Tag: michael steele

Can the GOP Recover Its Principles?

Today, Politico Arena asks:

How helpful is it to the GOP to have its chairman say the party’s “credibility snapped” while in power and it became “just another party of Big Government?”

My response:

If GOP chairman Michael Steele means it, it’s very helpful for him to say that the party’s “credibility snapped” while in power and it became “just another party of Big Government?”  You first have to recognize a problem if you want to solve it.

For better or worse, we’ve had two major parties for most of our history, and that’s not likely to change any time soon.  At least since the New Deal, the Democratic Party has been the party of government, especially over economic affairs.  By contrast, since the Goldwater revolution of 1964, the Republican Party has claimed to be the party of individual liberty and limited government, although that claim was often undermined by calls for restricting certain personal liberties, and the party was slow, as were parts of the Democratic Party, in supporting the civil rights movement.  But broadly speaking, in our recent history the two parties have been distinguished, nominally, by their different conceptions of the proper role of government.

At no time was that contrast more sharply drawn than during the Reagan administration.  Yet even then there were internal struggles between the Reagan people and the Bush people.  Recall that when Bush ‘41 became president, he called for a “kinder and gentler nation,” which was a slap at Reagan’s limited government principles.  And eventually, of course, he broke his “no new taxes” pledge.

After Bush lost the presidency, the Gingrich “Contract with America,” leading to the Republican take-over of Congress for the first time in 40 years, was supposed to return the party to a principled, limited government path.  It did so briefly, in those heady days of 1995, but by the end of the year the siren song of government power was calling and the party started its slow slide, at the end of which it was barely distinguishable from the Democratic Party.

Thus, it was no accident that in 2000 the party selected as its standard-bearer George W. Bush, who had been utterly absent from the intellectual ferment of the Goldwater-Reagan years.  Not unlike his father, Bush ‘43 stood for “compassionate conservatism,” a slogan ripe with promise for government programs.  And the Republican Congress, now rudderless, was anxious to supply them.  If the party stood for anything, it was incumbency protection.  What better example than the McCain-Feingold campaign finance “reform” bill, which Bush signed while saying he thought it was unconstitutional.  What’s the Constitution among friends?

But rudderless, unprincipled government could not go on forever, and so in time it came crashing down upon the Republican time-servers – and the real party of government took over.  Immutable principles, however, such as you can’t get something for nothing, favor no party, and so Democrats too are facing, or will soon face, the harsh realities that flow from abandoning political and economic discipline.  If the Republican Party can recover the fundamental principles that are captured in the nation’s founding documents, and take them to the people, it will then fall to us to decide what we want.  And if we too believe in something for nothing, we will have no one to blame but ourselves for the consequences that follow.  But at least we will have had a choice, which we have not had in recent years.  So, yes, Mr. Steele’s call for a return to principle is helpful.

‘No Child Left a Dime’

That’s my favorite placard from the Washington tea party protests on Saturday. No Child Left a Dime underlines perhaps the central concern of the protesters – the ongoing massive fiscal irresponsibility in Washington by both parties.

We’ve got deficits of more more than $1 trillion for years to come. Federal debt will approach World War Two levels within a decade. Even so, the Democrats are trying to ram through a $1 trillion health care expansion, and the head of the Republican National Committee, Michael Steele, is defending against any cuts to Medicare, the program that is the single biggest threat to taxpayers. People are marching not just because Obama and the Democrats are scaring their pants off, but because most Republicans in positions of power are spendthrifts as well.

The chart illustrates that no child will be left a dime because the government will have it all. This is the CBO’s “alternative fiscal scenario,” which essentially means the business-as-usual scenario if Congress doesn’t cut anything in coming years.

Note that the most rapidly growing box, the white box, is the program that Michael Steele doesn’t want to touch. The program is expected to grow by 6.3 percent of GDP by 2050. In today’s money, 6.3 percent of GDP is about $900 billion a year in added spending. So it’s like Steele doesn’t see anything wrong with tomorrow’s young families forking over an additional $900 billion a year in taxes on this one program, or about $7,700 a year for every American household.

It’s worse than that. The biggest box on the chart by 2050 is interest on the government debt, and by far the biggest contributor to the growth in interest is Medicare. So including interest, Michael Steele’s (ridiculous) Medicare position is sort of like supporting a more than $10,000 tax hike on every young family for this one program.

Come on Republicans, you can do better than that. How about starting simply by proposing some of CBO’s modest and commonsense Medicare reforms like raising deductibles?

(By the way, interest costs rise in coming years because of an excess of spending, not a shortage of revenues. Under this CBO scenario, all current tax cuts are extended, and yet federal revenues still rise as a share of GDP over time above the historical norm of recent decades).

Steele and the Left-Wing Republicans

One of the most disturbing things about the current health care debate is that some Republicans are positioning themselves as defenders of Big Government Medicare and against efforts to trim the program’s costs.

Yet the taxpayer costs of Medicare are expected to more than double over the next decade (from $425 billion in 2009 to $871 billion in 2019), and the program will consume an increasing share of the nation’s economy for decades to come unless there are serious cuts and reforms. Even the Obama administration talks about “bending the cost curve” to slow the program’s growth.

Yet Republican National Committee chairman, Michael Steele, takes to the Washington Post today to defend Medicare against any cuts, while at the same time criticizing the Democrats as “left-wing ideologues:”

  • “Under the Democrats’ plan, senior citizens will pay a steeper price and will have their treatment options reduced or rationed.”
  • “Republicans want reform that should first, do no harm, especially to our seniors.”
  • “We also believe that any health-care reform should be fully paid for, but not funded on the backs of our nation’s senior citizens.”
  • “First, we need to protect Medicare and not cut it in the name of ‘health-insurance reform.’”
  • “Reversing course and joining Republicans in support of health care for our nation’s senior citizens is a good place to start.”

Steele uses the mushy statist phrasing “our seniors” repeatedly, as if the government owns this group of people, and that they should have no responsibility for their own lives.

Fiscal conservatives, who have come out in droves to tea party protests and health care meetings this year, are angry at both parties for the government’s massive spending and debt binge in recent years. Mr. Steele has now informed these folks loud and clear that the Republican Party is not interested in restraining government; it is not interested in cutting the program that creates the single biggest threat to taxpayers in coming years. For apparently crass political reasons, Steele defends “our seniors,” but at the expense of massive tax hikes on “our children” if entitlement programs are not cut.

Wrong, Wrong, Wrong, Wrong, WRONG!!

The Pittsburgh Tribune-Review quotes Republican National Committee chairman Michael Steele on how Congress should go about reforming health care:

Having Congress reshape health care puts “the wrong people at the table,” Steele said. He said stakeholders — “doctors, lawyers, health care employees, insurance companies” — should develop a solution and present it to Congress, rather than the other way around.

Steele needs to brush up on his Adam Smith:

People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.

Like I said, Jonathan Chait was on to something.