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Economy

How Congressional Republicans And Fox News Displayed Their Profound Debt Ceiling Ignorance

By Jeff Spross on Nov 30, 2012 at 6:00 pm

One of the key pieces of the package President Obama put forward yesterday to deal with the so-called “fiscal cliff” is a permanent end to the debt ceiling. It would make increases in the ceiling effectively automatic, subject to a veto by two-thirds of Congress.

This proposal did not just prompt howls of protestations from conservatives — it also produced a remarkable failure amongst politicians and journalists alike to understand the basics of government financing and the Constitution’s separation of powers.

In the Washington Post yesterday, Lori Montgomery called the idea “an effective end to congressional control over the size of the national debt.” Rep. Louie Gohmert (R-TX) railed against it as “a blank check.” Timothy Carney, a journalist for The Washington Examiner, lamented the legislature ceding power to the executive, effectively “castrating” Congress.

But the worst example of the theme arrived this afternoon, when Fox News host Megyn Kelly asked Sen. John Cornyn (R-TX) about the White House’s debt ceiling proposal:

MEGYN KELLY: What do you make of [the President's] request to cut the Congress out of the process when it comes to raising the debt limit? He wants a blank check now to just raise it when he needs to. Your thoughts on that?

SEN. JOHN CORNYN: Well it’s outrageous. It’s like saying we’ve maxed out our credit card, so I’m gonna get a new credit card with no limit so I can keep spending. There needs to be some accountability here. So far were spending 42 cents out of every dollar in Washington in borrowed money. And that’s money that our kids and grandkids are gonna have to pay back. It’s profoundly irresponsible. So that’s a crazy idea, and I’m amazed that Secretary Geithner had the, uh, courage to float that yesterday.

Watch it:

Congress has been vested with the power to tax and spend, under Article I Section 8 of the Constitution. Congress passes budgets, which decide how much revenue the government takes in and how much spending goes out. When the Treasury Department issues new debt, it’s merely carrying out the mechanical necessities of Congress’ decisions — because carrying out the law as passed by the legislative branch is the constitutionally mandated job of the executive branch.

But since the early 20th Century, Congress has also kept in place a separate law — the debt ceiling — that places a statutory limit on how much debt the Treasury may issue. That limit has been periodically raised. It is entirely separate from the decisions to tax and spend, which set the country’s debt obligations. As the Government Accountability Office put it: “The debt limit does not control or limit the ability of the federal government to run deficits or incur obligations. Rather, it is a limit on the ability to pay obligations already incurred.”

The President does not have discretionary control over how much the country borrows. Obama’s new proposal gives him no such control. It would merely make hikes in the ceiling automatic, in accordance with the debt necessitated by budgets Congress has already passed.

Rather than a blank check, Congress has been handing the President a check for a certain amount, ordering him to cash it, then threatening to punk him by draining the account before he can reach the bank. To paraphrase a previous point made by the Center for American Progress’ Seth Hanlon, Obama’s proposal simply makes sure Congress doesn’t force him to cash checks destined to bounce.

NEWS FLASH

Arizona School Punishes Students With Anti-Gay Humiliation | An Arizona school district punished two male students who were fighting by forcing them to hold hands for 15 minutes in front of their classmates. As they hid their faces from cameras, students teased them and asked, “Are you gay?” The district stated that it does not approve of Principal Tim Richard’s unique discipline idea, noting that it encourages bullying and reinforces anti-gay stigma. Watch an ABC News report about the incident:

Justice

Meet Four Conservative State Supreme Court Justices Thankful For Citizens United

By Guest Blogger on Nov 30, 2012 at 5:10 pm

Our guest blogger is Billy Corriher, associate director of research for Legal Progress.

Despite spending nearly half a billion dollars to buy the White House for Mitt Romney, rich conservatives were not able to leverage the Supreme Court’s election-buying decision in Citizens United into a bought-and-paid-for presidency. Yet, in state-level races, where candidates are far less well-known than President Obama, outside spending can do far more to change the results of elections. In state supreme court races across the country, Super-PACs and other outside groups raked in millions in unlimited donations—often anonymously. The 2012 race shattered spending records as $27.8 million was spent on television advertising, according to Justice at Stake, and more than half of this money came in the form of independent spending.

Here are four of the biggest beneficiaries of this spending:

North Carolina – Justice Paul Newby

North Carolina Supreme Court Justice Paul Newby was reelected with the help of more than $2.5 million in independent spending. Both candidates participated in the state’s public financing program, but this system was overwhelmed by money from interest groups like the Koch brothers’ Americans for Prosperity and the state Chamber of Commerce. The RJ Reynolds Tobacco Company chipped in $100,000, after it benefited from a 2009 ruling, authored by Newby, in a dispute with tobacco farmers. The largest donation, by far, was $875,000 from the Republican State Leadership Committee, a group that helped the state’s Republican legislature draft its recent redistricting maps. Civil rights groups have filed a lawsuit alleging that the map disenfranchises minority voters, and the state supreme court will soon review the case.

Mississippi – Justice Josiah Coleman

Josiah Coleman won a seat on the Mississippi Supreme Court election with a million dollars in independent spending, and nearly half of that money coming from a shadowy, Virginia-based organization, the Law Enforcement Alliance of America (LEAA). According to a Legal Progress analysis of Kantar Media’s CMAG data, LEAA spent an estimated $449,160 on television ads in this race, and the Improve Mississippi PAC spent an estimated $626,000, for a total of $1.07 million. LEAA has been active in judicial races around the country, and although it refuses to disclose its donors, it has been associated with the National Rifle Association and U.S. Chamber of Commerce.  The rest of the independent spending came from the Improve Mississippi PAC, which received $200,000 from a physicians’ PAC and donations from PACs representing the insurance, finance, and energy industries.

Michigan – Justices Stephen Markman and Brian Zahra

The Michigan Association of Realtors spent $400,000 on ads supporting the three Republican candidates for Michigan Supreme Court, two of whom kept their seats this month, although that was admittedly small potatoes compared to at least $10 million in spending by the two major parties on this race. Nevertheless, the significant amount of spending from the Realtors raises serious questions about Justices Markman and Zahra’s ability to impartially judge cases where this interest group has an interest.

Health

CHART: Brand Name Drug Prices Are Skyrocketing

By Sy Mukherjee on Nov 30, 2012 at 5:10 pm

Austin Frakt over at The Incidental Economist points out that the cost of brand name prescription drugs has skyrocketed relative to the price of their generic counterparts:

While this doesn’t pose a significant problem for seniors on Medicare — surveys have shown that close to 90 percent of seniors are satisfied with their Medicare plans, largely thanks to the fact that Obamacare helps save seniors money on their prescription drugs by closing the program’s “donut hole” coverage gap — it is a concerning trend for those with private insurance plans whose benefits might not be as generous.

The rise in brand name prescription drug costs mirrors the general trend for health care costs, which have been skyrocketing over the last three decades. As private insurers hike their premium rates in response to the price of care, Americans with extensive drug needs may see the cost of their treatments slip into unaffordable territory.

Furthermore, the upward trajectory in brand name drug prices poses a significant hurdle for Americans suffering from rarer disorders. These consumers require a more complex cocktail of drugs to meet their medical needs — needs that likely cannot be met by existing generic drugs.

Economy

Pelosi Threatens To Force A Vote On Bush Tax Cuts For Middle Class

By Aviva Shen on Nov 30, 2012 at 4:50 pm


With Republicans balking at the prospect of allowing the Bush tax cuts to expire for the top 2 percent of Americans, Democrats are losing patience. House Majority Leader Eric Cantor (R-VA) said Friday that the House GOP will not hold a vote on a middle-class tax bill that excludes the top income brackets, even though the Senate has already approved one.

In response, House Minority Leader Nancy Pelosi (D-CA) announced Friday that Democrats plan to bring the legislation to a floor vote next week no matter what. The Democrats plan to use a discharge petition, which can force a bill to the floor if it has been stuck in committee for 30 legislative days. In a new statement, Pelosi dared her Republican colleagues to reject the plan to extend tax cuts for 98 percent of the country:

The clock is ticking, the year is ending, it’s really important, with tax legislation, for it to happen now. We’re calling upon the Republican leadership in the House to bring this legislation to the floor next week. We believe that not doing that would be holding middle-income tax cuts hostage to tax cuts for the rich. Tax cuts for the rich which do not create jobs, just increase the deficit, heaping mountains of debt onto future generations.

And so, to that end, we are – we will be introducing, if the bill, if there is no announcement of scheduling of the middle income tax cut, which, by the way, has tremendous support in the Republican Caucus – I think we would get a 100 percent vote on it if it came to the floor. If it is not scheduled, then on Tuesday we will be introducing a discharge petition which you know with – if we get 218 signatures, would bring the bill automatically to the floor. That would mean that we need some Republicans who support middle income tax cuts, to sign on with us.

Watch it:

In order to make a discharge petition work, Pelosi needs 20 Republicans to sign on to the measure. Several Republican legislators, notably Rep. Tom Cole (R-OK), have called for Republicans to accept President Obama’s deal on middle-class tax cuts.

LGBT

Citibank Refuses Petition To Condemn Uganda’s ‘Kill The Gays’ Bill

By Zack Ford on Nov 30, 2012 at 4:20 pm

Citibank is one of the largest businesses and employers in Uganda, but the company refuses to take a position against the proposed “Kill The Gays” bill. Over 500,000 have petitioned the company, as well as Barclays, to come out against the odious proposal if only to protect its employees and customers in the country. Citibank responded to the petition today, but only reiterated its nondiscrimination policy:

While the laws and cultural norms in some countries where Citi operates differ from commonly accepted global standards for human rights, Citi supports equality without regard for, among other personal characteristics, race, gender, gender identity or expression, disability, age, nationality, or sexual orientation.

“Supporting equality” is a particularly weak statement in response to a bill that would blatantly persecute gay people and their allies with life sentences in prison or the death penalty. Barclays at least took the added step of acknowledging the bill and its opposition:

Barclays has a strong history of supporting all aspects of diversity, both in the workplace and in wider society. Equally, we are proud of playing our part in the development of economies across Africa, and the key role Barclays plays in the lives of millions of our African customers. Barclays is aware of the proposed legislation relating to homosexuality in Uganda and we are engaging at appropriate levels of the Ugandan Government to express our views.

Sign the Change.org petition to encourage these banking giants to use their significant corporate influence to protect the lives of LGBT citizens.

Economy

New Jersey GOP Uses Hurricane Sandy To Oppose Minimum Wage Hike

By Pat Garofalo on Nov 30, 2012 at 3:55 pm

The New Jersey State Senate voted yesterday to increase the Garden State’s minimum wage to $8.50 per hour, a $1.50 raise that would be effective March 1st. Gov. Chris Christie (R-NJ) has threatened to veto the bill, due to a provision that would automatically increase the minimum wage according to inflation.

Several New Jersey Republicans tried to use the recent Hurricane Sandy — which decimated Jersey’s shoreline — as justification for opposing the increase:

The aftermath of Sandy, which changed so much about the state, was ever-present in Thursday’s two-hour debate on the Senate floor, giving another wrinkle to a debate that’s largely a moral and philosophical battle. It was still that on the Senate floor Thursday, with Republicans saying a minimum wage increase would hurt businesses and could force layoffs, and Democrats asserting that it’s wrong for New Jerseyans to be paid so little in a place where it’s expensive to live.

Republican Sen. Jennifer Beck, R-Red Bank, said she supports raising minimum wage but said the storm made this the wrong time to do it. She told of small shore business owners “still sweeping up glass” and wondering if their businesses would survive the winter. “Our Legislature’s first response following a hurricane that devastated thousands is not a helping hand but a greater burden,” she said.

Christie also used that line of reasoning:

The Republican governor said Wednesday that he was “willing to consider a responsible minimum-wage package.” But with many businesses struggling to rebuild after Hurricane Sandy, Christie said, he has concerns about the bill, which would increase the hourly rate to $8.50 from $7.25 by March 1.

“We’ve got thousands of businesses wiped out,” he said at a news conference Wednesday in Trenton. “Is this really now the moment to say to those folks, ‘We’re going to hit you with a $1.25 increase on March 1 and [cost-of-living increases] beyond that?’”

Study after study has shown that minimum wage hikes do not, in fact, hurt business and force layoffs (even during rough economic times). And New Jersey was a premier test case: “University of California, Berkeley, economist David Card and Princeton economist Alan Krueger’s seminal study of the effect of the New Jersey 1992 minimum wage increase comparing fast food industry employment in New Jersey and Pennsylvania found no negative employment effect. In fact, it found stronger employment growth in New Jersey.”

“Let’s not hide behind the storm,” said state Sen. Stephen Sweeney (D). “This bill was opposed by many prior to that.” Sen. Richard Codey (D) added, “Can you live on $8.50 an hour? How about these people during the storm, you think they could go to the few diners that were open? They can’t do that.”

Alyssa

Salman Rushdie Retreats From The Politics Of Literature

By Alyssa Rosenberg on Nov 30, 2012 at 3:40 pm

Zoë Heller is a total ninja of a critic, and I think everyone should read her review of Salman Rushdie’s new memoir of his fatwa years, Joseph Anton for its evisceration of Rushdie’s self-regard (the stuff on his marriages sounds like it may not even be believed if it is seen), and even more particularly, for her explanation of a contradiction that’s evolved in Rushdie’s work. While he initially argued that literature shouldn’t be exempt from political criticism, now, Heller writes, Rushdie’s falling back on arguments that fiction of sufficient quality to be considered literature ought to be somehow exempt from political criticism:

More troubling, however, than his exaggerated claim to naiveté is the case that Rushdie seems to be making for fiction’s immunity from political or religious anger. In a departure from the standard, liberal notion that literature must be free to offend, he proposes that literature, properly understood, cannot offend. Muslims who were insulted by The Satanic Verses were guilty of a category error: just like Anis Rushdie, in his “unsophisticated” reading of Midnight’s Children, they had confused fiction with other sorts of speech…

In his famous essay “Outside the Whale,” written five years before the fatwa, Rushdie attacked various books and films for propagating imperialist myths about the nature of Indo-British relations during the Raj. (He argued, for example, that the rape plot at the center of Paul Scott’s Raj Quartet endorsed a racist fantasy about the sexual threat posed to white colonial women by “lust-crazed wogs.”) Novels, he claimed, could not be excused from criticism of this sort on grounds that they were “just” fiction: all art, in as much as it ventured to assert “what is the case, what is truth and what untruth,” was inescapably political, and part of “the unceasing storm, the continual quarrel, the dialectic of history.”

It is not surprising that Rushdie should be a little warier of history’s storm these days, but his impulse to quarantine literature from “the cacophony of other discourses, religious, political, sociological, post-colonial” is an unhappy one, nevertheless. Certainly, not all opponents of The Satanic Verses were as alert to the ludic techniques of the modern novel as they might have been. But to claim that their wounded reactions were inconsistent with Rushdie’s artistic motives cannot be the end of the argument. Had Paul Scott been around to answer to Rushdie’s critique of The Raj Quartet, he might well have insisted that he had not meant to be racist. He might even have accused Rushdie of engaging in thin-skinned identity politics. But these rejoinders would hardly have embarrassed the legitimacy of Rushdie’s complaint.

I wish she’d made the point that quality conversations and political ones aren’t separate from each other. Falling into dreadful politics can also mean falling into cliche without transcending it. Ignoring the details and realities of life in your search for “what is the case, what is truth and untruth,” a failure to reckon with politics, can mean a failure to tell a truly engaging and revealing story. Good politics aren’t enough to make literature, of course—there’s a lot of awfully stiff execution of noble ideas. But an entirely careless approach to the politics of your subject is a danger, too.

Justice

Florida Rejects Christian Slater’s Ballot

By Aviva Shen on Nov 30, 2012 at 3:40 pm

Film star Christian Slater live-tweeted his nightmarish voting process in Florida on Election Day. Even as a celebrity, Slater had to endure the same hours-long lines as other Florida voters. Once he finally made it to the front of the line, Slater was told his DMV registration was out of date and he had to cast a provisional ballot. Today he received a letter informing him that, after all that trouble, his vote was discarded.

BuzzFeed posted the letter, addressed to “Christina Slater,” and Slater’s tweets though he later deleted them:

The election chaos in Florida can largely be blamed on several reforms undertaken by Gov. Rick Scott (R-FL) to restrict early voting hours and tighten restrictions on eligible voters. A post-election study found that these election law changes led to a huge increase in provisional ballots. Clearly, countless other Floridians besides Slater had their votes wrongly discarded. State GOP members have openly admitted that these laws were geared toward suppressing the minority and Democratic vote, even though they were billed publicly as ways to combat voter fraud. Florida Democrats called for a federal probe of Florida’s election laws earlier this week.

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