Fertile Ground

A politico trained in agronomy
Was convinced he could grow the economy:
"To start with manure
'S the best way for sure,
So bullsh*t's incumbent upon-a me."

If there's one phrase that unites Washington these days, it's "to grow the economy."  Passions may boil over whether it's better to direct such growth from "the middle out" or "from the top down;" whether "the job creators" or "America's working families" comprise the more fertile soil in which to germinate the economy's roots; but there is no doubt as to the choice of metaphor.  In the newly redesigned New Republic's Jargonist column, Noreen Malone finds that "growing the economy" is a relative neologism in our old republic, first popularized by Bill Clinton in 1992.  Prior to that, the preferred metaphor imagined the economy as "an engine," on the basis of which the partisans could dispute how many cylinders it had, or whether it was firing on all of them.  Perhaps it is time to bring back Adam Smith's "invisible hand," although, in our hypersexualized era, we may not yet be ready for its inappropriate touch.

This Is The End

An ancient foretelling of verity
Said the world with go out with severity,
But may really impend
The recovery's end
In Washington's leap to austerity.

The Republicans' fiscal cliff diver
Advanced a proposal that neither
The White House or Senate
Would ratify when it
Was passed, which it never was, either.

One shouldn't put too much reliance
On the art of political science,
Which tends to foretell
The future as well
As the calendar made by the Mayans.

If you are reading this, then the world did not end on December 21, 2012, as predicted by the Mayan calendar. The negotiations to avoid the "fiscal cliff", however, are another story. Earlier in the week, optimism ran high as proposals advanced by House Speaker John Boehner and President Barack Obama were "only" $200 billion apart in long-term revenue raising.

Seemingly at the last minute, the Speaker shifted gears and announced a "Plan B" that, although rejected in advance by the White House and the Democratic-controlled Senate, had placed enough constraints on tax hikes to garner the needed support of House Republicans. In the event, the legislation was pulled due to many many of those Republicans' resistance to even modest tax increases on the very wealthy. With legislators now heading home for the holidays, it appears that Mr. Boehner's reputation as a negotiator is preceding the federal budget over the cliff.

The End (Of the Fiscal Cliff) Is Near

Said the President: "Well, We are possibly
Confounding the ominous prophecy.
If I may be concise,
We differ on price,
And not fundamental philosophy."

Reports are that President Barack Obama and Speaker of the House John Boehner are close to a deal that may avert the "fiscal cliff." The New York Times reports that the President has offered a deal that would raise revenues by $1.2 trillion over the next decade but keep in place the Bush-era tax rates for any household with earnings below $400,000. This offer is not very far from that which the Speaker proposed on Friday, suggesting that the two sides are dickering on price rather than looking out over an unbridgable gulf.

At this rate, a solution to the Federal deficit standoff may be found before the December 21 end of the world predicted by the Mayan calendar.

Overheard at the White House Last Weekend

"Mr. Speaker, I surely desire
That the deadline will not just expire,
But I get my way if
We fall off the cliff
And rates on the rich revert higher."

In the continuing effort to reach a long-term deal to restrain Federal budget deficits and avoid the looming fiscal cliff, President Barack Obama and House Speaker John Boehner met at the White House this past weekend. At the same time, pundits on the Sunday morning talk shows pointed out the President's negotiating advantage: Although the fiscal cliff represents a package of tax hikes and spending cuts that supposedly nobody wants, the Republicans want them less then he does. That's because the reversion to the higher marginal tax rates paid by the rich during the Clinton administration, against which Congressional Republicans have attempted to hold the line, will happen automatically if no deal is reached. This dawning realization may portend a higher likelihood of both a dive over the "cliff" and a resolution more to the President's liking.

Post-Election Analysis

The super PACs failed in their mission
To win with financial munition.
Though pols who would carry
Find cash necessary,
It's not a sufficient condition.
* * *
The House GOP had consistently
Obstructed Obama insistently,
But now they're at pains,
Having garnered no gains,
To avoid going cliff-diving fiscally.
* * *
The nation would like to see whether
The parties can now work together
To right our finances,
Or what are the chances
That partisanship rules as ever?

The results of the 2012 US elections have provided rich fodder on which political junkies of all stripes may chew. The New York Times reported this morning that wealthy sponsors of conservative super PACs got no return on the investments that they made in such vehicles as "American Crossroads." Co-founded by Karl Rove, this super PAC, along with the affiliated "Restore our Future," collected about $300 million, seemingly for naught. Haley Barbour, the former Mississippi governor and Republican party chairman who helped raise money for the two groups, consoled himself that their spending helped keep the race as close as it was.

House Republicans seem to be chewing a little more thoughtfully these days, as evidenced by their newly cooperative rhetorical stance with regard to the "fiscal cliff." Speaker John Boehner struck the new tone in remarks at the Capitol: "Mr. President, this is your moment. We’re ready to be led — not as Democrats or Republicans, but as Americans. We want you to lead, not as a liberal or a conservative, but as president of the United States of America." Of course, many have already predicted such conciliatory talk, followed by a reversion to partisanship, so we must be cautious in our expectations.

The Fight before Christmas

'Twas the week before Christmas and all through the House
Each rep wished to go home to children and spouse;
When what to their wondering eyes should appear,
But a tax cut expiring at the end of the year.

The Speaker maneuvered to tie its extension
To a pipeline Obama would rather not mention;
But the President managed to win to his side
The bulk of the voters, who fitfully cried:

"On Boehner, Pelosi, McConnell and Reid -
Put cash in the pockets of workers in need!"
And Republicans claimed, 'ere they drove out of sight:
"We had all the votes, but Barack won the fight!"

House Republicans finally caved in the latest high-stakes Washington duel, over a two-month extension of the cut in payroll taxes to 4.2% from 6.2%. The issue provided a means for President Barack Obama to combine middle-class advocacy with tax cutting, a feat of political jiu-jitsu he could use in undermining the GOP House majority. Speaker John Boeher's bid to combine a year-long extension with the controversial Keystone XL oil pipeline failed, as both the press and the public saw his party as the obstacle toward tax relief for the average family. 

* * * 

As the Night Before Christmas approaches, Dr. Goose wishes a Happy Holiday to all those who will celebrate around the world this weekend, and joins you is wishing Peace on Earth and Goodwill to All.

Debt Ceiling Lesson

Said Boehner: "My lasting impression
Of this Washington debt ceiling session?
It's a wonderful thing
The minority wing
May employ to extract a concession."

The budget compromise worked out in dramatic fashion on Sunday night between U.S. President Barack Obama and congressional leaders is actually not very definitive, considering the amount of time and angst that went into making it. Republicans can point to one key accomplishment: the White House’s agreement to $917 billion of spending cuts over the next ten years. As for the next $1.5 of deficit reduction, that particular can has, as they say, been kicked another six months down the road. The most important legacy of this protracted episode of brinksmanship may be that a vocal and well-organized minority can use the debt ceiling to bend the government to their will. One wonders what Denmark – the only other developed country with a debt ceiling – will make of all this.