The Political Junkies

UPDATED: January 3, 2007

                        THE ESCALATION 

Bush is moving forward to announce an escalation of the war in Iraq.  Most press accounts, if they are to be believed, are pegging the increase in troops between 20,000 and 30,000.  Where will Bush gain support for the escalation? 

As noted in previous TPJ articles, the American public strongly repudiates Bush’s conduct of the war.   

Congress is not inclined to support an escalation. Robert D. Novak is reporting that Bush: 

will find . . . a dwindling minority inside the Senate Republican caucus when Congress reconvenes this week. 

President Bush and McCain, the front-runner for the party's 2008 presidential nomination, will have trouble finding support from more than 12 of the 49 Republican senators when pressing for a surge of 30,000 troops. "It's Alice in Wonderland," Sen. Chuck Hagel, second-ranking Republican on the Foreign Relations Committee, told me in describing the proposal. "I'm absolutely opposed to sending any more troops to Iraq. It is folly." . . .  

Disenchantment with George W. Bush within the GOP runs deep. Republican leaders around the country, anticipating that the 2006 election disaster would prompt an orderly disengagement from Iraq, are shocked that the president now appears ready to add troops.

American troops, who also disapprove of Bush’s handling of the war in Iraq, do not appear to support an escalation.  A Military Times recent poll of troops, half of whom have served in Iraq or Afghanistan, demonstrates the lack of support (emphasis added).

10) Do you approve or disapprove of the way George W. Bush is handling the situation with Iraq?

Approve

35%

 

 

 

Disapprove

42%

 

 

 

No opinion

10%

 

 

 

Decline to answer

12%

 

 

 

When asked their opinion as to the troop levels for the occupation of Iraq, the troops responded:

13) We currently have 145,000 troops in Iraq and Kuwait. How many troops do you think we should have there?

Zero

13%

 

 

 

 

0-50,000

7%

 

 

 

 

50,000-144,000

6%

 

 

 

 

145,000

13%

 

 

 

 

146,000-200,000

22%

 

 

 

 

200,000+

16%

 

 

 

 

No opinion/Don't know

23%

 

 

 

 

Bush has currently committed some 145,000 troops to the occupation.  Extrapolating from the Military Times poll, 39% would keep troop levels at or below the current deployment and 38% would increase troop levels.

It appears that Bush, who replaced Rumsfeld, will also replace the military commanders leading the effort in Iraq:

General Casey is now likely to be removed, probably within the next two months, while Lt-Gen John Abizaid, the head of Central Command and in overall charge of the Iraq war, is also due to step down.

 After the post-midterm election replacement of Donald Rumsfeld by Robert Gates at the Pentagon, Mr Bush will in effect have installed an entire new leadership of the war.

An American public opposed to the war; support in Congress waning and a deeply divided military.  Bush is simply ignoring the mid-term election results and forcing the first major, if not critical, confrontation with Congressional Democrats.  Americans will soon learn of what steel the Democratic Party is made.

                        CRACKS IN THE AMERICAN DREAM

Bush’s vaulted “economic recovery” has to an appreciable degree been built on debt.  The harsh realities of those Republican policies may come home to roost in 2007:

If consumers are the engine of America's economy, then debt is the fuel driving Americans into the red as never before.  Consumers owe a whopping $9.9 trillion dollars. It is affecting all generations; from the newly-minted college grad — who owes an average of $20,000 in student loans — to the baby boomers contemplating retirement with jumbo mortgages. 

“One of the implications of huge debt loads is that millions of Americans literally can not afford to retire,” says bankruptcy expert and Harvard Law School professor Elizabeth Warren. 

Warren calls this record-high debt “the dark underbelly of the American economy. This isn't about over-consuming, this is about the basics.”  . . .  

In 1981, just three percent of consumers’ income was spent on credit cards and 11 percent was saved. By 2003, those numbers flip to 12 percent spent on credit cards and a measly one percent saved.

After 2003, Americans have actually achieved a new first; a negative savings rate.  Simply stated, Americans are spending more than they earn.   

Americans have been maintaining their standard of living by borrowing the equity from their homes and incurring greater amounts of credit card debt. But, the housing market has been taking a “hit” of recent; prices are falling. The consequences:

About 20 percent of sub-prime mortgages granted in the last two years will end in foreclosure as owners struggle to make payments and home prices stagnate.

That rate is almost double the 2002 level and could result in about 2.2 million U.S. borrowers losing their homes, the Center for Responsible Lending said in a report. The non-profit advocacy group's analysis of mortgage data shows homeowners risk losing $164 billion in wealth through 2014. 

The weakening U.S. housing market is straining some borrowers. Year-over-year median existing home prices fell for the three months ending Oct. 31 to $221,000, according to the National Association of Realtors. That suggests less equity for consumers who might have used it to pay off sub-prime loans, which account for one in four U.S. mortgages granted today. 

``There's a very high rate of trouble in these loans,'' Kathleen Keest, senior policy counsel for the center, said in an interview. ``Those of us who have been on the ground watching the foreclosures had been getting more and more concerned.''

2007 could be a very rough year for those in search of the American dream.

_____________________________________________

Updated: December 31, 2006

                        BUSH’S ESCALATION  

Saddam’s execution is complete.   

Mark Silva of the Chicago Tribune succinctly states the consequences for Bush: 

[T[he hanging of the longtime Iraqi strongman does not alter the fundamental problems that Bush faces: Reclaiming public support in the U.S. for a war that a majority of Americans now oppose, and charting a convincing course for the victory that Bush vows to achieve before withdrawing U.S. forces.  . . .  

For Bush, the key to regaining public confidence in his handling of the war is likely to lie in the success of "the new way forward" in Iraq that he promises to spell out with the arrival of the new year.  

Meanwhile, Sunni Iraqis are calling for revenge against Americans occupying Iraq: 

Saddam Hussein's Baath Party exhorted Iraqis to "strike without mercy" at the U.S. occupiers and Shi'ite Iran to avenge the execution of Iraq's former president but warned them not to be drawn into a civil war.

"Today is your great day. Strike without mercy at the joint enemy in Iraq -- America and Iran," the party said in a statement posted on an Iraqi Web site on Saturday.

"Forget your organisational structures and take the stand of honour you deserve which is to take revenge for Saddam Hussein," said the statement, posted on the www.albasrah.net.

All of this occurs as Bush remains in Crawford, Texas planning the escalation of the war in Iraq.  Dr. Steven Jonas, TPJ’s Contributing Author, authored an insightful analysis for Buzz Flash (a TPJ favorite):   

Bush appears to be delusional about Iraq, at least in public. At his Dec. 20, 2006 news conference he said that the U.S. needs to increase the overall size of the Army and the Marine Corps (when neither service can presently meet its recruiting goals). He also said that insurgents in Iraq thwarted U.S. efforts at "establishing security and stability throughout the country" in 2006. These "enemies of liberty ... carried out a deliberate strategy to foment sectarian violence between Sunnis and Shia. And over the course of the year they had success." He announced that the Selective Service would be running "tests" at some time in the future related to reinstating the draft. He also pledged to work with the new Democratic Congress. Further, he announced that first four of the 20-30,000 additional US troops to be sent to Iraq would be his two daughters and his niece and nephew, all, it happens, of draft age, were the draft to be reinstated as Bush has said it might have to be. (Yes, I did sneak that last one in.)

It seems that Bush has decided to send those additional 30,000 troops, in a "surge" to do something (although exactly what has not yet been announced). So why 30,000? Not that we have them to spare without recycling and extending tours, but why not 50,000, or why not 20,000? Since "I always listen to my Generals and make my military decisions based on what they tell me, except when I don't" Bush is obviously not listening to his military Generals, who is he listening to? 

Well, this one has the fingerprints of General "I change Constitutions" Rove (The Guardian (UK) Nov. 25, 2004, Sidney Blumenthal) all over it. Militarily it makes no sense, so the generals tell us. Politically it does, for Rovian, always attack, never defend, politics. This move is clearly intended to put the Democrats, not the Iraqi insurgents, Sunni, Shiite and other, on the defensive. Bush wants to appear to be "doing something," to "be in charge," and surely to be in a position to be able to blame the Dems. for any failures, as he defines them, should they somehow block the 30,000. His talk of the draft is of the same ilk. The buck never stops on his desk, and if he can kick it onto the desk of an enemy, and for him the Democrats are just as much enemies as are the Iraqis, so much the better.

In his superb history of the Era of Georgite Propaganda, Frank Rich (The Greatest Story Ever Sold), repeatedly makes the point that every major decision about the Iraq War, from the occasion the invasion was publicly announced to be timed with the 2002, on to, as Rich puts it, the point when (p. 222): "[the] administration was forced into rebuilding Iraq, it would [further] time every pivot point, from the creation of a constitution to the scheduling of elections, to deadlines dictated by Rove's political goals at home (whether a State of the Union speech or a domestic election), rather than to the patience-requiring realities of forging a post-Saddam government."

And so, it is not Bush, but the Democrats who are delusional, about Bush, if they cannot see this for what it is: a naked political ploy.

Well stated.

                        THE COST OF WAR

As previously noted in TPJ, a new study by Columbia University economist Joseph E. Stiglitz, who won the Nobel Prize in economics in 2001, and Harvard lecturer Linda Bilmes concludes that the total costs of the Iraq war could top the $2 trillion mark. The total, which is far above the US administration's prewar projections, takes into account the long term healthcare costs for the 16,000 US soldiers injured in Iraq so far.  

The higher $2 trillion amount takes a 'moderate' approach. Both figures are based on the projection that US troops will remain in Iraq until 2010, with steadily decreasing numbers each year. The economists also used government data from past wars, and included such costs as the rise in the price of oil, a larger US deficit and greater global insecurity caused by the war, the loss to the economy from injured veterans who cannot contribute as productively as they would have done if not injured, and the increased costs of recruiting to replenish a military drained by repeated tours of duty in Iraq. These are items which are almost never included by the US government when determining the cost of the war.

It is a staggering sum. 

In a Rolling Stone interview, Stigliz highlights the tradeoffs that Bush and the Republicans are making for incurring the cost of the war and escalating occupation of Iraq:

So Bush's budget for the war is as out of touch with reality as his justifications for invading Iraq in the first place.

The administration is trying to sell the notion that they have repealed the laws of economics. They want us to believe that we don't have to choose between guns and butter -- that we can have them both. The reality is, the money spent on the war could have been spent on other things. 

Such as?

One quarter of the war budget would have fixed Social Security for the next seventy-five years. George Bush says that Social Security is a major economic problem. If you believe him -- although there are many reasons not to believe him -- the war is four times worse as an economic problem.

With $2 trillion, we could have funded the entire world's commitment to foreign aid to poor countries for the next twenty years. Or just think what we could have done to stop global warming if we had spent that two trillion developing cheaper photovoltaic cells to convert solar energy into electricity. With our technological advantages, we could have had some real breakthroughs. We have the resources -- we just need to redirect them from destroying another country.

Will average Americans notice any economic fallout from the war?

We'll have a lower living standard than we otherwise would have achieved. The median American income is going down. Most of us are worse off than we were five or six years ago. Why are we getting poorer? This big pot of money we spent on the war obviously has something to do with it. Americans have a hard time seeing it when the numbers come out in dribs and drabs. But when it's $2 trillion? Did we really want to spend it like this? It's hard to think how we could have spent it worse.

While American citizens will pay the price tag for a civil war that Bush cannot win, the real cost of the war may be paid by America’s children.  The New York Times editorially states the dire predicament of America’s educational system. 

The No Child Left Behind education act, which requires the states to close the achievement gap between rich and poor students in exchange for federal aid, has been under heavy fire since it was passed five years ago. Critics, some of whom never wanted accountability in the first place, have ratcheted up their attacks in anticipation of Congressional hearings and a reauthorization process that could get under way soon after the new Congress convenes in January.  

Those critics were empowered by a spate of recent studies showing that the nation has made slight overall progress in closing the achievement gap since the law went into effect. (A handful, including New York and New Jersey, are said to have made moderate progress.) The data has been seized upon as evidence that Congress set the bar too high.  . . .  

And the country can’t afford that. Unless we improve schools — especially for minority children who will make up the work force of the future — we will fall behind our competitors abroad who are doing a better job of educating the next generation.  

It’s impossible to brand No Child Left Behind as a failure, because its agenda has never been carried out. The law was supposed to remake schools that serve poor and minority students by breaking with the age-old practice of staffing those schools with poorly trained and poorly educated teachers. States were supposed to provide students with highly qualified teachers in all core courses by the beginning of the current academic year. That didn’t happen. 

The country would be much further down the road toward complying with No Child Left Behind if the Department of Education had given the states clear direction and the technical assistance they needed. Instead, the department simply ignored the provision until recently and allowed states to behave as though the teacher quality problem did not exist. Thanks to this approach, the country must now start from scratch on what is far and away the most crucial provision of the law.  . . .  

The battle for teacher quality is just getting under way. The country can either win that battle or watch its fortunes fade as the national work force becomes less and less competitive. Given what’s at stake, the teacher quality provision of No Child Left Behind deserves to be at the very top of the list when Congress revisits the law.

The money that is needed for the battle to improve the America’s education system is being spent by Bush and the neoconservatives on an escalating occupation in Iraq that cannot be won.  

Them Dems

UPDATED: January 3, 2007

                        ROCKY MOUNTAIN HIGH  

Democrats have made significant gains in Colorado.  The reemergence of the Democratic Party in that State may provide insightful lessons for Democrats across America.  A former Republican State representative, Mark Hillman, provides his views of how Democrats have regained majority status in his home state:

Three factors largely contributed to this change: shrewd remapping of legislative and congressional districts, dramatic changes in the way campaigns are funded, and the failure of Republicans to unify behind a comprehensive budget solution.

Redistricting

In 2001, Democrats captured majority control of the state Senate for the first time in 40 years and used that leverage to stymie the process for congressional redistricting. . . . Democrats used their majority on the legislative reapportionment commission to draw state House and Senate boundaries to their liking. Although the Supreme Court tossed out their egregious gerrymander of the state Senate, Democrats shrewdly studied demographic growth patterns to ensure that competitive districts would trend in their favor as years passed.

In 2004, Democrats swept both the Colorado House and Senate. Ironically, Republican House candidates received 60,000 more votes than their Democrat counterparts but were nonetheless outnumbered 35-30.

Campaign funding

Campaign funding changed dramatically after 2002 when voters, besieged by another season of campaign attack ads, were enticed by the siren song of the "nonpartisan" League of Women Voters and Common Cause to approve limits on campaign contributions.

Proponents cynically complained that "large contributions continue to play a major role in who wins" elections and that spending by labor unions and corporations "influences the political process."

It's no wonder that most voters didn't want to wade through the 4,500 words that Amendment 27 etched into the state constitution, but if they had, they would not be surprised by the results:

1.  Corporations are prohibited from donating to candidates, but labor unions are allowed to donate 10 times more than ordinary citizens.

2. Wealthy ideologues hire attorneys so they can spend millions on attack ads, while regular people abide by the law's strict limits.

3.  Candidates must spend more time raising money than talking to voters, yet still find themselves outspent 2-to-1 by unaccountable special interests.

By muzzling business and empowering labor unions, Democrats gained a tremendous advantage. The emergence of Gill, Stryker and their deep-pocketed allies turned that advantage into a landslide - particularly as those legendary "rich Republicans" recoiled from a contest with multimillion-dollar table stakes.

Fiscal fumble

Making matters worse, we Republicans shot ourselves in the foot by fumbling the state's fiscal problems in the wake of the 2001-02 recession.  . . .

Democrats have demonstrated that elections aren't a game played every two years. To Democrats, elections are a biennial report card that gauges the progress of their long-term political strategy. Patience, perseverance and teamwork are their strengths. If they squabble among themselves, they have the good sense to keep it among themselves.

Republicans can disparage Democratic policies, but ignoring their strategic successes is a game plan doomed to fail.

While Hillman writes from a Republican point of view, he makes some critical points.  First, Democrats have developed better skills in redistricting fights that Republicans were largely winning (remember Texas).  Second, Democrats are performing better at fundraising. Third, Republican fiscal policy; both at the national level and the state level, has inflicted consequences on a public that has turned on the Republican Party.   

As background, in Colorado, Republicans were able to pass a Tax Payer’s Bill of Rights (TABOR).  As with all such economic gimmicks, it did not work.  In Colorado, funding for public education had to be cut drastically even as the population of Colorado was growing.  TABOR became an issue that Democrats used to oust Republicans from power.   

As Hillman writes and from which Democrats should learn: 

elections aren't a game played every two years. To Democrats, elections are a biennial report card that gauges the progress of their long-term political strategy. Patience, perseverance and teamwork are their strengths. If they squabble among themselves, they have the good sense to keep it among themselves.

_____________________________________________

UPDATED: December 31, 2006

                        SOCIAL SECURITY  

Republican Sen. Jeff Sessions, Alabama, is offering a “fix” for Social Security that is garnering attention.  On its surface, Sen. Sessions’ plan appears attractive:  

I suggest that Democrats and Republicans can successfully work together to create personal savings accounts for all Americans outside the Social Security system, an idea that politicians from both political parties have supported for years and that The Post's editorial page recently endorsed ["Up From the Depths," editorial, Nov. 27]. . . .  

The solution for this problem is to create a national system of personal savings accounts modeled on the successful Thrift Savings Plan (TSP) for federal employees. Federal employees pay Social Security taxes and receive the same Social Security benefits as everyone else. But the TSP program allows them to invest a portion of each paycheck -- along with a government match for part of these contributions -- in one of six investment accounts (or some combination of these accounts), including a government securities fund and a common stock fund. . . .  

Under legislation I will be introducing in the next Congress, an individual personal retirement account -- called a PLUS Account (for Portable, Lifelong Universal Savings Accounts) -- would be established for every American at birth and would be endowed with a $1,000 contribution from the federal government. . . .  Parents and grandparents also would be allowed to contribute up to $5,000 annually to these accounts. Without any additional contributions, and given a reasonable rate of return, the initial $1,000 endowment would be worth $50,000 to $100,000 when each individual reached age 65. 

But the real impact of PLUS accounts would be that, beginning in 2009, 1 percent of every worker's paycheck would be automatically deposited into his own account for the first $100,000 earned annually, with his employer required to match this 1 percent contribution. Worker contributions would be made pretax while employer contributions would be tax-deductible. Both workers and their employers would have the option of contributing more. 

Funds contributed to PLUS accounts would be the legal property of each account holder, but they could not be touched until age 65. Any funds remaining when an individual died could be passed on to a spouse, children, grandchildren or anyone of the holder's choosing (including a favorite charity). Account assets would be protected from creditors and would not be considered in determining eligibility for any federally funded benefits or in calculating estate tax liability. Finally, my plan would simply serve as a supplement to the Social Security system, not altering the program in any way. 

If we begin PLUS accounts at birth and require a portion of every paycheck to be invested, the average American citizen could retire with a rather sizable nest egg. For instance, given a 6.59 percent rate of return (the same rate as the TSP's most conservative fund since 1987), someone who makes $46,000 a year -- the median household income in 2005 -- and contributes 1 percent of each paycheck would retire with almost $300,000. If that same individual were to contribute 3 percent over the course of his working life, he could expect to retire with over a half-million dollars (even if his employer never contributed more than 1 percent). 

The continued success of the U.S. economy depends on increasing savings for every citizen to provide the investment capital we need to ensure long-term economic growth. More important, without increased savings, most Americans will not have sufficient money upon retirement to live the comfortable life they deserve after 40-plus years of work. As all honest policymakers in Washington are aware, Social Security alone cannot sustain the lifestyle retirees want and can have, especially as 78 million baby boomers begin to retire. 

Our nation's saving rate is a big problem. It requires a big solution. We cannot tinker with the federal tax code and expect personal savings to increase dramatically. By harnessing the power of compound interest through individual savings accounts and small paycheck deductions, we can ensure that almost every American will retire a half-millionaire.

Does Sessions’ plan sound too good to be true?  Well, it is.  

Dean Baker who writes Beat The Press” for American Prospect brings reality to Sen. Sessions “facts:”   

As part of its ongoing Jihad against Social Security, the Washington Post published a column by Republican senator Jeff Sessions advocating such accounts, with the usual invented numbers. Basically, it allowed Mr. Sessions to use preposterous rate of return assumptions.  

Mr. Sessions claims that $1,000 invested at birth would grow to between $50,000 and $100,000 by age 65. This implies a rate of return of 6.2 and 7.3 percent. This would only be possible if we assume that all the money was invested stocks (the normal assumption for these calculations is 60 percent) and we assumed that stock returns would be substantially higher than future profit growth projections will allow. 

During the Social Security debate last year I challenged all the supporters of President Bush's plan to produce a set of projections for capital gains and dividend yields that would equal the 6.5 percent to 7.0 percent return for stocks assumed in their calculations. (This was the famous "no economist left behind test.") No one could produce the 3rd grade arithmetic that could reconcile these numbers. (Steve Goss, the chief actuary for SS said that he could do it, if stock prices first fell by 16.5 percent -- an assumption that he neglected to include in his projections.) 

Anyhow, the invented numbers are back in the Washington Post. For these interested in reality, using plausible return assumptions (given the SS trustees or CBO profit growth projections), the $1,000 will grow to about $12,000 to $13,000 by age 65. Maybe we should collect the difference from the Washington Post editors.

Sen. Sessions’ plan also fails on another major count.  He simply fails to address the underlying objective; designing a plan to ensure Social Security’s solvency and adequacy of benefits through the retirement span of the baby boomers.  Sen. Sessions rather candidly brushes off that problem by simply stating that SS cannot be relied upon to sustain the life styles of future retirees.  

Americans want the solvency and basic purpose of Social Security maintained.  It is an expectation that Democrats must meet, or suffer the consequences.  

                        IMPEACHMENT?  

Is impeachment a viable option in the upcoming session of Congress?  Public attitudes suggest it is not a viable option.    

The American public assuredly does not support Bush’s leadership.  Public approval of Bush’s handling of the presidency continued to deteriorate in December.  Those approving Bush’ performance stands at 35.50% while those who disapprove have risen to 59.25%.    

TPJ'S BUSH WATCH

December 2006

 

 

 

 

 

 

 

 

 

Approve

Trail Mo

Disapprove

No Opinion

Spread

 

 

 

 

 

 

 

CNN

12/15-17/06

36

 

62

2

-26

L.A. Times/Bloomberg

12/8-11/06

42

 

56

2

-14

NBC/Wall Street Journal

12/8-11/06

34

 

61

5

-27

ABC/Washington Post

12/7-11/06

36

 

62

2

-26

CBS

12/8-10/06

31

 

63

6

-32

USA Today/Gallup

12/8-10/06

38

 

59

4

-21

Pew

12/6-10/06

32

 

57

11

-25

Newsweek

12/6-7/06

32

 

60

8

-28

CNN

12/5-7/06

37

 

57

6

-20

FOX/Opinion Dynamics

12/5-6/06

38

 

54

9

-16

AP-Ipsos

12/4-6/06

33

 

64

3

-31

WNBC/Marist RV

11/27 - 12/3/06

37

 

56

7

-19

 

 

 

 

 

 

 

 

 Monthly Avg

35.50

-0.93

59.25

5.42

-23.75

The December results for “approval” and “disapproval” are the second worst monthly averages in Bush’s presidency.  Bush received lower ratings only in May 2006; 34.17% approve and 60.33% disapprove.  Within the context of Bush’s presidency and the context of all administrations in modern times, Bush’s public standing is dismal.

TPJ'S BUSH WATCH: MONTHLY

APPROVAL/DISAPPROVAL AVERAGES

 

 

 

 

 

 

2006

Approval 

Trail Mo Avg 

Disapprove 

No Opinion 

 Spread

 

December Avg

35.50

-0.93

59.25

6.14

-23.75

November Avg

36.43

-1.07

58.00

5.50

-21.57

October Avg

37.50

-3.42

57.11

5.36

-19.61

September Avg

40.92

2.64

54.23

4.77

-13.31

August Avg

38.29

0.59

57.14

4.64

-18.86

July Avg