Republicans

The Libertarian Experiment That Isn’t

According to Paul Krugman, the government shutdown amounts to a potentially big libertarian experiment.

With nine departments and multiple agencies closed, maybe for months, the New York Times columnist and Nobel laureate envisages a coming test of whether the country can live without the Food and Drug Administration, the Small Business Administration and farm subsidies.

So are those of us at Cato who believe in the abolition of these programs celebrating? Not quite.

Democrats and Republicans Should Both Oppose E-Verify

Florida’s Constitution Revision Commission, a group that meets every 20 years to recommend changes to Florida’s state constitution, yesterday rejected a proposal to add mandatory E-Verify to the ballot next November.  The American Business Immigration Coalition and Immigration Partnership & Coalition Fund led the fight against the proposal (full disclosure: those groups used Cato’s research in their efforts to stop E-Verify and I did have contact with them during the Florida debate).  The most convincing arguments against E-Verify were those that highlighted its inaccuracies, potential damage to the economy, and that it would not even effectively restrict illegal immigrant access to employment

Just to recap, E-Verify is a federal electronic eligibility for employment verification system whereby employers are supposed to check the identities of new hires against government databases to guarantee that they are legally eligible to work.  Four states have mandated E-Verify for all new hires, several other states have mandated it for some hires, and the federal government requires it for some occupations. 

Democrats and Republicans have both embraced E-Verify for different reasons in recent years.  Republicans did so because they believe that it is a useful enforcement mechanism and Democrats because they believe that they can trade it for a more generous legalization or other reforms to the legal immigration system.  Indeed, increasingly bitter partisan disagreements over immigration policy have not affected support for E-Verify.  Perhaps they should. 

There are many good reasons for Democrats to oppose E-Verify nationally and on the state level.  The first is that E-Verify is an immigration enforcement tool that disproportionately returns incorrect results for legal immigrants, Hispanic Americans, and those who have hyphenated last names (most likely to be women).  An incorrect result can temporarily bar a worker from working or, if the proper legal procedures aren’t followed, push the worker afflicted into long-term unemployment.  Democrats increasingly argue that they represent those three groups so they have political incentives to remove regulatory barriers that keep them from gaining employment.

Republican Promises

Restore honor and dignity to the White House

Free trade

Comprehensive immigration reform

Prudent diplomacy

Defend freedom of speech

Rein in executive abuse of power

Balance the budget

Diversity Visa Program Fixes that Should Satisfy Republicans and Democrats

Legalizing the DREAMers, building the wall, boosting border security, and reforming the diversity immigrant visa program are the components of a successful legislative deal to reopen the federal government.  Reforming the diversity visa presents some unique challenges because Congress does not want to cut the number of green cards, but many Democrats–especially members of the Black and

Republicans Embrace Bad Economics and Bad Policy

To be blunt, Republicans are heading in the wrong direction on fiscal policy. They have full control of the executive and legislative branches, but instead of using their power to promote Reaganomics, it looks like we’re getting a reincarnation of the big-government Bush years.

As Yogi Berra might have said, “it’s déjà vu all over again.”

Let’s look at the evidence. According to The Hill, the Keynesian virus has infected GOP thinking on tax cuts.

Republicans are debating whether parts of their tax-reform package should be retroactive in order to boost the economy by quickly putting more money in people’s wallets.

That is nonsense. Just as giving people a check and calling it “stimulus” didn’t help the economy under Obama, giving people a check and calling it a tax cut won’t help the economy under Trump.

Tax cuts boost growth when they reduce the marginal tax rate on productive behavior such as work, saving, investment, or entrepreneurship. When that happens, people have an incentive to generate more income. And that leads to more national income, a.k.a., economic growth.

Borrowing money from the economy’s left pocket and then stuffing checks (oops, I mean retroactive tax cuts) in the economy’s right pocket, by contrast, simply reallocates national income.

The Bipartisan Immigration Act of 1965

The current partisan divide on immigration is wide and growing according to a new Pew study.  This widening divide does not come from Republicans having a more anti-immigration position than in the past but from Democrats having a much more pro-immigration position than they used to. 

In 2006, 49 percent of Democrats agreed with the statement “immigrants today strengthen the country because of their hard work and talents.”  In 2016, 78 percent of Democrats agreed with that statement.  Over the same time period Republicans went from 34 percent in agreement to 35 percent.  Prior to 2006 the opinions of the two parties were nearly identical.

This partisan divide was not present during the vote over the Immigration and Nationality Act of 1965, the law that repealed the last vestiges of the eugenics-inspired 1920 immigration laws that ended America’s traditionally free immigration policy.

In the House of Representatives, Republican support for the 1965 Act actually exceeded Democratic support.  78 percent of Republicans voted for the 1965 Act (Chart 1) compared to 71 percent of Democrats (Chart 2).  18 percent of Republicans voted against the bill while 24 percent of Democrats did while both sides had a similar percentage of abstentions.  Both parties supported the 1965 Act by wide margins but House Republicans were more likely to vote for it. 

Chart 1

House Republican Votes

 

Source: govtrack.us

Republicans Should Welcome Trade’s “Burgeoning Bromance”

The skepticism was evident in conservative talk-show host Laura Ingraham’s voice when she referred to the working relationship between President Obama and Senate Majority Leader McConnell as a “burgeoning bromance.” Her sentiment is shared by a number of Republicans in Congress, who are unhappy that Senate and House leadership is working with the president to secure Trade Promotion Authority.

Perhaps it’s no longer axiomatic that trade divides Democrats and unites Republicans.  According to Politico, “about 40 to 45 of the 245 Republicans in Congress are hard ‘nos’ on [TPA]” with many asking: Why would Republicans want to give this president, who has aggrandized his authority and disregarded congressional prerogatives, any more power?  Well, they shouldn’t.  However, TPA would not give the president any power to make mischief.

Trade Promotion Authority is neither a congressional capitulation nor an executive power grab.  It is a compact between the branches, which effectively deputizes the president to negotiate trade agreements on behalf of Congress, which meet parameters and fulfill objectives spelled out by Congress, which are put to votes in both chambers of Congress. 

If the concluded trade agreement meets Congress’s parameters and fulfills its objectives, legislation to implement the agreement is considered without amendments on an expedited timetable by an up-or-down vote.  If the agreement fails to meet Congress’s parameters or fulfill its objectives, it can be taken off the so-called fast-track through a resolution of disapproval.  And, ultimately, members and senators can always vote “no” if they don’t like the deal.  

A Word about “Gotcha Questions” and Personal Responsibility

A peculiar tic of contemporary American nationalism is the notion that the American state, particularly if helmed by a Republican president, makes no errors of commission in its conduct of military affairs. No American war was ill-founded, or aimed at a threat that didn’t exist or didn’t warrant the effort. This logic never applies in the domestic sphere for Republicans, where government programs are at best naïve and bound to make problems worse or at worst, venal and Machiavellian.

This tic is the only reason I can think of that we’re actually sustaining a debate in 2015 about whether, with the benefit of hindsight, it was a good idea to invade Iraq. Jim Fallows at the Atlantic argues that nobody should again ask a politician the question, since

the only people who might say Yes on the Iraq question would be those with family ties (poor Jeb Bush); those who are inept or out of practice in handling potentially tricky questions (surprisingly, again poor Bush); or those who are such Cheney-Bolton-Wolfowitz-style bitter enders that they survey the landscape of “what we know now”—the cost and death and damage, the generation’s worth of chaos unleashed in the Middle East, and of course the absence of WMDs—and still say, Heck of a job.

I actually think this makes the case why the question should be—or at least should have been—asked, since at least one fortunate Republican son, Marco Rubio, belongs in Fallows’ bitter-ender camp. To the extent voters—and donors—care about competent foreign policy, they deserve to know that Rubio strongly opposes it, even with the benefit of hindsight.

But beyond the politics, a weird narrative has begun to emerge on the right that asking about the Iraq war is a “gotcha question.” Keep in mind: we are discussing a policy that was dreamed up by the Bush administration, marketed by the Bush administration, and purchased by the vast majority of our legislators, including the likely Democratic nominee in 2016.

Chairmen of House and Senate Budget Committees Propose Good Fiscal Frameworks, Particularly Compared to Obama’s Spendthrift Plan

Earlier this year, President Obama proposed a budget that would impose new taxes and add a couple of trillion dollars to the burden of government spending over the next 10 years.

The Republican Chairmen of the House and Senate Budget Committees have now weighed in. You can read the details of the House proposal by clicking here and the Senate proposal by clicking here, but the two plans are broadly similar (though the Senate is a bit vaguer on how to implement spending restraint, as I wrote a couple of days ago).

So are any of these plans good, or at least acceptable? Do any of them satisfy my Golden Rule?

Here’s a chart showing what will happen to spending over the next 10 years, based on the House and Senate GOP plans, as well as the budget proposed by President Obama.

Keep in mind, as you look at these numbers, that economy is projected to expand, in nominal terms, by an average of about 4.3 percent annually.

The most relevant data is that the Republican Chairmen want spending to climb by about $1.4 trillion over the next decade (annual spending increases averaging about 3.3 percent per year), while Obama wants spending to jump by about $2.4 trillion over the same period (with annual spending climbing by an average of almost 5.1 percent per year).

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