Saturday, October 6, 2012

Debates: Obama Doesn’t Explain the Reason Government Matters


I am not one of those who’s disappointed that Obama chose not to go hammer and tong with Romney in the debate over the 47% insult, Bain Capital, and his shifty and misleading maneuvers regarding the release of tis tax returns. I guess it might have been personally satisfying for Obama to call Romney out for the elitist snob he has so often shown himself to be. But I was not that motivated to hear cathartic bloodletting. What I was anxious to hear was the rationale for government and the good that it does. Perhaps we could hear an explanation of silliness of the Tea Bagger slogan: “KEEP GOVERNMENT OUT OF MY MEDICARE”.

The biggest problem, bigger in my mind than a fussy attitude or allowing his competitor to get away with several medium to gigantic whoppers  was the fact that the President did not make the case for why government matters. This is so much bigger than Romney. After an ugly bitter primary season when almost every effort of Government has been called into question, besmirched at the altar of Ayn Rand individualism, the President’s silence allowed big lies to linger.

Medicaid

Medicaid is the government sponsored Health Care for the poor. After the recession on 2008 enrollment spiked from just over 42 million to current levels of about 50 million people. According the Kaiser Foundation 2/3 of the people on Medicaid are working. Another huge chunk of benefits goes to seniors who have exhausted their life savings and require nursing home care. The Republicans talk about what we can afford and what we can’t and the argument that the standard of what we can afford should be based on what we want to borrow money from China to pay is a clever one in that it distracts voters from the fact that the man making that case paid 14% in taxes in 2011 on income of nearly $14 million, partially a gift to government that he can take back some time in the future (after the election). 

The Ryan Budget plan calls for turning the entire Medicaid program over to the states, and then applies a 20% cut in spending. The effect this would have on the poor and seniors is unconscionable.

Providing Health Care for the weakest among us and dignified nursing home care for seniors, that is what government does.

Social Security and Medicare

Social Security and Medicare are funded by payroll tax deductions throughout every working person’s entire working life. Seniors who are now enjoying the benefits of Social Security and Medicare, paid for by deductions from their salary, are a huge junk of the 47% of the freeloading electorate pointed out by Romney, and underlined repeatedly by the Radio Right. The fact the right sees these programs as giveaways of “taxpayer” money displays the greed which is at the core of so much of their rhetoric. I know that poor and middle class Republicans will dispute that, but it is one of the reasons that the Koch Brothers, Sheldon Adelson and others are putting tens of millions into this campaign.

The demographic boom means that adjustments will need to be made to both programs. This may come in the form of means testing or adjusting the retirement age, or a mix of the two.
No one with a senior parent believes Medicare is a government takeover of Health Care.  We have seen our parents visit the doctor of their choice, fight the challenge of getting all their prescriptions taken on schedule and to the prescribed dosage. This is what government does.

Obamacare

Obamacare steers a lot more customers towards the Health Insurance Industry. The Federal government will pay for some, and subsidize some. Others who can afford it will pay their own way or pay a now Supreme Court authorized tax. In return for all these customers the Health Care industry, and insurers specifically, are required to do certain things like provide coverage for children on parent’s policies until age 26, cap lifetime costs, provide basic preventative care including many important women’s diagnostic procedures at low or no cost as part of the basic policy, guarantee that 85% of premiums would go to patient care or refund the difference to the policy holder, and of course to cover those with pre-existing conditions. In sum the changes are designed to direct more people to medical providers before they are seriously ill, which in practice and over time should reduce costs. All these extra customers allow insurers to extend costs over a vastly larger pool of people. It’s what makes the regulations acceptable to them.

Shape shifting an industry that accounts for nearly 20% of GDP, while leaving millions without coverage or care and emphasizing far too little preventative medicine which exacerbates inflationary pressure on the system, that’s a big deal.  That’s what government does.

Energy

Oil imports were at 60% of US consumption under President Bush. Republican rhetoric aside, as of 2010 imports were down to 49% of consumption in 2010, and according to the Energy Information Agency of the US government imports are projected to drop to 35% of consumption by 2035. In addition a larger and larger segment of imported fuel is coming from Canada. The trend, driven by the economics of the energy industry is evident and will likely continue under Democratic and Republican administrations.

That said, The US, will continue to be at the mercy of international markets when it comes to the price of fuel. The much discussed Keystone pipeline is NOT intended to bring oil to the US. Most of the oil from it will be targeted to Asia, China in particular. With our without the pipeline the oil will flow.

So the strategy of Drill, Baby, Drill seems unencumbered by the policies of the Democratic administration. That leaves us with the utter hypocrisy of those who proclaim the immorality of passing massive debt onto our children and grandchildren while denying climate science and so passing on to our descendants a melting planet. This week the U.S. National Snow & Ice Data Center reported the summer ice melt resulted in the polar ice cap shrinking to the smallest ever recorded. Just in the last five years satellite imagery shows that the cap has shrunk by nearly 20%. After the record heat and intensifying storms (Katrina and Irene) we have been seeing those who believe that the cure could be worse than the disease ought to tell us in what ways exactly this is so.

The Energy Department distributed about $90 billion of the total $787 billion in stimulus funds in support of green energy. But according to CNN, not even half of the $90 Billion went to green energy  firms. $29 Billion went to retrofitting homes with better weatherproofing and windows, $18 billion went to mass transit, and $10 billion went to the modernization of the electrical grid. That leaves about $35 billion for loan guarantees and other support of companies generating green energy. Exactly three of the 26 companies that received any of this support went bankrupt. If 3 of 26 is equal to “half” as Romney claimed, then perhaps he needs a new calculator and a new accountant. At any rate nothing like $90 billion went to support new technology.

Making risky investments in areas critical to the health of our economy and our planet, that is what Government does.

So I don’t worry about a single debate performance or the impact it has the race. For now I put the somnambulant performance of the President at the bottom of a list of concerns. Next, I count Obama’s unwillingness to mix it up with Romney.  I’m not asking Obama to sling mud to and fro, but the President walked off the stage in Denver looking like the football player with the impeccably clean, impossibly white uniform. If you hadn’t seen it with your own eyes, you might ask, “Did he even play?”

The enemy of middle class recovery and the availability of opportunity to the poor is not Mitt Romney. The Republican challenger is merely the front man with the fancy suit and the shiny shoes. There are principled small government devotees out there, but the vile, vicious, ugly rhetoric being driven today is at the behest of a small group of extremely wealthy oligarchs, bent on shrinking government, their tax bill, and regulation of their business interests, purely for the purpose of increasing their ability to enlarge upon their vast and ever increasing wealth. These oligarchs are the enemy of American values, and thanks to Citizens United they are out of control.

The primary argument of these oligarchs is that government is broken, in the way, and incompetent. For all the problems we face, this argument carries weight, even with me. But when some of us say government is broken it is not because we see regulations run amok. On the contrary we see an unprecedented Wall Street calamity brought on by lax regulation, a disaster for the middle class and a catastrophe for the poor as evidenced by the shattering number of people in need of food stamp support. We see Global Climate change as a proven scientific fact and understand that politicians on the right who repeat ad nauseum their belief that the science is open to question do so at the behest of their corporate masters.  We believe the tax code is broken, but know that Romney did not get to a 14% liability--actually 10% because he overpaid and can get the balance back later-- because of the policies of one or two administrations. Rather we know that the accumulative policies of administrations stretching over decades have led to a distortion of tax policy that now impinges on the government’s ability to function.

China invested $35.0 billion in renewable energy in 2010, about twice what the US did, and it’s spending on high speed rail dwarfs American outlays. Consequently they are developing the technologies at a much more rapid pace and have become the world’s leading exporters. This, too, is what governments do in a competitive global marketplace. 

In foreign policy there is increasing evidence of unrest in Iran caused by the sanctions. The Israelis are hardly unified behind their right wing President. This President has steered us away from what could easily have been America’s third war in the last 15 years, even as we implore him to bring our troops home from Afghanistan sooner than 2014. We recall that entry is often so much easier than exit when it comes to military matters. Preventing war, while addressing the World’s problems, this is what governments do, and one of the many reasons the Election in November is crucial.

Maybe the real disaster wasn’t that the president lost the debate, maybe the real calamity is that the American people were given no clear and compelling reason to believe, no real understanding of why Government matters and what government does.

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