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Stories tagged with “Ruth Marcus

Yglesias

All Deficit Reduction Plans Involve Promises About Future Action

healthcare_costs1

Ruth Marcus becomes the latest in a long line of commentators to disparage the health reform bill’s deficit-reduction possibilities because they’re about the future:

And here is the accompanying tablespoon of salt: The CBO is required to assume that Congress will do what it promises. So, for example, Congress promises in the measure to cut several hundred billion dollars in Medicare spending. Sometimes such promises have come to pass. Other times, as in the current difficulty with scheduled cuts in Medicare reimbursements for doctors, they are put off because of a public — or politically connected — outcry.

Look, I’d certainly say that forecasts of the future legislative environment should be taken with a grain of salt. But Marcus adds up several grains worth of doubts and then says the CBO’s assumption that Congress will do what it promises deserves a full tablespoon of salt. It’s of course true that this is how the CBO works, but disparaging its scores on these grounds is a universal solvent that would destroy any effort at policy analysis. The long-term fiscal deficit, after all, is itself a prediction about future events so the only thing Congress can possibly do to change it is to make repealable promises about what future policy will be.

I think you could coherently say that the 111th Congress just shouldn’t worry about the deficit beyond 2011 at all. You could say it’s silly to even talk about events in 2012 or 2013 and absurd to talk about events in 2027 since those deficits will be determined by future congresses. But if you don’t care about future deficits, then there’s no reason to carp that the deficit reduction isn’t strong enough. And if the 111th Congress is going to care at all about long-term fiscal problems, that caring will necessarily take the form of promises about the future course of policy that will be subject to repeal by future congresses.

It’s also worth noting that default rules matter. George W Bush pushed his tax plans with, among other things, phoney baloney deficit numbers based on the expiration of tax cuts that he never intended to let expire. But notwithstanding his subjective desire to see those cuts never expire, many of them will in fact expire and the fact that current law schedules them to expire makes it much easier for proponents of higher taxes to achieve their policy objective.

Yglesias

Barack Obama Meets The Minimum Winning Coalition

Ruth Marcus writes: “It would have been hard to predict, as the stimulus debate began, that President Obama would end up losing more Democratic votes than gaining Republican ones.”

I dunno. It’s true that this outcome wasn’t widely predicted. And I don’t think I even thought about it seriously. But it also strikes me as pretty predictable. When a bill becomes controversial, your goal as a mover of legislation is to get all the votes you need. And in the House, the leadership can afford to lose some Democrats and to not pick up any Republicans. Given that, I think we should expect it to happen pretty frequently on controversial pieces of legislation. In purely cynical terms, if there are members from vulnerable districts whose votes aren’t needed to secure a majority it makes perfect sense for the leadership to even instruct them to vote “no” in order to bolster their independence credentials so that they’ll be better positioned to take a tough vote if they’re really needed on some future bill.

Media

Ruth Marcus Signs Up For Neo-Hooverism

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As I’ve been documenting, there’s a disturbing plague of neo-Hooverism sweeping through elements of our punditocracy. Perhaps Nobel Prize winning economist Paul Krugman will come along with a blog post explaining why the neo-Hooverite mania is wrong, but for now you’ll have to settle for me and Dean Baker. But the epicenter of the bug appears to be the opinion pages of The Washington Post and the latest victim is columnist Ruth Marcus who’s skeptically hoping that the next president will embrace what she calls “the New Sobriety.”

This kind of analogistic thinking is deadly when it comes to fiscal policy. For an individual, it’s true that high savings rates are virtuous and bring the prospect of greater prosperity in years to come. Thus, it’s seductive to think that public sector budgeting is the same. But it just isn’t the same.

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When you’re facing a recession, especially a recession wherein monetary policy has little ability to stimulate aggregate demand because the banking system is all seized up (remind you of anything?), you need public policy to stimulate aggregate demand. The recession is caused by overall demand for liquidity getting too high. In those circumstances, it becomes rational for any given individual and any given business to also prefer saving to spending. But that only makes things worse. What’s needed is for the government to break the cycle with deficit spending. Marcus’ alternative theory was tried by Herbert Hoover in the early 1930s and again by Japan in the 1990s and it doesn’t work. What did work a little was the New Deal and then the truly balls-to-the-wall spending of World War II worked much better. Excessive virtue amidst the current crisis will doom us all.

Meanwhile, none of this is to deny that it was a mistake for the Bush administration to run up such huge deficits. The flipside of the need for deficit spending during a recession is that responsible political leadership takes advantage of good economic times to reduce the debt-to-GDP ratio. The fact that Bush did the reverse makes us worse positioned to cope with the current crisis than we would be had he behaved more responsibly. But past irresponsibility does not imply that future irresponsibility in the opposite direction becomes a good idea.

Media

The Empathy Gap?

I wonder oftentimes how important newspaper columnists see their role. For example, Ruth Marcus writes this:

As issues become increasingly complex — voters can’t be expected to parse the technical differences between the candidates’ cap-and-trade emissions plans or the distributional effects of their tax cuts — biography, especially biography laced with conflict and resolution, becomes a proxy for providing assurance that the candidate can be counted on to get it right on the more difficult matters.

I could see Marcus’ column shifting in two plausible directions here. One would be to decide that she ought to try to use her skills as a writer, reporter, and analyst to explain the differences between the candidates’ climate plans or their tax policies. The different distributive impact of the candidates’ tax plans isn’t actually all that hard to explain. Obama’s plan would deliver lower taxes for 80 percent of Americans, but McCain’s plan would be better for the richest fifth of the population (wonder which group Marcus is in) while bringing in lower overall federal revenues. Another direction would be to use her skills as a writer, reporter, and analyst to say something substantive about the candidates’ biographies and whether or not those biographies give her confidence that the candidate can be counted on to get it right on the more difficult matters.

But she doesn’t do either of those things. Instead, she goes meta, dedicating her column to the proposition that “Obama needs to seem more familiar and approachable to voters, yes, but he also needs to convey — to use President Clinton’s famous phrasing — that he feels their pain.” This, even though her column cites numbers that indicate Obama is crushing McCain 49-36 “on the classic poll question about which candidate better understands the problems of people like you.” The Post‘s website, meanwhile, gives the column the title “Obama’s Empathy Issue.” But what’s the issue? That he’s viewed as empathetic by way more people than his opponent?

Yglesias

Same As It Ever Was

Scheunemann

Jim Lehrer and Ruth Marcus talk about John McCain’s lobbying ties to the Georgian government:

JIM LEHRER: Yes. What about the McCain lobbyist who lobbied for Georgia and is now McCain’s number-one foreign affairs adviser? Is that going to come up to bite McCain more, do you think?

RUTH MARCUS: So the Obama campaign hopes. I look at this on two different levels. On the substantive level, anybody who knows Senator McCain knows that he would have the same views on Georgia no matter what lobbyist came to talk to him. He feels this one in his bones. And he wasn’t going to — this is not a shift in position because some lobbyist came and whispered in his ear.

It’s worth noting the extraordinary level of benefit of the doubt that John McCain tends to get from the press, including from people who aren’t necessarily hugely sympathetic to his policy agenda. Normally reporters are ruthless about the motives behind politicians’ decisions, but everything McCain does is above question. Beyond that, how much better is it for McCain to be the kind of guy whose views on U.S.-Russia relations are identical to those that you would have if you were a paid agent of a foreign government? Of course it’s possible that America’s interests vis-à-vis Russia are identical to Georgia’s interests, but that doesn’t seem very likely to me.

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