The rumored grand bargain would cost the economy about half a million jobs in 2013
Are you ready for a grand bargain? A deficit hawk party! Yes? No? Maybe? (Is this John Boehner?).
With the deadline for the fiscal cliff -- which is really more of a slope -- looming, President Obama and House Republicans have reportedly come close on an agreement that would kick most of the fiscal can. Well, they did for a few hours at least. It didn't take long for Boehner to walk back his support for the plan, but that hardly means it's dead. If there is a grand-ish bargain to be had, it will probably look something like this latest iteration of a deal.
As Ezra Klein reported, the deal comes in three parts: revenue, cuts, and stimulus. Let's break it down, and then break down what it means for jobs in the coming year.
REVENUE. Let the Bush tax cuts expire for households with adjusted gross incomes of $400,000 or more, and limit the value of itemized deductions to 28 percent. In other words, set tax rates for the top 1 percent back to where they were under President Clinton, and stop richer households from taking bigger deductions than middle-class households. All told, it raises a little more than $1 trillion in revenue over the next decade relative to a world where all of the Bush tax cuts continue. As Paul Krugman points out, it's unclear whether this includes the higher taxes on capital gains and dividends scheduled to kick in on January 1, 2013 -- on top of the 3.8 percent Obamacare surtax on capital gains.
Taxes would also go up from switching to chained CPI. As my colleague Derek Thompson explained, chained CPI is an alternative (and perhaps more accurate) measure of inflation that assumes consumers substitute to similar, lower-priced goods when other prices rise. In other words, it says inflation is lower. Tax brackets are indexed to inflation, so a lower measure of inflation means they will rise less -- and more people will creep into these higher brackets. It adds up to about $60-90 billion over ten years.
CUTS. Say hello to chained CPI again. It's not just a tax hike. It's a Social Security cut too. Remember, Social Security benefits are indexed to inflation as well, so the logic of a lower measure of inflation kicks in here too -- benefits will rise slower than they otherwise would have, with the compounded effect hitting older retirees the worst. It's about a $100-200 billion cut over a ten-year window. Congress is supposed to negotiate on another $1 trillion or so of cuts, and if they cannot agree on them there will be -- wait for it! -- a new sequester in the future. Because the last one worked so well.
STIMULUS. Extend unemployment insurance and the refundable tax credits from the stimulus, but not the payroll tax cut. There's also some new, albeit unspecified, infrastructure spending thrown in.
There are a lot of moving parts here, but only three of these moving parts will matter in 2013: the end of the Bush tax cuts for the rich, the end of the payroll tax cut, and new infrastructure spending. In other words, it's unlikely any of the cuts will hit the economy next year. The can known as the sequester would get kicked for another year or so -- unless, haha, Congress can agree to other, immediate cuts -- and chained CPI will be the same as CPI-W in 2013. That leaves the three aforementioned changes -- changes that add up to about a half million less jobs in 2013 than if there was no fiscal cliff at all, as you can see in the chart below. The payroll tax cut is a political orphan in need of a champion.
The Cliff Notes version of why this deal would cost us 500,000 jobs next year is it sucks more money out of the economy than it puts back in. Let's look at it piece-by-piece.
Bush tax cuts for the rich expire. Less money for the rich means less money for the rich to spend. But the rich are different from you and me -- they tend to have money left over after they buy the things they want. In other words, they spend less of their incomes, so a tax hike on them doesn't hurt demand as much as a tax hike on the middle-class would (as we shall see). The Congressional Budget Office (CBO) figures higher taxes on higher earners would subtract about 200,000 jobs next year.
Payroll tax cut ends. Less money for everybody means less money for everybody to spend. That's what the payroll tax, which, remember, hits the middle-class harder than it does the rich, does. But it gets worse. A higher payroll tax means a higher cost of hiring and that means less hiring. A lot less hiring. Working backwards from thesetwo CBO reports shows it means about half a million less jobs in 2013. As the left-leaning Center on Budget and Policy Priorities (CBPP) points out, it's almost twice as stimulative as the Bush tax cuts for the rich, at similar costs. Spending the $115 billion to extend it another year would be money well spent.
Infrastructure. This is where things get admittedly speculative. We don't even know how much infrastructure spending both sides have talked about, let alone what kind of projects, but we can make some informed guesses. President Obama has asked for $50 billion of new infrastructure spending before, which he probably wouldn't get, but we'll use here as a best-case. If we take former Vice Presidential economic adviser and current CBPP fellow Jared Bernstein's rule of thumb that every $1 billion of construction or repair spending adds roughly 9,000-10,000 jobs, and then assume that this new spending would come in over two years, that gives us about 250,000 new jobs in 2013. Again, this is a pretty generous estimate.
As far as can-kicking goes, this ain't too shabby. The CBO figures that the fiscal cliff will cost us 3.4 million jobs next year if Congress does nothing; suddenly, half a million less sounds okay. But Washington can do better. It just needs to go over the fiscal cliff first.
Right now, Obama is offering lower revenues than he originally asked for and entitlement cuts for more stimulus -- and he's not even getting all of the stimulus! It's all because of the baseline illusion. As long as the Bush tax cuts are around, Boehner can claim he's the one offering concessions on revenues by saying he'll raise them at all. It's a silly argument, but it's a silly argument that goes away after January 1, when tax rates automatically go up. Then, Democrats can push a bill that cuts middle-class taxes and cuts deductions for the rich -- the $1.6 trillion from Obama's first offer -- and tell Republicans they have a choice. They can either get less revenue or less entitlement spending, but not both, and in return they have to sign off on all of the stimulus -- extended unemployment insurance, the payroll tax cut, and infrastructure spending. They could even set up a commission -- or a supercommittee, if they're feeling bold -- to cut spending in a year's time, with a new sequester to incentivize them to find cuts.
It's a deal that would bring our medium-term budget closer to balance, without costing the economy in the short-term. Now that would be grand.
The revolutionary ideals of Black Panther’s profound and complex villain have been twisted into a desire for hegemony.
The following article contains major spoilers.
Black Panther is a love letter to people of African descent all over the world. Its actors, its costume design, its music, and countless other facets of the film are drawn from all over the continent and its diaspora, in a science-fiction celebration of the imaginary country of Wakanda, a high-tech utopia that is a fictive manifestation of African potential unfettered by slavery and colonialism.
But it is first and foremost an African American love letter, and as such it is consumed with The Void, the psychic and cultural wound caused by the Trans-Atlantic slave trade, the loss of life, culture, language, and history that could never be restored. It is the attempt to penetrate The Void that brought us Alex Haley’s Roots, that draws thousands of African Americans across the ocean to visit West Africa every year, that left me crumpled on the rocks outside the Door of No Return at Gorée Island’s slave house as I stared out over a horizon that my ancestors might have traversed once and forever. Because all they have was lost to The Void, I can never know who they were, and neither can anyone else.
The president’s son is selling luxury condos and making a foreign-policy speech.
Who does Donald Trump Jr. speak for?
Does the president’s son speak for the Trump Organization as he promotes luxury apartments in India? Does he speak for himself when he dines with investors in the projects? Does he speak for the Trump administration as he makes a foreign-policy speech in Mumbai on Friday?
“When these sons go around all over the world talking about, one, Trump business deals and, two, … apparently giving speeches on some United States government foreign policy, they are strongly suggesting a linkage between the two,” Richard Painter, President George W. Bush’s chief ethics lawyer who is a professor of law at the University of Minnesota, told me. “Somebody, somewhere is going to cross the line into suggesting a quid pro quo.”
In Cyprus, Estonia, the United Arab Emirates, and elsewhere, passports can now be bought and sold.
“If you believe you are a citizen of the world, you are a citizen of nowhere. You don’t understand what citizenship means,” the British prime minister, Theresa May, declared in October 2016. Not long after, at his first postelection rally, Donald Trump asserted, “There is no global anthem. No global currency. No certificate of global citizenship. We pledge allegiance to one flag and that flag is the American flag.” And in Hungary, Prime Minister Viktor Orbán has increased his national-conservative party’s popularity with statements like “all the terrorists are basically migrants” and “the best migrant is the migrant who does not come.”
Citizenship and its varying legal definition has become one of the key battlegrounds of the 21st century, as nations attempt to stake out their power in a G-Zero, globalized world, one increasingly defined by transnational, borderless trade and liquid, virtual finance. In a climate of pervasive nationalism, jingoism, xenophobia, and ever-building resentment toward those who move, it’s tempting to think that doing so would become more difficult. But alongside the rise of populist, identitarian movements across the globe, identity itself is being virtualized, too. It no longer needs to be tied to place or nation to function in the global marketplace.
A week after 17 people were murdered in a mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida, teenagers across South Florida, in areas near Washington, D.C., and in other parts of the United States walked out of their classrooms to stage protests against the horror of school shootings and to advocate for gun law reforms.
A week after 17 people were murdered in a mass shooting at Marjory Stoneman Douglas High School in Parkland, Florida, teenagers across South Florida, in areas near Washington, D.C., and in other parts of the United States walked out of their classrooms to stage protests against the horror of school shootings and to advocate for gun law reforms. Student survivors of the attack at Marjory Stoneman Douglas High School traveled to their state Capitol to attend a rally, meet with legislators, and urge them to do anything they can to make their lives safer. These teenagers are speaking clearly for themselves on social media, speaking loudly to the media, and they are speaking straight to those in power—challenging lawmakers to end the bloodshed with their “#NeverAgain” movement.
The preacher, dead at 99, advised presidents, mentored clergy, and influenced millions of people. Will his legacy of non-partisan outreach continue?
Billy Graham, the famous preacher who reached millions of people around the world through his Christian ministry, died on Wednesday at 99. Over the course of more than six decades, he reshaped the landscape of evangelism, sharing the gospel from North Carolina to North Korea and developing innovative ways to communicate the message of the Bible. He influenced generations of pastors and developed friendships with presidents, prime ministers, and royalty around the world. His death marks the end of an era for evangelicalism, and poses a fundamental question: Will his legacy of bipartisan, ecumenical outreach be carried forward?
Graham came up as a preacher during the post-war era, a time when American Christianity was being radically remade. “When Billy came on the scene, fundamentalism, as it’s called, was really prevalent,” said Greg Laurie, the pastor of the California megachurch Harvest Christian Fellowship and member of the board of the Billy Graham Evangelistic Association, in an interview. “Billy wanted to broaden the base and reach more people.”
The path to its revival lies in self-sacrifice, and in placing collective interests ahead of the narrowly personal.
The death of liberalism constitutes the publishing world’s biggest mass funeral since the death of God half a century ago. Some authors, like conservative philosopher Patrick Deneen, of Why Liberalism Failed, have come to bury yesterday’s dogma. Others, like Edward Luce (The Retreat of Western Liberalism), Mark Lilla (The Once and Future Liberal), and Steven Levitsky and Daniel Ziblatt (How Democracies Die) come rather to praise. I’m in the latter group; the title-in-my-head of the book I’m now writing is What Was Liberalism.
But perhaps, like God, liberalism has been buried prematurely. Maybe the question that we should be asking is not what killed liberalism, but rather, what can we learn from liberalism’s long story of persistence—and how can we apply those insights in order to help liberalism write a new story for our own time.
How the prime minister’s secret dealings with Arnon Mozes could spell his doom.
Over the course of his career, Benjamin Netanyahu, the prime minister of Israel, has faced many formidable rivals. There’s been Yasser Arafat, the late former leader of the Palestinians, Ayatollah Ali Khamenei, the supreme leader of Iran, and Hassan Nasrallah, the secretary general of Hezbollah. But Netanyahu never accused any of them of leading a “Bolshevik campaign” to derail his agenda and kick him out of office. The only man to receive such praise from Netanyahu is Arnon “Noni” Mozes, the owner and publisher of Yediot Aharonot, which means “latest news” in Hebrew. Since the 1990s, Mozes’s popular tabloid, which his family founded in 1939, has been a constant nuisance for the prime minister, regularly featuring negative coverage about the Netanyahus. (Behind closed doors, Netanyahu has reportedly referred to Mozes as “Voldemort.”)
On Tuesday, the district attorney in Durham, North Carolina, dismissed all remaining charges in the August case. What does that mean for the future of statues around the country?
DURHAM, N.C.—“Let me be clear, no one is getting away with what happened.”
That was Durham County Sheriff Mike Andrews’s warning on August 15, 2017. The day before, a protest had formed on the lawn outside the county offices in an old courthouse. In more or less broad daylight, some demonstrators had leaned a ladder against the plinth, reading, “In memory of the boys who wore the gray,” and looped a strap around it. Then the crowd pulled down the statue, and it crumpled cheaply on the grass. It was a brazen act, witnessed by dozens of people, some of them filming on cell phones.
Andrews was wrong. On Tuesday, a day after a judge dismissed charges against two defendants and acquitted a third, Durham County District Attorney Roger Echols announced the state was in effect surrendering, dismissing charges against six other defendants.
Recognizing that Americans are not the future of his religion, the late preacher embraced “the black world, the white world, the yellow world, the rich world, the poor world.”
Billy Graham, who died Wednesday at the age of 99, may have been “America’s Pastor,” but he was also a man of the world. From the early days of his ministry, when he visited U.S. military forces in Korea, to his quiet message of healing at Washington Cathedral in the aftermath of September 11, Graham was a frequent commentator on—and participant in—global politics. He used his status as the most important American religious figure of the 20th century to help lead American evangelicals into a more robust engagement with the rest of the world. He was also an institution builder who was deeply invested in Christianity as a global faith.
There were other people who taught more missionaries, and some who reached more people on television; there were even those whose preaching events rivaled Graham’s in size. But no one else did as much to turn evangelicalism into an international movement that could stand alongside—and ultimately challenge—both the Vatican and the liberal World Council of Churches for the mantle of global Christian leadership.