What The Budget Debate Should Be
In a rational world, there should be no discussion of the deficit as policy. Team D and Team R would present their competing visions for what the government should spend money on, and where that money should come from. People should understand that modest deficits are never a problem, and that large deficits in recessions are predictable (drop in revenue) and often desired (stabilizers to prevent state budget cuts). We should not be discussing whether we must cut granny's pension to cut the deficit, we should be discussing how big we think granny's pension should be and how we should be funding that pension. Ideally, we'd have one party that thinks we should spend a bit more on things like social safety nets, and do so with more progressive taxation, and one party which thinks we should spend a bit less, and with more regressive taxation, and the voters would have a reasonably clear choice.But instead we're having a debate about just how much we should be cutting the deficit now and in 20 years, even though the former is a stupid idea and the latter we have no control over.
The Economics of Inequality
Political mythbusting #2: Health reform increase deficit, kills jobs
Political mythbusting #1: Public sector employees overpaid
Time to get the hell out of Afghanistan
He told them that he now has three "main enemies" - the Taliban, the United States and the international community.
"If I had to choose sides today, I'd choose the Taliban," he fumed.
The Corporate Tax Lie
The myth of Obama's 'overreaching'
In the wake of the 2010 elections, Republicans and their conservative allies are forwarding the narrative that their success is due to "overreach" by President Barack Obama, that he and the Democrats tried to move the country too far to the left.
It's an entertaining take on the events of this election season. Unfortunately, it's not true. When you get beyond the rhetoric and look at actual, verifiable facts, it shows that the opposite is true, that President Obama under-reached, over-promised and under-delivered.
Conservatives point to the unpopularity of health care reform as Exhibit A in their argument for overreach. And certainly, if you look just look at favorable/unfavorable poll numbers, that's what you see. But if you dig deeper, you have multiple polls showing that a majority of Americans are either happy with the changes, or unhappy because they wanted to see them go further. Specifically, Obama caved on his promise of the "Public Option," and didn't even consider another popular approach, a Medicare-style single-payer system. This certainly drove down voter turnout from his 2008 supporters who were pushing for more change, and turned off by the inside dealing and political carnage of the health care debate.
Another source of this overreaching narrative is the Stimulus bill. Republicans have turned the word Stimulus into a slur, and are battering Democrats with charges that it didn't create any jobs. But the events of the last 18 months have proven true the assertions made at the time by liberal economists like Paul Krugman that the stimulus needed to be much, much larger to really get the economy moving. While the Stimulus bill did help create about two million jobs, that's not enough to drop the unemployment numbers down to a level that voters would be happy with.
If the Stimulus had created, say, five million jobs and the unemployment rate was under 8 percent and dropping, voters wouldn't have cared if it cost double what Obama asked for. Success matters.
Another buzzword that conservatives like to use to bash this administration is "Bailouts." And on this point, they may have a case that this was overreaching. However, their target as to the cause is misplaced. When you talk bailouts, the big item here is the Troubled Assets Relief Program, or TARP. But what few Americans realize is that this bill was passed under George W. Bush, not Obama, and was created by Bush's economic team, and had many Republican supporters. Some of those same Republicans are more than happy to propagate this falsehood.
Then let's look at all those other items Obama promised in 2008 that drew people to the polls. Don't Ask Don't Tell is still in place. Gitmo is still open. There's no new energy policy, no "Green Jobs" revolution, no movement on climate change legislation, no immigration reform, not much progress on education. Each of these items have groups of supporters who didn't vote this year in the numbers they did in 2008.
Certainly President Obama deserves a share of the blame for his midterm election loses, because he chose not to follow the bold policies he campaigned on, and instead either watered them down or ignored them. One thing he is clearly not guilty of is overreaching.
Economic Aftershock
Here is a good video from Robert Reich, though I'm not sure I'm as optimistic that people will begin to put aside ideology and make the necessary changes:

