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The Welfare State

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Ali Velshi grilled anti-tax zealot Grover Norquist about his responsibility for Republicans being completely inflexible on raising taxes today on CNN's Your Money, and you can read the transcript of that back and forth here, but it was the segments preceding and following that interview and David Gergen's comments that had me irked after watching this.

Norquist was painted as an extremist and a rigid ideologue, but what did we get for analysis surrounding that? David Gergen repeating one right-wing talking point after another on the "bloated welfare state" and how wonderful austerity measures will be for our economy and making excuses for these House Republicans playing hostage with raising the debt ceiling even as he admits he's not quite sure if they're insane enough to wreck our economy on purpose.

David Gergen can always be counted on for some right-wing turd polishing and for helping to move that Overton window to the right. We need to be having some honest discussions about how to get our economy back on track and Americans back to work, but in our corporate media those discussions never include fixing our trade laws or not rewarding companies for shipping jobs overseas and instead we're being told that these politicians are somehow "principled" because they believe in myths and trickle-down economics. Sorry Gergen but I think it's perfectly fair to villainize them when they're doing things that harm Americans and our economy and doing them on purpose.

VELSHI: David, you have been in the White House. You understand how people think. Why are some people so concerned, particularly those who are concerned with scoring political points -- why is it this fealty to lower taxes overtaking the idea that this actually could have broader and more devastating effect, to not raise this credit limit?

GERGEN: Well, I think, ultimately, the Republicans -- at least I hope -- will agree to go and lift the debt ceiling. Certainly, Speaker McConnell (SIC) has agreed to that. Certainly -- I mean, Speaker Boehner has certainly. Mitch McConnell has over on the Senate side.

But there is a strong sentiment among Republicans that the cuts that are on the table now are illusory, that there are some gimmicks in there, that just as we saw at the end of last year, we had this announcement about great, big budget cuts -- when you really broke it right down, it didn't turn out to be very much.

VELSHI: Right.

GERGEN: You remember that. Turned out to be peanuts. There's a strong feeling that what they're being asked to do is to agree to cuts that are not actually -- that are actually quite modest, and then increase taxes, and in effect, to pay for the welfare state, a bloated welfare state. And they would like to shrink the size of the welfare state.

This is ultimately a conversation, a debate, a debate, you know, a food fight over how big the American government should be. And you know, that's why they're not -- that's why they're not doing it.

But I -- the question becomes -- I cannot believe, at the end of the day, House Republicans will be so recalcitrant that they'll take us into default. It just -- I -- I -- that would be so much beyond what I think we've ever experienced, Ali, knowing we're on the edge of Niagara Falls, knowing we're on the edge of a precipice, I can't believe they'll take us over.

VELSHI: You would think so and you would hope so. I don't know.

[...]

VELSHI: David, Grover Norquist is remarkably committed to what he's talking about. But he -- there is a problem here. There's an underlying problem that politicians in America cannot do something that risks their seat because their voters won't let them. And pledges like this contribute to a great deal of inflexibility in Washington.

GERGEN: Well, Ali, listen, let me put my cards on the table. And Grover knows this. I have supported the Simpson-Bowles plan all along. I do believe that taxes need to go up as part of an effort -- overall effort to get the deficits under control.

But you know, in fairness, you know, Grover does have a point. And Simpson-Bowles itself said -- it wasn't one-to-one, a tax increase versus $1 in spending cuts, it was two-to-one in spending cuts versus tax increases. The Simpson-Bowles commission recognized that the -- more central than taxes is the question of how much we're now spending. We've taken the level of spending in this country from about 20 percent of GDP at the federal level up, as you well know, to 24 to 25 percent over the last two years, another year in sight for 25 percent.

And what Republicans are saying is you got to sweat that down. And I believe that taxes ought to go up as part of this package, but I think it's unfair to villainize the Republicans when, in fact, there is a very real possibility that the Senate will present a plan which will have $1 trillion to $1.5 trillion dollars in cuts and no tax increases, and that's what the president is ultimately going to accept, and that may be where we come out at the end of the day.

VELSHI: The problem --

GERGEN: I just -- I think --

VELSHI: The issue is more political, David.

GERGEN: I think to say that default versus tax increases is -- is -- it misstates the problem somewhat.

VELSHI: Yes, well, I'm not sure why the two are in the same discussion. I would have really preferred that they deal with the debt ceiling, and they deal with spending and taxing entirely separately. But we're not in that position, David.

The reality is, in part because of people like Grover Norquist, we're not in that position. A lot of people who otherwise would vote for an increase in the debt ceiling can't do so because they are not in a position to compromise.

GERGEN: Well, yes and no. I -- it comes back, Ali, to what people fundamentally believe is the problem. And Republicans fundamentally believe that this underlying problem is we've allowed spending to go higher and higher, and they don't want to raise taxes to pay for that. They would rather see it shrink down.

The Democrats -- I -- you know, who -- and I'm not trying to villainize Democrats, either. I think that they come from a very sincere place of really wanting to provide a stronger social safety net. They want to provide, you know, far more services to the country. And they believe that the rich ought to pay a lot more to get there to -- to get there.

VELSHI: Diane Swonk, is there any way to reduce our debt, to get into a situation where our deficits are not as big in a meaningful way to the tune of $2.4 trillion that we're talking about without increasing some taxes?

SWONK: Oh, there's a way to do it. It's whether or not that's really going to be politically acceptable to the American public. The kind of pain that that would induce -- and I agree completely with David on this one. The kind of pain that that would induce is not something that we're really ready to swallow. There's a balance in this country between spending and tax cuts. And it is more. We do need to cut spending more than raise taxes.

VELSHI: David Gergen, thanks very much. David Gergen is CNN's senior political analyst. Diane Swonk is a chief economist with Mesirow Financial.

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26 Comments

once more, they are talking about moving the economy, people who get these checks spend them, the money goes right back into the economy, therefore their motivation is to support "free market" capitalism, period.

the earlier threads about true believers have a lot to do with this, capitalism is a religion with these people, a suicidal death cult. they feel superior because they have more, they revel in it, they are the masters of the universe. the truth is that capital is only protected because we live in a supposedly "civilized" society, the law of the jungle? they would get their ass kicked.

Roket's picture
[Comment Deleted By Administration For Violation Of Terms Of Service]
Red Planet's picture

Never fear, milords & ladies. On Eliot Spitzer's In The Arena last week, in response to Spitzer's question about resistance to higher tax revenues, Lord David announced the following (paraphrased):

"I can tell you, Eliot, that many Americans who are in a higher income group, and I have been privileged to be among them, are willing to pay more if they are convinced that the money is going to be spent wisely."

Hooray! Conditional support for logical tax rates! All we have to do now is destroy the so-called "Entitlements!" Then the extraordinarily wealthy will deign to throw a few pennies more into the public pot!

Thank you, Lord David. Or, do you mind very much if we call you Fats?

cunning linguist's picture

1. End the wars, drastically cut defense spending, eliminate funding for "Defense Contractors" such as Blackwater/Xe.

2. End the shrub tax cuts.

3. End subsidies for big Oil, big Ag, big Pharma.

4. End big bank's stranglehold on the economy by way of state-run banks, a la North Dakota.

Not that I have any illusions about any of these ever being implemented. The richfilth will never allow it. They want to continue the upward flow of wealth until every last drop of blood is sucked out of Americans. Like the parasites they are, they will continue until they've killed the host, at which time they will latch onto a new host.

The only way any host organism can survive is to kill the parasite. This is going to get bloody.


"No one ever said these people were logically consistent."
- watchdog -

derekthered's picture

"they will continue until they've killed the host, at which time they will latch onto a new host."

the people who control this country have run us $14 trillion in debt, we are the living dead.

http://addavies.files.wordpress.com/2009/10/z...

as for their new host? overseas labor, which is why they are so comfortable telling the american people to get lost.

i do like your last line.

cunning linguist's picture

We are indeed the living dead, assuming one can, in any way, call the position my family is in, like millions of others, living.

When you've got nothing, you've got nothing to lose. Therefore, as L&P is so fond of saying, bring on the pain. Let's get this shit over with already.


"No one ever said these people were logically consistent."
- watchdog -

Captain Kangaroo's picture

We need to be having some honest discussions about how to get our economy back on track and Americans back to work, but in our corporate media those discussions never include fixing our trade laws or not rewarding companies for shipping jobs overseas and instead we're being told that these politicians are somehow "principled" because they believe in myths and trickle-down economics.

What I would like to see/hear is if these jokers do not think the trade laws need to be fixed or why it is ok to give the biggest/richest corporation in the world tax CREDITS, I would like to see these people justify this. Or talk about it. I want them to defend their stands.

Captain Kangaroo's picture

I would like to hear Michelle Bachmann tell me why or how she can spew forth about socialism while she accepts government handouts. Why don't Bob Shieffer or David Gregory or ANYBODY! ask her about this???

HSans's picture

I believe I have heard MB asked this exact question by one of the MSNBC hosts.

In her usual fashion, she simply started to repeat her talking points, or as Chris Matthews has so aptly stated, she seems to get in a trance where she no longer controls her mouth. What comes out is what has been programmed. The question does not matter.

WHY DOES THIS WOMAN GET SO MUCH COVERAGE? GET HER OFF THE AIRWAVES. SHE IS DANGEROUS DUE TO HER LACK OF KNOWLEDGE AND COMPASSION.

The world deserves better from America. A candidate for President of this most powerful of nations (on so many fronts) cannot be ignorant, bigoted or heartless.

Kathy in St. Louis's picture

be any more afraid of his Republican overlords? I mean, could he have danced around the fact that they are being total buttholes about this? I once considered Dave Gergen one of the more moderate republican commentators. Apparently, in the new reality of the Republican crazy, he must tread very lightly, or? Or, what? Why is this guy so afraid of Grover Norquist? I mean, he's got to be in his 60s. He's got to have a pile tucked away somewhere. So, what exactly can Grover do to him that would be so awful that he'd sell any semblance of integrity? I mean, will he see to it that Dave doesn't get invited to the really good cocktail parties anymore? He's sold his soul for a mess of pottage, or in this case, martinis.

Kathy in St. Louis's picture

Republican overlords? It's any easy mistake to make if you've ever watched MTP.

Captain Kangaroo's picture

I actually heard/saw Gergen say he was one of the rich and that he thought the rich should pay more. (Damn I wish i could remember where I saw this but I can't. I think it was in the past week sometime though.) That is not to say he isn't afraid of Norquist though.

HSans's picture

I wonder if the following has occurred to anyone at this time of recalcitrant politicians - for their own benefit by the way, and not for the country that they profess to love so ardently.

I believe that the American public's trust in their president has been eroded due to the lies and duplicitous behaviour of the GW Bush administration. Because Pres Bush AND his underlings lied to the people and took them to war based on fabrications and lies, the American people no longer believe what their president tells them.

Every word from his mouth is analysed for truthfulness, and as soon as the slightest doubt arises or some misinformation is spread by irresponsible and, in my opinion, treasonous people under the guise of 'freedom of information', President Obama himself is disbelieved and mistrusted.

This is a very sad state of affairs. I believe that only prosecutions of the highest officials in the GW Bush Administration at the International Court in The Hague will make an attempt at letting the truth out and to bring war criminals to justice.

The same people who have caused the deaths and maiming of thousands of service women and men in Iraq should be in the defendants' boxes in The Hague. Justice rendered there will be the only way to help the grieving and start the healing of the American people.

May God bless each and everyone.

HSans's picture

I would like all these 'rich' people who on TV say that they should be taxed higher just open their cheque books and donate to Uncle Sam. This included Pres Obama.

No one says you have to be assessed to pay taxes.

An ever greater gesture would be to simply give to the government without demanding the usual tax deduction receipts. Just make it a nice gift. Like you would help out your children and grand children when they are in a spot of trouble for a lack of funds.

Fact is, we have all enjoyed (and will be enjoying for some time to come) the services and projects the cost of which was put on the credit card.

Giving to the government will actually pay down the debt our children and grand children have incurred without their advice or consent.

Simple. Just Do It.

SadButTrue's picture

It's the corporate welfare state the US has to worry about. As far as the social safety net that helps people who actually need help, countries like Canada spend far more on that and have somehow emerged from past crises in much better shape. Any suggestion that if a hungry person gets fed or a sick person gets to see a doctor it will bring about the end of civilization is such a load of Bushlit*. It can be effortlessly disproven simply by looking beyond your borders.

After Bush's multi-$TRILLION bailout of the banksters I don't see how anyone can complain about benefits that go to the victim's of America's class warfare. Gergen is just begging to be the first 'up against the wall' when the inevitable revolution occurs.

* - Bushlit = a deliberate Spoonerism, as in, "The ex-President's memoirs are a load of Bushlit." I think I'll keep that one.


"In theory theory and practice are alike. In practice they are very different."

mymy's picture

The GOP and the corporatocracy just HATES the idea of any revenue stream that they cannot get a big piece of.

They'd probably be happy with Social Security if they were given a guaranteed percentage of what people receive (25-30% you think that would be enough?). They cannot stand the idea of money being directed to individuals, even if those individuals paid for it.

Just as they STOLE everyone's pensions (and blamed us for it) they would love to STEAL what everyone has already paid into Soc Sec and Medicare.

They are just crooks and they actually do not know how to make money or make an economy run.

Oust them all.


MyMy

Mike the Canuck's picture

stick your heads between your legs and assume the crash position. Disaster Capitalism is heading your way real soon. Everyone is blaming everyone else. Everyone blames obama, how about this. You can't fix whats happened overnight. Everyone in your country needs a reality check We did it in Canada in the 1990's once we kicked the right wing out. It was 4-5 years hard slogging but we all did our parts. Services were cut, user fees("taxes") came in and taxes in general went up. did we like it hell no , but it was needed.
By the way if your country goes into default(or whatever other outcome) and takes the rest of the world with it don't expect us to be too happy.

katenh's picture

really think that up there in Canada you have anything close to what we suffer here? If only we had the troubles you call "right wing". Remember, you guys have enjoyed substantial social benefits, including full healthcare and pensions.

Not only that, but unlike your population, the people here just don't get it, they'd rather cut off their nose and hand it to the billionaire and say, "Here, can I give you my right kidney too?"

I don' t mean to mock your well intentioned advice, but you guys have a paradise that we can only dream of, on your worse days. This is a hellhole down here, take my word for it.

Kreskin's picture

"David Gergen can always be counted on for some right-wing turd polishing " , yep , he's definitely the go to guy .


Insanity , it is what it is , there is no understanding it .

stargazzn's picture

Governments subsidize what they want more of, for example if the government wants more ethenol it pays for part of the cost of its production. It works the same with poverty. What a Great! country we live in:)

Give me your child for 8 years, and it will be a progressive forever!
Robert Miller

Ape-Man's picture

David Gerber is a real bobble head. He's deep inside the beltway bubble. He is the last person CNN and their viewers should be listening to. They should drop him immediately, and replace him with someone less full of themselves and more full of the objective truth.


"Government by organized money is just as dangerous as Government by organized mob"
-= Franklin Delano Roosevelt =-

katenh's picture

to find a commodity that doesn't exist among the pundit class.

katenh's picture

anymore. Gergen and the rest of them are happy to come out and say that they are part of the elite class that has benefited from endless tax cuts and screwing over the American people.

These asshats really do believe that they have some god-given job to service the country by fulfilling their own needs -- its like the murderer who sits in jail rationalizing that he actually did a good service by killing that little girl -- look at all the misery and disappointment in life he saved her?

Its the same thing, they do what they feel and all they have to do is rationalize it, never speak to any of us, never live near us, ignore us essentially because we're stupid anyway (to them).

These people deserve a bloody revolution like the and it will follow naturally, eventually like summer storms follow the heat and humidity, just when you think you are going to die anyway, the rain comes and cools the earth.

So it will be. We suffer but our day will come even if we have to hasten it along -- but they are doing a wonderful job on their own.

g-man's picture

counted on for some right-wing turd polishing . . .
Never met a turd-gergen that didn't smell.
Do something useful with you life, David.

media critic's picture

Is among the lamest of the lame. CNN is a joke, they called grover norquist the most powerful man you don't know. You don't know? What lame bullshit. Every progressive and liberal knows well what a scumbag he is, and exactly the GREED he stands for. Eff cnn, they are so obnoxious.

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