I have already had several people email me this article, and one person in the comments pointed to it and called it the Democratic circular firing squad, so let’s discuss it:
President-elect Barack Obama’s proposed tax cuts ran into opposition Thursday from senators in his own party who said they wouldn’t do much to stimulate the economy or create jobs. Senators from both parties agreed that Congress should do something to stimulate the economy. But Democratic senators emerging from a private meeting of the Senate Finance Committee criticized business and individual tax cuts in Obama’s stimulus plan.
They were especially critical of a proposed $3,000 tax credit for companies that hire or retrain workers.
“If I’m a business person, it’s unlikely if you give me a several-thousand-dollar credit that I’m going to hire people if I can’t sell the products they’re producing,” said Sen. Kent Conrad, D-N.D., a member of the committee.
“That to me is just misdirected,” Conrad said.
Sen John Kerry, D-Mass., said, “I’d rather spend the money on the infrastructure, on direct investment, on energy conversion, on other kinds of things that much more directly, much more rapidly and much more certainly create a real job.”
Let me be clear. I think this is a good thing. This is healthy. They are debating actual ideas, and there are disagreements, and hopefully they will work them out and come to a healthy endpoint. Maybe the Republicans will pull their heads out of their collective asses and decide that in the wake of the DOW dropping 80,000 points and massive unemployment and five quarters of negative growth there is something more important than capital gains tax cuts, Elian Gonzalez, Terri Schiavo, and the fairness doctrine, and join in the debate and act for once in good faith and with the best interests of the country in mind. A man can hope.
At any rate, I don’t think of this as the Democratic circular firing squad. When I think of that, I think of the kind of idiocy we have experienced the last few weeks, when DiFi gets butthurt about Panetta because her ring was not kissed enough and says things that she will have to walk back from in the future. Or when a bunch of people get upset at the number of vaginas in the cabinet and we are told we might as well have elected Rush Limbaugh. Or Rick Warren speaks for 3 minutes at the inauguration and Democrats everywhere shriek that Obama hates gays and some idiots go so far as to cancel their inauguration parties. Or anything Harry Reid has done since November 4th or whenever any jackass anywhere states “That is not the change I voted for” when the man isn’t even in office yet. That sort of nonsense, is to me, at least, the true Democratic circular firing squad.
Not actual debates about policy.
And yes, I do believe there is a bit of theatre to it all.
Ash Can
About goddamned time, isn’t it?
robertdsc
Bullseye, John.
Glidwrith
One could point out that the attempt to label this a Democratic firing squad, especially when it is tax cuts being talked about, is more of a way to short circuit real Democratic policies, in an effort to keep the policies Republican Lite.
passerby
When I read about a number of Dems disagreeing AND speaking out about their disagreement with Obama’s plan, I couldn’t help wonder if some of it is scripted to avoid Dems looking like a rubberstamping cabal for Obama.
Just wondring.
Comrade Stuck
I don’t know what I think about the Obama tax cuts and economic stimulus. I would say we’ve had enough tax cuts and what about exploding the budget. But we no longer have a budget it seems to me. This years deficit is going to be something like 2 trillion pesos, so what’s a few hundred more billion staying with middle class folks. the whole thing is like a surreal dream where there is no reference point, and the only idea is "we got to try something" .
It is becoming like a desperate tragic/comedy where futile efforts become the Grand Gestures to keep our spirits up. Nobody knows what the hell is going on, not Obama, nor any of his court. It would be unbearably depressing if not for comic relief from wingnuts, wingnutting on about how government spending is not the solution and tax cuts for the wealthy will once again save the day.
Good thing we’ve got the best printing presses in the world. OUr biggest (and maybe only) industry will be making more money the old fashioned way. Print it.
kindness
That’s very ballsy of you. True dat though.
dmsilev
Feinstein has *already* walked back her criticism of Panetta. Various people kissed her ring, and that was pretty much that.
-dms
Just Some Fuckhead
Democrats are their own serious opposition. Call a Republican if you need Christ exalted or a furtive bathroom sex encounter.
Xecklothxayyquou Gilchrist
John – I totally agree. I would hardly have thought our congresscritters capable of this kind of activity; it resembles government to an astonishing degree.
Yay!
Church Lady
I have to agree with Sens. Conrad and Kerry. The majority of workers are employed by small businesses, many of which are hanging on by their nails. A $3K tax credit for hiring someone, when you are already desparately trying to keep your doors open and keep the workers you already have on the job, seems somewhat misdirected.
We are already projecting a 20-25% decrease in revenues for 2009. No employees will be let go, no salaries cut, but raises and bonuses in the coming year look doubtful. That’s a better outlook than that of many of our customers, some of which are already laying off employees in anticipation of the downturn. We have already had a lot of calls from former employees of customers, wanting to know if we are hiring. We’re not.
John O
Thanks, John, for you are right.
This sensible debate has pretty much been relegated to crazy-talk over the last 8 years.
I’ve a discomforting faith in Obama’s judgement to the extent I can gauge it so far. I watched his speech today, and I can’t help it, and despite my cynicism, it seems to me the man gets it.
I’ve got my own thoughts about how $700B should be spent, and recovered, but big deal, so does everyone else.
Think about it: If Obama can get a good portion now, and it’s popular, he can get more later. He’s proven to be pretty clever at politics.
Xecklothxayyquou Gilchrist
@John O: This sensible debate has pretty much been relegated to crazy-talk over the last 8 years.
In fact, all sensible debate has been relegated to crazy-talk. Congressional activity has all looked more like the point-and-screech bit at the end of Invasion of the Body Snatchers.
Comrade Stuck
The real fireworks will start when the lard buckets come out from our congresscritters to git their constituents fair share of the booty. They just can’t control themselves, even at a time when earmarks look more bad than usual, especially for Obama since it’s his stimulus package. Rahm will have to have his rubber mallet handy and the hue and cry from dems will be deafening. Thankfully, only a whimper from repubs. Maybe I’m wrong, I hope so.
John O
Old age check: In the last two college football games I’ve watched, the marching band at halftime has done in order a Zeppelin medley and Tommy.
Wow.
TR
Rubber-stamping programs only insures one thing — that they’re not thought through.
Congress rushed through FDR’s initial proposals in the First Hundred Days with record speed, but the results were mixed. Some programs didn’t work well, others were ripped apart by the Supreme Court on constitutional grounds. When they went back to work on later programs — Social Security, the WPA, etc. — they took the time to do it right, and the results showed in the success and longevity of the programs.
So, yes, the circular firing squad needs to go. But this ain’t that.
Xecklothxayyquou Gilchrist
@TR: Rubber-stamping programs only insures one thing—that they’re not thought through.
Yup.
This reminds me – there’s that PATRIOT Act that needs dismantling.
The Grand Panjandrum
Republicans would do well to take a few notes and learn how to be in the majority AND have a President of the same party. It will be refreshing to have co-equal branches of government again. Oversight SHOULD NOT be an oversight when one party controls the executive and legislative branches. So far the Democrats are doing OK. Most of the "news" and the "drama" will be forgotten by Memorial Day. But the establishment media and cable news idiots have to entertain themselves somehow, no?
John O
HDTV badness: Tebow has John 3:16 under his eyeballs.
Go Satan! That has to be OU, right?
bago
DOW 30k was a republican masturbatory fantasy. FYI
TheHatOnMyCat
The way I see this, it looks like "normal" (not dysfunctional) wrangling over power between the executive and the legislative branches. Which I think is healthy.
And by healthy, I do not mean healthy the way Bill Frist meant it when he was "diagnosing" Teri Schiavo.
tomjones
What did the people complaining "that’s not the change I voted for" think they were voting for? Che?
Josh Hueco
That post rocked, John. You know, if I could be gay for any cantankerous atheist with a fat pussy (cat) in this world, it would be for you.
TenguPhule
Fixed.
John O
Thanks, tomjones.
Correct.
Obama is a moderate presentation of progressive insides. He’ll get what he can.
Zifnab25
Honestly, I’m not above a few middle class tax cuts. If nothing else, after 8 years of give sways to rich people, it’s our turn.
That said, Dem Senators didn’t just pull this objection out of their asses. They are actually listening to reputable economists and informed citzenry. About damn time.
Genine
Awww, that’s SO sweet! I can totally feel the love.
And, I agree with the post. This is healthy debate and disagreement as its actually based on something. This is the way government is suppose to work….
or so I hear.
mapaghimagsik
Amen! Let the adults hammer out policy. I hope better policy comes out of it, and the Republicans and their childish antics get completely marginalized.
Then I hope they figure out they can act like adults as well.
kay
The tax credit is for small business that hire or retrain workers.
I’d be interested in how "retrain" is defined. If a small business takes advantage of 3,000 in tax credits per worker, for retraining, that could be a substantial, worthwhile investment, going forward, rather than the probably silly short-term fix idea: one new job per 3,000 dollars in tax credit.
30,000 to keep 10 existing jobs, with retraining. Maybe that’s how it might work.
I’m glad they’re asking.
Martin
Tax cuts for those under 100K are relatively cheap and help a shitload of people. That said, Dems are right to question the cuts, both economically and politically.
It puts the GOP is a tough spot. They can’t blame the Democrats for raising taxes if they oppose Obama’s cuts (and agree with Kerry along the way) or they go along with the cuts and his plan sails through easily. Either way Obama and Democrats win. Nobody will remember any debate within the party except the outrage-mongers at Kos and such. I expect a lot of public light opposition like this because the Dems have the votes to engage in a proper discourse and still get pretty much anything they damn well please done. Putting guys like Kerry, Sanders, Kennedy out there to express that opposition is even better because what is the GOP going to do, agree with them?
John O
Exactly, Martin.
And what do you think the odds are that Obama engineered it?
I would say at least 1 out of 3.
At least.
Well said.
Comrade Stuck
@Martin:
Your talking smart political strategy. What kind of democrat are you?
Martin
Retraining is often done through specific programs. Many universities participate in such programs and some pair companies together – one looking for workers and one expecting to lose workers, where workers enter the program and the cost of their training is subsidized. They’ve been around for quite a while and are pretty well structured and the costs offset unemployment and severance benefits. My work offered retraining programs for aerospace and mechanical engineers and technicians losing jobs in the late 80s/early 90s defense shift here in CA and trained them for electrical engineering/tech jobs.
In my experience, it’s a pretty worthwhile investment for the worker (better to put some into retraining then just dumping endless amounts into unemployment benefits, for example). But given limited funds, states and Fed would be better off putting money into opportunities for companies to hire people for – infrastructure spending. Companies fail to hire people generally due to lack of opportunities, not lack of money. The credit situation is changing that a bit, but usually if a company sees a place to make money by hiring people, they’ll find a way to get the money. If they aren’t hiring, it’s because they don’t see opportunities.
Also keep in mind that the retraining credit goes a bit farther than it appears – that 3K also helps keep a trainer employed, plus the people administering the system.
mak
Middle classers get to keep more of their earnings. Sounds good.
If a small business creates a job, they get a $3k tax break; if not, then it costs the treasury nothing. What’s wrong with that?
And the stimu-pack still has plenty of dough for building roads and bridges, which will put money in the pockets of workers and construction business, who might otherwise be joining the dole but will instead be making and spending. So what’s all the fuss about?
Martin
I don’t know about ‘engineer’ exactly. I’d be willing to bet that he’s not at all displeased with the debate, and guys like Kerry know that. I mean, it’s a perfectly reasonable debate to have, unlike the hyperbole that we’re normally subjected to, and re-educating the public in what political debate should look like is a pretty good idea, actually. I think most Dems are still too chickenshit to do it, afraid that the media will crucify them and talk about ‘disharmony in the party or whatever’, but a lot of people will reward them if they do it provided they get the result right as well (and don’t just hand the GOP political victories). That’s one of my biggest hopes for Franken, to be honest – that he’ll speak his mind as he knows how to do, and drive reasonable points home, and that he won’t blather on in committees just to hear himself speak – he’s gotten enough TV time to have that out of his system.
kay
@Martin:
I see the new hire aspect, and I’m familiar with the Kerry argument : investments in infrastructure = new jobs.
I was interested in if the retraining could be directed towards adding to existing "value" (employees), per small business, and thus retaining existing jobs.
A different kind of "infrastructure" investment. Better (or newly) trained workers added to small business and existing jobs.
It’s very Obama. Add quality, so add value, and maybe keep your job.
kay
@mak:
You’re right, it’s both. It’s an argument about how much of each in the total package. It’s bang for buck, which is fine and worthwhile.
Plus, putting the brakes on Lawrence Summers is probably always wise.
John O
Martin,
Obama could have engineered, at least if we can define "engineered" down to "anticipated" Dem resistance, all this in his peculiarly good political-chessboard head.
You’re probably right, but, like I said, 1/3 odds, maybe, but not inconceivable given his track record.
Reverend Dennis
OT: The estimable Juan Cole is getting trounced by Michael Totten in the Weblog awards. If you like Cole’s blog (Or dislike Totten’s) you can show some love here.
Martin
Well, the real value in doing the program is to give small business a fair shot at these opportunities. That’s really where economic growth will come from – not from the Fortune 1000. The big guys are too focused on retaining their little worlds to actually help things – they’ll resist hiring, try to outsource, cut costs, and so on. Its the smaller companies that actually put money into the economy, innovate, build, hire, etc. so anything to help give them a boost is worth considering. Hell, feed the Fortune 1000 and all you buy is jobs for lobbyists.
Comrade Stuck
also OT
Howard Dean deserves better treatment.
Brick Oven Bill
The way I see it, infrastructure vs. tax credits is political theater. American manufacturing simply will not be able to compete with overseas and Hispanic labor over the long term under the current system. Without an economic base, the social safety net falls apart, hunger is re-introduced, and the Executive has to step in with this Presidential Directive. Magically introduced into law shortly after Paulson was seated.
The real struggle is between Globalization and Nationalism. If the goal is to promote Nationalism, and keep American wages higher than those making $3/day with no benefits in Latin America, a logical stimulus package would look something like:
1. Reset tariffs to historic averages. As far as I can tell, we import around $2 trillion annually. Returning to the 30% tariff would pay for the proposed bailout provisions.
2. Stop importing low-skill laborers.
3. Declare a national emergency and begin a crash program to build nuclear power plants.
4. Electrify the railroads.
5. Embrace research and development into America’s oil shale deposits, which are 50+ times as large as our off-shore oil and gas.
This will not be debated as the Globalist forces own Congress (Orwell’s ‘The High’). Their goal is to crush ‘The Middle’ with ‘The Low’ and then exercise more power. This is classic human behavior. America is food independent and energy independent, if we choose to be.
Indylib
Completely OT, but for those of you with cats this mental health break from Sully is not to be missed.
DougJ
Smart post. I agree completely.
Phoenician in a time of Romans
I don’t know what I think about the Obama tax cuts and economic stimulus.
It’s a bad idea.
Keynesian stimulus is called for to keep the economy functioning closer to its capacity. Without it, you get a vicious circle going to keep it sinking.
However, you get considerably more bang for the buck by (say) increasing unemployment benefits or spending on infrastructure than you do by tax cuts. Corporate tax cuts are the least effective way to turn spending money you do not have into an economic pick-me-up.
And the whole thing about the deficit makes me queasy. If you had had eight years of Clinton instead of Bush, you’d be much, much better off right now. Everybody knows it. But you didn’t, and you aren’t, and the question now is whether that additional spending necessary for the short term is going to stuff you up irreparably longer term.
Tax the rich more – say, like at the rates before Reagan. Make sure teh poor can survive. Funnel the necessary money to those who most need it, and let them spend.
And if the Republicans scream, blame them for the shitty state your country is in.
Martin
Well, infrastructure is non-outsourcable manufacturing. Low-skilled labor really doesn’t have much of a role in it, either. This isn’t hanging joists – it’s engineering down through high-skill and low-skill trades, down to opportunities for business created by the infrastructure. Yeah, you can’t have your economy rest solely on infrastructure spending, but it’s a damn good place to start while you figure out how to bring manufacturing home.
We’re already on a good path to that with a weaker dollar, and while it makes oil expensive, it really helps with domestic production.
1. Weak dollar, but trade policies are needed on top of that.
2. Weak dollar.
3. Infrastructure.
4. Infrastructure.
5. Pointless. They’ll still run out, wreck the Rockies, and cost taxpayers a fortune. Green R&D is a much better investment. That can be exported. Everyone has wind and sun, and neither one runs out.
Cain
@Comrade Stuck:
Yeah, I was saddened by that. I think HD is a great guy and his vision really helped put democrats in office across the country. I hope he gets the kind of awards he deserves for engineering all those wins. I would be displeased (and I’m looking at you Rahm Emmanuel) if he was mistreated.
cain
DougJ
It should surprise no one that a Deaniac friend of mine described Daschle’s selections at HHS as a slap in the face to Howard.
TenguPhule
Fixed.
BOB wants a pony too. Again, the shale is a bitch to process, environmentally destructive and the oil quality sucks.
Brick Oven Bill
Wind and sun cannot harvest and deliver food from the Great Plains to urban centers. They can only feed 15-25% of the electric grid and do it inefficiently. The long term answer is nuclear>hydrogen gas> fuel cells, but the oil shale resources give us 400 years to figure out how. Plymouth Colony was established 387 years ago.
Betcha didn’t know that the Russians are tripling their current shale oil annual output from 2 million barrels per year to 6 million barrels per year. Volkov says he produces it for $14-17/bbl, but I remain a skeptic of Russian accounting. His process creates spent shale that would create EPA nightmares in the US, rendering it unfeasible under our current form of government. Add probably ten bucks a barrel and we could be in business stateside in a environmentally-safe manner.
Aircraft carriers can influence currencies; but people are buying the paper we print at zero interest as it is.
Obama is not talking about #3 or #4 infrastructure. He is listening to T. Boone, who, while deserving of credit for raising the energy issue, has a vested business interest in obtaining right-of-ways to build pipes and deliver water to cities. Could national electrical transmission corridors from rural to urban areas have dual uses? T. Boone is a good man, but is also a businessman.
Brick Oven Bill
TenguPhule; Kerogen is virgin hydrocarbon. You can make anything with it. I have described the different fuels by comparing them to women. And have promised to stop talking about sexuality. But Kerogen is the best.
Kelso's Nuts
Obama has never dealt well with iconoclasts and progressives. Obama is also a bully and a weakling. Thus, he knows he did Howard Dean wrong twice in 2006 on two bits of business he KNEW were important to Dean: the election of his close friend Ned Lamont (Obama’s still close to Lieberman), and Dean’s maintainance of the DNC chair (Obama tried to get him booted in favor of Harold Ford, Jr). Yet, despite all that Dean turned the other cheek and helped Obama get his historic win. Obama (J Wright) and Dean (W J S Coffin) both had important mentors in each of their UCC/Congregationalist Churches. Obama tossed Wright first chance and yet Dean was holding Coffin’s hand at the end.
Dean is very strong and fearless about his point of view and takes criticism very well. Obama is weak a fragile and is petulant when he’s not adored. Obama resents Dean’s ability to laugh at himself and most of all is jealous of Dean’s being from one of America’s first families but having left very young to make his own way because he found that life stifling. Dean has always led on tough issues like gay-rights and single-payer health, while Obama is indeed a confused homophobe and is terrified K-Street.
Thus, Obama has always felt less of a man than Dean. So, he has always found little weakling’s ways to attack him. At one point with the encouragement of the Kennedys, Obama tried to snuff out both the Clintons and the Deans, but came up short with Clintons, settled for banishing Howard and Jim Dean. My prediction: hideous 4 years and a Dean-backed Bob Wexler beats Obama in 2012 for DemNom.
JGabriel
John Cole @ Top:
And maybe Eva Green will call tomorrow and invite me for dinner at a 5 star Manhattan restaurant, her treat, followed by a night of hot, passionate lovemaking – and by lovemaking I mean sex.
But it’s probably not the way to bet.
.
Onkel Fritze
Just occured to me what Obama actually intends with this Rick Warren thing: bathroom break.
Riggsveda
Regardless of whether one agrees with Obama’s proposed tax breaks or not, the fact is, it was all part of the platform he ran on during the campaign, so why all the pearl-clutching? I know we’re not used to politicians making good on their promises, but anyone who actually paid attention would have known this was coming.
Xanthippas
That makes sense. Otherwise, we’re looking at another 4/8 years of Congress acquiescing to the President.
Also, does this comment thread look weird just to me?
comrade scott's agenda of rage
This is no circular firing squad. Seen enough of them to know the difference.
What this is an example of is *good governance*, something Repups no exactly squat about doing.
ethans mom
@Xanthippas
Weird, how? Is it the formatting or the nature of the comments? If it’s the former, it looks fine to me; if it’s the latter it’s no weirder than usual ;-)
gopher2b
I don’t care if the Republicans participate because they have nothing to offer. The experts are gone; the real businessmen are gone; they’re all hacks and social retards. They can’t debate ideas they don’t understand in the first place.
That One - Cain
@Kelso’s Nuts:
An excellent attempt at trolling. But fail. Please try harder not to look obvious.
I’m not a deaniac, but Dean’s one guy whose not afraid to lay it out there and take what’s coming at him. He’s not a simpering wimp. An ideal Democrat. If we could replace Reid with Dean it would be a big jump forward.
cain
Will
Howard’s my hero. Maybe he’ll get Commerce?