Inevitably, we learn that Algernon has exceeded his very generous allowance and run up massive debts. There is no possibility that Algernon can ever meet his obligations. Disgrace, dishonor, and debtors’ prison loom as gloomy prospects.
Young Algy has consequently returned to the family home he previously despised to beg his disappointed and estranged parent to intervene to save him. The scene is easily pictured. There is the sad, but still loving, grey-haired pater familias. There is the slightly crest-fallen, but still arrogant, young Corinthian. The father is theoretically willing to retrench and mortgage the estate and sacrifice for long years to come to save his son’s honor and keep him from prison, but he naturally considers himself obliged to make such assistance conditional upon genuine repentance and a complete break with the young man’s bad associations and pernicious habits.
It turns out, of course, that his life of iniquity in the fleshpots of the metropolis has coarsened young Algernon and fed his arrogance. Algy feels completely entitled to the life he has led, and has plans underway for even more ambitious forms of debauchery. Algy regards his father’s estate as already his own, and simply demands that his father assume responsibility for all his current debts and increase his allowance.
Sadly, the unhappy father explains that meeting even the current obligations Algernon has assumed is impossible with the income of the entire estate. To pay Algernon’s debts, land must be sold, the manor-house rented to strangers, tenants evicted and the commons converted to new enterprises to increase income. The entire family will have to curtail its expenses and live on a much more restricted scale for years.
But the wicked and ungrateful Algernon refuses to hear any of this. He bangs his fist on the table, abuses his father, and demands everything he asked for.
Sadly, the father explains that his son’s attitude, his hardened habits of iniquity, and his lack of responsibility make rescuing him impossible. As an alternative to prison, the father can only offer him a boat ticket to Australia and a small remittance for so long as he remains out of England.
The Wall Street Journal thinks Mitch McConnell’s “Eat Your Own Darn Peas” manuever is an appropriate way to end the stalemate in the absence of good faith negotiating intentions from the other side.
The debt ceiling is going to be increased one way or another, and the only question has been what if anything Republicans could get in return. If Mr. Obama insists on a tax increase, and Republicans won’t vote for one, then what’s the alternative to Mr. McConnell’s maneuver?
Republicans who say they can use the debt limit to force Democrats to agree to a balanced budget amendment are dreaming. Such an amendment won’t get the two-thirds vote to pass the Senate, but it would give every Democrat running for re-election next year a chance to vote for it and claim to be a fiscal conservative. …
The entitlement state can’t be reformed by one house of Congress in one year against a determined President and Senate held by the other party. It requires more than one election. The Obama Democrats have staged a spending blowout to 24% of GDP and rising, and now they want to find a way to finance it to make it permanent. Those are the real stakes of 2012.
Even if Mr. Obama gets his debt-limit increase without any spending cuts, he will pay a price for the privilege. He’ll have reinforced his well-earned reputation as a spender with no modern peer. He’ll own the record deficits and fast-rising debt. And he’ll own the U.S. credit-rating downgrade to AA if Standard & Poor’s so decides.
We’d far prefer a bipartisan deal to cut spending and reform entitlements without a tax increase. But if Mr. Obama won’t go along, there’s no reason Republicans should help him dodge the political consequences by committing debt-limit harakiri.
The American Progressives’ project of erecting a European-style welfare state is over, and it may be ending in default.
Chriss W. Street points out what the country’s real budget looks like (before Obamacare):
The Federal government’s spendable tax revenue of approximately $170 billion per month; is roughly just enough to cover legally required Social Security / Medicare payments ($90 billion) and debt service (ranging from $10-40 billon per month) – and the most politically sensitive payments for military and unemployment ($40 billion).
Read the whole thing. He has some good explanations of how we got here.
As the debt-ceiling showdown heads into its final stages, the political maneuvering has intensified, with both sides seeking to gain the upper hand in the public-relations war. Leaders from both parties know the stakes in this fight are very, very high; confrontations of this sort tend to become defining moments in political life, for good or ill. At this stage, anything could still happen, with many scenarios still in play. But for Republicans, there are reasons to worry that this showdown could be headed toward a political and fiscal debacle if they are not very careful.
It wouldn’t be the first time Democrats got the better of Republicans in a budget fight. In 1990, Richard Darman, who was director of the Office of Management and Budget, wanted to strike a budget deal to bring projected budget deficits down by $500 billion over five years. As a precondition for entering the talks, however, Democratic Senate majority leader George Mitchell demanded that Pres. George H. W. Bush renege, in writing, on his “no new taxes†pledge. The president did so at Darman’s urging, and from that moment on, the president’s standing and leverage plummeted. At crucial moments in the ensuing process, the tax increases kept getting larger and more onerous, and the spending cuts and entitlement reforms kept getting more ephemeral. In the end, it was just a question of how bad the political fallout would be for the president, which of course turned out to be very bad indeed.
In the current fight, it’s quite clear what President Obama and his allies are trying to accomplish. First, they want a package upon which the president can campaign in 2012. Something on the order of a “$3 trillion deficit-cutting program†(no matter how phony) — or even $2 trillion — would help the president downplay the big-spending, liberal image that most independent voters now have of him.
Second, the president wants to raise taxes without getting blamed for it. Hence the disingenuous cat-and-mouse games aimed at luring Republicans into accepting tax hikes behind closed doors so that the president never actually has to take ownership of them before they become law. Quite a trick if he can get away with it.
Third, and most important, Democrats want a deal that doesn’t give an inch on what really matters to their voting base — which is the entitlement status quo. The Democratic party has come to define itself as the party of entitlements. The New Deal. The Great Society. Obamacare. Nothing gets the Democratic heart beating quite like ensnaring the entire American middle class in entitlement dependence. For Democrats, victory means forcing Republicans to accept a budget framework that leaves today’s entitlement superstructure — and most especially centralized government management of American health care — exactly as it is today. ….
It would be far better to find a way to cut whatever spending can be cut sensibly with some Democratic support, raise the debt limit modestly, and leave the big questions on entitlement reforms and taxes to the collective judgment of the voting public in 2012.
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Glenn Reynolds adds:
So driving home from the gym just now, I heard Rush Limbaugh saying that if the GOP caves on the debt-ceiling fight we’ll see a Tea Party-backed third-party candidate for President, and the RNC will “implode†for lack of contributions. I think that’s right, but I don’t think that will happen. …
[T]he Democrats aren’t holding very many cards, and there’s no reason for the GOP to fold under the threat. Which isn’t to say that they won’t fold anyway, of course. As Teddy Roosevelt once said about Oliver Wendell Holmes, Jr., I could carve a better backbone out of a banana. . . .
Pat Buchanan left mainstream Conservatism for the Paleocon fever swamps some years ago, and has rarely ever made much sense since, but today the old Pat Buchanan is back and in fine form. In fact, Buchanan identifies precisely the tactics of bluffing and intimidation that the mouthpieces of the establishment are using to try to frighten the Republican leadership (which holds all the cards) into surrendering on tax increases to the impotent, discredited-by-reality, and sinking-daily-in-the-polls democrats. Pat Buchanan is right: the level of shrillness of the MSM commentariat is directly proportionate to their desperation. They know they’re losing.
By refusing to accept tax increases in a deal to raise the debt ceiling, Republicans are behaving like “fanatics,” writes David Brooks of The New York Times.
Anti-tax Republicans “have no sense of moral decency,” he adds.
They are “willing to stain their nation’s honor” to “worship their idol.” If this “deal of the century” goes down, as he calls the Barack Obama offer, “Republican fanaticism” will be the cause.
“The GOP has become a cult” that has replaced reason with “feverish” and “cockamamie beliefs,” writes Richard Cohen of The Washington Post. The Republican “presidential field (is) a virtual political Jonestown,” the Guyana site where more than 900 followers of the Peoples Temple drank the Kool-Aid that Rev. Jim Jones mixed for them.
Does anyone think this an appropriate description of such mild-mannered men as Mitt Romney, Tim Pawlenty and Jon Huntsman?
“The GOP’s Hezbollah Wing Is Now Fully in Control,” screams The New Republic over a recent lead editorial.
Other columnists charge the GOP with holding America “hostage” by refusing to accept tax hikes to avert a default on the debt.
What to make of this hysteria?
The Establishment is in a panic. It has been jolted awake to the realization that the GOP House, if it can summon the courage to use it, is holding a weapon that could enable it to bridle forever the federal monster that consumes 25 percent of gross domestic product.
To bully and blackmail the GOP into surrendering the weapon and betraying its principles and signing on to new taxes, that establishment has unleashed rhetoric more befitting a war on terror than a political dispute.
For how, exactly, are Republicans threatening the republic?
The House has not said it will not raise the debt ceiling. It must and will. It has not said it will not accept budget cuts. It has indicated a willingness to accept the budget cuts agreed to in the Biden negotiations.
Where the GOP has stood its ground is on tax increases. …
The Republican Party has not said it will refuse to raise the debt ceiling. It has an obligation to do so, and will.
The House has simply said it will not accept new taxes on a nation whose fiscal crisis comes from overspending.
If the GOP keeps its word, raises the debt ceiling and accepts budget cuts agreed to in the Biden negotiations, the only people who can prevent the debt ceiling’s being raised are Senate Democrats or Obama, in which case, they, not the GOP, will have thrown the nation into default.
It is the establishment that is resorting to extortion, saying, in effect, to the House GOP: Give us the new taxes we demand, or Obama will veto the debt ceiling and we will all blame you for the default.
They’re bluffing.
The GOP should stand its ground — and fix bayonets.
Repair Man Jack is fed up with democrat class warfare efforts at distraction.
If the majority of Americans really and truly believe that cutting the size of government, when struggling under $14Tr of national debt, equates to a desire to snuff puppies, we deserve a national default. If the majority of Americans truly believe they have a right to extract a loan for their tuition costs out of some other person’s paycheck, America is massively overdue for a well-deserved 2nd Great Depression. If the majority of people really believe the National Weather Service won’t just hire replacements from Korea or China; where students go to class at college sober, they are in for a grievous upset and disappointment.
Moderate Megan McArdle warns that accepting the liberal Kevin Drum‘s prescription to return to Clinton era tax rates would not come even close to paying for the federal deficit but would have very serious economic consequences.
Saying “all we have to do is go back to the tax rates under Clinton” is effectively saying “all we need is another asset price bubble that funnels a huge amount of money into the pockets of the rich”. This seems neither particularly feasible, nor desirable.
If we pick, somewhat optimistically, the mean tax take of the Clinton years, that means that we need a tax hike of 5-6% of GDP. And not over 20-30 years. …
A tax hike of 5-6% of GDP doesn’t sound like much. But that’s a big tax hike if your baseline is 19%–it means that everyone’s taxes go up by about a third. If the equilibrium tax revenue at Clinton rates is more like 18-18.5% of GDP, then obviously, they have to go up even higher, from a lower baseline. If you try to concentrate the pain on the wealthy or corporations, it’s an even bigger whack. Meanwhile, state and local taxes will be going up too; they have many of the same pension and entitlement problems that the federal government does.
These aren’t little adjustments. They’re huge changes in the overall tax burden, and they will have big effects on peoples lives, and the economy.
J.T. Young, at Investors’ Business Daily, points out some crucial home truths about the political future of the United States: liberals are too unrealistic to be trusted with governing authority and there are simply not enough of them to win except in a situation like 2008 when all the cards fall in their favor.
Can liberals govern America? That is the real question the federal budget deficit poses them. Budget deficits — at every level of government, and particularly in Washington — are a recognized threat. For this president, to whom liberals give overwhelming support, they are no less a threat.
As liberals refuse to let the deficit be addressed seriously through spending cuts, they need to consider the central fact of their existence. According to exit polling of the 2010 election (Edison Media Research/Mitofsky International) they constituted just 20% of the electorate. A bad year for liberals undoubtedly, but even in their halcyon days of 2008, they were just 22%. Over their highs and lows of the past four national elections, liberals have averaged just one-fifth (20.8%) of the electorate.
During the same time, conservatives have averaged 35.5% of the electorate.
America’s political lesson for liberals is twofold. Both liberals and conservatives need moderates to win national elections.
But liberals need moderates a lot more … because they need a lot more of them. Liberals need two-thirds of the moderate vote to reach a majority. Conservatives need only one-third.
If liberals can see neither the economics nor the politics of Obama’s Wednesday decision, they need only see themselves for what they are: the smallest of America’s three ideological groups by a wide margin. They can win elections only as a minority partner. They can expect governing to be no different. If that is unacceptable, they must be comfortable as a perpetual nongoverning minority.
The president’s speech on Wednesday recognizes this reality. It is unclear if America’s liberals do.
The Wall Street Journal calculates the numbers all over again, explaining that President Obama’s Tax-the-Rich proposals are a complete sham. Taxing the rich cannot possibly close the federal budget gap. Taxing the rich is pure rhetoric and deliberate deception. The real target of democrat increased tax ambitions is the middle class.
A dominant theme of President Obama’s budget speech last Wednesday was that our fiscal problems would vanish if only the wealthiest Americans were asked “to pay a little more.” Since he’s asking, imagine that instead of proposing to raise the top income tax rate well north of 40%, the President decided to go all the way to 100%.
Let’s stipulate that this is a thought experiment, because Democrats don’t need any more ideas. …
Consider the Internal Revenue Service’s income tax statistics for 2008, the latest year for which data are available. The top 1% of taxpayers—those with salaries, dividends and capital gains roughly above about $380,000—paid 38% of taxes. But assume that tax policy confiscated all the taxable income of all the “millionaires and billionaires” Mr. Obama singled out. That yields merely about $938 billion, which is sand on the beach amid the $4 trillion White House budget, a $1.65 trillion deficit, and spending at 25% as a share of the economy, a post-World War II record.
Say we take it up to the top 10%, or everyone with income over $114,000, including joint filers. That’s five times Mr. Obama’s 2% promise. The IRS data are broken down at $100,000, yet taxing all income above that level throws up only $3.4 trillion. And remember, the top 10% already pay 69% of all total income taxes, while the top 5% pay more than all of the other 95%.
We recognize that 2008 was a bad year for the economy and thus for tax receipts, as payments by the rich fell along with their income. So let’s perform the same exercise in 2005, a boom year and among the best ever for federal revenue. (Ahem, 2005 comes after the Bush tax cuts that Mr. Obama holds responsible for all the world’s problems.)
In 2005 the top 5% earned over $145,000. If you took all the income of people over $200,000, it would yield about $1.89 trillion, enough revenue to cover the 2012 bill for Medicare, Medicaid and Social Security—but not the same bill in 2016, as the costs of those entitlements are expected to grow rapidly. The rich, in short, aren’t nearly rich enough to finance Mr. Obama’s entitlement state ambitions—even before his health-care plan kicks in.
James Taranto has a rational explanation for the lies and stupidity.
Why did Obama give this appalling speech? A pair of articles give a partial answer. The first one appeared at TheHill.com early yesterday morning, before the speech:
Anxiety over President Obama’s shift to the political center is threatening to alienate the White House’s liberal base. . . .
The concerns have surfaced after the White House rankled lawmakers on the left by agreeing to a 2011 spending bill that slashes funding for a number of programs long favored by Democrats and embracing a controversial trade agreement with Colombia. . . .
The criticisms highlight the problem facing Obama, who is trying to lead from the center without alienating his political base. The White House strategy could help the president with independents, but risks leaving liberals at home in the fall of 2012.
The second, by Salon.com’s Joan Walsh, was a glowing review of the speech:
The president came out fighting with firmness, and with a rhetoric of social justice and equality, that I haven’t seen enough of these last two years. . . . That’s the president I voted for. . . . After the speech, pundits called it the opening salvo of the Obama 2012 reelection campaign, as though there was something wrong with that. If these are the founding principles of the president’s 2012 campaign, Democrats and the country will be better off than we’ve been in a while.
Mickey Kaus notes that “Obama tends to defend the welfare state in ineffective paleolib terms. It’s mostly ‘compassion’ and taking “responsibility for . . . each other,’ whether we work or not.” It seems to us, though, that the speech was meant for the left, not the center, and paleolib terms are effective with a paleolib audience.
The optimistic reading of this speech is the cynical one: Obama knows he is going to have to compromise with congressional Republicans and is buying himself some goodwill with the base. If he was speaking from the heart, though, we’re in for a long 2012, though his may be even longer.
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Ann Althouse says exactly the same thing, more colorfully and succinctly, by quoting (and glossing) Rush Limbaugh:
“That’s what they love. That’s what they get off on. That’s their orgasm.”
“They” = the “walking human debris… those savages that make up the Obama base.”
“What they get off on” = Obama’s attack on conservatives.
He was just blowing smoke to keep the moonbat base home on the ranch while he tries to make a deal. The natives had been getting noticably restless at the idea that the welfare state is over, so Barack was just singing the lullaby they love to hear to put them back to sleep. “Compassion versus greed…. millionaires and billionaires… repeal the Bush tax cuts…”
