Monday Wake Up Call, Inflation Reduction Act Edition – August 8, 2022

The Daily Escape:

Summer storm passes, Grand Teton NP, WY – August 2022 photo by Hilary Bralove

The Senate came into session at 12 pm Saturday, and after a full 24 hours, it paused the vote-a-rama on Sunday for a new prayer. Those are the Senate rules. Then the Senate promptly resumed its vote-a-rama, which ended about 3:15 pm on Sunday. From the WaPo:

“The Senate on Sunday approved a sweeping package to combat climate change, lower health-care costs, raise taxes on some billion-dollar corporations and reduce the federal deficit, as Democrats overcame months of political infighting to deliver the centerpiece to President Biden’s long-stalled economic agenda.”

While most of the Democrat’s reconciliation process proceeded according to plan, Senate Republicans successfully stripped a provision capping the price of insulin in the private marketplace from the Inflation Reduction Act (IRA) by a 57-43 vote, with seven Republicans (Cassidy, Collins, Hawley, Hyde Smith, Kennedy, Murkowski and Sullivan) voting to keep it in. But the seven GOP votes, plus all Democrats, weren’t enough to reach the 60-vote threshold necessary to pass.

The cap on insulin prices for only those on Medicare remained in the bill since it complied with the rules on reconciliation. Apparently, the Republicans think that if we give people handouts for having diabetes America’s just incentivizing people to get diabetes. Who wants that?

Democrats included a new tax on large companies that currently pay nothing to the US government and added about $80 billion for the Internal Revenue Service to pursue tax cheats. They also approved a 1% tax on companies that buy back their own stock, a practice that many see as detrimental to the economy, that benefits only wealthy shareholders and executives.

After the bill passed, Republicans were predictably outraged. The appropriately-named Sen. Mike Crapo (R-ID) said:

“It does nothing to bring the economy out of stagnation and recession. But rather, the Inflation Reduction Act of 2022 gives us higher taxes, more spending, higher prices — and an army of IRS agents…”

And it’s important to note that while Democrats don’t think that Sens. Manchin and Sinema are all that great, don’t forget that this watered down bill was opposed by EVERY SINGLE REPUBLICAN.

There is plenty to crow about in the IRA. Does it contain everything on the progressive wish list? No, but Dems should take the win and stop pissing and moaning about what couldn’t get by Manchin, Sinema and/or the Senate Parliamentarian, and sell the bill hard to the American people.

If Democrats want to deliver even more, they’ll need to improve their margin in the Senate, and hold the House in the November mid-terms.

It’s not enough for Democrats to wait for Republicans to shoot themselves in the foot this fall, even though some candidates can be counted upon to try hard to do just that. Democrats need to be shouting about their successes. Just yesterday, Trump said at CPAC: “You have not good job numbers now”, even though the just-published job numbers were awesome! That has to be countered at every opportunity.

This means a wall-to-wall, multi-pronged messaging campaign, reminding Americans every minute that Republicans can’t be trusted on the economy. And despite where inflation is today, we need to be saying that gas prices are down nearly $1.00/gallon in the last seven weeks.

Maybe John Stewart should become the Dem’s Minister of Information?

We need to say that most GOP candidates support the Big Lie and the impeached coup plotter, Trump. That they’re willing to eliminate the right to an abortion in America. On Friday, Indiana’s Republicans passed and Republican Governor Eric Holcomb immediately signed, a bill that prohibits nearly all abortions from the moment of gestation. Several Republican-controlled states will shortly pass similar laws.

People must, as Tom Sullivan says, “campaign like crazy“, while reminding all Americans that the Party of Lincoln no longer will deliver anything that ordinary people want.

Time to wake up America! We’re at war politically and ideologically with Republicans. The only way to win is to keep defeating them at local, state, and federal levels until they stop trying to force their radical ways on the rest of us. To help you wake up, watch, and listen to the interesting but short-lived group, 4 Non Blondes play their big hit from 1992, “What’s Up”:

Sample Lyric:

25 years and my life is still
Tryin’ to get up that great big hill of hope
For a destination

I realized quickly when I knew I should
That the world was made up of this brotherhood of man
For whatever that means

And so I cry sometimes when I’m lying in bed
Just to get it all out what’s in my head
And I, I am feeling a little peculiar

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Schumer and Manchin Love Bipartisanship, Hate Diabetics

The Daily Escape:

Full moon, 4:00 am, Burlington, VT harbor -July 2022 photo by Adam Silverman Photography

Senate Democrats have been working on a prescription drug pricing reform proposal aimed at lowering the cost of prescription drugs by allowing Medicare to negotiate prices for up to 20 drugs.

The House passed similar legislation which was considered by the Senate last year. That bill included language that would have made all insulin products subject to Medicare price negotiation and would have capped Medicare beneficiaries’ insulin copays at $35 per month.

Earlier this month, Senate Democrats (including Manchin), reached a deal on a plan that would allow Medicare Part D to negotiate the prices of up to 20 prescription medications directly with pharmaceutical corporations, a proposal that is overwhelmingly popular with voters across party lines.

But the Senate Finance Committee has just left insulin out of the package they plan to send to the floor of the Senate. From Yahoo News: (parenthesis by Wrongo)

“Staff for the Democrats on the Senate Finance committee said the provisions were removed because a separate bipartisan Senate bill (the Insulin Act) includes the monthly $35 insulin cost cap for people with Medicare or private insurance.”

But that separate bill is facing an uphill battle because it would need 60 votes in the Senate to cross the filibuster hurdle, while the drug pricing reform bill is expected to be part of the Senate’s reconciliation process, requiring only 51 votes to become law.

Bloomberg Law reports that Schumer: (emphasis by Wrongo)

“…has said he plans to hold a vote soon on a measure from a bipartisan duo to cap the out-of-pocket cost of insulin at $35 a month. But passing the legislation from Sens. Susan Collins (R-ME) and Jeanne Shaheen (D-NH) requires the support of Republicans, and key GOP senators say they’re not ready for a vote right now.”

Naturally, diabetics and their interest groups are up in arms. That people have to pay huge sums for insulin is a very visible problem among all of the problems with America’s health care system. That Democrats may cave on fixing this in favor of making the path harder reveals much about the Dem’s ability to govern.

From Common Dreams: (brackets by Wrongo)

“Insulin prices in the US [are] seven times higher than those found in peer countries [and] are so steep that experts have accused the federal government and pharmaceutical industry of violating human rights. More than 37 million people in the US have been diagnosed with diabetes….Because just three pharmaceutical corporations control the nation’s lucrative insulin market, the century-old drug can cost a person without adequate health insurance more than $300 per vial.”

So, an oligopoly controls insulin.

The massive coverage gaps inherent in our for-profit healthcare system have left millions of people across the US who rely on insulin, unable to afford it. Corporate profiteering is forcing many people to ration the drug or forgo it, often with deadly consequences.

Considering the fact that insulin is more than 100 years old, it should be as close to free as possible. Why not set up a not-for-profit co-op to manufacture insulin, which would then be available for the cost of production? One such organization that’s trying to do just that is the Open Insulin Foundation. However it isn’t clear that they have launched production of insulin at this point.

The drug pricing reform bill would start negotiating with drug manufacturers sometime in the next three years and wouldn’t be fully implemented until 2030, so it’s weak tea to begin with. And it’s only for 20 drugs, and the most used one is no longer included.

Schumer and Manchin are responsible for taking insulin out of the bill that will certainly pass, in favor of it being in a stand-alone bill that probably won’t pass, because they still don’t have the Republican votes they need to pass a separate insulin bill.

Unless Democrats abandon their efforts to convert Republicans to bipartisanship, Wrongo’s days of funding their election campaigns are over.

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Don’t Forget the Debt Limit

The Daily Escape:

After Hurricane Ida, Grays Beach, Cape Cod MA – photo by Casey Chmieleki

With all the screaming headlines about Afghanistan, Texas anti-abortion laws and the march of the Delta variant, you probably missed that the US government is running out of money. Reuters explains it:

“Leaders of the Democratic-led Senate and House of Representatives are expected to force votes to lift the $28.4 trillion debt limit in late September. The limit was technically breached on July 31 but is being circumvented by Treasury Department “extraordinary” steps.”

This is an unavoidable political issue for both Parties, because while people dislike the idea of more government debt, they really like the goodies that come along with that debt.

This is happening while the Democrats are jousting with each other, trying to find 50 Dem votes for the bipartisan infrastructure bill, a budget resolution, and a budget reconciliation bill. But they also need to work on increasing the debt limit. From Ed Kilgore:

“The debt limit was suspended in 2019 as part of a two-year budget deal between Congress and the Trump administration intended to postpone major fiscal fights until after the 2020 elections. The deal expired on August 1, 2021, with the effect that the debt ceiling was adjusted upwards to the level of debt as it exists right now.”

Accruing debt above $28.43 trillion requires an increase in, or suspension of, the debt limit. At current levels of expenditure, the government’s checking account, called the Treasury General Account (TGA) at the Federal Reserve Bank of New York, will hit zero in mid-October. It can be extended by “extraordinary measures” into November, which is when the US government would begin defaulting on its bills.

The politics of government funding and increasing the debt limit are always a farce, and it’s no different this time. Republican Senate Minority Leader Mitch McConnell has already announced that Democrats cannot expect a single Republican vote for a debt limit measure right now.

That’s a political problem for Democrats, because a debt limit increase or suspension is subject to the Senate filibuster, requiring 60 Senate votes unless there’s some way around — like including it in a filibuster-proof budget reconciliation measure.

McConnell helpfully suggested that Democrats should just include a debt limit increase in the Fiscal Year 2022 budget-reconciliation bill. But that would guarantee Republicans could “blame” Democrats in the 2022 mid-term election for an increase in government debt.

The foul Republican tradition of trying to hold Democrats hostage when an increase in the debt limit is required, only goes back to the odious Newt Gingrich in 1996. We all know how the farce ends: Congress will avoid default at the last possible minute, just as it has done 78 times without fail since 1960, after concessions are extorted from the other side.

It’s a farce because Congress has already appropriated the funds to be spent and to be borrowed. It has told the Administration in detail how to spend those funds. Now Republicans in Congress want to say (again): “Nope, you can’t borrow the money to cover what we told you to spend”.

Republican Congress critters know we must pay our bills, but for myriad cynical reasons  ̶  or just plain political incompetence, they keep the issue alive budget year after budget year, and vote after vote.

The debt limit shouldn’t be increased; it should be repealed. The passage of a budget or any other legislation has an implicit expectation that the government will need to raise x and/or spend y. It’s really that simple. Congress should bite the bullet, and never again need to fight about it.

When they debate the debt ceiling, remember the only reason it’s happening is because one half of our government is good at politics but has no ethics, morals, or sense of patriotism, while the other half of our government is breathtakingly bad at politics.

Eventually, it will be obvious that the Republicans are really fighting about increasing taxes on corporations and the ultra-rich.

We all would be better off if this bullshit ended, and Congress got on with real work.

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Saturday Soother – June 26, 2021

The Daily Escape:

Low tide, Thumpertown Beach, Cape Cod MA – July 4, 2018 iPhone photo by Wrongo

After Biden and a bipartisan group of US lawmakers announced a deal on infrastructure, it soon became clear that Democrats would only support it if it was passed alongside a big reconciliation bill, something that Wrongo suggested was the only way to play infrastructure with the Republicans.

The American Society of Civil Engineers says that we need to spend $2.59 trillion in the next decade on pure, traditional infrastructure. According to a fact sheet released by the White House, Part 1 includes just $579 billion in new infrastructure spending over the course of five years, with $309 billion going to transportation and $109 billion earmarked for roads, bridges, and other projects.

That means there needs to be two bills: one, a “hard infrastructure” bill along the lines of the framework agreed on Thursday, and the second, a “broadly defined infrastructure” bill containing the other provisions Biden originally wanted in his big infrastructure bill.

If a bipartisan Part 1 appeases enough moderates of both parties sufficiently to get them not to raise hell over a reconciliation Part 2, then Biden will be acknowledged as better at politics than the pundits.

OTOH, McConnell says Biden can have Part 1 only if he doesn’t ask for Part 2. That sets up the possibility that Democrats must choose between something that’s admittedly terrible, or nothing. Biden says he won’t sign the first unless he is also given the second one to sign, while Pelosi says the first bill won’t pass the House until the reconciliation bill passes the Senate.

As with everything in DC, the usual caveats apply: So. Much. Can. Go. Wrong. The two-track Senate strategy (one bill bipartisan, another through reconciliation) requires extraordinary political deftness, possibly a bridge too far for the craptacular Senate Majority Leader Schumer.

A few words about Part 1 from Common Dreams:

  • Rather than pushing for taxes targeting rich individuals and corporations, a White House fact sheet on the bipartisan package outlines other potential financing sources, from unused Coronavirus funds to reinstating Superfund fees for chemicals.
  • The proposal also relies on public-private partnerships, (P3s), private activity bonds, and asset recycling for infrastructure investment.

When politicians say “asset recycling” they mean the sale or lease of public assets to the private sector so the government can put that money toward new investments. But the devil is in the details, and how we fund new infrastructure can’t be through privatizing our existing infrastructure.

America won’t get a redo once its public infrastructure is privatized.

In some places public/private partnerships can be tolerable. Think rail policy where Amtrak’s funding is contingent on some sort of matching grants for private freight service improvement. This can be better justified as both are connected as part of the same rail network and improvements can be easily tracked.

But elsewhere, it can’t, especially in power and telecom, where P3s only serve to prevent public services from being offered. This sounds like how Philadelphia and other cities sold off infrastructure like parking garages and parking meters. The city derived no recurring income, while private companies collected the monies.

From Benjamin Studebaker:

“In most democracies, a working legislative majority allows the government to pass legislation. In the United States, things don’t work this way….As our problems slowly mount, neither the Democrats or the Republicans are able to experiment with policy solutions. The policies that do get passed are the result of fraught compromises. It’s never clear who is responsible for the policies that issue from the federal government, and every time anything goes wrong every part of the US government passes the buck to every other part.”

The failure to make essential investments in the basic infrastructure of the country is not consistent with having a functioning state. Either the filibuster must go, or the primary system must go. The primary system is here to stay because it is equated with democracy itself in the US. Therefore, sooner or later, the filibuster will go.

So, rather than teasing Americans with the promise of a new Roosevelt administration (in aviator shades), it looks like we’re in for another round of gridlock.

That’s enough politics for this Saturday. It’s time for our Saturday Soother. Wrongo and Ms. Right are spending a few days on Cape Cod, which is always enjoyable. So, before going off to watch another beautiful sunset, let’s take a few minutes to relax and listen to the Second movement (largo) of Dvoƙák’s “From the New World“, performed here in 1985 by the Vienna Philharmonic, directed by the late Herbert von Karajan:

 

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Ballbuster Walks Away From Filibuster

The Daily Escape:

Winter, Arches NP, UT – photo by Jack Bell Photography

For a few weeks, Mitch McConnell has continued to control the Senate, even after the Democrats should have taken control. Because of the Senate’s arcane rules, he wasn’t prepared to give up power unless Chuck Schumer and his new majority promised to retain the filibuster.

Yes, you heard that right. Absent a power sharing agreement known as an organizing resolution that Wrongo wrote about here, McConnell stayed in charge. Schumer and McConnell needed to agree on a new set of rules, which are passed at the start of each new Senate term, to govern how the Senate operates.

The organizing resolution determines everything from committee assignments and staff budgets, to who gets the best office space.

McConnell’s calculation was simple. Not only was preserving the filibuster, something that Republicans could use to control the Democrats’ agenda, it was something that they could unify behind. It was also something that divided Democrats, many of whom want to see it discarded immediately in order to advance their legislative agenda.

But on Monday, McConnell said he was ready to move forward, because Senators Kyrsten Sinema (D-AZ) and Joe Manchin (D-WVA) signaled informally that they wouldn’t vote to end the filibuster. That assures McConnell that it will remain in place, at least for the time being.

Governing in the Senate will take 60 votes to move forward, potentially assuring gridlock on much of the Democrat’s agenda. It’s another example of how the filibuster rules all without even being officially invoked.

The longest filibuster ever held in the US Senate was 60 days in 1964 to prevent the passage of the Civil Rights Act. The House ended the use of a filibuster in 1842. The filibuster was created when there were just 26 states in the Union. It’s a tool of obstruction. It doesn’t encourage debate, it doesn’t allow for more voices to be heard.

Eugene Robinson in the WaPo:

“GOP senators can have a voice in the outcome if they engage in good faith. But they have to realize that “compromise” doesn’t mean “Republicans win and Democrats lose.” Not anymore.”

Both Pelosi and Schumer know damn well who McConnell is at this point. They know that winning votes in the 2022 Congressional races will be directly connected to beating Covid through better public health policy and vaccinations. More from Robinson:

“A better way to seek unity is to vigorously pursue policies that have broad public support — and that begin to clean up the shambles the Biden administration inherits. Democrats may have slim majorities, but they have been given a mandate to lead.”

There is an alternative that the Democrats may choose to use, a Congressional process known as budget reconciliation, which blocks Republicans from filibustering, while allowing Democrats to pass bills with a simple majority. According to Sen. Bernie Sanders, (I-VT):

“I think the budget resolution will be up next week,”

Reconciliation starts with passing a budget resolution for the coming fiscal year. In that budget resolution, they need to include special budget directives or instructions:

“To start the reconciliation process, the House and Senate must agree on a budget resolution that includes “reconciliation directives” for specified committees. Under the Congressional Budget Act, the House and Senate are supposed to adopt a budget resolution each year to establish an overall budget plan and set guidelines for action on spending and revenue.”

It can then go directly to the Senate floor without a committee markup under a provision of the 1974 law that created the modern budget process.

Democrats would be following a precedent laid down in early 2017 when Republicans who controlled the Senate, House and White House attempted to repeal the 2010 Affordable Care Act. At that time, the Senate Budget chairman, Michael B. Enzi, (R-WY), wrote a fiscal 2017 skinny budget resolution including reconciliation instructions with the goal of repealing the law.

Instead of the Senate marking up the budget, it was discharged from the committee and went straight to the floor where the Senate adopted it.

The Biden relief package may be whittled down, possibly broken into a few pieces. But it must pass, even if it takes budget reconciliation to do it.

The Democrats have inherited a broken country. There are huge expectations resting on them, while the 2022 midterms aren’t looking favorable at this point. That means they have to accomplish a lot, while the GOP only has to sit on its hands.

Democrats have to rise to the urgency of the moment by passing legislation no matter what it takes.

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Will Congress Act on Funding Before Christmas?

The Daily Escape:

Turkey Pond, near Concord, NH – November 2020 photo by panasthropodism

The last time Congress passed a COVID relief bill was over seven months ago. This week, a bipartisan group of Senators revealed a new $908 billion stimulus proposal. This reflects a substantial cave-in by Democrats and House Speaker Pelosi, (D-CA) whose last offer was about $2.2 trillion.

Whether it goes forward depends on Pelosi and Senator Mitch McConnell (R-KY) finding agreement, and then getting Trump to sign off. Pelosi and McConnell talked on Thursday about how to find common ground on both a funding bill to keep the government’s doors open, and on another coronavirus relief package. Needless to say, they are still far apart.

Jeff Stein of WaPo tweeted about how different this Covid proposal is from the last two circulated by Mitch McConnell: (brackets by Wrongo)

Sept. 8: McConnell releases plan including $300/week in supplemental federal UI [unemployment insurance] for jobless Americans

Dec. 1: McConnell releases plan including $0/week in supplemental federal UI for jobless Americans https://t.co/GywLXGzOP9

According to the Century Foundation, 12 million people could see their Covid-related aid disappear the day after Christmas. This cliff is a major factor in pressuring Congress to pass a new bill before their 2020 recess. This funding need is separate from the need to fund the government past December 11. James Kwak of the Baseline Scenario says:

“One of Congress’s top priorities this week and next is to pass some kind of funding bill that will keep the federal government operating past December 11.”

Kwak points out that there are two ways this could happen: First, Congress could pass a continuing resolution that maintains funding at current levels for a period of time, until after Biden is inaugurated, and a new Congress is seated.

Second, the Parties could agree to pass an omnibus fiscal year 2021 spending bill that funds the government through the end of the current fiscal year on September 30, 2021. This is Trump’s preference.

This is a bit of inside baseball. Government funding measures are must-pass bills. No politician wants a government shutdown. Democrats have historically been able to pin most of the blame for a shutdown on Republicans, starting in 1995, when Bill Clinton successfully portrayed Newt Gingrich as a zealot who wanted to slash Medicare.

OTOH, an omnibus budget reconciliation bill could represent one of the Biden administration’s few real chances to pass anything big through Congress. This is true since bills passed via the reconciliation process are not subject to the Senate’s filibuster.

Biden probably doesn’t want to cede the omnibus bill win to Trump just as Trump is packing his bags.

But, if Dems linked the short-term funding bill to an omnibus budget reconciliation bill, they’d only need a bare majority of Senators to pass both. The gamble would be that in order to avert a government shutdown, a scant few Republican moderates might be pressured to join in an omnibus budget deal.

Part of the Dem’s reasoning for wanting to take only a short-term government funding deal is a bet that Jon Ossoff and Raphael Warnock can both win in Georgia on January 5. Then, the Senate would be split 50/50, with VP Harris, as President of the Senate, in a position to cast the deciding vote(s) on the Democrat’s agenda.

If both Georgia candidates win, Democrats will control both Houses of Congress for the first time since 2010, but by a razor-thin margin. They would need to insure that the one Senate Democrat in name only, Joe Manchin (D-WVA) would agree with whatever bills they put forward. Manchin will be in a position to control much of the Democrats’ political agenda.

We’ll see how all of this plays out in real-time, since the Senate is planning to head for home on December 18. Kwak says:

“…Democratic leadership in Congress seems inclined to give up the potential chance to write their own appropriations bill in January in exchange for a bill that they have to negotiate with McConnell and…Donald J. Trump.”

Congress might pass something that is an extension of the CARES Act, stranger things have happened. It’s likely it will pass a government funding extension before leaving for the holidays.

For the CARES extension, it appears that Democrats will have to cave in to McConnell on the corporate liability shield he’s looking for as the price of a relief bill.

It’s doubtful that Dems can go home without having passed something for Covid relief and some way to fund the government until at least late January.

The challenge of limited time and limited trust will test a divided Congress’s ability to make a few deals after months of gridlock.

Good luck America.

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Saturday Soother – September 22, 2018

The Daily Escape:

Bridge of Sighs, Venice, Italy — photo by _enk

Another week in Trumplandia is in the books. And, for the second consecutive year, there was no “Trump’s Summer Reading List“. That idea seems so preposterous that his handlers don’t even try to fake it. He’s never wandered far from the limo or the hotel lobby. He’s simply not interested in our world.

With that as background, consider Trump’s meeting with Spanish Foreign Minister Josep Borrell in which Trump suggested building a wall across the 3,000 mile-long Sahara Desert to prevent African migrants from making their way into Europe:

You need to build a wall around the Sahara…When Borrell asked Trump if he understood just how big the Sahara is, Trump argued that “it can’t be bigger than our border with Mexico.” Borrell then informed Trump that the Sahara is far bigger than the U.S. border with Mexico.

And this was in The Guardian, not The Onion. Hold on to Trump’s fixation with walls for a bit, and read this tweet:

I want to know, where is the money for Border Security and the WALL in this ridiculous Spending Bill, and where will it come from after the Midterms? Dems are obstructing Law Enforcement and Border Security. REPUBLICANS MUST FINALLY GET TOUGH!

— Donald J. Trump (@realDonaldTrump) September 20, 2018

He tweeted this because the Senate approved their conference report with the House by a bipartisan 93-7 majority. It funds the departments of Defense, Labor, Health and Human Services, and Education for the next fiscal year.

The best part was that it included a continuing resolution to keep the rest of the government agencies funded until after the mid-term election, so no shut-down, unless Trump refuses to sign the bill.

And, Congress designed it to prevent a standoff about Donald Trump’s border wall. Apparently, the lack of wall funding was a surprise to Trump, so he asks via tweet, “where is the money for the WALL?”

Once the Kavanaugh/Dr. Ford’s: “is it attempted rape, or just teen-age hijinks?” debate stops sucking up all of the oxygen in DC, Democrats should start praising Congressional Republicans continuously for defying Trump about the wall.

Dems should loudly praise Republicans for sending Trump a bill he can’t veto. They should hammer that wedge hard.

And, if Trump does veto it, we’ll see an instant shipwreck for the Republicans.

But right now, you need to get away from it all for at least a few minutes. You need to let your brain calm down. Wrongo calls this the Saturday Soother. We start by brewing a hot steaming cup of coffee. Today, we return to coffee roaster Geoffrey Martinez of Compton, CA’s Patria Coffee. Wrongo purchased a 12 oz. bag of Patria’s Peru Amazonas WP Decaf, and it was liked by all. So why not brew up a Vente cup of that, and enjoy. (A blog reader asked Wrongo if he receives any payment for these weekly coffee recommendations. He does not.)

Settle back in a comfy chair and watch the fall season begin outside your windows. Here, on the fields of Wrong, the crab apple, birch, and tulip trees are losing their leaves. The deer visit the crab apples several times a day to eat the fruit that falls to the ground.

Now, wearing your Bluetooth headphones, listen to trumpeter Chris Botti and violinist Lucia Micarelli perform “Emmanuel” live in Boston as part of Botti’s 2009 PBS special. The music was written by Michel Colombier, and released in 1971. Emmanuel was written to honor the memory of Colombier’s son, who died when he was only 5 years old. This piece will help you forget about Trump, Kavanaugh, and the Russians for a while:

Those who read the Wrongologist in email can view the video here.

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Saturday Soother – August 26, 2017

The Daily Escape:

Depression Bread Line by George Segal, 1999, at the NJ Grounds for Sculpture – 2017 photo by Wrongo

There are two political imperatives facing America by the end of September: The House, Senate and the president must extend the Federal borrowing limit, and pass a budget. When Obama was president, extension of the borrowing limit was a dicey thing, as was passing a budget. From 2008-2016, we largely avoided government shutdowns, we passed spending bills, but not an entire budget.

And we never even considered tax reform, but it’s the third item on the GOP’s 2017 to-do list.

In some sense, everything except increasing the debt ceiling is optional. As of now, there are only twelve days in September when the House and Senate are jointly in session. The Senate has a few more legislative days on their schedule than the House, but it’s unclear how they’ll use them.

Republicans and Wall Street used to have concerns about the consequences for America if we didn’t get our finances under control. They said that the growing federal debt could eventually drag down the economy, burden future generations, and even threaten national security. CEOs of corporations and the biggest banks joined a campaign called Fix the Debt, arguing that the size of our debt was our most pressing issue.

But now these same people are all in on Trump’s plan to cut taxes for corporations and high earners, saying it is the way to fuel economic growth. That, despite estimates that Trump’s plan could reduce federal revenue by $3.9 trillion over 10 years, thereby increasing the debt that CEOs used to hate. From Bloomberg:

Goldman Sachs Group Inc. CEO Lloyd Blankfein, a Fix the Debt supporter…in 2012 told CNBC he’d be for higher taxes if they helped mend the fiscal gap. After the 2016 election, Blankfein told colleagues…that Trump’s proposals, including tax reform, ‘will be good for growth and, therefore, will be good for our clients and for our firm.’

Hmmm. Aren’t Treasury Secretary Steve Mnuchin and Trump’s Economic Adviser Gary Cohn both from Goldman?

Dean Baker, co-director of the Center for Economic and Policy Research sees the policy shift clearly: (brackets by the Wrongologist)

They [CEOs] were yelling, Deficits, deficits, deficits… [and] as soon as George W. Bush gets in the White House? Oh, we’ll have a big tax cut.

The same thing is happening now. Bloomberg reports that according to Seth Waugh, chairman of wealth adviser Alex. Brown, many in finance have moved on from the debt: (brackets and emphasis by the Wrongologist)

It’s not a fun, sexy thing to talk about…Waugh, another Fix the Debt member, recalls playing golf with a private equity executive…Waugh told his friend it would be nice if Congress addressed deficits… [but]…The private equity executive said nobody was talking about that. It was a dead issue, and they should take the good news: Paying less in taxes, the friend reminded him, means getting richer.

It’s probably a distant dream. The GOPs plan for tax reform involves using the budget reconciliation process, which allows them to pass it with just 51 votes, that is, without Democrats. Otherwise, they face a filibuster. Reconciliation starts with passing a budget resolution for the coming fiscal year. In that budget resolution, they need to include special budget directives or instructions:

To start the reconciliation process, the House and Senate must agree on a budget resolution that includes “reconciliation directives” for specified committees. Under the Congressional Budget Act, the House and Senate are supposed to adopt a budget resolution each year to establish an overall budget plan and set guidelines for action on spending and revenue.

So they need to pass a budget, but before that, Republicans need to vote to raise the borrowing authority of the government. That may be impossible without support from Democrats.

We’ll know very soon if Dems are willing to get on board with Paul Ryan and Mitch McConnell on any of this.

It’s Saturday again, and despite the brief three-minute respite from politics brought by the solar eclipse, Trump had another successful week. (If success is his continued destruction of what remains of America’s psyche).

We are now in desperate need of something soothing to kick off next week’s war for truth. So grab a couple of Trader Joe’s Cold Brew Latte Dessert Bars (40 calories and 7 grams of sugar each), put on your best Bluetooth headphones, and listen to the late guitarist John Abercrombie, who died this week. Here is Abercrombie with Dave Holland on bass, and Jack DeJohnette on drums doing “Homecoming” live in 1995. Let’s hope it’s not the best few minutes of your week:

Pay attention to Abercrombie’s remarkable and airy technique.

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