Strengthen Social Security

Yesterday Thom Hartmann and I discussed the proposal to extend and expand what Democrats have called the 'payroll tax holiday.' (Video is below.) There are no heroes in this debate, but there are certainly villains. There are several different ways this could end - and most of them aren't good.

By proposing to expand and extend this 'holiday,' Democrats have bypassed more efficient ways to help the economy, and have once again endangered Social Security. And by demanding tax breaks for millionaires while blocking them for the middle class, Republicans have once again demonstrated their willingness to blow up the economy for self-serving purposes.

The choice is either to back the highly flawed Democratic proposal or let the Republicans block it, which would plunge the economy into an even deeper hole than it's in right now. Imperfect as the proposal is, the alternative is unacceptable. If it failed the already-wounded economy would suffer even more, and millions of jobless Americans would be left without the unemployment insurance they need. more »

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It's like the old-timers always said: Don't quit before the miracle happens.

While the Arab Spring showed that people can still accomplish the impossible, Our political debate was frozen in corporate cynicism. Now everything has changed. For the United States, spring came in autumn. Who says miracles don't happen?

Like a Prayer

A few months ago I prayed for something. Granted, it wasn't the kind of prayer that's sanctioned by any ecclesiastical authority. And, okay, maybe it wasn't exactly a "prayer." I guess the technical term for it would be "blog post." But trust me, it was a prayer.

I'd been asked to write something for the Fourth of July, and I wrote we have to fight a new war, a "war of independence from corporate politics." To be honest, those words felt Utopian even as I wrote them. Still, I never doubted them. The words were born out of the desperate sense that so many of us shared, a sense that our society is collapsing. And that it will keep on collapsing unless we change the way we think.

I wasn't arguing for any particular policy or platform. "The problem isn't just with politicians, or even the system," I said then. "The problem is dependence itself."

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Conservatives say they want to "bring back" the old USA, the one that existed during those decades of the twentieth century they only seem to see through a gauzy golden haze. Whatever its problems, that country was a place where Republicans and Democrats agreed on two simple principles: That the most fortunate among us should pay their fair share, and that our government must invest in the nation and its future.

When Rick Perry says he wants to bring back "the America I where I grew up," he's talking about the era when Dwight D. Eisenhower, a Republican President, built the Federal highway system. One of the reasons Eisenhower was able to do that is that the top tax rate was much higher than it is today. While today's highest marginal today is 35% and capital gains are taxed at only 15%, the highest tax bracket was 91% the year Rick Perry was born.

Whenever I talk about tax brackets I'm attacked by right-wingers who say I don't understand, that high taxes discourage job creators. They'll say things like "You hippies just don't get it! If taxes are too high rich people will stop working and investing. The Job Creators will go away!"

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Discussion of the "Super Committee" debacle continues to misguide and misinform the public in an all-too-familiar way. Once again the consensus in the media and among political leaders reflects the misperceptions of an insular Washington culture, rather than the economic or political realities of most Americans. more »

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Ezra Klein's "Wonkbook" is invaluable for anyone trying to follow the Washington policymaking process. Each day it offers its readers everything from the latest CBO analyses to the newest latest adorable animal videos. Since I'm both an obsessive reader of reports and a watcher of cute animal videos (I personally posted this clip of a baby kitten being hugged by its mother when it was having a nightmare), I'm glad it's around.

In the contentious and confused world of political debate, the data informs us and the videos humanize us. (Although I have to say the Corgi riding a playground swing in this morning's Wonkbook video doesn't look too thrilled with the experience.) But that doesn't mean we'll always react to the same information in the same way.

Take the bipartisan Congressional "supercommittee"[1] tasked with cutting the Federal deficit. This morning's Wonkbook tells us that Republicans on the Committee aren't just resisting a deal. They're also working to undercut the defense spending part of the "triggers" - those automatic cuts that were to take effect if no compromise was reached.

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Suddenly the Occupy movement is under siege everywhere. There's been a wave of simultaneous, seemingly coordinated clampdowns on peaceful demonstrators in cities all across the country. Why now?

It could be nothing more than one heck of a coast-to-coast coincidence, at least theoretically speaking. But there are indications that this might have been at least partially planned and coordinated at a national level.

Either way the timing's very interesting - and, for some people, very convenient. The nation's expecting a deficit package from the undemocratic Super Committee, anticipating another possible free trade deal, and waiting to see whether Wall Street will go unpunished for its foreclosure crime wave. All that makes this a very good time for dissident voices to suddenly disappear.

Unfortunately for them, it's not going to be that easy. more »

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This holiday season, let's spare a kind thought for the decent people who toil inside Washington's legislative machinery. These good folk must live and work inside the dreamlike bubble that is today's policy and media world. Each day they strain to see reality through the reflected light of the false but colorful narratives projected against the bubble's surface.

Or would it be a better metaphor to say they're prisoners in some cold underground cell? No matter how many polls are conducted, no matter how many economic analyses are performed, no matter how many bitter lessons are taught and re-taught, there are those who hope to deny them even a glimpse of reality.

Instead these good people are forced to stare into the harsh glare of synthetic reality, hour after hour, as if were a naked lightbulb in windowless room. Only a few precious slivers of genuine sunlight penetrate the dank basement of illusion that imprisons them.

Well-intentioned staffers in Washington need good information to do their jobs well. Instead they're being inundated with confusing pseudo-facts and empty fear-mongering. This week's case in point? The Congressional "Super Committee." Did you know that unless they come up with their cuts there will be no Christmas this year? You didn't? Then you haven't been reading the Wall Street Journal.

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Two new reports suggest that the President and Congressional Democrats are about to betray everything Democrats once stood for. Under pressure from Barack Obama, Democrats on the "Super Committee" have sketched out an appalling "compromise" proposal that would almost certainly doom both their 2012 electoral chances and his own.

They'd have it coming. Their draft plan that literally takes crutches away from poor people to protect tax breaks for the wealthy.

Unfortunately, middle class and impoverished Americans would suffer much more than they would. Career politicians can always look forward to comfortable sinecures from the wealthy interests who will benefit from their proposal. But the rest of us would once again be punished for the excesses of the rich, then left to the untender mercies of our new Republican leaders.

That, and not the fate of a President or a party, would be the real tragedy. more »

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There's talk that the president and other elected officials will try to tap the Occupy Wall Street movement's energy to boost their campaigns. It's good to see the rhetoric finally moving in the right direction. Even better, now there's an easy way to prove it isn't just election-year lip service: They can support the financial transactions tax being introduced in the Senate. more »

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Some Democrats have come under a lot of criticism lately, much of it deserved, for abandoning popular and important programs that were historically associated with their party. But some of the other Democrats -- the ones who are trying to act in the country's best interests -- are genuinely concerned about what will happen to the economy if the Super Committee fails to come up with a plan.

This message is for them -- and anyone else who has the same concern. You need to know that the evidence is clear: A Super Committee failure won't hurt the economy at all.

But its "success" almost certainly would.

Economic Y2K

Every month it seems as if there's another "bipartisan" process designed to impose austerity on the American people. And every month we're told there will be terrible consequences in the world's markets if it doesn't succeed. These predictions are the economic equivalent of "Y2K" -- always apocalyptic, never true, and all too frequently believed.

Democratic officials and staffers are being bombarded by these predictions, delivered by think-tank operatives from their own party who have been steeped in the cult of austerity. It doesn't matter how many times they're refuted by impeccably constructed papers, or by the observations of Nobel Prize winners. And it doesn't matter how many times these predictions are proven wrong.

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