Voters Demand a Progressive Second Term Agenda

Nov 13, 2012Felicia Wong

As part of our series "A Rooseveltian Second Term Agenda," a call for progressives to seize the moment after Election Day.

As part of our series "A Rooseveltian Second Term Agenda," a call for progressives to seize the moment after Election Day.

Last week’s election results weren’t just a win for the president. Across the board, voters went to the polls and registered their support for progressive values, supporting needed tax increases, passing marriage equality for gay and lesbian Americans, and giving a candidate who ran on a platform of proactive government and a strong safety net a second term. The message was clear: despite an economy that continues to recover too slowly, the direction that progressives are taking the country in is the right one.

The polling we have done with Democracy Corps makes it plain – voters don’t want austerity or cuts in Medicare and Social Security. They want to fix the economy with long-term investments in infrastructure and a focus on jobs. And they want solutions – like raising taxes on the well-off and reforming the financial industry – that can raise the revenue to pay for it. As Hurricane Sandy made apparent, we need to update the country’s infrastructure, and we can put people back to work doing it.

So our job has just begun. Now is when we really have to roll up our sleeves and work to achieve an ambitious agenda. The politics won’t necessarily be much easier than they were over the last four years. But with a Democratic president, a Democratic majority in the Senate, and an electorate strongly behind us, progressives have an opportunity to seize over the next four years.

Over the next few weeks, Roosevelt Institute Fellows and staff will weigh in with their thoughts on what our national agenda should look like. While we might differ on some of the specifics, we all agree on basic values and goals: reducing inequality, creating jobs, kick-starting economic growth, building a community among the American people, and regaining trust in both the private sector through functioning markets and in the government and our political system.

On the eve of a second Obama term, and with some fundamental economic and political choices before us, we are proud to be in this historic moment together, Our goals are ambitious. We believe that our ideas can have real impact. As President Franklin Roosevelt put it 80 years ago, “The country needs and, unless I mistake its temper, the country demands bold, persistent experimentation.” Nothing could be truer of our times. Progressives must lead the way.

Felicia Wong is President and CEO of the Roosevelt Institute.

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Roosevelt Reacts: What Does Last Night Mean and Where Do We Go From Here?

Nov 7, 2012

President Obama won a second term. How did he get there? And what should he do now? Roosevelt weighs in.

Thomas Ferguson, Roosevelt Institute Senior Fellow, Professor of Political Science, University of Massachusetts, and Contributing Editor, AlterNet:

President Obama won a second term. How did he get there? And what should he do now? Roosevelt weighs in.

Thomas Ferguson, Roosevelt Institute Senior Fellow, Professor of Political Science, University of Massachusetts, and Contributing Editor, AlterNet:

Now that it’s over, it’s time to take stock. All counts are incomplete, but something like 116 million votes were cast. The presidential election alone cost about $2.6 billion, or a bit more than $22 dollars per vote. But that money wasn’t spread evenly over America; in battleground states like Ohio, the sums per voter were much larger. Now look at the exit polls in today’s New York Times. Yes, indeed, Obama did very well among women, Latinos, and African-Americans. But in sharp contrast to 2008, the partisan split along income lines is huge. Obama’s vote percentage declines in straight line fashion as income rises. He got 63 percent of the votes of Americans making less than $30,000 and 57 percent of those making between $30,000 and $50,000. Above $50,000, the Other America kicks in. Romney won 53 percent of the votes of Americans making between $50 and $100,000 and 54 percent of the votes of Americans making above $100,000. The Democrats’ poor showing in the House elections – they way under-performed for a party that had lost so many seats two years before – probably reflects a Republican advantage in money, including the famous Super PACs, some of which poured resources into congressional races. It was surely also affected by the White House’s reluctance to spend time and resources trying  to elect Democratic House candidates. As the president negotiates for a Grand Bargain in the face of the fiscal cliff, these are realities that are worth remembering

Jonathan Silverstone, Roosevelt Institute | Campus Network member and sophomore at Yale University:

In the months leading up to yesterday's reelection of President Barack Obama, both candidates said very little about a critical issue in the ongoing economic recovery: housing. Yet President Obama’s reelection can certainly provide affordable housing advocates hope in the face of some of the things Governor Mitt Romney had to say on the campaign trail. Eliminating the Department of Housing and Urban Development and scaling back key grant programs were just two of the possible policies a Romney administration may have enacted had he won the presidency. While this general direction for the federal government has been avoided, there is a larger issue at hand.

A report by the Institute for Children, Poverty & Homelessness demonstrates just how urgently we need a policy solution to the fundamental lack of affordable housing. It points to HUD figures that show a growing gap between low-income housing demand and current low-income housing stock during a time of increasing rates of homelessness in America. This gap reached 5.5 million units in 2009. The Obama administration must act to ensure demand for affordable housing is met and to assist low-income households in being able to afford this housing.

More immediately, the broad budget cuts constituting January’s scheduled sequestration present the president with a much more pressing housing issue. If Washington does not devise a budget compromise, multiple key housing programs that help fund public housing operations and provide rental assistance to low-income families stand to lose hundreds of millions of dollars. As America looks toward another four years of President Obama, and hopefully toward revamped policy that combines with market incentives to meet affordable housing demand, the lame duck Congress must work with the administration immediately to make sure crucial housing programs remain untouched before we hit the fiscal cliff in January. 

Tarsi Dunlop, member of the Roosevelt Institute | Pipeline in DC:

Now that the election results are in (well most of them are), we can start looking forward to the next four years. It is difficult to figure out where to start, but the first issue will be the rapidly approaching "fiscal cliff." We cannot bask in the glow of the election for long; we must protect the middle class from devastating cuts to essential programs and services. Beyond that, we must advocate for a federal budget that deals with our deficit in a responsible manner over the long-term; we are slowly recovering from the Great Recession, but progress is fragile and many American families are still suffering from unemployment (or underemployment). We cannot afford cuts that will undermine our gradual economic growth, growth that is by some estimates expected to produce 12 million more jobs over the next four years. Building, or in this case re-building an economy, takes time and we won’t turn back now.

This fall, President Obama asked the nation to give him four more years, to continue the work we started in 2008. Other issues that should be on the progressive agenda include protecting and expanding the social safety net for future generations, pursuing policies to reduce our impact on the environment in hopes of addressing the ever-growing threat of climate change (an issue rarely mentioned on the campaign trail), and advocating for responsible policies that will help our nation’s schools provide a quality education for each child. Our efforts to invest in the middle class continue and as we implement the Affordable Care Act, we know we won’t need to defend it against potential attacks from a Romney administration. By 2014, more Americans will feel the benefits of the president’s signature domestic achievement.

President Obama, and the progressive community as a whole, will find powerful allies in the United States Senate come January with Tammy Baldwin’s election as the first openly gay U.S. Senator and Elizabeth Warren’s win in Massachusetts. Indeed, the Bay State has sent another liberal lion to the Senate floor to advocate for policies that help working and middle-class families. These voices will defend a woman’s right to choose and make decisions about her own body. As progressives, we believe in inclusivity and justice for those of all backgrounds, and they will stand for those with no lobby. They will challenge the influence of oil companies and large corporations.  They will push the discussions we should have when it comes to governing and the role of government. It is time to continue that discussion.

However ambitious we are, we must recognize that the work will go on long after President Obama leaves office. The young people who once again broke sharply for the incumbent understand this reality and are rising to the challenge. Although Millennials are faced with dim job prospects, less security in their retirement, and in many cases, high levels of student debt, they are community oriented and civically engaged. They care about the vulnerable children as child hunger rates remain stubbornly high; they care about the dignity and security of our seniors and the mental and physical health of our veterans. They care about our infrastructure and want to see us investing in our nation’s roads, water pipes and public transportation. In 2008, when then-Senator Barack Obama said “Yes We Can,” he meant we, the people. As one man, he (and U.S. presidents before and those to come) cannot create change. We must work toward that change, over the next four years and the next four decades in our communities and local governments. The question we are asking now, one that we should also ask of ourselves, is: what’s next?

Melia Ungson, Roosevelt Institute | Campus Network Northeast regional coordinator and student at Yale University:

Last night, I breathed a sigh of relief instead of jumping for joy (though, admittedly, there were shouts of excitement). Watching results from other races and ballot initiatives come in, I was similarly relieved to see voters in so many places support candidates and ballot measures to protect equal rights, which will hopefully elevate the discourse.  

Even though I go to school in Connecticut, which had a close senate race, I vote in California, largely because of the propositions, which are often close. In a state known recently for its budget issues and gridlock in the state legislature, the propositions serve as an alternate route for voters to address issues directly. Last night, California voters narrowly approved Prop 30 to help fund education and approved Prop 36 to reform the three strikes law, both exciting victories. However, voters failed to approve Prop 34 to repeal the costly and archaic death penalty and Prop 37, which would require the labeling of genetically engineered foods. California prides itself on being a forward-thinking state at the forefront of technology, environmental policy, and social equality, but voters do not always reflect this with propositions.

With all these election results, good, bad, mixed, or still to be decided, the pressure is on to start getting things done. I was excited that Obama alluded to issues like climate change and LGBT rights in his speech last night, and am hopeful that he and other re-elected or newly elected representatives will make progress on these and other issues come January. Our job as Millennialis is to continue to drive meaningful discourse, continue to put forth our own ideas on how best to work toward a stronger future, and ensure that issues important to young people don't fall by the wayside. 

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What Do We Get Out of Government?

Oct 25, 2012

"Let us not be afraid to help each other -- let us never forget that government is ourselves and not an alien power over us." FDR said those words in Marietta, Ohio in July 1938, but it's just as relevant today. As conservatives continue to deride every attempt to create progressive change through government as an oppressive socialist takeover, we need to remember that government is nothing more or less than an expression of common initative -- a forum through which we come together to build the things we need to make our country stronger.

"Let us not be afraid to help each other -- let us never forget that government is ourselves and not an alien power over us." FDR said those words in Marietta, Ohio in July 1938, but it's just as relevant today. As conservatives continue to deride every attempt to create progressive change through government as an oppressive socialist takeover, we need to remember that government is nothing more or less than an expression of common initative -- a forum through which we come together to build the things we need to make our country stronger. In the video below, the Roosevelt Institute's Rediscovering Government Initiative looks at the government's vital role in every facet of society, from encouraging innovation to defending our shores, and at what we can still achieve if we're willing to dream big.

Click here to find out how you can get involved in the Rediscovering Government Roadshow.

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Mythbusters: The Rediscovering Government Edition

Oct 22, 2012

We all know the conservative talking points about government: Big government impedes growth. Social Security is going bankrupt. We need to balance the budget. We've had the idea that government is an economic albatross drilled into our heads through decades of repetition. The problem is, it's just not true.

We all know the conservative talking points about government: Big government impedes growth. Social Security is going bankrupt. We need to balance the budget. We've had the idea that government is an economic albatross drilled into our heads through decades of repetition. The problem is, it's just not true. Check out this new booklet from the Rediscovering Government Initiative to get the facts, plus an illustrated timeline of the government's role in shaping the economy and more information on how you can get involved in Rediscovering Government. Click here to view the booklet in magazine layout.

 

Capitol image via Shutterstock.com.

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Despite a Strong Debate, Obama Remains Vulnerable on the Economy

Oct 18, 2012Jeff Madrick

The president found his voice in the second debate, but he still needs to make a clearer case for the progress he's made.

There has been entirely too much celebrating about President Obama’s debate performance on Tuesday. He did very well, without a doubt. He won hands down. He didn’t get into the ring cold, and he showed that he knew his stuff—and that Romney really didn’t.

The president found his voice in the second debate, but he still needs to make a clearer case for the progress he's made.

There has been entirely too much celebrating about President Obama’s debate performance on Tuesday. He did very well, without a doubt. He won hands down. He didn’t get into the ring cold, and he showed that he knew his stuff—and that Romney really didn’t.

But the economy remains the ace in the hole for Romney and Ryan. We haven’t nearly recovered in terms of jobs, and that’s a tough fact to slide by. The unemployment rate rose rapidly in Bush’s last term to around 8 percent, then peaked in 2009 at 10 percent and slowly came down to its current level. So we are only back to the start of the Obama term. No one ever won the presidency with a 7.8 percent unemployment rate. And we know, as Romney keeps reminding us, that median family income is awful and that poverty is up.

Everyone knows this, and yet Obama did not have a good enough explanation of how much progress has been made. He sounded defensive. So Obama needs a strong, non-defensive explanation of his achievements, and one way to put it is what would have happened had Romney won the presidency in 2008. You’d have a 10 percent unemployment rate with Romney as president. Poverty would be way up. He’d be blaming Social Security and Medicare for all his problems, and he’s find economists to claim he was right. They might already be cutting these programs forever “in order to save them.” It’s triage -- throw the elderly out of the boat and let everyone else eat the rations. People would be poorer. They would get less health care. Those in poverty would have fewer benefits. Is that the kind of America you want?

Odds are that Romney, if he put the Romney-Ryan plan into effect, would create a bigger deficit, too. That’s actually what we need, but a deficit based on tax cuts will create few jobs. (EPI ran some numbers based on Mark Zandi's multipliers.) And if Romney did close the many tax holes he promises to, recession is almost guaranteed even as your taxes rise.

This concept is tough to communicate in a credible way. It just sounds like economists bickering. But there is a record out there: George W. Bush’s. His central economic policy was tax cuts for the rich, and he produced the slowest job growth of any president since the Depression. Romney will do that again. Promise.

Obama has to be clear: He stopped a depression. He is getting the housing market to come back after the worst devastation since the early 1930s. Employment stopped falling. But he shows hesitation in critical areas. Will he protect Social Security and Medicare? If so, then say so. The other guys will cut it, even gut it. But is he vacillating too much here. The talk about Dodd-Frank doesn’t win him many points because most of America thinks the banks got away with murder. He needs a better way of talking about that. As for Obamacare, he is talking about its good points, but he needs to be bolder still. List them all, and list them fast.

And when he says Romney is lying, which is a deliberate motif of the Republican game plan, don’t say he lied with a smile. Say, "It makes me very sad and disheartened when the governor misleads the American people. It is unfair to you voters. And when challenged, my opponent will come back and tell you again, that’s not what his program is, or he never said that. Be proud of your claims, Governor Romney; don’t back off them to win over some in the middle of the pack. Tell them where you really stand."

Finally, it is critical to be constructive about the uses of government. Tell America the only way the country will succeed and the economy will remain prosperous is if we bring everyone with us. Every American must be able to contribute to the economy with a good education and good health. Every region must have good, dependable transportation. Every part of America must breathe clean air. Government can do that.

Unfortunately, there is no third debate about domestic matters since the next one is on international events. But I bet we get back to the economy in the third debate. I hope so. Democrats have to realize that every time Romney says "just look at the record," they are behind the eight ball. Obama needs a very clear, persuasive statement about how bad the economy was in 2009 and how much he did. He stopped the bleeding. The patient was in the hospital. Who put him there? The Republicans, with the same plan Romney is offering today. The patient is resuscitated. Jobs are coming back. The housing market has turned the corner. Everyone is still getting Social Security and Medicare. And now 30 million more will have health insurance. 

Oops, I've already said all this. Sorry, readers. But why do I have to keep repeating it?

Roosevelt Institute Senior Fellow Jeff Madrick is the Director of the Roosevelt Institute’s Rediscovering Government initiative and author of Age of Greed.

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“We’re All in This Together” vs. “You’re on Your Own” Government

Oct 15, 2012Elizabeth Stokes

As the Roosevelt Institute | Campus Network begins work on building a Government By and For Millennial America, Elizabeth Stokes defends the idea of government as a steward of the common good.

As the Roosevelt Institute | Campus Network begins work on building a Government By and For Millennial America, Elizabeth Stokes defends the idea of government as a steward of the common good.

Despite no specifics on how they will slash taxes and also balance budgets, it is clear that the Romney-Ryan budget plan follows an ideology we've seen before. Seeking to block grant Medicaid and voucherize Medicare, the Ryan budget, endorsed by Romney, fundamentally warps the meaning and purpose of the social safety net. This ideology views government as important not for guaranteeing the collective success of all, but for protecting the individual’s right to make his own success. It views government as important not for creating a framework that meets the needs of all citizens, but for supporting and responding to the needs of the market. And it sees government, if it must offer public provisions, as an entity that works best when its services are farmed out to the private sector.

But this view of government completely ignores its role as steward of the common good. To see why this role is so important, just take a look at the recent financial crisis. It has shown us that macroeconomics is more complex and more unpredictable than our economics textbooks would have us believe. Restricting government’s scope as the precondition of a “freely” functioning market is not enough to make the market provide effectively and justly for all. As the Census Bureau recently reported, even though GDP has grown, 2011 saw huge income gains for the top 5 percent of income distribution, declines for the middle, and stagnation at the bottom. Evidently, the market alone cannot allocate resources in a way that a just democracy demands, nor can it be relied upon to stably ensure the wellbeing of our most vulnerable.

But this is the problem with the Romney-Ryan ideology: it completely misunderstands what a just democracy demands. As Jeff Weintraub puts it, the democratic ideal requires active participation in collective decision-making, carried out within a framework of fundamental solidarity and equality. The Romney-Ryan ideology severely jeopardizes this ideal. How can democracy be fully realized if 47 percent of citizens are viewed exclusively as rapacious moochers and not as fundamental equals in a shared political community? How can self-governance be possible when we fail to guarantee a fundamental baseline for all and let market-generated inequalities distort political equality?

The fundamental equality democracy requires cannot be satisfied by a handful of political rights (not that these mean much anyway given voter suppression efforts). Rather, government must also guarantee what T.H. Marshall would refer to as the social elements of citizenship: equal access to basic essentials that relieve people from the constant struggle for survival and thus provide them with the time and energy to participate in political society as engaged citizens. These basic essentials are not simply an assortment of handouts for the destitute, but are universal and based on generally shared rights of citizenship (the 96 percent know what I’m talking about). Ensuring such a baseline enables us to do away with the artificial distinctions of makers or takers, and instead binds us in a community of mutual sacrifice and success. 

Guaranteeing these social elements of citizenship also entails containing the market and money’s influence so that a person’s life chances and engagement with democracy are not exclusively determined by market position. It is therefore important to have non-market institutions, such as government, direct the market in order to uphold the common good and redress market-generated inequalities. This does not simply mean redistribution policies that tax the rich and give to the poor – after the fact mop-ups via social spending are not enough to make up for the disempowering processes that lead to market-generated inequalities in the first place. Rather, we must also focus on predistribution, i.e. the way in which the market distributes its rewards to begin with (such as regulations that protect consumers and empower workers).

The concept of government as steward of the common good recasts its role in society, seeing it less as a third entity that runs alongside the market economy and the private household but more as a force in the service of the common good that is prior to both and directive of each. Government should act as the framework that both enables and is subject to democratic decision-making in society. It should ensure all people have the minimum they need to participate and engage as citizens and its fundamental direction should be shaped by public voice and societal goals that are collectively and consciously decided.  

Ryan lauds choice, competition, and self-sufficiency as the pillars of his social safety net, implying that marketization will enhance liberty as well as efficiency. However, these words are pure rhetoric and pretense. By putting the market in charge of the common good, he would fundamentally transform basic welfare goods, which are shared in common by all citizens, into commodities, which are bought by individual consumers in a volatile marketplace. While the ethos of social insurance is “we are all in this together, rain or shine,” marketization says to the citizen “here’s some money, you’re on your own.” The Romney-Ryan ideology not only severely undermines one of the most important pillars of government, but also bars those subsets of the population who are reliant on government benefits from the democratic community. 

Elizabeth Stokes is a Working Group Fellow for the Roosevelt Institute | Campus Network's national initiative, Government by and for Millennial America, and a senior at the University of Pennsylvania.

 

Teamwork image via Shutterstock.com.

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Still No Straight Answers on Social Security

Oct 12, 2012Tim Price

After two debates, progressives are left with more questions than answers about the fate of one of our most important social programs.

After two debates, progressives are left with more questions than answers about the fate of one of our most important social programs.

It’s been a few decades since then-House Speaker Tip O’Neill first referred to Social Security as “the third rail of American politics,” but judging from the way the candidates in this election have avoided the subject, it still has plenty of juice left. There was a brief dust-up last fall when Rick Perry claimed the program was a Ponzi scheme, but his subsequent flameout in the Republican primaries was so spectacular that the details were quickly forgotten. Since then, most of the focus has understandably been on Paul Ryan’s plan to turn Medicare’s guaranteed benefit into a voucher that grandma and grandpa can add to their coupon clippings. If we’re really lucky, sometimes we even get to debate the wisdom of dismantling Medicaid. But in the last two debates, the candidates have made statements about Social Security that raised more questions than they answered and suggested that the program’s future may be in doubt regardless of the election’s outcome.

Aside from the fact that President Obama seemed to have downed an entire bottle of Nyquil before his first debate with Mitt Romney, one of progressives’ biggest gripes about his performance concerned his decision to take Social Security off the table. “You know, I suspect that, on Social Security, we’ve got a somewhat similar position. Social Security is structurally sound,” Obama said last Wednesday, adding that “It’s going to have to be tweaked” but “the basic structure is sound.” That raises two questions: First, do they actually agree, or was Obama overcome by the spirit of compromise that sometimes compels him to give his opponents the benefit of the doubt when they’ve done nothing to earn it? Second, and perhaps even more importantly, exactly what sort of “tweaks” would the candidates support?

Sadly, we didn’t learn the answers to either of these questions, since moderator Jim Lehrer is allergic to follow-ups, but commentators on the left have hazarded a few guesses, and most of them aren’t very optimistic. Writing at The American Prospect, Robert Kuttner makes one of the stronger cases for why we should worry about Obama’s commitment to preserving Social Security benefits. He notes that Romney has pledged no changes to Social Security for those in or near retirement, which carries the unsubtle implication that everyone else is probably screwed. But Kuttner argues that instead of going on the attack, the Bowles-curious Obama “is softening up public opinion to accept very similar cuts” and “giving away what should be one of the clearest differences with Romney.” Dean Baker concurs that “tweak is a code word used by people who want to cut Social Security but lack the courage to say it explicitly.”

While it might be safer to assume the worst, it would be more charitable to read Obama’s comments as an acknowledgment that there are policy tweaks that would genuinely strengthen Social Security. Jeff Madrick provides a good overview of some ways we could extend the program’s solvency without reducing benefits or raising the retirement age. He also notes that Social Security is in no real danger and that fixing its finances is a fairly easy task, even though it’s often lumped in with Medicare and Medicaid as part of an all-encompassing “entitlement crisis.” But raising the cap on payroll taxes doesn’t seem to be the type of tweaking Romney has in mind, and even with no changes the program is projected to pay out full benefits for another 21 years. So why wouldn’t Obama choose to heighten the contrasts instead of conceding the argument before it’s begun?

That question only became more urgent at last night’s vice presidential debate, as Paul Ryan defended his support for privatization. Responding to moderator Martha Raddatz’s comment that “Medicare and Social Security are going broke” (they’re not), Ryan agreed that “these are indisputable facts” (see above) and argued that “if you reform these programs for my generation, people 54 and below, you can guarantee they don't change for people in or near retirement.” Well, that’s great for them, but what does it mean for the rest of us who were sort of planning on growing old one day?

Ryan, who once derided Social Security as a “collectivist system,” is the author of a failed plan that would have transferred some Social Security funds into private investment accounts (more on that in this great piece by Mike Konczal and Bryce Covert). Last night, Ryan again claimed that privatization would “let younger Americans have a voluntary choice of making their money work faster for them,” whatever that means. It’s certainly true that if his plan had come to fruition after he originally proposed it in 2004, their money would have disappeared a lot faster during the financial crisis. Luckily, that proposal became so toxic when President Bush tried to pass it that his own party wouldn’t allow it to come to a vote. That’s probably why Ryan took care to point out that Mitt Romney doesn’t support such a plan. Instead, Romney wants to “slowly raise the retirement age over time,” an extremely regressive policy that would disproportionately hurt the poor people who most depend on Social Security. What a relief.

Biden offered a much stronger contrast on Social Security than Obama did, but he still left some questions unresolved. He stated clearly and firmly that the Obama administration would not privatize Social Security, which is the least we can expect from a Democrat given that the public version is one of his party’s greatest legislative achievements. He also argued that “to cut the benefits for people without taking other action you could do to make it work is absolutely the wrong way,” which is more reassuring but still leaves the administration some wiggle room to accept cuts as part of a Grand Bargain™. It’s certainly a weaker promise than the one he made in August, when he told supporters, “I guarantee you, flat guarantee you, there will be no changes in Social Security” if President Obama is reelected. Thanks, Mr. Vice President, but is there any chance we can get that in writing?

If Social Security wasn’t so essential -- if it didn’t lift millions of elderly people out of poverty, offer peace of mind to all Americans in their retirement, or provide critical survivors benefits that Ryan acknowledges his own family received – it might be easier for progressives to accept this kind of hedging as part of the vagaries of messaging in an election year. But Social Security really is that important, and it has powerful allies arrayed against it in Washington who make little secret of their desire to take an axe to the program. It deserves to have an equally powerful and committed advocate defending it in the White House. It’s clear that Mitt Romney won’t fill that role, especially after he chose the architect of privatization as his running mate and heir apparent. Barack Obama still could, but progressives will have to convince him that there’s no room for ambiguity.

Tim Price is Deputy Editor of Next New Deal. Follow him on Twitter @txprice.

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Obama Failed to Defend Government from Romney's Bluster

Oct 4, 2012Jeff Madrick

Obama failed to defend his policies or the positive role of government. But next time he'll be ready.

President Obama lost the dabate. A night’s bad sleep did not change my mind about that. But let’s be clear that, if more relaxed and clear, Romney was the same as ever. There is no new Romney. He dissimulated, did not address details, and refused to answer what few charges Obama brought up.

Obama failed to defend his policies or the positive role of government. But next time he'll be ready.

President Obama lost the dabate. A night’s bad sleep did not change my mind about that. But let’s be clear that, if more relaxed and clear, Romney was the same as ever. There is no new Romney. He dissimulated, did not address details, and refused to answer what few charges Obama brought up.

He opened with a brilliant debating tactic—really a war tactic: open a second front and retreat on the first one. Romney tacked to the middle. No, he won’t cut any taxes he can’t pay for. No, it isn’t a $5 trillion plan. Obama wasn't ready and didn't seem able to adjust. But what is the Romney policy? He never said. More upsettingly, Obama noticed but never truly pressed him on it. 
 
In fact, Romney's is the same old George W. Bush policy, and it didn’t work then. Obama got to this point, too, but didn’t bring it home strongly enough. Job growth was the slowest under Bush of any other postwar president. Obama said it. Doesn’t anyone remember his saying it? But Romney dissimulated again, because he can’t pull this grand four or five point strategy off, just like he couldn't pay off his original tax cut program. Obama could have asked him how much he plans to cut tax rates. He would have dodged it, but in dodging it he would have looked more like the old Romney than the new, bold Romney. Obama could have pressed harder on the details of closing loopholes. He didn’t.
 
Romney ignored the facts time and again, a tried and true debating technique. Obama pointed out that in a Medicare voucher program with choice, the insurance companies will steal the elderly who are healthy and raise costs for Medicare, jeopardizing its future. Romney simply ignored the point and went on to say, as if Obama said nothing, that Medicare would still be there under his voucher program and if it worked better, it would stand. 
 
In his attacks on the role of government, he persistently said the private sector can do better. But private sector health care costs have risen faster than Medicare. Why is that? He pushed the old ideological sticking points. Government is bad, private enterprise good. No facts, mind you. Just shibboleths. Keep the federal government out of health care. Give it to the states. Should we keep the federal government out of Social Security and Medicare, too—both very popular programs?
 
But if Romney’s bluster was strong, Obama lost the debate more than Romney won it. He seemed incapable of defending Obamacare. He couldn’t even counter the alleged Medicare theft of $716 billion well. He didn’t defend his green investments. Ninety billion dollars is not much when you consider Japan will probably spend nearly $500 billion on renewables. He only passingly defended his stimulus bill, repeating the error of neglect he has made for most of his administration. In fact, he hardly defended his record at all, for fear it reminds people that unemployment is stil high, as is the deficit. The point is they'd both be higher under a Romney plan.  
 
And what of the policies for 2013? Where was talk of Obama's American Jobs Act? Why not say that Romney’s policies will bring you a recession, sure as you’re sitting there?
 
And what about bipartisanship, of which Romney bragged during his governorship in Massachusetts? Could Obama have pointed out that he couldn't deal with Republicans who proclaim their first priority is to stop his reelection? Did any prominent Massachusetts Democrats threaten Romney that way?
 
Now, the media will start analyzing the Romney promises, and therein will lie some justice. He won’t be able to defend them except in the same general, non-detailed ways. The Democrats have to counter-attack. There will be plenty of room to do so. 
 
And one other point: I think Obama will be ready next time. He went into the ring cold. Every boxer knows you have to warm up and break a sweat before the first bell. I think he learned. He almost got knocked out in the first round. Not again, I don't think. 
 

Roosevelt Institute Senior Fellow Jeff Madrick is the Director of the Roosevelt Institute’s Rediscovering Government initiative and author of Age of Greed.

 

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The Recession Ends. Then What?

Sep 24, 2012

It may be hard to imagine, but (we all hope, anyway) some day the recession and meager recovery period will come to an end. At that point, will the debates we're having now about the economy become completely irrelevant? What will we have to fight about? Roosevelt Institute Fellow Mike Konczal and EPI's Josh Bivens took this question on in the latest Fireside Chats episode on Bloggingheads:

It may be hard to imagine, but (we all hope, anyway) some day the recession and meager recovery period will come to an end. At that point, will the debates we're having now about the economy become completely irrelevant? What will we have to fight about? Roosevelt Institute Fellow Mike Konczal and EPI's Josh Bivens took this question on in the latest Fireside Chats episode on Bloggingheads:

As Mike points out, "Right now the debates seem very focused on things very specific to this recession," such as what the Federal Reserve could do to make things better or whether we should reduce mortgage burdens to boost consumption. Those are "very technical and very important debates to be having," he points out, "but they’re very narrow to the moment we’re in right now." Once we one day leave these issues behind, what will liberals decide to promote? And will we all be able to get on board?

The first issue Josh sees rearing its head is what we consider the "natural" rate of unemployment to be. Right now it's pretty obvious that unemployment is too high. At what point does it fall so much that some people, including the Fed, start to say it shouldn't go any lower? This question will have larger implications as well. As Mike says, "You see policy experts running around trying to figure out how to boost the wages of the lower quintile, but we know what has done it in the past 30 years, and it’s when unemployment is below 5 percent for a sustainable period of time." In fact, he says, a low unemployment rate "is the ultimate jobs program, it is the ultimate policy solution," and boosts wages for everyone -- not just those at the bottom.

What else will we squabble over when the economy once again booms? Bivens predicts social insurance programs -- Social Security, Medicaid, and Medicare -- will have to be on the agenda. And related to that will be just how high we can go with tax rates on the rich. "Obviously you can have a fairness argument and a just deserts argument, but the economic case is pretty clear that [tax] rates [on the wealthier] could go much higher," Mike says. "But we’re seeing resistence to just getting to near 40 percent at this point." Brace yourself, political battles are coming.

Watch the full episode below, in which Mike and Josh discuss how little we all take home and whether inequality and the social safety net have anything to do with it:

 

Crossroads image via Shutterstock.com.

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The Romney-Ryan Medicare Plan is Bad for Students and Seniors

Sep 21, 2012Rahul Rekhi

Shifting health care costs onto seniors will break a social compact that all Americans rely on.

Shifting health care costs onto seniors will break a social compact that all Americans rely on.

With Election Day finally in sight, the last few weeks have been brimming with slogans, speeches, and sound bites. But while Republicans and Democrats are working from a similar playbook, there’s a gaping chasm between their competing visions of the social safety net, and the future of Medicare hangs in the balance. In short, the Republicans claim their voucher plan would reduce health care costs, but the truth is that the seniors who depend on Medicare would be forced to pay the price.

The policy clash boils down to a single notion: vouchers. Mitt Romney and Paul Ryan are proposing a voucher-based Medicare system—one in which seniors are given vouchers to trade for insurance plans on a national exchange or market. The value of these vouchers is capped at a specific value, with the aim of curbing rising health care costs. And in fact, it is completely true that the Romney-Ryan voucher system will reduce Medicare costs, as promised. But it will do so by pushing those expenses onto Medicare enrollees, by forcing them to pay more out of pocket to cover their medical expenses as health care costs rise. What the GOP is proposing, in other words, is not exactly cost-cutting, but rather cost-shifting from government to seniors. If the yearly national allowance of vouchers has expired and your heart begins to fail, well, at least take solace in the fact that Mr. Ryan’s plan lowers Medicare costs by 20 percent.

If you’re only looking at the arithmetic, voucherizing Medicare is a clear and easy solution to bending the health care cost curve. Unlike, say, prevention and wellness campaigns, it’s not hard to project the level of cuts such vouchers will allow for. But this policy simplicity and straightforwardness mask an equally straightforward truth. Rather than attempt to extract amorphous, messy savings through biomedical innovation, electronic records, waste reduction, comparative effectiveness research, or incentivizing quality of care—in other words, achieving collective savings through progressive reforms—Romney and Ryan propose to gut Medicare and hand senior citizens the entrails. And this is hardly hyperbole; the nonpartisan CBO itself stated that the plan “could lead to reduced access to health care; diminished quality of care for Medicare beneficiaries…[and] less investment in new, high-cost technologies.”

That’s not to say that changes to the structure of Medicare are not needed, or will not require tradeoffs; they will. Real discussions, for instance, will have to be had over such hot-button topics as end-of-life care, or limits on the use of expensive, clinically unproven medical technologies. Refinements to these policies would bring Medicare into the 21st century, making it more nimble and in tune with technological advancement and social change. But they also preserve its central guarantee: that our nation’s retirees, having put in a lifetime of hard work and civic service, will receive quality, affordable health care to support them through their later years.

Fifty years ago, with the creation of Medicare under LBJ, thousands of soon-to-be enrollees—aunts, uncles, professors, my friends’ parents and my own—grew up trusting in this promise. And though, as a student, it will be nearly half a century before I qualify for the program, I recognize all too well the gravity of the decision we now face. It is one, after all, that will be borne most heavily by my peers, since the costs that are shifted to seniors today will be thrust upon us tomorrow as health care costs continue to rise. And young Americans will feel the consequences of voucherization well before we reach the age of eligibility, for the security that Medicare provides allows us to take risks when we're younger, to try to create the next Facebook or Instagram, rather than play it safe for fear that we'll be left destitute or denied care in our later years. To chip away at the heart and soul of our social safety net is, in a sense, to hinder innovation itself.

Ultimately, the choice we face is simple: to uphold this mandate or reject it fundamentally; to maintain the promise of health care access for our elderly or begin chipping away at the coverage we provide in the name of budget-balancing. This debate is about a decades-old American social compact, and its effects will reverberate, shaping the futures of not only my own generation but also the ones to come. For the health of our citizens and our safety net, there is only one right answer.

Rahul Rekhi is a student at Rice University and the Senior Fellow in Health Care Policy for the Roosevelt Institute | Campus Network.

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