Economy -- Political Posturing For Personal Gain

February 23, 2009

by Faiz Shakir, Amanda Terkel, Satyam Khanna, Matt Corley, Benjamin Armbruster, Ali Frick, and Ryan Powers

ECONOMY

Political Posturing For Personal Gain

Tomorrow night, President Obama will deliver an address to Congress discussing the economic challenges that lay ahead. Senior Obama adviser David Axelrod told the the New York Times that Obama plans to "present a road map for 'how we get to a better day.'" "The country is looking for a clear sense of direction. This is an opportunity to talk to the nation about that," Axelrod continued. Gov. Bobby Jindal (R-LA) will offer the Republican response to Obama. As House Minority Leader John Boehner (R-OH) explained, Jindal will argue that the Republican party is not "simply the party of 'opposition,' but the party of better solutions." As Jindal attempts to raise his national profile for a possible presidential run in 2012, his message to the nation will be hampered by the extremely transparent attempts of a number of prominent conservatives to "have their cake and eat it too" when it comes to the economic recovery policies offered by the Obama administration. Indeed, while conservatives in Congress made a show of opposing the recovery package, many are now touting its benefits. Likewise, conservative governors (Jindal included) are rejecting portions of stimulus funding to score points with the radical right at the expense of their residents. Instead of debating the possible pros and cons of the Obama administration's economic policies, commentators like CNBC's Rick Santelli are staging ill-informed "rants" on live TV and being rewarded for it. As Center for American Progress Vice President for Economic Policy explained, the recovery package is geared toward breaking "the downward spiral that is currently consuming the economy," and "the bill includes very little overall that isn't good public policy."

POSTURING IN CONGRESS: Conservatives in Congress voted en masse against the economic recovery package earlier this month. In doing so, they offered blistering -- and misleading -- critiques of the package, calling it "silly pork," a "spending spree," and at one point referring to the process as "TOTALLY ILLEGAL." House Minority Whip Eric Cantor (R-VA) worked furiously to pressure moderate House Republicans to vote against the package and then released an over-the-top YouTube video touting his caucus's unanimous opposition. But increasing numbers of congressional conservatives are revealing their votes against the recovery package for what they were: political theater. A review of news reports by ThinkProgress found that at least 22 lawmakers who voted against the recovery package have begun touting its benefits to their constituents. Rep. John Mica (R-FL), for instance, "gushed" after the passage of the bill he voted against, releasing a statement that applauded Obama's "recognition that high-speed rail should be part of America's future." Similarly, Sen. Kit Bond (R-MO) went on a tour of his home state to tout the very stimulus plan he railed against. In a press release, Bond boasted about an amendment he included in the bill to provide more funding for affordable housing. Just days before, however, Bond declared, "Hold onto your wallets folks because with the passage of this trillion-dollar baby the Democrats will be poised to spend as much as $3 trillion in your tax dollars."

POSTURING AT THE STATE LEVEL: On Friday, Jindal announced that he would oppose changing state law to allow Louisiana residents to qualify for expanded unemployment insurance under the recovery package. Jindal justified his decision by claiming that the expanded unemployment benefits would necessitate raising business taxes in his state. Gov. Haley Barbour (R-MS) said he would follow Jindal's lead, telling CNN, "We want more jobs. You don't get more jobs by putting an extra tax on creating jobs." But their objections are puzzling because by Jindal's own estimate, the expanded unemployment insurance is fully funded by the federal government for at least three years,which the states would likely be able revisit or phase out the program. Yesterday on Fox News Sunday, Gov. Mark Sanford (R-SC) said that he too was considering rejecting a portion of the funds. In response, Gov. Joe Manchin (D-WV) said, "I think people will...understand that it's political posturing and you're playing with people's lives, and that's a very, very dangerous game." New Orleans Mayor Ray Nagin (D) suggested that Jindal's posturing had less to do with tax policy and more to do with his desire to run for president in 2012. Similarly, Lt. Gov. Mitch Landrieu (D-LA) said that "Jindal needs to choose whether to represent the state of Louisiana or be the spokesman for the national Republican Party." Evidence of such presidential political considerations is not well hidden by Jindal, Sanford, or Barbour. Over the weekend, all three declined to rule out a run in 2012, while Jindal in particular was preparing his response to Obama -- with the help of the RNC and House GOP.

POSTURING IN THE MEDIA: Responding to Obama's plan to rescue bad mortgages on the floor of the Chicago stock exchange last week, CNBC correspondent and former John McCain supporter Rick Santelli declared, "The government is promoting bad behavior!" "[I]n terms of [mortgage] modifications...why don't you put up a website to have people vote on the internet as a referendum to see if we really want to subsidize the losers mortgages." As the traders on the floor of the exchange began to cheer Santelli's self-described rant, Santelli declared, "This is America!" and asked, "President Obama, are you listening!?" Concluding his tirade, Santelli called for a new Boston Tea Party to protest Obama's plan. As the New York Times noted, "Once upon a time, cable channels were embarrassed by on-air outbursts or other anchor antics. Now, some are glad to post the video clips on the Internet as quickly as possible to maximize publicity and Web traffic." Indeed, CNBC "swiftly" posted Santelli's rant to its website, where it was linked to by the Drudge Report, and in the following days, CNBC shamelessly promoted various byproducts of Santelli's outburst. Aside from the obvious fact that Santelli hadn't read the President's mortgage rescue proposal, it isn't at all clear why anyone views him as a competent commentator on economic affairs. In September, just weeks before the economic crisis hit prime time, Santelli declared on CNBC, "I think that the economy is healthy." Further, despite the fact that the economy was already in recession, Santelli opposed Bush's much too modest 2008 stimulus package. Unfortunately, while Santelli carefully avoids discussing the actual merits of Obama's mortgage plan, he is likely to be rewarded for his uninformed antics. The Chicago Tribune reported over the weekend that Santelli has already heard from several publishers about a possible book deal.

ADMINISTRATION -- OBAMA TO NAME INTERIOR DEPT. WATCHDOG TO OVERSEE RECOVERY SPENDING: President Obama plans to announce today that Interior Department inspector general Earl Devaney is his pick to oversee the recently passed economic recovery plan. Devaney, who is a former Secret Service agent, will become the chairman of the newly created Recovery Act Transparency and Accountability Board. Obama has pledged that the Board will be "an at-large body to oversee how the government spends billions allocated to help the flailing U.S. economy." Even though there will be a number of groups meant to monitor how the stimulus money will be spent, "Obama wanted a central group to independently monitor where those funds are going." The oversight reports are expected to be posted on the administration website devoted to the bill, Recovery.gov. Devaney's oversight credentials are strong. As inspector general, he "led investigations into a series of scandals" at the Interior Department, leading to such findings as Departmental dealings with disgraced lobbyist Jack Abramoff and worker abuses at the Minerals Management Service. Devaney's investigation led to Steven Griles pleading guilty for lying to Congress in the Jack Abramoff scandal.

ECONOMY -- GEORGE P. BUSH RIPS CHARLIE CRIST AS 'D LIGHT' FOR SUPPORTING STIMULUS: Delivering a speech before the Young Republican National Federation on Saturday, George P. Bush -- the son of former Florida Gov. Jeb Bush -- ripped current Florida governor Charlie Crist (R) for being a "D light" (Democrat light). "There's some in our party that want to assume that government is the answer to all of our problems," George P. said. "I'm not going to name any names," he added, but told the crowd, "You know who I'm talking about." George P. later clarified that he was referring to Crist, saying that "he doesn't think Crist is a fiscal conservative and that he may have hurt himself with some Republicans for his appearance with Obama and his support of the stimulus plan." George P. Bush's attacks on Crist are ironic given his uncle's track record. President Bush presided over the greatest expansion of government spending since World War II. "As a result of all this spending, the country has gone from a $128 billion budget surplus when Mr. Bush took office" to a deficit exploding over $1 trillion when he left office. George P., who currently lives in Texas and works as a partner in a real estate investment firm, said he's not ruling out a future run for elected office. "I want to obtain success in my own right. I want people to look at a record of accomplishment that I've put together in my own right and not based on family name," Bush said. "I haven't achieved my personal goals. Definitely down the road I'd love to reassess but as of right now it's not for me."

SOCIAL SECURITY-- SEN. GRAHAM SAYS SOCIAL SECURITY PRIVATE ACCOUNTS ARE 'OFF THE TABLE': In an interview with the New York Times, Sen. Lindsey Graham (R-SC) said that President Bush's ideas for private Social Security accounts was no longer being considered. "The carve-out account is off the table," he said. The Times notes that the recent collapse of the stock market has "discredited" the idea, for which Graham long fought. Indeed, an analysis by the Center for American Progress Action Fund last year found that a retiree would have lost roughly $26,000 if he or she had retired on Oct. 1, 2008, after 35 years of contributing to private accounts like those formerly endorsed by Graham. With Graham signaling an opening, "the advocates for a compromise see an opportunity" for real reform that may include tax raises and benefit cuts. However, it's unclear whether Graham is speaking for his party. The 2008 GOP platform endorsed the creation of "personal investment accounts." Regardless, President Obama has made clear his determination to act on reform. "We have to signal seriousness in this by making sure some of the hard decisions are made under my watch, not someone else's," Obama said last month.

President Obama will host dozens of advisers and adversaries at the White House today for a fiscal responsibility summit, "the first meeting toward a strategy to address the long-term fiscal health of the nation." "I will convene a fiscal summit of independent experts and unions, advocacy groups and members of Congress," Obama announced in his weekend radio and Internet address.

"Seventy-three percent of those questioned in a CNN/Opinion Research Corporation survey released Monday say they're very or somewhat scared about the way things are going in the United States. That's six points higher than in an October poll." Nearly eight in 10 say things are going badly in America.

As the number of widows in Iraq has swelled during six years of war, "their presence on city streets begging for food or as potential recruits by insurgents” has begun to symbolize the breakdown of Iraqi self-sufficiency. Government and social service organizations "say the women's needs have come to exceed available help, posing a threat to the stability of the country’s tenuous social structures."

A secret task force of more than 70 American military advisers has been training Pakistani soldiers and paramilitary troops "in an effort to root out Qaeda and Taliban operations that threaten American troops in Afghanistan and are increasingly destabilizing Pakistan." The program, which started with the approval of the Pakistani government last summer, is “a much larger and more ambitious effort than either country has acknowledged."

Supporters of D.C. voting rights "believe that they are on the verge of their biggest victory in at least 30 years." "I think the votes are there. I think it’s going to pass the Senate," said Sen. Orrin Hatch (R-UT), referring to the bill that would create a full House seat for the District, set to be taken up by the chamber this week

Former Secretary of State Condoleezza Rice has landed a "three-book deal with Crown Publishers, starting with a memoir about her years in the administration of President George W. Bush." The agreement is worth at least $2.5 million, and her first book is planned for 2011.

A measure legalizing same-sex civil unions passed the state House in Hawaii last month and "now goes before the Senate, where a divided committee is scheduled to vote on Tuesday." Gov. Linda Lingle (R) "has declined to comment on the bill, and it is unclear whether she would veto it."

Army Emergency Relief (AER), which is the biggest charity inside the U.S. military, "has been stockpiling tens of millions of dollars meant to help put returning fighters back on their feet," the AP reports today. Though AER "grew into a $345 million behemoth" between 2003 and 2007, the charity spent just $64 million on direct aid to military families in that time period.

And finally: Education Secretary Arne Duncan has acknowledged the negative impressions surrounding No Child Left Behind and called for giving it "a new name." This announcement has prompted "scores of educators, policy wonks and assorted rabble-rousers" on the site Eduwonk to come up with some not-so-serious suggestions: the Act to Help Children Read Gooder, Rearranging the Deck Chairs Act, Could We Start Again Please Act, and the Double Back Around to Pick Up the Children We Left Behind Act.

At yesterday's Academy Awards, screenwriter Dustin Lance Black won the Oscar for Best Screenplay for "Milk," the story of California's first openly gay elected official, Harvey Milk. Sean Penn won Best Actor for his portrayal of Milk.

THINK PROGRESS: Will Bunch: "I can't imagine" torture "would have been condoned" by Ronald Reagan.

WONK ROOM: If not nationalization, then what?

YGLESIAS: White House Chief of Staff Rahm Emanuel suggests he agrees that the stimulus package wasn't big enough.

FIREDOGLAKE: Paul Krugman responds to Rahm Emanuel's objections to his criticism of the size of the final stimulus package.

MARYLAND: State Senate bill would restrict deployment of the Maryland National Guard.

DISTRICT OF COLUMBIA: D.C.'s economy fell harder than even pessimists anticipated.

CALIFORNIA: School districts "across the state are facing teacher layoffs, class-size increases and elimination of programs."

"Everyone should be abstinent, but it's not realistic at all."
-- Bristol Palin, 2/16/09

VERSUS

"That means she's saying that abstinence actually is realistic."
-- The Weekly Standard's Fred Barnes, 2/21/09

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Political Posturing For Personal Gain

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