes in. One “industry lobbyist” who is wary of Browner described her in ways that make her sound remarkably like Dick Cheney, who controlled energy policy across agency lines in the previous administration:

Browner is the epitome of how to work this city. She knows every organization. She knows who to leak information to. She knows how to kill information, and she knows that she doesn’t want a paper trail. That is frightening.

It remains to be seen how Browner will operate, but time will tell if anonymous industry lobbyists’ fears are more accurate than Obama’s promises of transparency, accountability, and change. What the lobbyists more likely fear is that environmental policy will become effective and science-based. As Podesta explained, Carol Browner will fill a crucial role in the Obama administration:

When you have problems that really cut across a swath of agencies, it’s very important to have a strong central place within the White House where people can work on the same strategy and [make sure] that actions are keyed up and accountability exists. That has proven to be an effective way of doing business in the federal government on security policy, on economic policy. And now we’ll see it on environmental policy.

Yglesias

Politics By Other Means

By Brian Beutler

Jon Chait thinks he’s figured out why, to be consistent, American liberals need to support a “tough” (or is it morally serious?) foreign policy. Quoting my fellow guest poster Kay Steiger, Jon writes:

It’s kind of funny how, when it comes to domestic politics, many liberals employ assumptions about human nature that are wildly at odds with the assumptions they use about human nature when it comes to foreign policy. When you read the liberal blogs on domestic politics, concessions to the enemy are always counterproductive, will must be met with will, etc. When you read them on foreign policy, all those asumptions are flipped on their head. I’m not saying that these two sets of assumptions are completely impossible to reconcile, but it is pretty odd how easily they sit together.

For reasons I don’t understand, but which can’t possibly have anything to do with its seriousness, Kevin Drum calls it the “Quote of the Day”. “Discuss,” he says. Well, OK!

From La Tierra Sin Internet, Matt anticipates my own response:

The difference, obviously, is that nobody is proposing that Barack Obama KILL the GOP leadership, much less try to kill them while attempting to starve their civilian population base into submission. Conversely, nobody is denying that Israel (or whomever) has the right to use non-lethal hardball bargaining tactics.In general, liberals would like to see progressive politicians assert themselves more vigorously within the limits of the law and we would also like to see countries with strong militaries restrain their conduct so as to bring it into conformity with international law.

Exactly. I’d go further, though. To me, this reveals something extremely significant about the way American Israel hawks, and foreign policy hawks in general, conceive of the people on the other side of Israeli or American military aggression. Here in the United States liberals launch major political offensives against a variety nemeses all the time. Maybe we win some and maybe we lose some, but either way, the people on the other side–conservatives, say, or corporate interest groups–feel some sort of political heat. Usually, that’s about all there is to it. Occasionally things get out of hand, and someone slanders someone else. Maybe extremely rarely things get uglier still. To my knowledge, though, no anti-abortion activist in the United States has ever seen his house destroyed by a fighter plane.

That’s not simply because political violence is illegal in this country, but also because liberals (and, I think, most Americans) think that sort of behavior is unacceptable and counterproductive.

But if you’re a domestically liberal foreign policy hawk, and the issue isn’t abortion, say, but rather putting an end to rocket fire from Gaza into Israeli territory, then for some reason things are dramatically different. Suddenly political tactics become feckless, and military tactics the tools of first resort–particularly those at the most violent and ineffectual end of what’s feasible, laws be damned. The lives of Gazans? Worthy of less consideration, apparently, than are the reputations of the conservatives with whom you’ve forged an alliance of convenience.

Meanwhile, my sense is that if Nancy Keenan amassed a small army and started hunting down John Hagee and other prominent members of the Christian right, Jon Chait and various other writers at The New Republic would call for a return to civility. Does that make them morally unserious?

Yglesias

Middle-Class Single Mothers

By Kay Steiger

Emily Brazelon has an article in the New York Times Sunday Magazine about women who are single, middle-class, and mothers. It is, she says, the return of Murphy Brown. She cites some statistics that show that single motherhood among the non-impoverished is rising, “the birthrate for unmarried college-educated women has climbed 145 percent since 1980, compared with a 60 percent increase in the birthrate for non-college-educated unmarried women.” But here is where the discussion of non-college-educated single mothers ends.

Typically, when single mothers come up in the public debate, what people mean is mothers of a low socioeconomic class that are typically women of color. They can’t afford child care, or get work that might allow them to afford it. They’re more likely to live in poverty and their children struggle to succeed in school. Instead, writes about middle-class women that — gaspchoose not to have husbands. These women struggle with dating, not paying the rent on an hourly wage. It seems silly to accuse the Sunday magazine of publishing a story about the rather elite, but they’ve done it again.

Politics

Barney Frank: ‘The largest spending bill in history is going to turn out to be the war in Iraq.’

Today on ABC’s This Week, Sen. Jim DeMint (R-SC) criticized the economic recovery package currently before the chamber as “the largest spending bill in history.” Rep. Barney Frank (D-MA) shot back that in reality, the largest spending bill in history “is going to turn out to be the war in Iraq.” Watch it:

The Wonk Room’s Pat Garofalo notes that while the Iraq was was financed with borrowed money and turned “a budget surplus into a record deficit and debt,” the economic recovery package will “boost consumer demand and put people back to work, while simultaneously investing in long-term strength through infrastructure, health care, and education.”

Update

Sam Stein adds, “The argument Frank makes is that in the context of chiding government spending, self-purported fiscal conservatives should not be entitled to selective memory.”

Climate Progress

Can Obama stop the nuclear bomb in the Senate stimulus plan (Part 1)?

http://fasteddie.files.wordpress.com/2007/10/nuclear-bomb-explosion.jpgA radioactive dirty bomb has been dropped on the Senate stimulus package. As WonkRoom reported:

On Wednesday, the Senate Appropriations Committee voted to increase nuclear loan guarantees by $50 billion in the economic recovery package (S. 336). This staggering sum “would more than double the current loan guarantee cap of $38 billion” for “clean energy” technology.

Yet this provision would not create a single job for many, many years, but would saddle the public with tens of millions of dollars more in toxic loans. As I noted in my 2008 report, “The Self-Limiting Future of Nuclear Power“:

In August 2007, Tulsa World reported that American Electric Power Co. CEO Michael Morris was not planning to build any new nuclear power plants. He was quoted as saying, “I’m not convinced we’ll see a new nuclear station before probably the 2020 timeline,”

Morris further noted “Builders would also have to queue for certain parts.”

Indeed, the nuclear industry is riddled with bottlenecks. For instance, Japan Steel Works is “the only plant in the world … capable of producing the central part of a nuclear reactor’s containment vessel in a single piece, reducing the risk of a radiation leak.” And they have a backlog of a few years already.

The additional loans would probably not even result in a single new signed contract for a plant over the next two years, let alone produce a single job in Obama’s first term — other than maybe a few high-priced lawyers and lobbyists to twist the arms of state Public Utility Commissioners to shove the inevitable rate increase down the throats of consumers (see “Exclusive analysis, Part 1: The staggering cost of new nuclear power“). Turkey seems smarter than that (see “Turkey’s only bidder for first nuclear plant offers a price of 21 cents per kilowatt-hour“). Are we?

Why are we still propping up an industry that can’t survive without the taxpayer swallowing both the economic risk of an actual meltdown and the risk of the new nukes melting down financially — all for a mature technology that has already received more than $100 billion in direct and indirect subsidies (see “Nuclear Pork — Enough is Enough“)?

Here is the proposed language for this nuclear bomb:

Read more

Politics

Republican Senators Express Confidence That Judd Gregg’s Departure Would Not Shift Senate Balance

Sen. Judd Gregg (R-NH) has emerged as the top candidate to be chosen by President Obama to lead the Commerce Department. On the Sunday shows this morning, Gregg’s conservative colleagues in the Senate braced for his departure.

The loss of Gregg’s Republican Senate seat would “have the potential to tip the balance of power in the Senate: New Hampshire’s governor [John Lynch], a Democrat, could name a Democrat to succeed Gregg.” The addition of one more Democrat would give Democrats a filibuster-proof 60 votes. Yet, Republican senators this morning indicated that Gregg would not be replaced by a Democrat.

Here’s what Senate Minority Leader Mitch McConnell (R-KY) said on CBS:

MCCONNELL: Sen. Gregg has assured me if this were to happen…it would not change the make-up of the Senate. In other words, whoever is appointed to replace him would caucus with Senate Republicans. So I think it would have no impact on the balance of power in the Senate.

On Fox News Sunday, Sen. Jon Kyl (R-AZ), the minority whip, said, “I’m not sure we would” lose a seat if Judd Gregg left the Senate. Kyl added that there’s “no deal,” but “I’m just suggesting Sen. Gregg clearly has thought this through.”

And on NBC’s Meet the Press, Sen. Kay Bailey Hutchison (R-TX) added, “I’m sure Sen. Gregg would not leave his seat if he thought a Democrat would take his seat. I just know he would not do that.” Watch a compilation video:

Former New Hampshire Republican Committee Chairman Fergus Cullen did not express the same confidence as the Republican senators. “There’s no question in my mind Lynch would appoint a Democrat,” Cullen said. “I think it is foolish for any Republican to think otherwise … (Lynch) does not have a track record of appointing lots of Republicans to important positions in state government.”

Update

J. Bonnie Newman is being discussed as a possible replacement.

Economy

Frank Takes Down Stimulus Criticism: ‘The Largest Spending Bill In History’ Will Be The Iraq War

Today, on ABC’s This Week, Sen. Jim DeMint (R-SC) derided the economic recovery package currently before the Senate as “the largest spending bill in history.” Rep. Barney Frank (D-MA) fired back that the actual largest spending bill in history “is going to turn out to be the war in Iraq“:

FRANK: The largest spending bill in history is going to turn out to be the war in Iraq…And I don’t understand why, from some of my conservative friends, building a road, building a school, helping somebody get health care, that’s — that’s wasteful spending, but that war in Iraq, which is going to cost us over $1 trillion before we’re through — yes, I wish we hadn’t have done that. We’d have been in a lot better shape fiscally.

Watch it:

Indeed, the New York Times put together an article noting “what 1.2 trillion can buy,” and one of the items is simply the war in Iraq. For that same price, as the Times calculated, America could pay for “an unprecedented public health campaign” and much more, like universal pre-school, rebuilding New Orleans, and implementing “the recommendations of the 9/11 Commission that have not been put in place.”

The Iraq war has been financed with borrowed money — while taxes were being cut by the Bush administration — turning a budget surplus into a record deficit and debt. Meanwhile, the economic stimulus will boost consumer demand and put people back to work, while simultaneously investing in long-term strength through infrastructure, health care, and education. Which does DeMint think will ultimately be of more value to the American people?

Yglesias

Unrest in China

by Ryan Avent

Most stories on economic conditions in China will note, at some point or another, that a growth rate between 6% and 8% annually is necessary to provide enough employment growth to prevent civil unrest. It’s never clear just where this figure has came from, but there’s certainly truth to it. The IMF has reduced its forecast for Chinese growth this year to between 6% and 7% (and further downward revisions are likely), putting China well within the zone in which government officials begin to get nervous.

Yves Smith, in considering the latest dust-up over China’s currency policy, writes:

Japan has played up its basket case status, when it has in fact (until recently) had a robust export sector. Why? If the rest of the world thinks Japan is in terrible shape, no one will bust their chops for keeping the yen weak, which worked until carry trade unwinding drove it from the 115-125 level versus the greenback to its recent high of 86 and change. [Premier Wen Jiabao] should instead be stressing how bad things are.

He should, except that unlike Japan, which is a mature Democracy, China has to rely on the confidence of its people to prevent a state crisis. China wants to preserve its trade advantages, but it can’t afford to play poker with the west by underselling the strength of its economy, because there are hundreds of millions of Chinese workers counting on strong employment growth. Read more

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