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Thursday, May 17, 2012

Greenberg: Cubs’ Ricketts decries proposal

Chicago Cubs chairman Tom Ricketts issued a statement Thursday condemning “racially divisive issues” after an article in The New York Times detailing a proposal by Ricketts’ “super PAC” to challenge President Obama’s re-election campaign because of his relationship with controversial Rev. Jeremiah Wright, among other things.

The Cubs are currently working with Chicago mayor Rahm Emanuel, President Obama’s former chief of staff, and the state of Illinois to craft a public/private financing plan to renovate Wrigley Field.

In a story posted on the New York Times’ website on Thursday morning, it was revealed that Joe Ricketts, the billionaire founder of TD Ameritrade who gave his children more than $400 million to buy the Cubs and Wrigley Field, was funding a $10 million political action committee, the Ending Spending Action Fund, aimed at challenging the president in the upcoming presidential election.

McCoy Wilfong for Money Posted: May 17, 2012 at 11:33 PM | 920 comment(s) Login to Bookmark
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   301. The Id of SugarBear Blanks Posted: May 21, 2012 at 11:49 AM (#4136801)
It wasn't humanly possible to "count every vote," and, sure, if you do enough "counting," Gore will ultimately win (at which point he'll declare that they should stop Counting Every Vote), but Gore did not win by the rules that were in place at the outset.

Gore could not have won the election within the legally-mandated deadlines for elector certification. It literally could not have happened.

And the vote on the core issue in the case -- whether the pick-and-choose, hapazard method by which the recount was proceeding -- was 7 to 2.

Had Gore been sworn in after a late Florida certification and a late Electoral College count, he would have been no more "legitimate" than Bush was.
   302. zonk Posted: May 21, 2012 at 11:50 AM (#4136803)
#3 above is, in fact, insane. The law WRT the national popular vote is crystal clear; it doesn't matter. At all. You could make a non-insane argument that winning the presidency while losing the national popular vote diminishes a new president's mandate for pushing his agenda, but any argument that it means such an election was not "properly won" is the province of moonbattery.


I think that argument (losing the popular vote ought to chastise regarding any 'mandate') is quite a bit more than "non-insane" -- I might call it true.

I do wonder, though... Imagine a Democrat comes out on top of a statistical tie -- with the Democratic President-elect having won the EV count from a state governed by his brother, where the lead official handling vote counting (Sec of State) was also his state campaign co-chair, and eventually, a SCOTUS ruling like we had in 2008 essentially stops a recount, says there should have been a recount, but says its too late now - game over, in a 5-4 decision that breaks right down ideological lines.

Do you think the GOP and conservative base reaction would have been more or less hyperbolic than the Democratic and liberal base reaction?
   303. Ray (RDP) Posted: May 21, 2012 at 11:55 AM (#4136809)
Do you think the GOP and conservative base reaction would have been more or less hyperbolic than the Democratic and liberal base reaction?


The GOP reaction would have been the same. Which is the entire point of this discussion, that political opponents will seize on anything possible to challenge a president and that there is nothing meaningfully unique about the crazed attempts to claim that Obama wasn't born in the US.

But in 2000 the shoe wasn't on the right foot; it was on the left foot, and therefore it was the left who tried to hijack the election. The right surely would have tried in the reverse situation. That it was merely the luck of the draw that the right happened to be correct doesn't change the fact that they were correct.
   304. BDC Posted: May 21, 2012 at 12:01 PM (#4136812)
any argument that it means such an election was not "properly won" is the province of moonbattery

What, it's insane to criticize the institution of the Electoral College? That's what I'm talking about. The 2000 election raised quite a bit of dissatisfaction with such an arcane process.

When people are governed by laws that don't make sense, they don't therefore say "well shucks, I can't criticize the law. All its results make sense by definition."
   305. David Nieporent (now, with children) Posted: May 21, 2012 at 12:05 PM (#4136814)
What, it's insane to criticize the institution of the Electoral College? That's what I'm talking about. The 2000 election raised quite a bit of dissatisfaction with such an arcane process.

When people are governed by laws that don't make sense, they don't therefore say "well shucks, I can't criticize the law. All its results make sense by definition."
Andy does. But that's not the point. There's a difference between, "This law is stupid" and "This law doesn't exist; Gore is the real president." It's the difference between people who want to cut the income tax and tax protesters who argue that if they incant the right words and put their names in all capital letters and don't use zip codes, they don't legally have to pay taxes.
   306. Ray (RDP) Posted: May 21, 2012 at 12:05 PM (#4136815)
What, it's insane to criticize the institution of the Electoral College?


No, but that's not what you were doing. You were using the popular vote to make a case that Bush did not "properly" win the election.
   307. tshipman Posted: May 21, 2012 at 12:07 PM (#4136817)
(1) That's Brad Plummer.


Sorry, Brad!


The 2009 endpoint is an utterly ridiculous starting point; being slightly less profligate than at the height of one's Keynesian project is not "austerity."


Automatic stabilizers increase deficits. Surely you understand this and are just being disingenuous? When more people are out of work, this increases unemployment spending even though there has been no change in policy.

Deficit spending is higher than it was when the economic crisis began because there was a huge loss of tax receipts and a huge increase in automatic stabilizers. Surely you understand this as well? It is the nature of economic crises.

I mean, you're just ####### with me, right? You don't actually believe that automatic stabilizers and loss of tax revenue = massive Keynesian welfare?

As for Plummer's claim that "austerity" is measured by budget deficits rather than spending, such that countries increasing spending, but hiking taxes, are actually engaged in "austerity," funny, but I never heard Krugman suggest that letting Bush's tax cuts on the rich expire was bad policy because it constituted "austerity."


Um, a number of people have been referring to Jan 1, 2013 as a fiscal cliff--precisely because of the status of the economy and the expiration of the tax cuts. So I don't know about Paul Krugman, but lots of people, including people on the left, have been talking about this.
   308. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 12:10 PM (#4136820)
What would be funny this time around would be if Romney were to win the popular vote but still lose the election, which is a much-greater-than zero possibility at this point.

For anyone who hasn't bothered to look at RCP lately, nearly all national polls show Obama with a narrow lead, but they all fall easily within the range of sampling error.

But with the state polls of the "tossup" states included, at this moment Obama has an electoral college lead of 365 to 195, with Colorado a tie. Obviously the operative words there are "at this moment", but it's far from a remote possibility that the phenomenon of the 2000 election might be repeated, but in reverse. Since I'm a fan of the electoral college** in spite of its historical rural states / GOP bias, such an outcome would please me almost as much as a 50-state Obama sweep.

**It's the sports fan in me who'd rather follow races in a dozen swing states than in one big national state. The 2000 recount was fishy, but the fact that Gore won the popular vote is irrelevant.
   309. BDC Posted: May 21, 2012 at 12:10 PM (#4136821)
You were using the popular vote to make a case that Bush did not "properly" win the election

OK, sorry if I gave that impression. I did not mean to. What I meant was, the dubious events in Florida and SCOTUS gave the election to someone who'd gotten a minority of the national vote. That's one more non-insane reason to doubt the legitimacy of the outcome.

If Bush had won a distinct majority of the national popular vote, and the same Electoral College result had obtained, then there would have been that much less rhetorical and political doubt about his legitimacy. Gore's popular vote victory was just one more disillusioning factor.

It's not insane to think that the person who gets more votes should win – hence a number of reform proposals in recent years to assign states' electoral votes proportionally to the state popular vote, or to assign them to the national popular-vote winner, that sort of thing.
   310. Ray (RDP) Posted: May 21, 2012 at 12:16 PM (#4136825)
OK, sorry if I gave that impression. I did not mean to. What I meant was, the dubious events in Florida and SCOTUS gave the election to someone who'd gotten a minority of the national vote. That's one more non-insane reason to doubt the legitimacy of the outcome.


And I disagree. The popular vote was irrelevant, and as such did not provide a non-insane reason at all to doubt the legitimacy of the outcome.

If Bush had won a distinct majority of the national popular vote, and the same Electoral College result had obtained, then there would have been that much less rhetorical and political doubt about his legitimacy. Gore's popular vote victory was just one more disillusioning factor.


No, it was just something irrelevant that was seized on by political opponents to dishonestly argue that Bush's election was illegitimate.

Much like the Kenya thing. (Unlike Andy with his reaction to the birther thing, I don't pretend that one side is more pure than the other.)
   311. BDC Posted: May 21, 2012 at 12:23 PM (#4136828)
The popular vote was irrelevant

Fair enough. You're talking letter of the law. A whole lot of people in a supposedly democratic country do think the person with the most votes should win, though, and see the Electoral College as a bizarre technicality. It is possible for people to think non-legalistically, and when they do, they often think that the EC is ########.

(Like Andy, I'm not sure I entirely agree with them, but I can see their point.)
   312. Never Give an Inge (Dave) Posted: May 21, 2012 at 12:24 PM (#4136830)
I mean, you're just ####### with me, right? You don't actually believe that automatic stabilizers and loss of tax revenue = massive Keynesian welfare?

This wasn't addressed to me, but while I wouldn't call it welfare, I would call it massive Keynesian stimulus, yes. Add to that the fact that a lot of the stabilizers weren't "automatic" -- the extension of unemployment benefits, the extension of the Bush tax cuts, the payroll tax holiday (an off-budget item but stimulus still), all of these things required legislation.
   313. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 12:34 PM (#4136844)
(Like Andy, I'm not sure I entirely agree with them, but I can see their point.)

The arguments for and against the electoral college have been going on forever. But by no means does the EC automatically favor one party or the other in actual elections, in spite of its mathematical bias in favor of smaller states, who get the same number of "extra votes" over and above what they should be getting according to their population. Again, a "reverse 2000" is entirely possible this year, and it'd be a fascinating study in human psychology to see how many people on both sides would suddenly change their minds about the EC's virtues if such an outcome were to happen.
   314. David Nieporent (now, with children) Posted: May 21, 2012 at 12:35 PM (#4136845)
Automatic stabilizers increase deficits. Surely you understand this and are just being disingenuous?
I do indeed understand it, and am yet not being disingenuous.
When more people are out of work, this increases unemployment spending even though there has been no change in policy.

Deficit spending is higher than it was when the economic crisis began because there was a huge loss of tax receipts and a huge increase in automatic stabilizers. Surely you understand this as well? It is the nature of economic crises.

I mean, you're just ####### with me, right? You don't actually believe that automatic stabilizers and loss of tax revenue = massive Keynesian welfare?
Um, yes. Keynes did not distinguish between special ad hoc deficit spending policies and "automatic" stablilizers that don't represent "change in policy" but cause deficit spending. Keynes was not talking about "welfare" qua welfare. He was talking about running deficits. (To be sure, some forms of deficit spending may be more stimulative than other forms, and liberals will argue that money to the poor is in the former category because it is more likely to be spent than saved -- but to the extent that's the case, then what you call "automatic" stabilizers fit in there.)

Um, a number of people have been referring to Jan 1, 2013 as a fiscal cliff--precisely because of the status of the economy and the expiration of the tax cuts. So I don't know about Paul Krugman, but lots of people, including people on the left, have been talking about this.
That's because, under current law, on Jan 1, 2013 all the tax cuts expire, not just the ones on the rich.
   315. BDC Posted: May 21, 2012 at 12:41 PM (#4136856)
Again, a "reverse 2000" is entirely possible this year, and it'd be a fascinating study in human psychology to see how many people on both sides would suddenly change their minds about the EC's virtues if such an outcome were to happen

Absolutely. I think the meltdown on the right would approach core breach and China Syndrome ... And I also reckon that a parcel of people on the left would suddenly see the Framers' wisdom and become devout originalists :)

I think there are at least two things to be said for the EC: it translates clear plurality victories into majorities (eg 1992 and 1996) in an elegant way, avoiding a national runoff or the House of Representatives. And it gives states more power in the federal system than they'd have if they just represented their quantum of votes. That's maybe not enough to give it a full pass, but it's not like the EC is wholly evil or illogical, either.

   316. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 12:42 PM (#4136858)
BTW here's another election where the popular vote winner didn't win: The 1966 Georgia gubernatorial election, where Republican candidate Bo Callaway edged out Dixiecrat Lester Maddox in the popular vote by less than a third of a percentage point, but since neither candidate received a majority, the Dixiecrat-controlled Georgia General Assembly overwhelmingly voted Maddox the governorship.
   317. zonk Posted: May 21, 2012 at 12:44 PM (#4136859)
Much like the Kenya thing. (Unlike Andy with his reaction to the birther thing, I don't pretend that one side is more pure than the other.)


It's hard for me to see how the "Kenya thing" compares to the 2000 recount... The 2000 recount was a real "thing" - as has been said, the election and specifically the vote count in Florida was a "statistical tie". It was coin flip territory. While the popular vote count has no legally binding meaning, it certainly does -- or should -- have some contextual meaning in a Democratic Republic. Add to that, again, it certainly doesn't LOOK great when the statistically tied state which ultimately secures the Presidency for Bush just happens to have his brother as governor and the chief elections overseer as closely tied to W's campaign. I'm passed it - but there was plenty of real "there" there.

The "Kenya thing", on the other hand, is pure fever swamp nonsense in one its more vile forms. It says something that even Rush, et al don't touch it -- yet, we have multiple GOP officeholders that are at least open to coddling the silliness, if not actively using it.

It's a substantial false equivalency to make any claims of similarity.
   318. David Nieporent (now, with children) Posted: May 21, 2012 at 12:44 PM (#4136860)
Again, a "reverse 2000" is entirely possible this year, and it'd be a fascinating study in human psychology to see how many people on both sides would suddenly change their minds about the EC's virtues if such an outcome were to happen
In fact, before Election Day in 2000, people pundits were talking about the possibility that Bush would win the popular vote and Gore the electoral college. Didn't happen. But while anything is "possible," it's not likely. People say that from time to time, but all it means is that the election is expected to be close. Big deal.
   319. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 12:47 PM (#4136862)
I think there are at least two things to be said for the EC: it translates clear plurality victories into majorities (eg 1992 and 1996) in an elegant way, avoiding a national runoff or the House of Representatives. And it gives states more power in the federal system than they'd have if they just represented their quantum of votes. That's maybe not enough to give it a full pass, but it's not like the EC is wholly evil or illogical, either.

It also means that in big states with large urban centers, those large urban concentrations can often tip a big chunk of electoral votes in one fell swoop. If you look at many elections over the past 52 years, that's often a factor that's helped Democrats gain a far more decisive victory than they would have had by a mere count of the popular vote. It's one more example of where reality overcomes theory.
   320. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 12:51 PM (#4136865)
Again, a "reverse 2000" is entirely possible this year, and it'd be a fascinating study in human psychology to see how many people on both sides would suddenly change their minds about the EC's virtues if such an outcome were to happen

In fact, before Election Day in 2000, <strike>people</strike> pundits were talking about the possibility that Bush would win the popular vote and Gore the electoral college. Didn't happen. But while anything is "possible," it's not likely. People say that from time to time, but all it means is that the election is expected to be close. Big deal.


But none of that negates the point I was making, and as I said above in #308, the scenario I posited would only take effect if Romney gained a few points in the national polls while the "tossup" state polls held up enough to keep Obama ahead.
   321. Rickey Fredonia Fudge Duckery Precious Twiddle Posted: May 21, 2012 at 01:49 PM (#4136906)
David, we all know you suck the wanker of the law on all occasions, because you are scared little man who can't reason or judge the world on his own and needs the state to tell you what to think at all times. Such is the way of things, I suppose.
   322. Weekly Journalist_ Posted: May 21, 2012 at 01:54 PM (#4136914)
I expect a narrow Obama win in the popular vote, but a more comfortable EC win. Because of the solidification of Virginia, Obama can lose Ohio and Florida and still win if he holds his gains out west. Not that I expect that: Romney will probably pick off Florida but Ohio will stay with O.

The electoral road to victory for Romney requires a daunting table-run of swing states.
   323. tshipman Posted: May 21, 2012 at 02:14 PM (#4136928)
Um, yes. Keynes did not distinguish between special ad hoc deficit spending policies and "automatic" stablilizers that don't represent "change in policy" but cause deficit spending. Keynes was not talking about "welfare" qua welfare. He was talking about running deficits. (To be sure, some forms of deficit spending may be more stimulative than other forms, and liberals will argue that money to the poor is in the former category because it is more likely to be spent than saved -- but to the extent that's the case, then what you call "automatic" stabilizers fit in there.)


Yes, Keynes did. Keynesian economics is about counter-cyclical spending--not deficits. Automatic stabilizers are cyclical--more people are on unemployment during downturns than in upturns. Keynes advocated for increased infrastructure spending and lower interest rates during downturns--not reductions in unemployment benefits. Reducing unemployment benefits during times of economic downturn (even as more people use the program) is not an example of counter-cyclical spending. There isn't anything magical about deficits per se.

The natural extension of your argument is that boom economies are undergoing austerity because fewer people are on unemployment and more people are paying taxes. I think people can understand why that isn't austerity, right?


This wasn't addressed to me, but while I wouldn't call it welfare, I would call it massive Keynesian stimulus, yes. Add to that the fact that a lot of the stabilizers weren't "automatic" -- the extension of unemployment benefits, the extension of the Bush tax cuts, the payroll tax holiday (an off-budget item but stimulus still), all of these things required legislation.


The conversation with David was about European economies, which is strictly different from what happened in the US. In Europe, for example, unemployment benefits were cut during the recession, while they were extended in the US. The small policy changes in the US regarding the things you list would indeed count as minor stimulative measures.

   324. Ray (RDP) Posted: May 21, 2012 at 02:32 PM (#4136938)
Add to that, again, it certainly doesn't LOOK great when the statistically tied state which ultimately secures the Presidency for Bush just happens to have his brother as governor and the chief elections overseer as closely tied to W's campaign. I'm passed it - but there was plenty of real "there" there.


There was no real anything there. Just pure, dishonest nothingness. If you think Harris or Jeb Bush did something improper, make the case. They were legally in those positions, and just pointing at them and yelling "witch! witch!" doesn't do anything.

(And Jeb Bush recused himself from the process. So your entire "appearance of impropriety" claim boils down to Harris.)

The "Kenya thing", on the other hand, is pure fever swamp nonsense in one its more vile forms. It says something that even Rush, et al don't touch it -- yet, we have multiple GOP officeholders that are at least open to coddling the silliness, if not actively using it.


If find it humorous that the only ones who apparently listen to Rush are the liberals here. You, Andy, etc. You guys always seem to know what he's been saying - even while accusing others of being the ones who listen to him.

   325. Never Give an Inge (Dave) Posted: May 21, 2012 at 02:35 PM (#4136941)
In fact, before Election Day in 2000, people pundits were talking about the possibility that Bush would win the popular vote and Gore the electoral college. Didn't happen.

I was on the school newspaper in college at the time, that was the prediction that the guy running our election coverage made. He's now a moderately well-known political journalist / author (and a pretty good one, I think -- in spite of his incorrect prediction, he had the good sense to wait until the last possible moment to go to press, and did so with a headline saying the race was still undecided rather than proclaiming either Gore or Bush the winner, as some other papers did).

   326. zonk Posted: May 21, 2012 at 02:36 PM (#4136942)
If find it humorous that the only ones who apparently listen to Rush are the liberals here. You, Andy, etc. You guys always seem to know what he's been saying - even while accusing others of being the ones who listen to him.


Point deftly ignored and side-stepped, I just happen to know that Rushbo has proclaimed the birther stuff a 'distraction' and a 'trick', but one that large swaths of the GOP base still clings to. Aside from a few captive audience moments (as in as a passenger in someone else's vehicle), I don't know that I've ever listened to his show... but it's not as if transcripts and clips are hard to find.
   327. Never Give an Inge (Dave) Posted: May 21, 2012 at 02:38 PM (#4136943)

The conversation with David was about European economies, which is strictly different from what happened in the US. In Europe, for example, unemployment benefits were cut during the recession, while they were extended in the US. The small policy changes in the US regarding the things you list would indeed count as minor stimulative measures.

Sorry, I picked up the thread on this page and misunderstood the argument. Going back to the previous page, I still can't understand what David is trying to argue, so I'll stay out of it.
   328. Ray (RDP) Posted: May 21, 2012 at 02:40 PM (#4136944)
Point deftly ignored and side-stepped, I just happen to know that Rushbo has proclaimed the birther stuff a 'distraction' and a 'trick', but one that large swaths of the GOP base still clings to. Aside from a few captive audience moments (as in as a passenger in someone else's vehicle), I don't know that I've ever listened to his show... but it's not as if transcripts and clips are hard to find.


Likely you get your information, then, from dishonest liberal "watchdog" sites like Media Matters. These sites have nothing constructive to offer; they just present lies and deceits and viewpoints based thereon -- ironically, not unlike Rush himself.

(The rightwing sites are just as bad, FWIW.)
   329. Rickey Fredonia Fudge Duckery Precious Twiddle Posted: May 21, 2012 at 02:40 PM (#4136945)
Keynesian economics is about counter-cyclical spending--not deficits.


This will go ignored by the Austrian nutjob contingent, because they're pie-in-the-sky dreamers who believe the magic market fairy will save everything if we just clap loud enough, but it is just so terribly importantly true as to beggar belief. And no, kids, "but the Republicans failed to continue paying down the debt in accordance to basic Keynesian theory' is not a good reason to oppose Keynesian Democratic policies.
   330. zonk Posted: May 21, 2012 at 02:42 PM (#4136946)
Likely you get your information, then, from dishonest liberal "watchdog" sites like Media Matters. These sites have nothing constructive to offer; they just present lies and deceits and viewpoints based thereon -- ironically, not unlike Rush himself.

I'd still rather ignore your original point because this is much more useful point of engagement.

FTFY
   331. The Id of SugarBear Blanks Posted: May 21, 2012 at 02:45 PM (#4136947)
And no, kids, "but the Republicans failed to continue paying down the debt in accordance to basic Keynesian theory' is not a good reason to oppose Keynesian Democratic policies.

No, but the fact that the Democrats want to spend hand over fist and do spend hand over fist, in good times and bad, renders the "Keynesian" label a mere accident.

The Democrats want to spend a bunch of money because they're Democrats, not because they're Keynesians.
   332. zonk Posted: May 21, 2012 at 02:49 PM (#4136950)

No, but the fact that the Democrats want to spend hand over fist and do spend hand over fist, in good times and bad, renders the "Keynesian" label a mere accident.

The Democrats want to spend a bunch of money because they're Democrats, not because they're Keynesians.


I presume you have budget numbers to back this up?

From what I can see from looking at Presidential budgets submitted over the last ~30 years - and granted, they're not what Congress passes - the difference seems to be where the deficit spending occurs.... Democratic administrations seem to spend it domestically, GOP administrations prefer to spend on defense programs.
   333. David Nieporent (now, with children) Posted: May 21, 2012 at 02:51 PM (#4136953)
Yes, Keynes did. Keynesian economics is about counter-cyclical spending--not deficits.
Deficits are "counter-cyclical spending" in a recession. "Counter-cyclical spending" refers to balanced budgets in a good economy and deficit spending in a bad economy.
Automatic stabilizers are cyclical
No, they're counter-cyclical. (That's what the word "stabilizer" refers to.)

Keynes advocated for increased infrastructure spending and lower interest rates during downturns--not reductions in unemployment benefits. Reducing unemployment benefits during times of economic downturn (even as more people use the program) is not an example of counter-cyclical spending. There isn't anything magical about deficits per se.
Again, Europe did not cut spending. (That's what de Rugy explained that she was saying, and Plummer did not disagree with her on that.) And, Keynes was indeed talking about "deficits per se." Liberals nowadays like to talk about "infrastructure spending," because it's easier to sell those to the public than transfer payments. But Keynes famously noted that while building houses was preferable, it would still work as stimulus to pay people to dig holes and fill them back up. (Which is effectively simply a transfer payment.)
The natural extension of your argument is that boom economies are undergoing austerity because fewer people are on unemployment and more people are paying taxes. I think people can understand why that isn't austerity, right?
No. In fact, that's precisely what Keynes said: "The boom, not the slump, is the right time for austerity at the Treasury."
   334. tshipman Posted: May 21, 2012 at 02:51 PM (#4136954)
No, but the fact that the Democrats want to spend hand over fist and do spend hand over fist, in good times and bad, renders the "Keynesian" label a mere accident.


See, this leads to an interesting point, highlighted by 'zop on the last page:

Massive tax breaks do not cause deficits - massive spending causes deficits.


Republicans don't believe in balanced budgets, they believe in reduced spending and *call it balanced budgets.* We see in in SBB's post here as well. It's not deficits that matter, it's spending. Any debate about the relative efficiency of spending or proper level of taxation is pointless. The goalposts will just keep shifting.

Again, back to my main point: the Republican party in 2012 is a single-issue party--lower taxes on rich people. That is it.
   335. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 02:57 PM (#4136958)
If find it humorous that the only ones who apparently listen to Rush are the liberals here. You, Andy, etc. You guys always seem to know what he's been saying - even while accusing others of being the ones who listen to him.

I think I've listened to that pill-popping, drug addicted, serial divorcing, racially innuendoing, bloated sexist toad about two dozen times in two dozen years, all of which was when I was dial spinning while driving on the interstates. Whatever else I've managed to pick up about him has come from mainstream media sources, since I don't follow the sort of liberal blogs that you seem to think are the sources of all of our information---it hardly requires a liberal site to know where that pill-popping, drug addicted, serial divorcing, racially innuendoing, bloated sexist toad is coming from.
   336. tshipman Posted: May 21, 2012 at 02:59 PM (#4136960)
Deficits are "counter-cyclical spending" in a recession. "Counter-cyclical spending" refers to balanced budgets in a good economy and deficit spending in a bad economy.


I'm just going to respond to this first, because the rest of it isn't really worth talking about because it all stems from the same bad point. You are using an incorrect (and slightly dishonest) definition for Counter-Cyclical spending.

Counter-cyclic spending is about policies specifically enacted to counter-act the business cycle. This may incur deficits, but may not necessarily (depending on your primary budget). If you reduce unemployment benefits due to more people being unemployed, that is cyclical spending. If you reduce government employee salary during a recession, that is cyclical spending.

More people being on unemployment during recessions is not counter-cyclical. It's like claiming breadlines are counter-cyclical. It's just not true.

Liberals nowadays like to talk about "infrastructure spending," because it's easier to sell those to the public than transfer payments.


Nope! They talk about infrastructure spending because it's more efficacious than transfer payments.

No. In fact, that's precisely what Keynes said: "The boom, not the slump, is the right time for austerity at the Treasury."


Yes, but Keynes is referring to actually spending less and raising more revenue. Not just fewer people taking advantage of programs. This is starting to get into disingenuous pretty quickly. Is your argument that Bill Clinton presided over a wave of massive austerity in the 1990's?
   337. The Good Face Posted: May 21, 2012 at 03:04 PM (#4136964)
Again, back to my main point: the Republican party in 2012 is a single-issue party--lower taxes on rich people. That is it.


This is just factually incorrect, you need to find a better site to steal your talking points from bot-boy. The Republicans are also the party of civil rights, lower taxes for all federal income tax payers, and restrictions on abortion.
   338. The Id of SugarBear Blanks Posted: May 21, 2012 at 03:08 PM (#4136965)
See, this leads to an interesting point, highlighted by 'zop on the last page:

It isn't really that "interesting"; Democrats are the party, rhetorically and in action, of higher government spending. They fought the Reagan spending cut proposals tooth and nail, and have never had a major post-"Great" Society politician seriously propose cutting government spending. Their politicians constantly agitate for a larger role for government, new government spending programs, and higher levels of taxation. Their natural and professed allies in the other major democracies are the parties seeking greater government spending and a bigger role for government. Though efforts have been made to gussy up an irresistable impulse as Keynesian orthodoxy, Barack Obama has continued -- accelerated, actually -- this trend, which should shock exactly no one. He's a Democrat, Democrats love to tax and spend, he's taxing and spending.

This general trend has proceeded essentially unabated through the lifetimes of every participant on this board and it's absolutely comical to watch people pretend that it hasn't. The United States has had to shoulder the budgetary load for the West's defense for most of our lifetimes, which distorts the final spending figures; serious people understand this and adjust for it.
   339. David Nieporent (now, with children) Posted: May 21, 2012 at 03:12 PM (#4136969)
I'm just going to respond to this first, because the rest of it isn't really worth talking about because it all stems from the same bad point. You are using an incorrect (and slightly dishonest) definition for Counter-Cyclical spending.

Counter-cyclic spending is about policies specifically enacted to counter-act the business cycle. This may incur deficits, but may not necessarily (depending on your primary budget). If you reduce unemployment benefits due to more people being unemployed, that is cyclical spending. If you reduce government employee salary during a recession, that is cyclical spending.

More people being on unemployment during recessions is not counter-cyclical. It's like claiming breadlines are counter-cyclical. It's just not true.
You are simply wrong, but wrong in a way that is completely confused. Unemployment benefits are indeed countercyclical. They increase when the economy slows, and decrease when the economy is booming. You are making a bizarre, incorrect, and untenable distinction between an increase in government spending caused by a new program, and an increase in government spending caused by more spending on an existing program. Unemployment is a "policy specifically enacted to counteract the business cycle."

Nope! They talk about infrastructure spending because it's more efficacious than transfer payments.
Nope. It may be better for the country in the long-run, but it is much less efficacious than transfer payments for stimulus, because transfer payments are made immediately, while infrastructure spending is slow and drawn out. (Obama was lying to you when he talked about "shovel ready" projects.)

Yes, but Keynes is referring to actually spending less and raising more revenue. Not just fewer people taking advantage of programs.
There's no distinction here! You're terribly confused. "Fewer people taking advantage of programs" = "actually spending less"!
Is your argument that Bill Clinton presided over a wave of massive austerity in the 1990's?
Yes. (Well, sort of. Actually, except for defense spending, there wasn't really much cutting going on.)
   340. tshipman Posted: May 21, 2012 at 03:15 PM (#4136974)
This is just factually incorrect, you need to find a better site to steal your talking points from bot-boy. The Republicans are also the party of civil rights, lower taxes for all federal income tax payers, and restrictions on abortion.


I'm going to regret this, but how in the world are civil rights part of the Republican party's platform?

Yes, restrictions on abortion are something that some Republicans care about, but it's not a large part of the party. You can be a Republican and support the status quo.

lower taxes for all federal income tax payers


Just voted to end the Child Tax credit.


It isn't really that "interesting"; Democrats are the party, rhetorically and in action, of higher government spending. They fought the Reagan spending cut proposals tooth and nail, and have never had a major post-"Great" Society politician seriously propose cutting government spending. Their politicians constantly agitate for a larger role for government, new government spending programs, and higher levels of taxation. Their natural and professed allies in the other major democracies are the parties seeking greater government spending and a bigger role for government. Though efforts have been made to gussy it up as simply Keynesian orthodoxy, Barack Obama has continued -- accelerated, actually -- this trend, which should shock exactly no one. He's a Democrat, Democrats like to tax and spend, he's taxing and spending.


It is interesting because you don't care about balanced budgets, just about lower spending. That is interesting, because it's not what people say!
   341. The Id of SugarBear Blanks Posted: May 21, 2012 at 03:16 PM (#4136975)
More people being on unemployment during recessions is not counter-cyclical.

More people being on unemployment during recessions is the axiomatic and fundamental definition of "counter-cyclical."
   342. David Nieporent (now, with children) Posted: May 21, 2012 at 03:25 PM (#4136987)
It is interesting because you don't care about balanced budgets, just about lower spending. That is interesting, because it's not what people say!
I'm with Milton Friedman on that issue. Discussing a proposed balanced budget amendment: "I have never supported an amendment directed solely at a balanced budget. I have written repeatedly that while I would prefer that the budget be balanced, I would rather have government spend $500 billion and run a deficit of $100 billion than have it spend $800 billion with a balanced budget. It matters greatly how the budget is balanced, whether by cutting spending or by raising taxes."

(It was in 1983; that's why the numbers are so "low.")
   343. BDC Posted: May 21, 2012 at 03:33 PM (#4136994)
This general trend has proceeded essentially unabated through the lifetimes of every participant on this board

My lifetime began when Eisenhower was President, so it includes the "Kennedy tax cut" (enacted in 1964), the first major step away from the confiscatory top-bracket rates that came in under FDR and Truman, but were barely touched by the GOP in the 1950s.

This may just go to show that I'm old :) But rates went up under Bush 41 and have remained even under Obama, two counter-examples to your trend. (They were also largely unchanged under Nixon and Ford, though that can be attributed to a Democratic Congress.) Source
   344. zonk Posted: May 21, 2012 at 03:48 PM (#4137004)
My lifetime began when Eisenhower was President, so it includes the "Kennedy tax cut" (enacted in 1964), the first major step away from the confiscatory top-bracket rates that came in under FDR and Truman, but were barely touched by the GOP in the 1950s.


Did you have an anti-JFK coloring book?

   345. Lassus Posted: May 21, 2012 at 03:50 PM (#4137010)
There are few things more amusing to a non-economist than a lot people who claim they know a lot about economics declaring that the other people who claim they know a lot about economics are absolutely, positively wrong.
   346. David Nieporent (now, with children) Posted: May 21, 2012 at 03:51 PM (#4137012)
My lifetime began when Eisenhower was President
You're old. Aren't you dead yet?
   347. BDC Posted: May 21, 2012 at 03:59 PM (#4137022)
It never pays to have an old person around. We remember too much.

Anyway, if you don't like income tax rates, how about the excise tax on gasoline? Instituted under Herbert Hoover, it has been raised under FDR, Truman, Eisenhower (twice), Reagan, Bush 41, and Clinton – and has been left untouched under Obama, as it has been for long stretches under Presidents of both parties. And as the link explains, it's a fixed sum per gallon, so when it goes untouched and gas prices rise, it actually shrinks as a rate, and has thus steadily done so under both Bush 43 and Obama, as it also did in the 1970s under both parties.

   348. The Id of SugarBear Blanks Posted: May 21, 2012 at 03:59 PM (#4137023)
I'm with Milton Friedman on that issue.

And that's the right place. America has been able to access the capital markets at cheap rates to finance spending even at far higher levels than it should be spending, and even for transfer and other non-capital expenditures. It goes without saying that no offense to wisdom or orthodoxy pertains to borrowing money to build a capital project, such as advanced weaponry, roads, or bridges.

(It was in 1983; that's why the numbers are so "low.")

I'm in the midst of reading the new LBJ bio. One of his first acts after assuming the presidency was dealing with the quibbling over the 1965 budget, which he had to present in less than two months. Several senators, including the relevant committee chair, expressed a distinct preference not to break through the psychologically-sensitive $100 billion spending barrier.

   349. The Yankee Clapper Posted: May 21, 2012 at 04:02 PM (#4137027)
Can't trust a right winger, ya know. Best to just put 'em down, and double tap for good measure.

More violent eliminationist rhetoric from the left. Guess there never was much chance of Sam adhering to the "new civility".
   350. The Good Face Posted: May 21, 2012 at 04:38 PM (#4137055)
I'm going to regret this, but how in the world are civil rights part of the Republican party's platform?


2nd Amendment rights. Civil rights liberals don't give a #### about are still civil rights.

Yes, restrictions on abortion are something that some Republicans care about, but it's not a large part of the party. You can be a Republican and support the status quo.


It's hugely important to a large bloc of voters. Don't make the mistake of projecting how you feel about it onto other people.
   351. The Id of SugarBear Blanks Posted: May 21, 2012 at 04:45 PM (#4137058)
2nd Amendment rights. Civil rights liberals don't give a #### about are still civil rights.

As are the rights of groups liberals don't fetishize, e.g., Native Americans -- thus Elizabeth Warren's better-than-satire claim to be a "minority." Say what you will about her, she knew her audience.

Which is to say, the ridiculous part of that story isn't really her conduct, or hypocrisy, it's the fact that modern liberals have established mores, habits of thought, and factions in which being "1/32 Native American" actually means something. The fact that wide swaths of her professional acquaintances would look upon her differently because of the absence or presence of that triviality is simply comical. That dwarfs the relatively minor question of whether she was telling the truth (at least to normal people; I'm sure the faction she was playing to will find some sort of heightened "offense" in her lack of truthfulness, if indeed it's there).
   352. Never Give an Inge (Dave) Posted: May 21, 2012 at 04:53 PM (#4137060)
If you reduce unemployment benefits due to more people being unemployed, that is cyclical spending. If you reduce government employee salary during a recession, that is cyclical spending.

Huh? Why would you reduce unemployment benefits with more unemployed people? How is that "reduction" = "spending" of any sort?

Anyway, it's been a while since I studied this stuff, but I remember talking about "pro-cyclical" and "counter-cyclical" policies. So I'm assuming when you say "cyclical" you mean "pro-cyclical". Deficit spending during a recession is "counter-cyclical" because it mutes the magnitude of normal economic fluctuation. Running a surplus during a boom is likewise "counter-cyclical". The opposite would be "pro-cyclical" because it would amplify the normal fluctuations -- i.e. running a surplus is likely to worsen a recession and running a deficit during a boom is likely to further fuel it.

Because we pretty much always run deficits these days (with the noteworthy exception of a few years under Clinton), we didn't talk about surpluses and deficits when the recession rolled around--it was a given that we'd be running a deficit. Reducing the size of the deficit would be "pro-cyclical" in that it would worsen the recession, increasing it would be "counter-cyclical".

The budget deficit from 2009-2012 averaged $1.3 trillion a year (~9% of GDP), roughly three times the largest deficit ever up until that point on a nominal basis and roughly twice the size of the Great Depression deficits as a percentage of GDP. The president's budget for FY13 projects a $901 billion deficit, which excluding 2009-2012 would be the largest nominal deficit ever, and the largest as a percentage of GDP (5.5%) since 1983 (6.0%).

The Administration's budget projects that we will have relatively robust GDP growth over the projection period (2011-2021), and unemployment reducing to 5.6% by 2017 (which I'm guessing is around where they see "full employment" since they have it leveling off around that amount), but that we'll always run deficits, which plateau at 2.8% of GDP. That's not out of line with various other years throughout history, although it's bigger than anything we ran from 1947-1974. But it means that after several years of record deficits, in years when they project the economy to be at full employment, they are proposing to run deficits, not surpluses. Perhaps it is silly to read too much into the out-years of a budget when those years will be out of the current Administration's control. Perhaps this is the best they think they can do with a Republican Congress. I'm trying to just present the facts.
   353. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 05:01 PM (#4137063)
I'm in the midst of reading the new LBJ bio. One of his first acts after assuming the presidency was dealing with the quibbling over the 1965 budget, which he had to present in less than two months. Several senators, including the relevant committee chair, expressed a distinct preference not to break through the psychologically-sensitive $100 billion spending barrier.

I remember the banner headlines that this barrier-breaking produced, and the fact that the sum was so newsworthy at the time.

The point was made the other day that neither of our two major parties has any counterparts in Europe, since both of ours are terrified at the idea of taxation beyond what the Democrats want to add to the upper 2%. My own personal preference would be the German model, since that country has a strong manufacturing base with strong unions and high wages, and a very strong social safety net. But OTOH they also believe in setting tax rates at a point where they're not shoving the costs of it all onto future generations. They don't indulge in financial hocus-pocus from either end of the spectrum, and though I don't agree with Merkel's hardline stance right now in the middle of a steep recession, you have to give credit where it's due.

Of course the reason that the Germans can do this is that (a) they don't have our defense budget; and (b) they don't share our instant gratification/ buy now, pay later / I've got mine, Jack / winner-take-all culture. I'm not sure which of those two factors is more firmly entrenched in our collective DNA, but I doubt if either of them are going away anytime soon.
   354. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 05:06 PM (#4137068)
Which is to say, the ridiculous part of that story isn't really her conduct, or hypocrisy, it's the fact that modern liberals have established mores, habits of thought, and factions in which being "1/32 Native American" actually means something. The fact that wide swaths of her professional acquaintances would look upon her differently because of the absence or presence of that triviality is simply comical. That dwarfs the relatively minor question of whether she was telling the truth (at least to normal people; I'm sure the faction she was playing to will find some sort of heightened "offense" in her lack of truthfulness, if indeed it's there).

Well, here's one liberal who thinks that you've framed the issue exactly as it should be, even though I also think that many or most liberals outside the academy aren't buying that sort of mindset any more than you or I are.

OTOH although I also agree that it almost falls into the realm of "better-than-satire", I can't say that I got much of a laugh over it.
   355. Lassus Posted: May 21, 2012 at 05:13 PM (#4137073)
Civil rights liberals don't give a #### about are still civil rights.

As you used the plural when saying that "the Republicans are the party of civil rights" before citing the 2nd Amendment, what are the other ones?
   356. tshipman Posted: May 21, 2012 at 05:15 PM (#4137076)
Huh? Why would you reduce unemployment benefits with more unemployed people? How is that "reduction" = "spending" of any sort?


Because you're under tremendous pressure from Brussels to reduce your primary account balance.

David is arguing that in places like Italy, Ireland or France, that when you reduce unemployment benefits, but because more people are on unemployment due to a bad economy, you are not actually engaging in austerity. It's a weird, crazy claim that runs counter to how everyone else defines the term, but he read a piece by Veronique de Rugy where she made this claim (also not adjusting spending for inflation), in order to make an argument that the reason austerity hasn't worked in Europe is that they haven't tried REAL austerity. It's a weird, crazy claim that lacks intellectual honesty.

The Administration's budget projects that we will have relatively robust GDP growth over the projection period (2011-2021), and unemployment reducing to 5.6% by 2017 (which I'm guessing is around where they see "full employment" since they have it leveling off around that amount), but that we'll always run deficits, which plateau at 2.8% of GDP. That's not out of line with various other years throughout history, although it's bigger than anything we ran from 1947-1974. But it means that after several years of record deficits, in years when they project the economy to be at full employment, they are proposing to run deficits, not surpluses. Perhaps it is silly to read too much into the out-years of a budget when those years will be out of the current Administration's control. Perhaps this is the best they think they can do with a Republican Congress. I'm trying to just present the facts.


Well, the administration's budget faces two main issues: the first is that it assumes tepid growth (sub-3%). With 4% growth, we have no deficit. We had 4.17% annualized growth from 1980-2007. The second is the rising costs of medical care. I don't remember who said it, but we don't have a deficit problem, we have a medical costs problem.

The second is that the administration is in an election year, and they consider protecting certain spending areas to be more important to the electorate than a projected balanced budget.

Edit:
2nd Amendment rights. Civil rights liberals don't give a #### about are still civil rights.


Romney 2012! Guns should have more rights than gays!
   357. JE (Jason Epstein) Posted: May 21, 2012 at 05:23 PM (#4137083)
Now my local paper seeks to tie Romney to a massacre from 150+ years ago:
CARROLLTON, Ark. — On the wildflower-studded slopes of the Ozarks, where memories run long and family ties run thick, a little-known and long-ago chapter of history still simmers.

On Sept. 11, 1857, a wagon train from this part of Arkansas met with a gruesome fate in Utah, where most of the travelers were slaughtered by a Mormon militia in an episode known as the Mountain Meadows Massacre. Hundreds of the victims’ descendants still populate these hills and commemorate the killings, which they have come to call “the first 9/11.”

Many of the locals grew up hearing denunciations of Mormonism from the pulpit on Sundays, and tales of the massacre from older relatives who considered Mormons “evil.”

“There have been Fancher family reunions for 150 years, and the massacre comes up at every one of them,” said Scott Fancher, 58, who traces his lineage back to 26 members of the wagon train, which was known as the Fancher-Baker party. “The more whiskey we drunk, the more resentful we got.”

There aren’t many places in America more likely to be suspicious of Mormonism — and potentially more problematic for Mitt Romney, who is seeking to become the country’s first Mormon president. Not only do many here retain a personal antipathy toward the religion and its followers, but they also tend to be Christian evangelicals, many of whom view Mormonism as a cult.

And yet, there is scant evidence that Romney’s religion is making much difference in how voters here are thinking about the presidential election and whether they are willing to back the former Massachusetts governor.

“I think the situation right now is more anti-Obama than any other situation,” said Dave Hoover, chairman of the Carroll County Republicans.

Whew! That was a close one! It's a good thing the locals' racist views of Obama -- well, what else could it be? -- trumps their bitterness over Romney's role in those Utah killings!
   358. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 05:24 PM (#4137084)
As you used the plural when saying that "the Republicans are the party of civil rights" before citing the 2nd Amendment, what are the other ones?

I'm sure that the rights of those white victims of "reverse racism" will at some point be offered as an exhibit, possibly in conjunction with the latest Republican press release about how we have to remove 10,000 newly registered voters off the rolls in order to prevent 10 possible cases of "voter fraud".
   359. Never Give an Inge (Dave) Posted: May 21, 2012 at 05:25 PM (#4137085)

Another thing worth noting is that this administration, like most other people, has proven not to be a very good predictor of the economy or the deficit. I did this pretty quickly, so I may have gotten a number wrong, but if you look at the President's budgets, they've

(1) Tended to overestimate the current year deficit. In other words, the deficit has come in lower than expected. In 2009 (the year they proposed the 2010 budget), they thought that year's deficit would be $1,841 billion, but it ended up at $1,413 billion. This is consistent in every year.
(2) Been pretty good at estimating next year's deficit. They've been within $35 billion in both years for which we actually have data.
(3) Tended to underestimate deficits after next year. For example, their estimate for the 2012 deficit has crept up from $557 billion in 2010 to $828 billion in 2011 to $1,101 billion in 2012 to $1,327 billion in this year's budget (however, experience indicates that this it will come in below that amount :) Estimates for 2013 have gone from $512 to $727 to $768 to $901.
(4) Tended to overestimate economic growth. Each year their projections for GDP going forward come down a little bit, in line with the fact that the economy has underperformed where they thought it would go. This isn't surprising, as most forecasters have done the same thing.

Anyway, thought that was all interesting as I looked at the budgets.
   360. Never Give an Inge (Dave) Posted: May 21, 2012 at 05:32 PM (#4137092)

Because you're under tremendous pressure from Brussels to reduce your primary account balance.

David is arguing that in places like Italy, Ireland or France, that when you reduce unemployment benefits, but because more people are on unemployment due to a bad economy, you are not actually engaging in austerity.


Have they reduced total gross spending on unemployment benefits or not?

Anyway, if they cut their deficits, then I would say it's austerity, although if they're still running massive deficits then it's still stimulus. But I think the question of whether austerity is "working" is a false one. Most people are trying to evaluate these policies too soon, against the wrong benchmarks, and with the wrong expectations. We also have no test case to measure how each one of these economies would have performed without "austerity".
   361. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 05:33 PM (#4137095)
Whew! That was a close one! It's a good thing the locals' racist views of Obama -- well, what else could it be? -- trumps their bitterness over Romney's role in those Utah killings!

And it's a good thing that you noted how those anti-Mormon sentiments have spread like wildfire throughout the entirety of LiberalLand, which is of course where they must have begun---since by definition only Liberals can be guilty of religious bigotry.

Of course there's not a single sentence in that article that goes beyond simply reporting the phenomenon, which the headline properly labels a "quirk of Arkansas history." And there's no suggestion that that bitterness you refer to is---or should be---in any way tied to Romney himself. Is this supposed to be another example of the Big Liberal Media Slant at work?
   362. zonk Posted: May 21, 2012 at 05:36 PM (#4137098)
I'm just amused over the whole Mormon issue with Romney... It's not part of the Obama or Democratic campaign playbook -- it's laughable to think any rational Dem expects to scoop up any meaningful percentage of the evangelical vote.

In short - whole lot of crocodile tears over here... I can't help it that it's part of Liberty U's curriculum to term Mormonism a cult or that a fair chunk of the Moral Majority crowd views Mormonism with suspicion -- so, sorry Republicans; they're your base... you can deal with your own little internecine feuds and proclivities.

   363. The Good Face Posted: May 21, 2012 at 05:42 PM (#4137104)
Civil rights liberals don't give a #### about are still civil rights.

As you used the plural when saying that "the Republicans are the party of civil rights" before citing the 2nd Amendment, what are the other ones?


Seriously? Because typing "the Republicans are the party of civil right" would look like poor grammar.

Anyway, the phrase is 2nd Amendment RIGHTS, which include the entire panoply of gun rights... right to purchase, own, carry, transfer ownership, etc.

Of course, the Republicans are also better on the civil rights the left DOES pretend to care about, supporting policies that attempt to encourage a more colorblind society. They're also much, much better on property rights, which are, of course, civil rights as well.

In fact, they're superior to the Democrats across the board when it comes to civil rights, with the exception of gay marriage. But since gay marriage is not mentioned in the Constitution nor has the Supreme Court declared it to be a right, it's clear that gay marriage isn't actually a civil right at all. Just a policy preference that some people care a lot about.
   364. tshipman Posted: May 21, 2012 at 05:50 PM (#4137107)
Anyway, if they cut their deficits, then I would say it's austerity, although if they're still running massive deficits then it's still stimulus. But I think the question of whether austerity is "working" is a false one. Most people are trying to evaluate these policies too soon, against the wrong benchmarks, and with the wrong expectations. We also have no test case to measure how each one of these economies would have performed without "austerity".


I disagree. From the previous article linked. There's a negative relationship between budget cutting and growth (which is what we knew before hand).


Have they reduced total gross spending on unemployment benefits or not?


So, dropping out of the specifc example, it depends on how you measure it. Nominal spending has risen. Spending as a percentage of GDP is down. So, David is arguing that if you ignore inflation and just focus on raw $$ (or whatever the Euro symbol is, I suppose), that there has been no austerity. It's a ######## argument, in my opinion.
   365. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 05:51 PM (#4137108)
BTW if anyone wants to see Pandering with a Capital P in action, check out what Mitt Romney had to say about Jerry Falwell in his recent speech at Liberty University:

I consider it a great life honor to address you today. Your generosity of spirit humbles me. The welcoming spirit of Liberty is a tribute to the gracious Christian example of your founder.

In his 73 years of life, Dr. Falwell left a big mark. For nearly five decades he shared that walk with his good wife Macel. It’s wonderful to see her today. The calling Jerry answered was not an easy one. Today we remember him as a courageous and big-hearted minister of the Gospel who never feared an argument, and never hated an adversary. Jerry deserves the tribute he would have treasured most, as a cheerful, confident champion for Christ.


Of course what this "cheerful, confident champion for Christ" had to say about 9/11 rivals the worldview of Jeremiah Wright. But perhaps Mitt Romney wasn't aware of Falwell's courageous and big-hearted words on that occasion.

From the Washington Post of September 14, 2001:

Television evangelists Jerry Falwell and Pat Robertson, two of the most prominent voices of the religious right, said liberal civil liberties groups, feminists, homosexuals and abortion rights supporters bear partial responsibility for Tuesday's terrorist attacks because their actions have turned God's anger against America.

"God continues to lift the curtain and allow the enemies of America to give us probably what we deserve," said Falwell, appearing yesterday on the Christian Broadcasting Network's "700 Club," hosted by Robertson.

"Jerry, that's my feeling," Robertson responded. "I think we've just seen the antechamber to terror. We haven't even begun to see what they can do to the major population."

Falwell said the American Civil Liberties Union has "got to take a lot of blame for this," again winning Robertson's agreement: "Well, yes."

Then Falwell broadened his blast to include the federal courts and others who he said were "throwing God out of the public square." He added: "The abortionists have got to bear some burden for this because God will not be mocked. And when we destroy 40 million little innocent babies, we make God mad. I really believe that the pagans, and the abortionists, and the feminists, and the gays and the lesbians who are actively trying to make that an alternative lifestyle, the ACLU, People for the American Way -- all of them who have tried to secularize America -- I point the finger in their face and say, 'You helped this happen.' "

People for the American Way transcribed the broadcast and denounced the comments as running directly counter to President Bush's call for national unity. Ralph G. Neas, the liberal group's president, called the remarks "absolutely inappropriate and irresponsible."

Robertson and others on the religious right gave critical backing to Bush last year when he was battling for the GOP presidential nomination. A White House official called the remarks "inappropriate" and added, "The president does not share those views."

Falwell was unrepentant, saying in an interview that he was "making a theological statement, not a legal statement."


I wonder what the Liberal Media Conspiracy will make of THAT, compared to the coverage that they gave to Obama and Jeremiah Wright.

(Oh, sorry, that was an impolite question!)
   366. Liver of blaspheming 'zop Posted: May 21, 2012 at 05:52 PM (#4137110)
Good Face, don't you understand? My party's pet causes are fundamental civil rights, your party's pet causes are policy preferences. BTW, this cuts both ways.*



*Which, of course, illustrates why the notion of "civil rights" in general is retarded, and a constitution should be read as literally as possible . . . but I'm betraying my conservatism now.
   367. tshipman Posted: May 21, 2012 at 05:57 PM (#4137115)
Romney 2012: because not allowing you to own assault rifles is a greater violation of your rights as a human being than discrimination against a class of people!

I guess I've missed all of Obama's anti-gun laws.
   368. JE (Jason Epstein) Posted: May 21, 2012 at 06:02 PM (#4137121)
And it's a good thing that you noted how those anti-Mormon sentiments have spread like wildfire throughout the entirety of LiberalLand, which is of course where they must have begun---since by definition only Liberals can be guilty of religious bigotry.

Of course there's not a single sentence in that article that goes beyond simply reporting the phenomenon, which the headline properly labels a "quirk of Arkansas history." And there's no suggestion that that bitterness you refer to is---or should be---in any way tied to Romney himself. Is this supposed to be another example of the Big Liberal Media Slant at work?

The issue, Andy, is that there's no issue. Of course, the story could have clarified before its midpoint that in those days far more Mormons were killed than were killers. OTOH, at least the editors didn't stick this one on the front page.

By the way, I remember Quinnipiac and Gallup polls from last year showing that there is considerably more anti-Mormon bigotry on the left than on the right.

EDIT: Here is the Quinnipiac poll in question.

EDIT no. 2: Here is a Gallup poll from '07. Here is the one from last year.
   369. Johnny Sycophant-Laden Fora Posted: May 21, 2012 at 06:09 PM (#4137125)
In his 73 years of life, Dr. Falwell left a big mark.


I guess so.

The calling Jerry answered was not an easy one.


????? Who knows

Today we remember him as a courageous and big-hearted minister of the Gospel


Who does, I don't, I don't think anyone who has actually read any of the 4 Gospels (and is capable of at least 3rd grade level reading comprehension) could believe this in good faith- (you may notice that I have a VERY low opinion of so called Christian Evangelicals)

who never feared an argument, and never hated an adversary. Jerry deserves the tribute he would have treasured most, as a cheerful, confident champion for Christ


Never feared an argument????
never hated an adversary????
Confident champion for Christ? which one, certainly not the one depicted n the 4 Gospels. I'm less familiar with the one depicted in the Book of Mormon...
   370. Johnny Sycophant-Laden Fora Posted: May 21, 2012 at 06:19 PM (#4137130)
I'm just amused over the whole Mormon issue with Romney... It's not part of the Obama or Democratic campaign playbook -- it's laughable to think any rational Dem expects to scoop up any meaningful percentage of the evangelical vote.


No, but what about evangelicals who may decide to stay home???

A campaign wants to

1: Get the most votes
2: Anything that will help #1

Getting people to vote for you instead of your adversary helps with #1
Getting people to vote for a 3rd place candidate rather than their immediate rival also helps with #1
Getting people to stay home who would vote for your rival- if they voted helps with #1
Getting people to vote for you who would otherwise stay home also helps with #1

Stirring up trouble between Romney and evangelicals over Romney's mormonism can make sense to the DNC even if those evangelicals are never ever in a million years going to vote for Obama.

Of course if the evanglicals in question are stirring up such trouble all on their own- then it probably doesn't make as much sense to waste resources and risk "getting caught."




   371. David Nieporent (now, with children) Posted: May 21, 2012 at 06:19 PM (#4137131)
David is arguing that in places like Italy, Ireland or France, that when you reduce unemployment benefits, but because more people are on unemployment due to a bad economy, you are not actually engaging in austerity. It's a weird, crazy claim that runs counter to how everyone else defines the term, but he read a piece by Veronique de Rugy where she made this claim (also not adjusting spending for inflation), in order to make an argument that the reason austerity hasn't worked in Europe is that they haven't tried REAL austerity. It's a weird, crazy claim that lacks intellectual honesty.
First, I didn't mention de Rugy; you did. I read her piece after you linked to it. (Well, indirectly; you linked to Plummer, who linked to de Rugy.)

Second, de Rugy's point, as she explained quite clearly in that piece, was that there had been no significant spending cuts in Europe. She didn't say there was no austerity; she said that what austerity there was consisted of tax hikes rather than cuts.

Third, David is not arguing about "reducing unemployment benefits"; I didn't talk about that at all. Only you did. Austerity is measured as an overall national economic phenomenon, not by whether a specific individual's benefits under a specific program have been reduced. It is not, in fact, a weird, crazy claim; I am using the term the normal way. You are confused about its meaning. What I said was that (a) spending in Europe had not been reduced, and (b) even measuring austerity by Plummer's chosen metric of "structural deficits," austerity to date has been minimal -- and only by selectively choosing endpoints.

Fourth, I did not say, or imply, or hint, that "Austerity hadn't worked because they haven't tried real austerity." I said/implied/hinted that austerity hadn't failed because they hadn't tried real austerity. That's an entirely different claim. Stating that genocide can't be blamed for current European economic problems is not the same as saying that genocide would solve those problems.
   372. David Nieporent (now, with children) Posted: May 21, 2012 at 06:20 PM (#4137132)
Romney 2012! Guns should have more rights than gays!
I'm pretty sure that Second Amendment rights inhere in people, not in weapons.
   373. Rickey Fredonia Fudge Duckery Precious Twiddle Posted: May 21, 2012 at 06:20 PM (#4137133)
I guess I've missed all of Obama's anti-gun laws.


He's just secretly waiting to come take all of the guns starting Feb 2012. There's an entire cottage industry of batshit crazy rightwing nutjob set up around that single talking point.
   374. tshipman Posted: May 21, 2012 at 06:26 PM (#4137136)
Austerity is measured as an overall national economic phenomenon, not by whether a specific individual's benefits under a specific program have been reduced. It is not, in fact, a weird, crazy claim; I am using the term the normal way. You are confused about its meaning. What I said was that (a) spending in Europe had not been reduced, and (b) even measuring austerity by Plummer's chosen metric of "structural deficits," austerity to date has been minimal -- and only by selectively choosing endpoints.


Government expenditure as a percentage of GDP has fallen by nearly 4% in Ireland, by 2.5% in Spain and by 2% in Italy. How is that not reduced spending?

Claiming that government expenditure hasn't been cut when it's dropped by almost 4% in Ireland is a weird, crazy claim! Especially when you know that due to automatic stabilizers, government spending would have gone up significantly otherwise!

First, I didn't mention de Rugy; you did. I read her piece after you linked to it. (Well, indirectly; you linked to Plummer, who linked to de Rugy.)


I apologize. I didn't think that you came up with that bad of an idea on your own.
   375. The Id of SugarBear Blanks Posted: May 21, 2012 at 06:28 PM (#4137137)
With the Liberty sppech, Romney's trying to "earn" the enmity of the Left so that the rubes will think they have something in common with him, and show up and pull the lever accordingly.

Falwell's remarks in the wake of 9-11 were the most unpatriotic, anti-American remarks uttered by a public figure in the last 50 years. Romney should take a hit for pandering to the acolytes of that half-wit, fleabag piece of ####.
   376. David Nieporent (now, with children) Posted: May 21, 2012 at 06:29 PM (#4137139)
Spending as a percentage of GDP is down.
No, it's up. What you mean is that it's down from an artificially high baseline. There is no reason on earth to be using 2009 as the baseline. It's not "austerity" to engage in massive deficit spending when a slowdown hits, and then in future years ratchet down that deficit spending slightly. That's a ######## approach.


EDIT:
Government expenditure as a percentage of GDP has fallen by nearly 4% in Ireland, by 2.5% in Spain and by 2% in Italy. How is that not reduced spending?
(1) Europe is not made up of three countries.
(2) "Spending as a percentage of GDP" is not "spending."
(3) As I said, that's from the wrong baseline. Using a better baseline, like 2008, spending is up in Spain, likely down a tiny bit in Ireland, probably flat in Italy. (2011 data isn't available for all countries.)
   377. Johnny Sycophant-Laden Fora Posted: May 21, 2012 at 06:29 PM (#4137140)
Fourth, I did not say, or imply, or hint, that "Austerity hadn't worked because they haven't tried real austerity." I said/implied/hinted that austerity hadn't failed because they hadn't tried real austerity.


Austerity cannot fail, austerity can only be failed.

He's just secretly waiting to come take all of the guns starting Feb 2012. There's an entire cottage industry of batshit crazy rightwing nutjob set up around that single talking point.


It's an NRA fundraising meme, and from their POV it is not crazy- they make tons of money off of it- the fact that they have as fully defeated a political enemy (gun control lobby/ handgun control inc.) as apolitical enemy can ever be defeated in the US of A, has seemingly not occurred to them- It's as though the allied armies in Europe on April 29, 1945 thought that the German Army was alive, well and capable of a ferocious counterattack...
   378. Johnny Sycophant-Laden Fora Posted: May 21, 2012 at 06:32 PM (#4137142)
deleted because there was no point in posting

   379. Lassus Posted: May 21, 2012 at 06:43 PM (#4137151)
Seriously? Because typing "the Republicans are the party of civil right" would look like poor grammar.
And saying that Republicans believe in gun rights and property rights isn't as much fun as yanking "civil rights" out of your pants and waving it at the liberals. I can grok that.


Of course, the Republicans are also better on the civil rights the left DOES pretend to care about, supporting policies that attempt to encourage a more colorblind society.
"We don't give twoshits what is happening to you because you're not white" is some kind of civil rights argument, I guess.


But since gay marriage is not mentioned in the Constitution nor has the Supreme Court declared it to be a right, it's clear that gay marriage isn't actually a civil right at all. Just a policy preference that some people care a lot about.
Aren't you one of the folks who gets on Andy for saying "Hey, if it's a law, it must be right"? I'm not even sure if you're joking with this one, honestly.


Good Face, don't you understand? My party's pet causes are fundamental civil rights, your party's pet causes are policy preferences.
Good Face used those exact words; whom exactly are you poking here?
   380. tshipman Posted: May 21, 2012 at 06:48 PM (#4137159)
No, it's up. What you mean is that it's down from an artificially high baseline. There is no reason on earth to be using 2009 as the baseline. It's not "austerity" to engage in massive deficit spending when a slowdown hits, and then in future years ratchet down that deficit spending slightly. That's a ######## approach.


Well, the big reason to use 2009 as the baseline is that the budget for 2008 was done in 2007. The rise in government spending comes from (say it with me) automatic stabilizers and poor performance of the economy.
   381. Liver of blaspheming 'zop Posted: May 21, 2012 at 07:06 PM (#4137174)
Good Face used those exact words; whom exactly are you poking here?


Everyone. Arguing about who is the party of "civil rights" is idiotic.
   382. Never Give an Inge (Dave) Posted: May 21, 2012 at 07:09 PM (#4137180)
Well, the big reason to use 2009 as the baseline is that the budget for 2008 was done in 2007. The rise in government spending comes from (say it with me) automatic stabilizers and poor performance of the economy.

It's precisely because of the automatic stabilizers that you shouldn't use 2009 as your baseline. 2009 was the worst year of the downturn in the European Union (-4.3% GDP growth compared to positive growth in every other year); it's the year when they should be running the highest deficit in large part due to the (say it with me) automatic stabilizers. If you use that as your baseline and define any reduction in deficits from that level as "austerity", then you're *always* going to either be in "austerity" or running record deficits.
   383. tshipman Posted: May 21, 2012 at 07:11 PM (#4137183)
(1) Europe is not made up of three countries.


Clearly. However, spending has gone down overall since 2009 as well.

(2) "Spending as a percentage of GDP" is not "spending."


So you want *nominal* spending to go down before you declare it austerity? David, do you advise the IMF?

Source:

Total EU 17 GDP in 2010 (millions of Euro):
12,246,904
Total EuroZone Government Expenditure (millions of Euro):
4,665,906

Total EU 17 GDP in 2009 (millions of Euro):
11,750,700
Total EU 17 Government Expenditure (millions of Euro):
4,570,038

Total EU 17 GDP in 2008 (millions of Euro):
12,465,271
Total EU 17 Government Expenditure (millions of Euro):
4,356,492

Spending has remained mostly flat over 3 years, despite inflation and pressure from automatic stabilizers. This required significant budget cuts as well as increased taxation. This combination is commonly known as austerity.

edit:


It's precisely because of the automatic stabilizers that you shouldn't use 2009 as your baseline. 2009 was the worst year of the downturn in the European Union (-4.3% GDP growth compared to positive growth in every other year); it's the year when they should be running the highest deficit in large part due to the (say it with me) automatic stabilizers. If you use that as your baseline and define any reduction in deficit from that level as "austerity", then you're *always* going to be in "austerity".


Spending is down from 2010 as well.

Btw: Eurostat sucks ass compared to the data available for the US. USA! USA! NUBMER ONE! NUMBER ONE!
   384. David Nieporent (now, with children) Posted: May 21, 2012 at 07:17 PM (#4137190)
Well, the big reason to use 2009 as the baseline is that the budget for 2008 was done in 2007. The rise in government spending comes from (say it with me) automatic stabilizers and poor performance of the economy.
So what? I mean, yes, those words are mostly true, but so what? Literally, what on earth do you think they have to do with the topic? "Automatic stabilizers" are the opposite of austerity. Why on earth do you think it matters whether

(a) Congress/Parliament/etc. passes a law in 1990 that says, "If the economy tanks in a given year, then increase unemployment spending according to this formula," or
(b) Congress/Parliament/etc. passes a law in 2009 that says, "The economy just tanked a few months ago, so increase unemployment spending by a certain amount")?

Those are exactly the same thing. One is not more stimulus-y or Keynes-y than the other, assuming the additional amounts spent are the same.
   385. Never Give an Inge (Dave) Posted: May 21, 2012 at 07:17 PM (#4137191)
Spending is down from 2010 as well.

1. For purposes of this conversation I don't care about gross spending, I care about deficits. Spending itself is not pro-cyclical or counter-cyclical, deficit spending is.

2. Deficits probably should be down from 2010 - we are further removed from the recession and GDP has grown since then (I'll admit though that I haven't looked closely enough at the broader economic picture--unemployment, etc.--to make such a statement definitively).
   386. David Nieporent (now, with children) Posted: May 21, 2012 at 07:21 PM (#4137192)
Btw: Eurostat sucks ass compared to the data available for the US. USA! USA! NUBMER ONE! NUMBER ONE!
Not once the evil Republicans get through with things. Bwahahahaha.
   387. Rickey Fredonia Fudge Duckery Precious Twiddle Posted: May 21, 2012 at 07:25 PM (#4137202)
Not once the evil Republicans get through with things. Bwahahahaha.


If there's one thing the GOP depends on near universally it's making sure easy, readily available access to facts and true statements about the world is fought tooth and nail.
   388. tshipman Posted: May 21, 2012 at 07:31 PM (#4137208)
Not once the evil Republicans get through with things. Bwahahahaha.


Yeah, I saw that. Driving our country into European-style socialist web reporting of economic data.

1. For purposes of this conversation I don't care about gross spending, I care about deficits. Spending itself is not pro-cyclical or counter-cyclical, deficit spending is.


Deficit spending alone isn't counter-cyclical, though! If you were already running a 2% deficit, running the same budget deficit doesn't help the economy (I think that's pretty clear, right?). Similarly, if you were at 2%, and due to decreased tax receipts and increased payment for things like unemployment or whatever the local equivalent of MedicAid is, you go up to 5%, you are still not stimulating the economy! You have to spend beyond that to stimulate the economy (or, more preferably, lower the interest rate available to below the natural rate to encourage investment).

2. Deficits probably should be down from 2010 - we are further removed from the recession and GDP has grown since then (I'll admit though that I haven't looked closely enough at the broader economic picture--unemployment, etc.--to make such a statement definitively).


Deficits as a percentage of GDP have grown because of the slowdown caused by austerity.


"Automatic stabilizers" are the opposite of austerity. Why on earth do you think it matters whether

(a) Congress/Parliament/etc. passes a law in 1990 that says, "If the economy tanks in a given year, then increase unemployment spending according to this formula," or
(b) Congress/Parliament/etc. passes a law in 2009 that says, "The economy just tanked a few months ago, so increase unemployment spending by a certain amount")?


Because those increases in the unemployment rolls are not generating new jobs. They're just preventing you from losing MORE jobs. When you cut benefits to unemployment, you reduce the amount of money available in the economy. That has the effect of dampening demand.

Unemployment isn't stimulus. It's insurance.
   389. Never Give an Inge (Dave) Posted: May 21, 2012 at 08:08 PM (#4137271)

Deficit spending alone isn't counter-cyclical, though! If you were already running a 2% deficit, running the same budget deficit doesn't help the economy (I think that's pretty clear, right?). Similarly, if you were at 2%, and due to decreased tax receipts and increased payment for things like unemployment or whatever the local equivalent of MedicAid is, you go up to 5%, you are still not stimulating the economy! You have to spend beyond that to stimulate the economy (or, more preferably, lower the interest rate available to below the natural rate to encourage investment).

If you're in a recession, running a 2% deficit of course stimulates the economy versus running a balanced budget, which is always what your baseline should be -- even Keynes said you should run surpluses in expansions and deficits during recessions. You can't have a baseline level of economic output that is predicated on large budget deficits; that's simply taxing future generations to pay for increased consumption today, and isn't sustainable.

The economy doesn't have to have positive growth to be stimulated, it just has to be growing faster than it would without the stimulus. We had a huge asset bubble that was fueled by budget deficits even during the expansion, when it popped it triggered a massive financial crisis, and it took government deficits of ~10% of GDP in order to keep the GDP decline at around -3%. Just because GDP declined, however, that doesn't mean the economy wasn't stimulated.

If the deficit goes from 2% to 5%, you've increased the stimulus regardless of what that additional money is being spent on. And it still stimulates job growth above the baseline.
   390. Never Give an Inge (Dave) Posted: May 21, 2012 at 08:09 PM (#4137273)
Edit. Nevermind.


   391. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 08:26 PM (#4137285)
And it's a good thing that you noted how those anti-Mormon sentiments have spread like wildfire throughout the entirety of LiberalLand, which is of course where they must have begun---since by definition only Liberals can be guilty of religious bigotry.

Of course there's not a single sentence in that article that goes beyond simply reporting the phenomenon, which the headline properly labels a "quirk of Arkansas history." And there's no suggestion that that bitterness you refer to is---or should be---in any way tied to Romney himself. Is this supposed to be another example of the Big Liberal Media Slant at work?


The issue, Andy, is that there's no issue. Of course, the story could have clarified before its midpoint that in those days far more Mormons were killed than were killers. OTOH, at least the editors didn't stick this one on the front page.


Jason, I'd agree that there's no issue. Where we apparently disagree is that I also don't think that it's much of a "media bias" issue, which is a point it looks as if you're pressing. All it seemed to be to me was a fairly straightforward political sidebar story on an inside page, about on the same level of interest as those stories I've been reading about some black ministers in Prince George's County who oppose gay marriage but still support Obama. Do those stories have an "agenda", too?

By the way, I remember Quinnipiac and Gallup polls from last year showing that there is considerably more anti-Mormon bigotry on the left than on the right.

That wouldn't shock me much, any more that it shocks me that Mitt Romney would go to Liberty University and suck up to the ghost of a flaming bigot and lunatic like Jerry Falwell. As nearly every politician practices if not preaches, if you want to go hunting for ducks, you go where the ducks are. It would have been heartening to see Romney produce a Sister Souljah moment in front of a crowd like that, but that would've been like expecting Obama to demand that Al Sharpton apologize to Steven Pagones before accepting Sharpton's endorsement.

   392. tshipman Posted: May 21, 2012 at 08:28 PM (#4137288)
If you're in a recession, running a 2% deficit of course stimulates the economy versus running a balanced budget, which is always what your baseline should be -- even Keynes said you should run surpluses in expansions and deficits during recessions. You can't have a baseline level of economic output that is predicated on large budget deficits; that's simply taxing future generations to pay for increased consumption today, and isn't sustainable.

The economy doesn't have to have positive growth to be stimulated, it just has to be growing faster than it would without the stimulus.


So if you were running a 2% deficit before the recession, your argument would be that a 1% deficit (meaning a greatly reduced amount of nominal spending, let along real spending) should have been construed as "stimulus"? That's a vastly different definition of stimulus than one I've ever heard.

Deficits grow in recessions in part because tax receipts decline.


If the deficit goes from 2% to 5%, you've increased the stimulus regardless of what that additional money is being spent on. And it still stimulates job growth above the baseline.


This is just not true, axiomatically. If you increase money spent on foreign aid, for instance, none of that impacts the US economy or stimulates job growth above the baseline.

If spending in nominal terms declines, in other words, it can still constitute an increase in the deficit. Saying that all deficit spending is stimulative stipulates a false baseline.
   393. Liver of blaspheming 'zop Posted: May 21, 2012 at 08:39 PM (#4137296)
Deficits grow in recessions in part because tax receipts decline.

AND because governments don't reduce spending concomitantly with revenue declines because they're a bit like a bank - they collect "short" and make promises to pay "long". Which is one of the problems - its almost impossible to roll back spending (In a recession? We can't afford "austerity". In a boom? We can afford the payments.) There's essentially no setting where spending gets reduced, because there's always an excuse to keep the faucet running.
   394. Never Give an Inge (Dave) Posted: May 21, 2012 at 08:43 PM (#4137304)

So if you were running a 2% deficit before the recession, your argument would be that a 1% deficit (meaning a greatly reduced amount of nominal spending, let along real spending) should have been construed as "stimulus"?

I would say it's "stimulative", and an economist would define it that way, but a politician wouldn't call it a "stimulus". By the way, this is a very good reason for not running 2% deficits in non-recessionary times. It means that you have to run insane deficits when the recession hits, and few countries can do that (as we're seeing in Europe).

This is just not true, axiomatically. If you increase money spent on foreign aid, for instance, none of that impacts the US economy or stimulates job growth above the baseline.

If you spend it on unemployment benefits and other transfer payments--the things we were actually talking about--then yes it is stimulative.

If spending in nominal terms declines, in other words, it can still constitute an increase in the deficit.

Yes. Reducing taxes and increasing spending are both stimulative. That's why I said in 385 that I don't care about gross spending, I care about deficits.
   395. tshipman Posted: May 21, 2012 at 08:54 PM (#4137320)
Reducing taxes and increasing spending are both stimulative.


When you collect less money in taxes because people don't have jobs, that is not stimulative.



It means that you have to run insane deficits when the recession hits, and few countries can do that (as we're seeing in Europe).


Side note: that's not what we're seeing in Europe at all. In Europe we're seeing what happens when you cede control of your currency to people who are convinced that inflation caused Hitler.
   396. JE (Jason Epstein) Posted: May 21, 2012 at 08:57 PM (#4137321)
All it seemed to be to me was a fairly straightforward political sidebar story on an inside page, about on the same level of interest as those stories I've been reading about some black ministers in Prince George's County who oppose gay marriage but still support Obama. Do those stories have an "agenda", too?

IIRC, Andy, that pastor article appeared in the Metro section and, if nothing else, is based on a live controversy that will cost POTUS some votes in other states, such as North Carolina.
   397. Never Give an Inge (Dave) Posted: May 21, 2012 at 09:04 PM (#4137332)
When you collect less money in taxes because people don't have jobs, that is not stimulative.

If you keep spending the same amount even though you are taking in less in taxes, then yes it is stimulative. Again, it's not just about taxes or just about spending, it's about surpluses and deficits.
   398. Jolly Old St. Nick Done Jumped The Ship Posted: May 21, 2012 at 09:09 PM (#4137340)
IIRC, Andy, that pastor article appeared in the Metro section and, if nothing else, is based on a live controversy that will cost POTUS some votes in other states, such as North Carolina.

That's one article out of more than one that've appeared on the subject of the black church / gay marriage / conflicting emotions among some black churchgoers, and it likely had more effect being in the Metro section than inside the front section. Whether the gay marriage question will really cause more blacks to desert Obama than the number of fence-straddling gay moderates who might now be motivated to vote for him is a question I don't think we can answer at this point with any degree of certainty.

But on the broader issue of news coverage and the appropriateness of the coverage, the black church / gay marriage article was both an immediate news story and the sort of story that was roughly like the Romney piece. I don't think that either of them needed any particular justification to be published, since it takes more than just news cycle articles to make up a good newspaper.
   399. David Nieporent (now, with children) Posted: May 21, 2012 at 09:15 PM (#4137346)
Unemployment isn't stimulus. It's insurance.
That, let us say, is a heterodox view.

(Your dichotomy makes no sense; whether it's "insurance" has no bearing on whether it's stimulus.)
   400. tshipman Posted: May 21, 2012 at 09:16 PM (#4137348)
If you keep spending the same amount even though you are taking in less in taxes, then yes it is stimulative. Again, it's not just about taxes or just about spending, it's about surpluses and deficits.


I've never heard the term used this way. If you want to keep using it that way, that's fine, but you're having a different conversation about stimulus than the rest of the world.

Additionally, I'm not entirely clear what I'm arguing with you about. I'm arguing with David about whether or not Europe has undergone austerity. Am I arguing with you about that as well?

If so: you can say that any time you run anything other than a balanced budget, you're not undergoing austerity, but that uses a different understanding of the word than the rest of the world (edit: and I believe different from Mr. Nieporent in this thread). The rest of the world describes austerity in terms of budget decisions.
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