Republicans and the Fiscal Cliff: What are they thinking?

Our government, whether headed by a Republican or a Democrat, governs for all of us. The Republicans lost this time around, though they still control the House of Representatives. They are in the minority. The Democrats, who control the Senate and the Executive branch, rightly expect to introduce and oversee policies that are more aligned with their view of what is best for the country than the views of the party that lost. But if they are wise and have the best interests of the country at heart they will take into account the views of the rest of the country as well. Compromise is part of the art of governing a diverse people successfully. Limiting the scope of government is another. See my comments on this theme over four years ago: “The Death of the Right?”

Many Republicans, however, are behaving as if they think they should force their views on the majority.  Not only is this unwillingness to compromise unacceptable in our democracy, it is producing worse outcomes for those of us who would like to keep government smaller. These republicans rejected a deal last year tentatively agreed between House Speaker John A. Boehner (R-Ohio) and President Obama that would have increased tax revenue by $800 billion over the next ten years in exchange for spending cuts three times that.  Without some sort of agreement by the end of this week, falling over the “fiscal cliff” will increase tax revenue by around $5,000 billion over the same period. That won’t happen, of course, as both parties want to restore the existing income tax rates for all but the wealthy. The Democrat controlled Senate has already passed such a bill, which would increase tax revenue by $700 billion over the next ten years. That would become the base line from which Obama would bargain for more tax revenue in exchange for budget cuts.

I assume that some minimalist agreement will be reached in the next week that will eliminate the worst tax effects from going over the cliff, but that will only perpetuate and prolong uncertainty over how our currently unsustainable future spending commitments will be rained in and/or financed. This uncertainty is a major factor contributing to the slow recovery of investment and the economy in general. The current impasse will continue to do great damage to the county.

According to Ezra Klein: “If Boehner had taken the White House’s deal in 2011, he could’ve stopped the tax increase at $800 billion. If he took their most recent deal, he could stop it at $1.2 trillion. But if he insists on adding another round to the negotiations — one that will likely come after the White House pockets $700 billion in tax increases — then any deal in which he gets the entitlement cuts he wants is going to mean a deal in which he accepts even more tax increases than the White House is currently demanding.

“Today, Boehner wishes he’d taken the deal the president offered him in 2011. A year from now, he might wish he’d taken the deal the president offered him in 2012.”[1] See also: “The GOPs worst cliff myth”[2]

For the sake of the country and for the sake of the principles in which many Republicans believe, they must recover (with the cooperation of Democrats) the art of governing.


[1] Ezra Klein, “Obamas small deal could lead to bigger tax increases” The Washington Post, Dec 22, 2012

[2] Ezra Klein, The Washington Post, Dec 24, 2012.

Romney on Culture

Mitt Romney is clearly an intelligent guy with an impressive business track record. This makes it all the more disturbing that while visiting Israel Romney felt called upon to blame the difference in living standards between Israel and the occupied West Bank and Gaza (WBG) on cultural differences. I will unpack the ignorance of this claim further on, but first, why did he do it?

We know that Romney is weak on foreign policy issues and regrettably influenced in this area by neocon advisors who tend to favor the one Israeli state solution to the Israeli/Palestinian problem favored by the Israeli right wing over American interests and policies. Since George W Bush American policy has explicitly supported a two state solution. Those unfamiliar with the history of these issues are urged to read my earlier blogs on the topic: “The View from the West Bank – a history of the conflict”, “Jerusalem in august 2006″, “Leaving Israel August 11 2006″. “The Invented Palestinians”.

The United States has a strong commitment to the military defense of Israel and it was appropriate for Romney to restate that commitment while visiting Israel. But it is neither in our national interest nor Israel’s to support or endorse every measure the current Israeli government might think up or take in relation to its neighbors. Israel’s well being depends on making a just peace with its neighbors and returning the West Bank and Gaza to the Palestinians that live there. This is well known and accepted by most Israeli’s but not, apparently, by Romney’s neocon advisors. Given Romney’s lack of understanding in these issue, wisdom would have called for him to remain silent on the issue. So why did he say it, then deny it and than say it again?

First, what did he actually say? According to the Associated Press (“Romney outrages Palestinians by saying Jewish culture helps make Israel more successful”) on July 30 Romney told a breakfast meeting with wealthy donors at the King David Hotel in Jerusalem:  “As you come here and you see the GDP per capita, for instance, in Israel which is about $21,000 dollars, and compare that with the GDP per capita just across the areas managed by the Palestinian Authority, which is more like $10,000 per capita, you notice such a dramatically stark difference in economic vitality…. And as I come here and I look out over this city and consider the accomplishments of the people of this nation, I recognize the power of at least culture and a few other things.”

Saeb Erekat, a top Palestinian official told the AP: “What is this man doing here? Yesterday, he destroyed negotiations by saying Jerusalem is the capital of Israel, and today he is saying Israeli culture is more advanced than Palestinian culture. Isn’t this racism?”

The next day in an interview with Fox News’ Carl Cameran in Poland, Romney denied that he has spoken of the role of culture in the differences in income between Israel and Palestine. (Cameron interview of Romney) It did not take long for Romney to correct this misstatement in a National Review article under his name, “Culture does matter-Mitt Romney”: “During my recent trip to Israel, I had suggested that the choices a society makes about its culture play a role in creating prosperity, and that the significant disparity between Israeli and Palestinian living standards was powerfully influenced by it. In some quarters, that comment became the subject of controversy.”

So why did he say it?  Sadly Tom Friedman probably has it right in his July 31 column in the New York Times: “Why not in Vegas”  “Since the whole trip was not about learning anything but about how to satisfy the political whims of the right-wing, super pro-Bibi Netanyahu, American Jewish casino magnate Sheldon Adelson, why didn’t they just do the whole thing in Las Vegas? I mean, it was all about money anyway — how much Romney would abase himself by saying whatever the Israeli right wanted to hear and how big a jackpot of donations Adelson would shower on the Romney campaign in return.”

So statesmanship, diplomacy, American national interest had nothing to do with it. So maybe Romney actually understood how stupid his comments were. But let me walk us through the facts.

First, Palestinians and non Arab Israelis are first cousins racially. So this can’t be what Romney had in mind. Religiously, Judaism, Christianity, and Islam, the three great monotheistic religions, with Islam the most recent in that evolutionary chain, all share cultures of individual responsibility and work ethic. So it is hard to see Romney’s point in this area. My point is not that culture is unimportant, though calling in “everything” is clearly wrong. My point is that anyone who knows anything about Israel and the WBG, knows that it does not apply there. A very informative and well worth reading criticism of Romney’s statement is in Fareed Zakaria’s Aug 2, Washington Post op-ed, “Capitalism not culture drives economies”.

If Romney had driven the short, but time consuming, distance from Jerusalem to the temporary Palestinian capital in Ramallah, he would have seen some of the physical evidence of how Israel is choking the economies of the occupied, land locked West Bank and the blockaded Gaza Strip (high concrete walls cutting through Palestinian farms, check points blocking the movement of people and commerce, illegal Israeli settlement on Palestinian lands, etc.). I would have thought that a man of Romney’s intelligence would chose to remain silent on these deeply explosive issues until he could consult a more balanced group of foreign policy experts. Sadly he seems to have put politics above national interest.