Tuesday, May 1, 2012

In the Land of the Lost - The Rethug Deficit-Reducing Liar and Fraud of the Moment: Paul Ryan - The Giant Reality Killer (Fooling the Fools Who Want To Be Fooled Again)


In fact, with the possible exception of anti-tax activist/Bond villain Grover Norquist, nobody has done more in recent years to prevent the passage of a bipartisan debt agreement than Paul Ryan.

Paul Ryan only impresses those who know little about economics, but much about politics. And mainly those on the right wing who are already taken with the Murdochian world view of everything for the wealthy and nothing for the poor (call it the new Catholic view, if you like, although most of its adherents are not Catholic). Ryan has an undergraduate education in Political Science and took some Economics courses (I hope he took more than one although that would go a long way to explaining his ignorance), which he evidently didn't understand.

He's the Murdoch Faux News candidate this time around, and hopes you buy his wide-eyed smiling know-nothing, non-deficit-reducing spin, which is only his lead-off idea. (Keep saying to yourself whenever you hear their marketing drivel, "They do not care about the deficit; only tax cuts for the wealthy.")

Because it will wreck your life. From New York Magazine:

Whether Ryan’s plan even is a “deficit-reduction plan” is highly debatable. Ryan promises to eliminate trillions of dollars’ worth of tax deductions, but won’t identify which ones. He proposes to sharply reduce government spending that isn’t defense, Medicare (for the next decade, anyway), or Social Security, but much of that reduction is unspecified, and when Obama named some possible casualties, Ryan complained that those hypotheticals weren’t necessarily in his plan. Ryan is specific about two policies: massive cuts to income-tax rates, and very large cuts to government programs that aid the poor and medically vulnerable. You could call all this a “deficit-reduction plan,” but it would be more accurate to call it “a plan to cut tax rates and spending on the poor and sick.” Aside from a handful of exasperated commentators, like Paul Krugman, nobody does.

The persistent belief in the existence of an authentic, deficit hawk Ryan not only sweeps aside the ugly particulars of his agenda, it also ignores, well, pretty much everything he has done in his entire career, and pretty much everything he has said until about two years ago.

In 2005, Ryan spoke at a gathering of Ayn Rand enthusiasts, where he declared, “The reason I got involved in public service, by and large, if I had to credit one thinker, one person, it would be Ayn Rand.” Ryan has listed Rand’s manifesto, Atlas Shrugged, as one of his three most often reread books, and in 2003, he told The Weekly Standard he tries to make his interns read it. Rand is a useful touchstone to understand Ryan’s public philosophy. She centered libertarian philosophy around a defense of capitalism in general and, in particular, a conception of politics as a class war pitting virtuous producers against parasites who illegitimately use the power of the state to seize their wealth. Ludwig von Mises, whom Ryan has also cited as an influence, once summed up Rand’s philosophy in a letter to her: “You have the courage to tell the masses what no politician told them: You are inferior and all the improvements in your condition which you simply take for granted you owe to the effort of men who are better than you.”

Ryan now frequently casts his opposition to Obama in technocratic terms, but he hasn’t always done so. “It is not enough to say that President Obama’s taxes are too big or the health-care plan doesn’t work for this or that policy reason,” Ryan said in 2009. “It is the morality of what is occurring right now, and how it offends the morality of individuals working toward their own free will to produce, to achieve, to succeed, that is under attack, and it is that what I think Ayn Rand would be commenting on.”

 Ryan’s philosophical opposition to a government that forces the “makers” to subsidize the “takers”—terms he still employs—is foundational; the policy details are secondary.

This recently became a political problem when Catholic bishops denounced his budget, with one singling out “his favorite philosopher, Ayn Rand.” Last week, Ryan told National Review that he is not an Objectivist, which of course he is not. Objectivists adhere to the full spectrum of Rand’s eclectic beliefs. (Ryan: “I reject her philosophy. It is an atheist philosophy.”) But the thrust of the liberal Catholic critique didn’t center on Rand’s atheism. Where Rand has gained a following among mainstream conservatives like Ryan is her vision of capitalism and class.

Like many Rand devotees, Ryan gravitated to the supply-side-economics wing of the Republican Party, which furnished an economic rationale for policies to which they were already morally sympathetic. The supply-siders remade the Republican Party, replacing its traditional emphasis on balanced budgets with a relentless obsession with cutting tax rates, especially for the most affluent. Reducing taxes, they believed, could unleash untold prosperity; some, like Ryan’s mentor Jack Kemp, even considered spending constraints utterly unnecessary. “I learned economics working for Jack Kemp,” Ryan said in 1999.

Ryan has, retroactively, depicted himself as a dissenter from the fiscal profligacy of the Bush administration, and reporters have mostly accepted his account at face value. (“Ryan watched his party’s leadership inflate the deficit by cutting tax rates like Kemp conservatives while spending like Kardashians,” wrote Time last year.) In reality, Ryan was a staunch ally in Bush’s profligacy, dissenting only to urge Bush to jack up the deficit even more.

“We noticed that the green-eyeshade, austerity wing of the party was afraid of class warfare,” Ryan said during Bush’s first term. “They fear increases in the debt, and they were overlooking issues of growth, opportunity, and free markets.” For those uninitiated in the tribal lingo of Beltway conservatives, this may sound like gibberish. But those inside the conservative subculture invest these buzzwords with deep meaning. “Green eyeshade” is a term of abuse appropriated by the supply-siders to describe Republicans who still cared more about deficit control than cutting taxes.

“Growth” and “opportunity” mean tax cuts that disproportionately benefit the rich, and “class warfare” means any criticism thereof. Ryan’s centrist admirers hear his frequent confessions that both parties have failed as an ideological concession. What he means is that Republicans were insufficiently fanatical in their devotion to cutting taxes for the rich.

In 2001, Ryan led a coterie of conservatives who complained that George W. Bush’s $1.2 trillion tax cut was too small, and too focused on the middle class. In 2003, he lobbied Republicans to pass Bush’s deficit-­financed prescription-drug benefit, which bestowed huge profits on the pharmaceutical and insurance industries. In 2005, when Bush campaigned to introduce private accounts into Social Security, Ryan fervently crusaded for the concept. He was the sponsor in the House of a bill to create new private accounts funded entirely by borrowing, with no benefit cuts. Ryan’s plan was so staggeringly profligate, entailing more than $2 trillion in new debt over the first decade alone, that even the Bush administration opposed it as “irresponsible.”

When Democrats took control of Congress in the 2006 elections, they reimposed a budget rule requiring that any new spending or tax cuts be offset by new revenue or spending cuts. Ryan opposed it, preferring to let new spending or tax cuts go on the national credit card. Instead, he continued to endorse Bush’s line that tax cuts were leading us to a glorious new era of prosperity and budget balance. “Higher revenues flowing into the Treasury, as a result of economic and job growth, have given us a real chance to balance the budget,” Ryan announced in 2007. “The president’s budget achieves the important goal of balancing the budget in the near term—without raising taxes,” he wrote in August 2008.

Since Obama took office, Ryan has changed his position on the value of economic stimulus. In 2001, and again in February 2008, he (along with nearly everybody in both parties) endorsed temporary tax cuts in the face of economic downturns. He has since embraced hoary, previously obscure Austrian economic doctrines that warn against putting too much money back in the pockets of citizens suffering through a recession.

Yet Ryan has not altered his opposition to green-eyeshade fiscal conservatism. In 2010, Ryan was a member of a bipartisan committee, chaired by Erskine Bowles and Alan Simpson, to formulate a plan to reduce the deficit, but voted against it. (The plan included a tax increase.) Last year, another, informal bipartisan collection of senators released an agreement for a wide-ranging plan to reduce the deficit, combining lower spending with a tax-reform plan designed to increase revenue. It seemed to be gaining momentum quickly until Ryan attacked it, thus dropping what a Republican Senate aide called a “bomb” that blew apart Republican support for the plan.

In fact, with the possible exception of anti-tax activist/Bond villain Grover Norquist, nobody has done more in recent years to prevent the passage of a bipartisan debt agreement than Paul Ryan. And yet, incredibly, Ryan has managed to position himself as the nation’s foremost spokesman for the cause of bipartisan deficit reduction. Possibly his favorite accusation against Obama, one he repeats day after day, is that he failed to openly endorse the Bowles-Simpson plan. Thus Ryan regularly holds forth on this subject in a way that seems genuine and even admirable to his audiences but, to anybody who happens to recall his actual role in these events, utterly surreal:

RYAN: President Obama, through an executive order, created his own commission to solve this plan.

Q: You were on it.

RYAN: I was on the commission. And you know what he did? He didn’t accept — he didn’t take one of the big recommendations of the commission, he basically disavowed the commission. And now, after the commission said we have an economic ruin on our hands, he put out a budget that Erskine Bowles, the Democrat-appointed chairman of the commission, says doesn’t go anywhere near where we have to go to solve our fiscal nightmare.

Q: So, do you think the commission was worth having?

RYAN: I thought it was great worth having [sic]. I thought it advanced an adult conversation that we needed to have. But the president just took us a few steps backward by ignoring the commission’s findings, by ignoring its conclusions.

How has Ryan managed to occupy these two roles in our national life—Fiscy award-winning spokesman for those Americans demanding a bipartisan agreement to reduce the deficit, and slayer of bipartisan deficit agreements—simultaneously?

Here is where, in the place of any credible programmatic commitment, he substitutes his remarkable talent for radiating good intentions. New York Times business columnist James Stewart, for instance, recently opined that Ryan’s plan would usher in an overhaul of the tax code that would raise taxes on the rich, by eliminating special treatment for capital-gains income.

It is certainly true, as Stewart argues, that one could reduce tax rates to the levels advocated by Ryan without shifting the burden onto the poor and middle class if you eliminated the lower rate enjoyed by capital-gains income. But Ryan has been crystal clear throughout his career in his opposition to raising capital-gains taxes. An earlier, more explicit version of his tax plan eliminated any tax at all on capital gains. The current version, while refraining from specifics, insists, “Raising taxes on capital is another idea that purports to affect the wealthy but actually hurts all participants in the economy.” 

I asked Stewart why he believed so strongly that Ryan actually supported such a reform, despite the explicit opposition of his budget. “Maybe he’s being boxed in” by right-wing colleagues, Stewart suggested.

After Obama assailed Ryan’s budget, Stewart wrote a second column insisting that Ryan’s plans were just the sort of goals liberals shared. He quoted Ryan as writing, in his manifesto, “The social safety net is failing society’s most vulnerable citizens.” Stewart is flabbergasted that Democrats could be so partisan as to attack a figure who believes something so uncontroversial. “Does anyone,” Stewart wrote in his follow-up, “Democrat or Republican, seriously disagree?”

The disagreement, I suggested to Stewart, is that Ryan believes the social safety net is failing society’s most vulnerable citizens by spending too much money on them. As Ryan has said, “We don’t want to turn the safety net into a hammock that lulls able-bodied people to lives of dependency and complacency”—which is to say, plying the poor with such inducements as food stamps and health insurance for their children has sapped their desire to achieve, a problem Ryan proposes to solve by targeting them for the lion’s share of deficit reduction. Stewart waves away the distinction. “I was pointing out that, at least rhetorically, you can find some common ground,” he says. Stewart, explaining his evaluation of Ryan to me, repeatedly cited the missing details in his plan as a hopeful sign of Ryan’s accommodating aims. “He seems very straightforward,” he tells me. “He doesn’t seem cunning. He seems very genuine.”

Seeming genuine is something Ryan does extraordinarily well. And here is where something deeper is at play, more than Ryan’s charm and winning personality, something that gets at the intellectual bankruptcy of contemporary Washington. The Ryan brand is rooted in his ostentatious wonkery.

Because, unlike the Bushes and the Palins, he grounds his position in facts and figures, he seems like an encouraging candidate to strike a bargain. But the thing to keep in mind about Ryan is that he was trained in the world of Washington Republican think tanks. These were created out of a belief that mainstream economists were hopelessly biased to the left, and crafted an alternative intellectual ecosystem in which conservative beliefs—the planet is not getting warmer, the economy is not growing more unequal—can flourish, undisturbed by skepticism. 

Ryan is intimately versed in the blend of fact, pseudo-fact, and pure imagination inhabiting this realm.

For instance, he consistently describes Obama’s plan to control health-care costs as “a panel of unelected bureaucrats” making unaccountable decisions. In fact, Obama­care involves a wide array of incentives and reforms; health-care-cost inflation has already slowed, and an important article in the New England Journal of Medicine suggested Obamacare’s reforms deserve some credit. Ryan shows no sign of grappling with these facts or even acknowledging they exist.

Likewise, at his star turn at Blair House, where he assailed the allegedly phony numbers in Obamacare, Ryan held up as his most damning piece of evidence the fact that the bill used something called “the doc fix” for its savings. Ryan was confused (or else making things up). He was referring to a payment glitch from a 1997 Republican-authored Medicare law, one that had no relation to any of the cost savings in Obamacare.

Ryan’s mastery of these details does not signify openness to evidence or a willingness to shape his views to real-world evidence. It actually signifies the opposite. And yet Ryan has grasped that the aura of specificity he has cultivated paradoxically renders the specifics themselves irrelevant. 

For a virtuoso display of this principle in action, return to another vintage Ryan moment: his Dave profile from last year, where he awed a swooning reporter by opening up the budget to a random page and fingered a boondoggle. The item Ryan pointed to was the Obama administration’s reform of the student-loan industry. “Direct loans—this is perfect,” Ryan said. “So direct loans, that’s new spending on autopilot, that had no congressional oversight, and it gave the illusion that they were cutting spending.”

The exchange is so perversely revealing that it rewards explanation. For decades, the government helped make college more affordable through “guaranteed loans”—it encouraged banks to lend money to students by promising to repay the banks if the students defaulted. Banks were making billions of dollars in profits at virtually no risk. The General Accounting Office, a kind of in-house fiscal watchdog for the federal government, issued sixteen reports over the years noting how the government could save money simply by issuing the loans itself and cutting out the middleman.

It was the simplest, no-brainer pot of savings you could find—ending pure corporate welfare, just like in the movie Dave. The cause attracted support from think tanks, as well as the moderate Wisconsin Republican Tom Petri, an eclectic reformer who is sort of the real-life version of the Paul Ryan character who appears on television. Two National Review editors endorsed eliminating guaranteed loans in an article advocating a new reform conservatism.

The banks lobbied fiercely to protect their gravy train. Among the staunchest advocates of those government-subsidized banks was … Paul Ryan, who fought to protect bank subsidies that many of his fellow Republicans deemed too outrageous to defend.

In 2009, Obama finally eliminated the guaranteed-lending racket. It could save the government an estimated $62 billion, according to the CBO.

Not everything in Ryan’s career, and possibly nothing at all, is quite so undeniably venal. You could pluck any other single example out of Ryan’s long history of strident conservatism and he would be able to defend it, at the very least, on ideological grounds. A tax cut for the rich, a hike in military spending—all those could be explained as a blow for the cause of Reaganism. This was an almost astonishingly unlucky break, an instance where he lacked even ideological cover—standing up for higher spending at the behest of a powerful lobby lacking any plausible rationale for its subsidy.

At the moment the page opened to that unfortunate item, Ryan’s heart must have stopped. Here was a reporter trying to cast him as a movie-hero outsider, and he was performing on cue. Yet the book opened to a page that, cruelly, just happened to expose the gap between Ryan’s image and the reality more clearly than anything else possibly could have.

Ryan probably knew, even in that split second, that he stood little chance of exposure. (The overlap between television news reporters and people with a detailed understanding of the federal budget is quite small.) Yet a lesser politician might have panicked, or hesitated, or possibly tried to flip to a different page. In that moment, Ryan revealed the qualities that have propelled him to his current position. As cool as can be, and as winsome as ever, he said, “This is perfect.”

Yep. Perfect for his audience of perfect fools. And Ryan has them in his sights.

And speaking of speaking of perfect fools. Paul Krugman tries and fails to reason with one of the prime ones. We just have to get used to the idea that they lie. All the time. Without a hint of embarrassment, even when caught at it.

May 1, 2012, 9:16 am

On the Uselessness of Debates

A bit of meta on my “debate” with Ron Paul; I think it’s a perfect illustration of a point I’ve thought about a lot, the uselessness of face-to-face debates.

Think about it: you approach what is, in the end, a somewhat technical subject in a format in which no data can be presented, in which there’s no opportunity to check facts (everything Paul said about growth after World War II was wrong, but who will ever call him on it?). So people react based on their prejudices. If Ron Paul got on TV and said “Gah gah goo goo debasement! theft!” — which is a rough summary of what he actually did say — his supporters would say that he won the debate hands down; I don’t think my supporters are quite the same, but opinions may differ.

Tales of historical debates in which one side supposedly won big — like the Huxley-Wilberforce debate on evolution — are, in general, after-the-fact storytelling; the reality is that that kind of smackdown, like Perry Mason-type confessions in court, almost never happens.

So why did I do it? Because I’m trying to publicize my book, which does have lots of data and facts — but those data and facts don’t matter unless I get enough people to read it.





2 comments:

TONY said...

Good piece by Krugman, Suzan. It's a pity about his book-plug remark. There are so many stories which are just PR placements just now that I sometimes wonder if the only reason President Assad is in the news is because he's got a book coming out.

Suzan said...

I felt the same way about that when I first read it, but then I thought that he had to explain why a wise man got into a discussion with a fool for any reason.

meh

Assad's got a book coming out?

Ears perked up,

S