Dems Push Hard Left Socialist Agenda On Economics
Politico:
Barack Obama and Hillary Rodham Clinton have for months touted an unabashed message of economic populism, and now Democratic leaders in Congress have begun to fall in line with an economic agenda that leaves behind the centrist principles of the Clinton years.
The Democrats’ newfound comfort level with stronger government intervention in the economy will be on full display this week in both chambers of Congress. In the House, Democrats will force votes on an energy bill that raises taxes on big oil by rolling back $18 billion in subsidies and tax breaks pushed through by the last Republican Congress. In the Senate, Majority Leader Harry Reid (D-Nev.) has called votes on a sweeping housing bill that includes a provision — vehemently opposed by the mortgage industry — to allow judges to unilaterally restructure certain mortgages to create friendlier terms for homeowners facing foreclosure.
And that’s just the beginning. In both the House and the Senate, liberal Democratic committee chairmen who felt restrained during the economic boom of the Clinton White House years suddenly find themselves free to pursue classic progressive causes that were off the table not so long ago.
“Recent economic policies have ignored large segments of the population, so what we’re seeing now reflects a new set of priorities to focus on, and help, those individuals and families,” said Matthew Beck, a spokesman for the House Ways and Means Committee, which wrote the energy tax bill. “To the extent you label it ‘populism,’ you do so because a growing number of people care deeply about these issues.”
The coalescing of the Democratic congressional agenda with the Democratic presidential campaign was destined to happen, but the confidence with which congressional leaders are touting a populist outlook shows just how strong Democrats believe their message is this election year. It’s got business lobbyists and the GOP leadership working overtime, and it has the potential of putting rank-and-file Republicans in a tough spot: How do you vote against Democratic proposals without appearing insensitive to your constituents’ economic worries?
Rep. John Porter (R-Nev.), whose state has the highest rate of foreclosure in the country, is struggling to chart his own ideas and solutions, but he’s caught between the hands-off, free market principles of his party’s leadership and what he sees as the heavy-handed government intervention being pushed by Democrats. Porter now has a staff member in Nevada devoted full time to helping people figure out how to avoid foreclosures.
“My concern is, whatever we do, it’s going to take months of debate,” Porter said. “I don’t think we need to do a major government intervention. … We need solutions.”
Republicans and Democrats worked together to pass an economic stimulus bill earlier this month. But Rep. Tom Feeney (R-Fla.), whose state has the second-highest rate of foreclosures in the country, says Republicans now need to stand firm against the Democratic agenda even if it costs them votes in their districts.
“The battle is between populist demagoguery and economic reality,” Feeney said. “Democrats are trying to establish a second New Deal — more regulations, progressive taxation. … Is there pressure to say we’re doing something? Yes. But no situation is so bad that Congress can’t make it worse.”
While no one in Congress is suggesting a 21st-century version of the Tennessee Valley Authority of the Works Progress Administration, the ideas making their way through House and Senate committees now are also a far cry from those that dominated during the Clinton years, when reforming welfare, cutting the deficit and passing NAFTA were among the biggest economic policy accomplishments.
Under this Democratic Congress, free trade agreements have stalled. There’s no talk of kicking people off welfare. And Congress ignored the good-government budgeting policy known as “pay-go” — pay as you go — in the case of major expenditures like this month’s $150 billion economic stimulus bill.
Senate Banking Committee Chairman Chris Dodd (D-Conn.) has proposed resurrecting the Depression-era Home Ownership Preservation Corp., creating a new agency that would purchase delinquent mortgages and restructure them into more affordable loans. In the House, Government Reform Committee Chairman Henry A. Waxman (D-Calif.) will hold a hearing Thursday to illuminate and undoubtedly criticize the salary packages for CEOs of major mortgage companies.
House Financial Services Committee Chairman Barney Frank (D-Mass.) has already pushed through new rules for mortgage lending, regulations that consumer advocates and Democrats advocated for years to no avail when the Republicans held the majority. And under his leadership, Democrats on the House Financial Services Committee are moving forward with stiff legislation to curb the lucrative billing practices employed by powerful credit card companies.
Highlighting the impact of the economic downturn on real people, House Speaker Nancy Pelosi’s office has pointed to higher energy costs as a cause for the increased price of food for the working poor, releasing a chart last week that detailed the cost of eggs, milk and cheese.
And with one stimulus package already signed into law, Democrats are ready to push now for extensions of unemployment insurance, infrastructure spending, food stamps and other economic safety net proposals.
Business lobbyists are pushing back against this new wave of economic populism by questioning both the wisdom and the sincerity behind it. “Every four years, we hear ‘populism’ on the campaign trail,” said Bruce Josten, executive vice president for government affairs at the U.S. Chamber of Commerce. “I can’t say I’m shocked, nor am I surprised that we hear ‘populism,’ particularly when the economy has now superseded Iraq as the No. 1 concern in public opinion polls.”
Josten said that it’s not unusual for congressional caucuses to tack toward their party’s candidate but that the rhetoric tends to temper as candidates move into the general election and, more so, when they enter the White House.
But with roughly two-thirds of Americans saying that the county is already in a recession, Democrats believe that things may be different this time. “Democrats are liberated to talk about a populist message. … It’s the federal government reaching down, very aggressively, to the street level to help people,” said Chris Lehane, a Democratic consultant who worked with the presidential campaigns of John F. Kerry and Al Gore. “It’s difficult for Republicans ideologically to approach these issues.
Republicans are in a dark, unspinnable place on economic issues.”
Unspinnable?
“When people’s paychecks go down because they let tax cuts expire, they’ll say, ‘Maybe Republicans aren’t so bad,’” said one Senate GOP leadership aide. “There is potential for [Democrats] to go too far.”
See Page 8 for more on the controversy over the Democrats’ housing bill.
Be respectful of others and their opinions. Inflammatory remarks and inane leftist drivel will be deleted. It ain’t about free speech, remember you’re in a private domain. My website, my prerogative.
If you can't handle using your real email address, don't bother posting a comment.
I’m picturing the Capitol building … and the sound I am hearing (in my mind) is that glorious, deep guttural growl of an A-10 Warthog … several of them …
February 26th, 2008 at 9:58 amYou learn in any basic economics class that an economy controlled by the government is bound to fail and be long term, so why are the democrat’s pursuing this?
February 26th, 2008 at 10:12 amOh, so raises taxes and implementing new bureaucracies and regulations and handouts is going to make the economy grow. The repub’s are not in “an unspinnable place on the economy” as that loser dem advisor that worked on two losing dem campaigns said. Where are the cowardly GOP “leaders” on the hill to counter argue? Reid wants a law to contravene the contracts clause of the Constitution? Where are all the dems howling about abrogation of the Constitution? When it suits their Socialist agenda, they are all for throwing the Constitution away like so much used toilet paper. Oh, and Peloski releasing a chart showing rising food prices? OH, that’s due to high oil prices due to her party’s environmental Luddites not allowing energy development in this country. I’m going to blow a gasket.
February 26th, 2008 at 10:13 amAmen.
February 26th, 2008 at 10:21 amThank the Lord somebody is willing to grow some balls and step up to these mega corporations and bankers to try to represent the common American. These oil companies are making record profits while the economy is on the brink of recession. The mortgage industry has been going unchecked for too long. It’s time someone in DC said “enough!” and started to push back.
T Double- economics is something about which there are many different theories and schools of thought, there is no correct way of doing things, as in practice, many theories fail.
Lamp- At this point you should not be so concerned with “making our economy grow” as you should be with “preventing a spiral into an economic abyss”.
February 26th, 2008 at 10:30 amthat an economy controlled by the government is bound to fail and be long term,
except by us, we just pass the Brits in the GDP rates
February 26th, 2008 at 10:33 amSine labore nihil
February 26th, 2008 at 10:47 amEric: the sky is falling, the sky is falling! And in economics, there is a correct way of doing things. I will pencil it out for you, in detail.
February 26th, 2008 at 11:30 amThese assholes are out of their minds. You start rolling back taxes on oil companies WE will be paying 5.00 to 7.00 a gal for gas. Do they NOT freaking see this? That will also push up prices of everything that uses transportation to move goods around the country.
February 26th, 2008 at 12:05 pmWere fucked!
February 26th, 2008 at 12:43 pmyeah eric socialism and communism is not the way of doing things. the free market is the best way of running an economy with little intervention from the government and only when there is a market failure or uncompensated externalities. Stop being a dumbass and realize that the soviet union fell, china is pursuing capitalism and the productivity of all European nations that have embraced socialism has fallen since they began to tax the hell out of everyone. do yourself a favor and go get an “edumucation”.
February 26th, 2008 at 12:57 pmdamn i just wrote a big long thing proving eric is a dumbass and its gone. Oh well, short story, eric you are a dumbass
February 26th, 2008 at 12:58 pm“There is potential for the democrats to go too far”. That just about sums it up.
February 26th, 2008 at 1:13 pmIf they roll back on the Oil Companys the Fed might actually take in more tax revenue than they do at present. In reality why should Big Oil get subsidies they aren’t having any problem making money…..it is like a welfare check to a Millionare.
It is all smoke and mirrors, and we will get bentover one way or the other.
They aren’t watching out for your best interest, they are merely robbing Peter to pay Paul. It is all a scam. There is another theory that when a Government is the largest employer the Government will in time fail.
A-10 sounds like the vacination we need.
February 26th, 2008 at 2:09 pmEric, you have shown that you don’t have so much as a high school understanding of economics.
What do you think happens to profits, anyway? Profits are used to provide capital for investment, and investment provides jobs. Do you think investors just pile their profits up in their back yard and jump onto them like a pile of leaves?
If the Dems attempt to penalize oil companies, it is only going to raise oil prices (and, consequently, the prices on all goods and services) for all of us. And if Dems are so stupid as to try and cap gas prices, then get ready for oil shortages and gas lines. Just ask the people of Hawaii, who tried it a few years ago.
I suggest that you educate yourself on the CONSEQUENSES of economic decisions, rather than just spouting off inane drivel. A great place to start is by reading “Basic Economics” by Thomas Sowell.
February 26th, 2008 at 2:30 pmThank you Steven, you beat me to the point I was wanting to make with the Oil Companies and regarding Jobs.
I would like to know there Eric, how it is that you think Increasing Taxes on Corporations and Companies actually helps us?
You constantly hear from liberals saying make the companies pay taxes, make them take a heavier burden so we don’t have to as much.
Lefties certainly haven’t thought to far through that. They complain about Corporate greed, but then leave it out of their thinking for their fixes. They say Tax the corporations and lower our taxes…. do they not realize that if the corporations are as greedy as they say they will simply raise prices to make up for the additional taxes they are paying?
Then something else Steven eluded to was Jobs. Guess what, you raise taxes on Corporations and they will stop hiring, or even have layoffs.
Oh ya, that is REALLY good for the economy.
February 26th, 2008 at 4:45 pmIF YOU WANT A SHORTAGE OF SOMETHING, JUST TAX IT.
February 26th, 2008 at 5:51 pmwe should tax stupid people and liberals, maybe they’ll disappear..
February 26th, 2008 at 6:11 pmIt’s a damn shame how so many Americans don’t know a thing about the economy and how it works. Morons who think taxing oil companies is a good idea will bitch later on when they pay for 5 bucks a gallon. Idiots.
February 26th, 2008 at 6:21 pmI don’t know if anyone has mentioned this to Eric. When one hears the profits of oil companies do they realize that they paid a little less than that in taxes. Forty billion in profits, thirty-five billion in taxes.
February 26th, 2008 at 6:59 pmI keep thinking of when Saddam first took power in Iraq in the 70’s.
He was at the podium addressing the entire Iraqi parliament.
Between puffs of his stogie, he read aloud a long list of names he claimed were traitors.
As he read each name, that person was escorted to a re-education facility.
If America’s modern civil war turns bloody I envision a similar scene taking place in Congress and the House. One by one the liberals taken out and re-educated.
I want to be there when this happens.
February 26th, 2008 at 7:02 pm“Sine labore nihil”
only in your dreams chouchou
February 27th, 2008 at 2:23 amI just wonder how many Big Cooperations will leave America for Dubai if the Dems win. No sense in staying around.
February 27th, 2008 at 6:07 am