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Justice

Surprise Senate Candidate Deb Fischer: Destroy The Constitution Or I’ll Destroy The Economy

Yesterday, Nebraska GOP primary voters nominated dark horse candidate and state Sen. Deb Fischer as their candidate for an open U.S. Senate race this November. In choosing Fischer, the Nebraska GOP aligns itself with a candidate who recently called for a very high stakes game of chicken — flirting with economic catastrophe in order to force Congress to permanently enshrine Tea Party fiscal policy into the Constitution.

During last year’s debt ceiling crisis, which Speaker John Boehner has threatened to repeat next year, House and Senate Republicans threatened to force the United States to default on its debt — an outcome that would have caused “a bigger GDP drop than that experienced during the Great Recession of 2008″ — unless President Obama agreed to an increasingly escalating series of demands for austerity. Even after this campaign of extortion forced the White House to make significant concessions, Fischer indicated that she would have simply let the economy blow up because Congress didn’t also agree to a constitutional amendment:

Nebraska’s 2012 Republican Senate candidates turned thumbs down Monday on the compromise debt reduction plan agreed to by the White House and congressional leaders.

I would vote no on this specific bill because Congress needs to pass a balanced budget (constitutional) amendment first,” said state Sen. Deb Fischer of Valentine.

It’s not clear which version of the balanced budget amendment Fischer is referring to here, but even the mildest forms of such an amendment are terrible ideas because they prevent the United States from responding to economic downturns or unexpected disasters, while simultaneously turning control of the nation’s budget over to unelected judges who are ill-equipped to handle it.

Moreover, at the time that Fischer endorsed blowing up the economy unless Congress votes to change the Constitution, the leading Republican proposal for such an amendment imposed such draconian spending cuts that it would “throw about 15 million more people out of work, double the unemployment rate from 9 percent to approximately 18 percent, and cause the economy to shrink by about 17 percent instead of growing by an expected 2 percent.” The lead sponsor of this plan to trigger a new Great Depression, Sen. Mike Lee (R-UT), also called for forcing a debt default unless Congress gives him everything he wants.

In other words, while little is known about the obscure state lawmaker who wants to join the United States Senate, her willingness to play chicken with America’s prosperity strongly suggests that she would line up with the most hardline members of the Republican caucus.

Economy

GOP Senate Hopeful George Allen Has A Case Of Balanced Budget Amendment Amnesia

Former Sen. George Allen (R-VA)

Former Sen. George Allen (R-VA) is trying to regain the seat he lost in 2006 after his infamous bullying of an Indian-American campaign tracker who he called “macaca.” In this campaign, he is playing up is his support for a constitutional balanced budget amendment, in order to clean up the massive budget deficit that he helped run up last time he was in congress. And his allies at the U.S. Chamber of Commerce are also playing up the issue in their “independent” ads supporting him.

But video on Allen’s campaign site highlights his selective memory on this subject. As part of his “Ask George Allen” video series, Allen tells a questioner, “you do have my word to fight for a balanced budget amendment to the constitution as well as line-item veto authority.” He then explains his reasoning, saying:

In fact, while I was a member of the House of Representatives for one year in the early 1990s, I introduced the line item veto [and the] balanced budget amendment. We got it to a vote on the floor. And when I was in the Senate, a few years ago, I introduced it as well.

Watch the video:

But here’s what actually happened. In 2000, he ran against then-Sen. Chuck Robb (D), promoting his support for a balanced budget amendment. After getting elected, Allen waited more than five years to act. He neither authored nor co-sponsored a balanced budget amendment proposal in the Senate in the 107th or 108th Congress, while the Republican Congress and President George W. Bush took a $236 billion surplus and turned it into a $412 billion deficit. Instead, he focused his efforts on legislation like his Liberty Dollar Bill Act, a proposal to require that all U.S. one-dollar bills include the preamble to the constitution, a list of articles, and the first ten amendments.

Only in February 2006, when he was up for re-election, did Allen submit a balanced budget amendment proposal in the senate. In his speech announcing the bill, he said “I hope my colleagues recognize the seriousness, the importance, and the urgency” of his proposal. Allen was unable to get a single colleague to sign on as a co-sponsor.

But sure enough, his 2006 re-election site boasted that Allen “introduced a Constitutional amendment to require a balanced budget.

A constitutional amendment to require a balanced budget is, in the end, a gimmick that would either require massive tax increases or massive spending cuts — cuts which could have put 15 million Americans out of work if they were enacted this year. But still, Allen is throwing his weight behind the idea as a crowd-pleaser, when there’s no chance of him actually getting it enacted.

Economy

GOP Again Supports Radical Budget Proposal That Would End Recovery, Double Unemployment Rate

Before the Senate took up its vote on a radical Balanced Budget Amendment proposal today, Utah Sen. Mike Lee (R) — a co-sponsor of the bill — called it “one of the most important pieces of legislation to come before the Senate in decades.” Lee is right: the Balanced Budget Amendment he and his Republican colleagues continue to push is important, since it would have tremendous ramifications for an already-struggling American economy, throwing the country back into the depths of recession.

Fortunately, the amendment failed to garner enough votes to advance, falling 47-53 along party lines. But as Republicans continue to talk about the importance of job creation and economic recovery, their repeated efforts to institute cockamamie economic policies like the Balanced Budget Amendment prove that such talk is only lip-service.

As ThinkProgress has reported since the push for such an amendment began earlier this year, the GOP’s Balanced Budget Amendment would have huge consequences for the economy. If it had been in effect this year, it would have pushed 15 million people out of work and doubled the unemployment rate, as Macroeconomic Advisers and the Center on Budget and Policy Priorities made clear last month:

If the 2012 budget were balanced through spending cuts, those cuts would total about $1.5 trillion in 2012 alone, the analysis estimates. Those cuts would throw about 15 million more people out of work, double the unemployment rate from 9 percent to approximately 18 percent, and cause the economy to shrink by about 17 percent instead of growing by an expected 2 percent.

The Republican version of the amendment would have capped spending at 18 percent of GDP and required a three-fifths majority in the Senate to raise taxes, thus requiring the budget to be balanced through drastic spending cuts that touched every federal program.

The Macroeconomic Advisers study found that the spending reductions caused by such an amendment would force deep cuts in Medicare, Medicaid, Social Security, and the Children’s Health Insurance Program, findings that have been backed up by other studies as well. The Center for American Progress’ Michael Ettlinger and Michael Linden, for instance, found that such an amendment would require 25 percent cuts in every government program, from the Pentagon to Social Security to education. CBPP, likewise, found that the Senate version would require 25 percent cuts across the board.

Republicans can continue to claim they are the party that cares about protecting Social Security and Medicare. But by pushing so hard, so often for a radical amendment that analysts on both sides of the aisle have called the “worst idea in Washington,” the GOP’s policies will only exacerbate the effects of the last recession while ensuring that future recessions will be even worse.

Justice

Rep. Paul Ryan Votes Against Balanced Budget Amendment Because It Doesn’t Ruin The Constitution Enough

Earlier this afternoon, just 261 members of the House voted in favor of a balanced budget amendment — far fewer that the two-thirds majority necessary for the amendment to move forward. One somewhat surprising “no” vote was House Budget Chair Paul Ryan (R-WI). Ryan is the House GOP’s chief Chicken Little on the deficit — Ryan spent the last two years of his life running around the country warning that the sky would fall unless we phase out Medicare and enact a long list of equally draconian budget reforms.

Yet, today, when Chicken Little had the opportunity to write a balanced budget amendment into the Constitution, he ran away screaming that the amendment wouldn’t do enough to transform the Constitution into a Tea Party fantasy:

The backstory here is that, just a few months ago, Ryan and his fellow congressional Republicans were pushing a permanent austerity amendment that would effectively lock Tea Party fiscal policy in place permanently. Among other things, amendment would make it functionally impossible to ever raise taxes, while simultaneously requiring the federal government to balance its budget entirely through spending cuts.

Were Paul Ryan’s fantasy scenario — a balanced budget achieved entirely through cuts — to actually play out, it would “throw about 15 million more people out of work, double the unemployment rate from 9 percent to approximately 18 percent, and cause the economy to shrink by about 17 percent instead of growing by an expected 2 percent.”

The amendment Ryan rejected today, by contrast, contains no provision preventing the budget from being balanced through higher taxes — possibly even on rich people! This would allow Congress to save a percentage of these jobs by shifting the cost of deficit reduction to people who can afford it, but it would not protect the interests of the very wealthiest Americans. So Ryan voted it down.

Let’s be completely clear about what this means. Given the choice between an option that would kill 15 million jobs & drive the nation into another great depression, and a different option that could kill fewer jobs but would also not guarantee that David Koch and Paris Hilton pay low taxes, the House GOP’s top budget policymaker decided that he would rather protect poor Paris and hold out for the option that would force millions of American families into utter destitution.

Update

It’s worth noting that Paul Ryan’s own budget would not survive constitutional muster under either version of the balanced budget amendment.

NEWS FLASH

GOP’s Job-Killing Balanced Budget Amendment Fails In House | The latest Republican budget gimmick — a radical Balanced Budget Amendment that would actually kill 15 million jobs — failed to garner the necessary two-thirds majority it needed to pass the House today, failing 261-165. Four Republicans — Reps. Paul Ryan (WI), Justin Amash (PA), Louie Gohmert (TX), and David Dreier (CA) — voted against the amendment; 25 Democrats, most presumably from the conservative Blue Dog Coalition, voted in favor. The amendment needed 290 votes to pass. The amendment actually gained less votes than it did in 1995, when 300 House members voted in its favor.

Update

The 25 Democrats who voted in favor of the amendment were: Jason Altmire (PA), John Barrow (GA), Sanford Bishop (GA), Dan Boren (OK), Leonard Boswell (IA), Dennis Cardoza (CA), Ben Chandler (KY), Jim Cooper (TN), Jim Costa (CA), Jerry Costello (IL), Henry Cuellar (TX), Peter DeFazio (OR), Joe Donnelly (IN), Kathy Hochul (NY), Tim Holden (PA), Jay Inslee (WA), Ron Kind (WI), Larry Kissell (NC), Dan Lipinski (IL), Dave Loebsack (IA), Jim Matheson (UT), Mike McIntyre (NC), Collin Peterson (MN), Mike Ross (AR), Heath Shuler (NC). A full roll call vote is here.

NEWS FLASH

Key GOP Committee Chair To Vote Against Balanced Budget Amendment | Rep. David Dreier (R-CA), chair of the powerful House Rules Committee, announced today that he would vote against the proposed Balanced Budget Amendment. Although Dreier supported a very similar amendment in 1995, he now believes that decision was an error. “I was wrong,” Dreier said. “Two short years later, we balanced the federal budget. . . . [W]e were able to balance the federal budget without touching that inspired document, the U.S. Constitution.” Dreier is likely to retire after this term due to a redistricting map that makes his reelection bid much more difficult. Regardless of why he decided to break with his party on this vote, however, he made the correct decision. Balancing the budget immediately through spending cuts, as congressional Republicans suggest, “would throw about 15 million more people out of work, double the unemployment rate from 9 percent to approximately 18 percent, and cause the economy to shrink by about 17 percent instead of growing by an expected 2 percent.”

Justice

The Balanced Budget Amendment Isn’t Just A Terrible Idea, It’s A Terrible Idea For Conservatives

Later today, the House is expected to begin debate on a balanced budget amendment, with most of the amendment’s supporters hoping that it will impose sweeping and permanent austerity upon the United States. As ThinkProgress reported, if this amendment actually succeeded in balancing the budget entirely through spending cuts, it would “throw about 15 million more people out of work, double the unemployment rate from 9 percent to approximately 18 percent, and cause the economy to shrink by about 17 percent instead of growing by an expected 2 percent.” In other words, America would almost instantly suffer consequences that rival the Great Depression.

Yet, for those of us who are still old enough to remember when conservatives feared “activist judges,” the right’s recently invigorated obsession with writing fiscal policy into the Constitution is nothing less than bizarre. As Neil Kinkopf, a former constitutional advisor to the Clinton and Obama Administration explains, the most likely way to enforce this kind of amendment would be by requiring judges to strike down budgets that aren’t balanced — placing our fiscal policy in the hands the public officials who are least suited to make such decisions:

Our independent federal judiciary is highly skilled at deciding legal questions. It is not at all competent to make decisions of a political or policy nature. Judges are not, generally speaking, trained in matters of economics or finance. They have no special competency that would recommend committing such decisions to them. . . . Finally, legislators are politically accountable for their decisions. Judges are not and should not be. Decisions regarding how to achieve a balanced budget are precisely the type of decisions that involve will and not judgment, to use Hamilton’s phrase, and so should be made by accountable officials rather than judges.

Don’t trust former Clinton and Obamaistas? How about Robert Bork, the failed Supreme Court nominee who became the centerpiece of the legal conservative movement’s persecution complex? Here’s what he had to say about balanced budget amendments:

Also troubling is the problem of enforcing such a constitutional provision. In the early stages of discussion, a lot of people, including most economists, apparently thought this was no problem: if Congress exceeded the constitutional limits on spending, someone would sue. That much is true. The result, however, would likely be hundreds, if not thousands, of lawsuits around the country, many of them on inconsistent theories and providing inconsistent results. By the time the Supreme Court straightened the whole matter out, the budget in question would be at least four years out of date and lawsuits involving the next three fiscal years would be slowly climbing toward the Supreme Court.

Bork, of course, is right to be worried about the judiciary’s unfitness to balance the budget. If the Supreme Court strikes down the 2014 budget in 2016, what happens next? Does the government have to take back the money it already spent, and if so, how? And what does this do to America’s credit rating if every bill sent to the federal government is subject to reexamination by nine judges in black robes?

But, none of this will probably bother the kind of conservatives who now dominate Congress. They were willing to push America to the brink of fiscal implosion during the debt ceiling fight earlier this year. Sen. Mike Lee (R-UT), a leading supporter of a balanced budget amendment, even admitted he wants America’s “house to come down” unless we agreed to his extortionist demand to rewrite the Constitution.

So conservative lawmakers have demonstrated time and time again through their actions that they don’t care one bit if their reckless tactics destroy the American economy. They have made absolutely clear, however, that they will never, ever vote to raise taxes on the rich, even though doing so is one of the least harmful ways to bring the budget closer to balance.

And that’s the real reason why conservatives in Congress would oppose the upcoming balanced budget amendment if they had any idea what it would actually entail — and it explains why the right-wing Heritage Foundation is already whining that this version of the amendment doesn’t do anything to save David Koch and Paris Hilton from paying more taxes.

NEWS FLASH

Hoyer Slams GOP’s BBA Effort: ‘You Don’t Need An Amendment’ To Balance The Budget | The same day conservative Blue Dog Democrats endorsed the job-killing Republican Balanced Budget Amendment, House Democrats led by Minority Whip Steny Hoyer (D-MD) pushed back against the plan and announced firm opposition. Hoyer, who voted for an amendment in 1995, is now “unapologetically whipping against the 2011 version,” which the House will vote on tomorrow. Asked if voting against the BBA would be tough for Democrats, Hoyer slammed Republicans who built up trillions in debt without paying for it when they controlled Congress, Politico reports: “It’s not a tough vote to pretend you’re going to go for a balanced budget by having something like that on the floor,” Hoyer said. “If you want to fight a war — pay for it. If you want to have a prescription drug program — pay for it. … You don’t need an amendment to do it.”

Economy

Blue Dog Democrats Endorse Balanced Budget Amendment That Would Double Unemployment, Gut Social Safety Net

Congressional Republicans are still trying to persuade Americans that they are focused on job creation, but each time they propose another piece of legislation, it is exposed as a gimmick that will do little, if anything, to create jobs. Such was the case with their anti-regulatory policies, their attempts to repeal health care reform, and virtually every other policy proposal they have brought forth.

Next up in that line, unfortunately, is a rehashed form of a radical Balanced Budget Amendment, a plan that according to recent analyses would actually cost America 15 million jobs. But thanks to the conservative wing of the Democratic Party, the Republicans won’t be alone in their chase for a radical budget amendment that could help push the country back into the throes of recession.

Despite the fact that House Minority Whip Steny Hoyer (D-MD) said yesterday he would encourage his party to vote against the radical plan, Blue Dog Democrats endorsed the amendment on a press call today, Politico’s Marin Cogan reported on Twitter. ThinkProgress confirmed that endorsement with a spokesperson for Rep. Mike Ross (D-AR), the Blue Dog Coalition’s co-chair for communications. According to the Hill, Ross said on the call that Blue Dogs favored such an amendment “before balanced budget amendments were cool”:

We were advancing a balanced budget amendment when balanced budget amendments weren’t cool,” a co-chairman of the coalition, Rep. Mike Ross (D-Ark.), told reporters on a conference call. [...]

If any Blue Dog does not vote for it, I’d have to question how much they’re a Blue Dog,” [Blue Dog Rep. Jim] Matheson [D-UT] said.

It’s hard to overestimate the negative effects such an amendment would have on the country’s economy. In addition to destroying millions of jobs, it would force such massive spending cuts that House Republicans’ own budget would be unconstitutional. According to a recent study by Macroeconomic Advisers, enacting a BBA now would double the nation’s unemployment rate and cause the economy to shrink by 17 percent — a far cry from the 2 percent projected growth that would occur with no such amendment.

Unfortunately, according to another analysis by the Center on Budget and Policy Priorities, the consequences get worse. The draconian budget cuts caused by a Balanced Budget Amendment would forice lawmakers to gut Medicare, Medicaid, Social Security, and the Children’s Health Insurance Program (CHIP), among other programs, the analysis found:

“The constitutional balanced budget amendment that the House is expected to consider this week could force Congress to cut all programs by an average of 17.3 percent by 2018.

“If revenues are not raised (the House-passed budget resolution assumes no increase above current-policy levels) and all programs are cut by the same percentage, Social Security would be cut $184 billion in 2018 alone and almost $1.2 trillion through 2021; Medicare would be cut $117 billion in 2018 and about $750 billion through 2021; and Medicaid and the Children’s Health Insurance Program (CHIP) would be cut $80 billion in 2018 and about $500 billion through 2021.”

In order to preserve those programs, Congress would have to cut ridiculously deep into every other program. Yesterday, economists around the country warned Congress that enacting widespread budget cuts and other austerity measures now would have perilous consequences for the American economy, pushing the country to the brink of a second deep recession. Today, unfortunately, Blue Dog Democrats decided not only to ignore those warnings, but to endorse an even bigger, deeper austerity plan.

Justice

Study: GOP’s Balanced Budget Amendment Would Double Unemployment Rate, Put 15 Million Out Of Work

In a week, the GOP will again vote on a Balanced Budget Amendment, the cockamamie economic proposal they have toyed with several times over the last several months, including during the debate over raising the debt ceiling. The vote is part of the final compromise to raise the debt limit, in which President Obama and Senate Democrats promised to hold a vote on such an amendment, despite the fact that such votes have failed numerous times in the past.

Republicans have taken to ignoring the obvious perilous consequences of the amendment even as voices on both sides of the aisle denounce it as the “worst idea in Washington.” The current amendment, former Reagan adviser Bruce Bartlett said, “looks like it was drafted by a couple of interns on the back of a napkin.” Today, the Center on Budget and Policy Priorities (CBPP) added to that criticism, releasing a study highlighting a piece from Macroeconomic Advisers that notes that such an amendment would make future recessions “deeper and longer” and saying that if a BBA had been enacted prior to the 2008 recession, the “effect on the economy” would have been “catastrophic.”

And according to CBPP, passing a Balanced Budget Amendment now, with the country trying to climb out of the hole of joblessness caused by the recession, would have the exact opposite affect one would expect policy makers to try and achieve. In fact, the budget cuts required by such an amendment now would double the unemployment rate and slide the country back into the throes of recession:

If the 2012 budget were balanced through spending cuts, those cuts would total about $1.5 trillion in 2012 alone, the analysis estimates. Those cuts would throw about 15 million more people out of work, double the unemployment rate from 9 percent to approximately 18 percent, and cause the economy to shrink by about 17 percent instead of growing by an expected 2 percent.

That should be a reality check for Republicans who claim to be focused on job creation. Yet, despite evidence that the amendment would have disastrous consequences for our economy, Republicans — even those who pitch themselves as credible on the economy, like former Massachusetts Gov. Mitt Romney — continue to support it. Some even distort the past positions of Democrats to make it look like the proposal has bipartisan support.

In reality, such an amendment would only serve to exacerbate the very problems the GOP says it is trying to fix. And, as CBPP notes, the idea is utterly impractical: “[T]he only way to implement a BBA without some fiscal drag is to ratify it when the budget is in balance or surplus. Of course, then we wouldn’t have needed the BBA to achieve balance in the first place.”

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