Something odd is going on in the White House. Donald Trump just did a massive flip-flip. Ok, it’s not that odd. But it’s still somewhat odd because it’s unclear if he actually did the flip-flop or is attempting to hold two mutually exclusive views simultaneously. You see, Donald Trump used to say the US unemployment rate was a complete fraud and actually much, much worse than the headline sub‑5 percent unemployment rate makes it out to be. Like closer to 42 percent. That’s what Trump said over and over on the campaign trail and since getting elected while lamenting that 94 million American adults are “out of the labor force” (which includes all retirees and students). But all of sudden that changed and now Donald Trump is super excited about the official unemployment rate. Why? Because the jobs report for the first full month of his presidency just came in and it wasn’t too shabby.
So did Trump suddenly drop his oft-repeated criticism of tradition unemployment reporting? Well, as we’re going to see, probably not because his administration is still planning on redefining the “official” unemployment rate to be much “looser” and his claims that 42 percent if American adults are out of work are necessary to achieve a long-held GOP goal championed by House Speaker Paul Ryan: converting the US safety-net — including Medicare, Medicaid, and Social Security — into a “work for a pittance to get a pittance of government support”-net that traps the poor in system where if you have to find full time work to get any help at all. Maybe even for the elderly. And the help you get in return for that work-requirement will keep shrinking year after year. It’s a plan that can’t happen unless almost all non-working adults are defined as “unemployed”. So, no, Trump didn’t change his mind. He just still thinks we’re all stupid (maybe).
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The jobs report for the first full month of the Trump presidency came in at a robust 235,000 new jobs and the unemployment rate dropped to 4.7 percent. Not too shabby for the first month and as one might imagine Donald Trump was quite pleased. And tweet-happy. But as one might also imagine, the fact that Donald Trump was so pleased has less to do with anything Trump actually did (235,000 new jobs a month is roughly inline with the last four years), and more to do with his fanciful imagination. In this case, it’s Trump’s imaginative hallucination that we wouldn’t all notice that he called the unemployment rate completely fake — and possibly 42 percent — right up to the moment that this jobs report came out:
Fortune
The White House Is Celebrating Jobs Numbers President Trump Used to Call ‘Phony
Tessa Berenson
3/10/2017 4:32 PM CentralThe Trump Administration is celebrating the Department of Labor’s latest jobs report. But in the past President Trump has called the same monthly report “phony” and a “hoax.”
Friday morning the president retweeted a Drudge Report link to the numbers that said “GREAT AGAIN: +235,000.” (Employers added 235,000 new jobs in February, bringing the unemployment rate down to 4.7%, the report found.)
White House spokesman Sean Spicer tweeted that the report is “Great news for American workers” and “Not a bad way to start day 50 of this Administration.”
Not a bad way to start day 50 of this Administration https://t.co/pysL1jxLpq
— Sean Spicer (@PressSec) March 10, 2017
Other Administration officials touted the numbers as well, including Chief of Staff Reince Priebus and Vice President Mike Pence.
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‘Phony’ and a ‘joke’
During a press conference in 2015, Trump said the unemployment rate, then at 5.1%, was too low to accurately capture the real economic situation in the country. He called it “such a phony number” and said, “the number isn’t reflective ... 5.3 percent unemployment, that is the biggest joke there is in this country … The unemployment rate is probably 20 percent, but I will tell you, you have some great economists that will tell you it’s a 30, 32. And the highest I’ve heard so far is 42 percent.”
PolitiFact rated Trump’s 42 percent claim “pants on fire” and wrote at the time, “Getting a percentage that high requires believing that being a high school, college or graduate student, a senior citizen, a stay-at-home parent, a job-training participant, or having a disability is no excuse for not holding down a job, or for working less than 40 hours in a week. The highest alternative unemployment-rate measure we could come up with that had any credibility was 16.4 percent, and even that exaggerated figure is only about one-third of the way to Trump’s 42 percent.”
‘One of the biggest hoaxes’
In August 2016, Trump once again claimed that the actual unemployment rate was higher than the jobs report reflected. ” We have the lowest labor force participation rates in four decades,” Trump said in a speech to Detroit Economic Club during the general election campaign. “Fifty-eight percent of African-American youth are either outside the labor force or not employed. One in five American households do not have a single member in the labor force. These are the real unemployment numbers – the five percent figure is one of the biggest hoaxes in modern politics.”
‘Ninety-four million Americans’
During his first address to Congress to Congress, Trump threw out a startling statistic: “94 million Americans are out of the labor force.” But that figure is misleading. Like the other unemployment statistics Trump mentioned as a candidate, it includes retirees, students, stay-at-home parents and people who are disabled—people who are not actively looking for a job. If Trump were being consistent about using that definition, the Administration could not also tout the 4.7 percent unemployment rate from this month’s jobs report.
‘Not a good sign’
In December 2012, the jobs report said employers added 244,000 jobs, about 10,000 more than this week’s report that Trump seems excited about. But at the time, Trump, then a private citizen, was not pleased. “Today’s job report is not a good sign & we could be facing another recession,” he tweeted. “No real job growth. We need over 300K new jobs a month.”
Today’s job report is not a good sign & we could be facing another recession. No real job growth. We need over 300K new jobs a month.
— Donald J. Trump (@realDonaldTrump) December 7, 2012
‘Not real’
And here’s a bonus mention for Trump’s new Treasury Secretary Steven Mnuchin. “The unemployment rate is not real,” Mnuchin told the Senate Finance Committee during his confirmation hearing in January. “I’ve traveled for the last year. I’ve seen this.”
“PolitiFact rated Trump’s 42 percent claim “pants on fire” and wrote at the time, “Getting a percentage that high requires believing that being a high school, college or graduate student, a senior citizen, a stay-at-home parent, a job-training participant, or having a disability is no excuse for not holding down a job, or for working less than 40 hours in a week. The highest alternative unemployment-rate measure we could come up with that had any credibility was 16.4 percent, and even that exaggerated figure is only about one-third of the way to Trump’s 42 percent.””
Just FYI to all the high school, college or graduate students, senior citizens, stay-at-home parents, job-training participant, and people with a disability. Trump want you to know that there’s no excuse for not holding down a job, or for working less than 40 hours in a week. All 94 million of you.
And in case you’re tempted to assume that Trump’s 42 percent guestimate that he kept mentioning on the campaign trail was merely the high-end of the guestimate range that Trump and threw out there for shock value on the campaign tail but was going to drop once he became president, he wanted you to think otherwise during his first big televised address to Congress:
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During his first address to Congress to Congress, Trump threw out a startling statistic: “94 million Americans are out of the labor force.” But that figure is misleading. Like the other unemployment statistics Trump mentioned as a candidate, it includes retirees, students, stay-at-home parents and people who are disabled—people who are not actively looking for a job. If Trump were being consistent about using that definition, the Administration could not also tout the 4.7 percent unemployment rate from this month’s jobs report.
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His first address to Congress and he straight up using the 94 million number. This is going to be brutal. And that was during his first address to congress a week and a half ago. Unless he really did drop the 42 percent unemployment meme over the last week and a half and is now relenting on his apparent determination to redefine the unemployment rate as including almost living adult who is not working. Including retirees. And students.
Trump’s Treasury Secretary Agrees. Suddenly. Sort of
And yes, Treasury Secretary Steve Mnuchin echoed Trump during his confirmation hearings by saying he’s changed “unemployment rate isn’t real”:
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And here’s a bonus mention for Trump’s new Treasury Secretary Steven Mnuchin. “The unemployment rate is not real,” Mnuchin told the Senate Finance Committee during his confirmation hearing in January. “I’ve traveled for the last year. I’ve seen this.”
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Now, it’s important to realize that what Mnuchin said wasn’t an outrageous statement on it’s own, in part because there are many different ways to define an official unemployment rate. It’s a subjective call so there isn’t a “correct” “official” unemployment metric. It just depends on what you want to measure as “unemployed” for the official metric. You can limit it to people actively looking for work (the current “official” rate) or everyone who isn’t working but could work whether they’re actively looking for a job or not. There’s not a “correct” way to do that. There really is a much larger pool of long-term unemployed/under-employed people who would like to work but gave up looking and it’s not unreasonable on it’s own to say “hey we should count those people who gave up looking too”. Although it is unreasonable to suggest that the government isn’t actually looking at that expanded definition of the unemployment rate since those metrics collected and reported.
Also note that when Mnuchin gave his confirmation testimony and echoed Trump’s unemployment rate views it’s pretty unclear what exactly he went when he because, while he didn’t lament that 94 million adults were out of the labor force like Trump did during his congressional address and so many times before, Mnuchin did call for “all potential workers” to be considered in a new unemployment rate. And how you define “all potential workers” is also a subjective call. Is it all the long term unemployed who want and job and those who don’t. Or maybe retirees and students counted in the unemployment rate too. There really are 94 million “potential workers” too, at least potentially if that’s how you want to define all unemployed adults as a “potential worker”. So determining how Mnuchin defines the pool of “potential workers” is pretty urgent as he vaguely describes this plank of the Trump agenda:
The Hill
Mnuchin: Unemployment rate is ‘not real’
By Peter Schroeder — 01/19/17 01:49 PM EST
Steven Mnuchin dismissed the sharp decline in the unemployment rate as “not real,” arguing that the average American still hasn’t felt anything from the economic recovery.
Testifying before the Senate Finance Committee Thursday, Mnuchin said that his travels with President-elect Donald Trump have changed his perspective and argued the nation’s needs a new approach.
In so doing, Trump’s pick to head the Treasury Department dismissed the validity of one of the nation’s central economic guideposts, which currently sits at 4.7 percent.
“I absolutely understand why he got elected,” said Mnuchin. “The average American worker has gone absolutely nowhere. The unemployment rate is not real.”
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Republicans have argued in the past there should be more focus on alternate ways to measure the nation’s labor market, noting that potential workers that give up searching for a job after six months are no longer counted as unemployed.
“Republicans have argued in the past there should be more focus on alternate ways to measure the nation’s labor market, noting that potential workers that give up searching for a job after six months are no longer counted as unemployed.”
Who’s not going to be a “potential worker”? That’s a pretty big question. Students who have never worked? Retirees? The disabled? Keep in mind that, there is a kind of value judgement at work for different labels. For instance, if retirees were counted in the “official” unemployment rate that sort of implicitly suggests they should actually be working. Full time. Same with students. And don’t forget that when Donald Trump repeatedly lamented how 94 million Americans were out of the labor force, he was implicitly suggesting retirees, students, and basically all adults capable of working should be working full time. In other words, you retire when you’re either too sick or disabled to work or you die. That’s what’s implied if Trump’s “94 million Americans are out of the labor force” comment is to be taken seriously.
So what percentage of that 94 million pool of adult Americans without full-time work does Treasury Secretary Steve Mnuchin consider “potential workers”? Well, the article below points to a hint Mnuchin gave us back in the beginning of February in his written responses to questions from Senators during his confirmation hearing (the hearing where he referred to “potential workers”. In his written response Mnuchin suggested still using existing Bureau of Labor Statistics (BLS) unemployment statistics as the “official” unemployment rate system, but just using one of the “looser” unemployment rates as the “official” one instead. The BLS system ranges from the “U‑1” unemployment rate (narrowest definition of unemployed that isn’t typically seen as very useful) to the “U‑6” (all unemployed, underemployed, and people capable of working, but not students and retirees). Currently, the “U‑3” rate (unemployed people who have looked for work in the last 12 months) is the “official” unemployment rate.
It’s the U‑3 that just came in at 4.7 percent that Trump claims is now suddenly real after claiming for years it was garbage and hiding the real extent of US unemployment because it didn’t count people who want to work but just gave up trying to look. And, again, that’s not an invalid point Trump is making about the inadequacy of the “U‑3” rate as an unemployment metric. it’s Trump’s 42 percent/94 million claims that are invalid points because they assume every physically capable adult is working full time. But the points that Trump was also making about the U‑3 “official” unemployment rate not capturing what’s really going in the economy isn’t invalid.
There’s no reason we couldn’t follow Trump’s suggestion of using a “looser” definition of being unemployed and, say, call the “U‑5” rate (the “U3” plus workers looking for work more than 12 months and workers who are capable and interested in working but haven’t looked for a job for whatever reason in the last four months) the “official rate”. There’s nothing wrong with that as long as we understand how to interpret it. As Paul Krugman pointed out in 2014, there’s a lot of value in looking at “U‑3” vs “U‑6” rates together just to get a better idea of how much slack there is in the economy (and as Krugman also noted we should apply government stimulus if there’s too much slack).
And as the article below points out, Treasury Secretary Mnuchin suggested in his written response to the Senate that maybe the “U‑5” should be the official rate. As the article also notes, the “U‑5” was at 5.7 percent in early February (and is presumably lower now). So if shifting to the U‑5 rate really is the change to the unemployment rate that the Trump administration is planning on implement, the unemployment rate is going to be permanently higher. And at times perhaps much much higher depending on the slack in the economy. And there’s nothing necessarily wrong with using the U‑5. But if the U‑5 is what the Trump administration makes the “official” unemployment rate going forward, there’s definitely not going to be an 42 percent unemployment rate any time soon...unless he changes the “U‑5” definition to include all 94 million students, the disabled, and retirees out of the labor force, of course:
Bloomberg
Full Employment May Be Redefined as Trump Attacks Benchmark
by Patricia Laya
February 1, 2017, 11:01 PM CST February 2, 2017, 12:15 PM CST* Treasury nominee says unemployment rate has too much clout
* Main rate is still best indicator, former stats chief saysJust as the U.S. nears full employment based on the principal measure used for almost eight decades, President Donald Trump and his team are looking at new yardsticks.
The jobless rate probably held in January at 4.7 percent, according to the median estimate from economists ahead of Friday’s Labor Department report. Federal Reserve policy makers see such a level — which is down from a post-recession high of 10 percent in 2009 — as being at or near full employment, meaning anything lower would push inflation higher.
While the rate’s use as a chief indicator dates to the Depression era, Trump spent last year’s election campaign calling the measure “phony” and arguing it overstates the strength of the labor market. More recently, his Treasury secretary nominee, Steven Mnuchin, said the number has “excessive influence” over policy and that it fails to account for people who have dropped out of the labor force or aren’t actively looking for work. White House spokesman Sean Spicer said Trump’s economic team will look at a “multitude of statistics” in assessing labor-market strength.
Trump’s officials actually share common ground with Fed Chair Janet Yellen on their support for reviewing a range of labor-market indicators. Yellen has argued in the past that the jobless rate didn’t capture slack evident elsewhere, as the Fed kept interest rates near zero until late 2015. She’s pointed to low levels of labor-force participation and the large number of part-time workers who would prefer full-time employment.
Fed policy makers indicated in their post-meeting statement Wednesday that there’s still room for improvement in the job market. While the unemployment rate “stayed near its recent low” in December, “some further strengthening” is expected in labor conditions.
Comparable Rates
That doesn’t mean central bankers or Labor Department economists are about to abandon the unemployment rate as their main gauge. That figure is the “number that’s most comparable over time and one that’s most comparable internationally,” said former Bureau of Labor Statistics Commissioner Erica Groshen, who left the government last month at the end of her four-year term as President Barack Obama’s appointee to the post.
Mnuchin, in written responses to senators’ questions following his confirmation hearing last month, cited the so-called U‑5 rate as an alternative indicator. That rate, which stood at 5.7 percent in December, includes discouraged workers as well as a group called marginally attached workers, who aren’t working or actively looking for work but want a job. Another measure, the U‑6 or underemployment rate, was 9.2 percent in December. It also includes part-time employees who want full-time work.
“People change their minds about whether they’re discouraged,” said Groshen, who was previously a Fed economist. “We’ve been measuring the unemployment rate the same way since the 1940s. Most other countries that have an unemployment rate use a definition that’s similar to ours — partly because we created it and because it works.”
While other measures can help give a more nuanced view of the labor market, they don’t go back as far, Groshen said.
Changing the target unemployment rate “would just say to me that you’re confused, that you don’t know what you’re aiming for,” said John Silvia, chief economist at Wells Fargo Securities LLC in Charlotte, North Carolina.
Payrolls, Wages
Friday’s report is projected to show a steadily improving labor market, according to economists’ estimates. Employers probably added 175,000 workers to payrolls in January, an improvement from December, while average hourly wages probably rose 2.8 percent from a year earlier, compared with the 2.5 percent rise in January 2016.
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Trump’s skepticism was part of his message that helped him win the 2016 election. The president is “absolutely right in saying that the labor market has much more slack in it than the Fed and other commentators are thinking about,” David Blanchflower, a Dartmouth College economics professor and former Bank of England policy maker, said on Bloomberg Television. “Millions of people voted for Trump saying there are no decent jobs out there and nothing much is changing.”
U.S. efforts to define and measure unemployment stemmed from the Great Depression, when about 13 million people were out of work, amounting to a 25 percent jobless rate. But no one knew these figures at the time or whether they were improving or deteriorating, according to a 2009 paper by BLS economist Steven Haugen.
Researchers devised the methodology, and the monthly employment report began in 1940, based on a regular sample survey of the population. That practice continues today, with about 60,000 U.S. households surveyed each month by the Census Bureau. Payroll figures come from a separate survey of businesses and government agencies.
Since 1940, there have been various reviews of the concept and definition of unemployment, which have resulted only in minor revisions to the official measure, Haugen wrote. A range of alternative metrics, including the U‑5 and U‑6 rates, were developed in the 1970s.
Such measures now show that the “labor market is tightening,” said Neil Dutta, head of U.S. economics at Renaissance Macro Research LLC in New York.
Political Influence
While the BLS commissioner participates in the drafting of the monthly employment release and approves it, other political appointees aren’t involved, and long-standing guidelines are aimed at avoiding the politicization of the reports, Groshen said. Trump hasn’t named a new BLS chief yet. The position is subject to Senate confirmation.
If the focus is placed on a rate that measures unemployment differently, what would matter is that “you use it consistently over time, both backwards and forward,” said Stuart Hoffman, chief economist at PNC Financial Services Group Inc. in Pittsburgh.
Among people out of the workforce, “it’s hard to know how many are legitimately would-be employees,” Hoffman said. Still, “there are people on the sidelines that could come back in, who keep the labor market from being all that tight.”
d
“The spigot keeps twisting a little tighter, but it’s not bone-dry,” he said.
“Mnuchin, in written responses to senators’ questions following his confirmation hearing last month, cited the so-called U‑5 rate as an alternative indicator. That rate, which stood at 5.7 percent in December, includes discouraged workers as well as a group called marginally attached workers, who aren’t working or actively looking for work but want a job. Another measure, the U‑6 or underemployment rate, was 9.2 percent in December. It also includes part-time employees who want full-time work.”
That’s the line the Treasury is going to walk now that Donald Trump is calling into question the US’s long-standing unemployment rate metric: Use U‑5 instead of U‑3 as the “official” rate. Which would push it up to a whole 5.7 percent today. And not remotely 42 percent.
So What’s the Official Plan for the “Official” Unemployment Rate? Andy Puzder Gives Us a Clues. An Ominous Clue
So is Mnuchin’s “U‑5” proposal reflective of what Trump thinks the “official” unemployment rate should be reset to? Well, don’t forget that Mnuchin delivered his response to the Senate with the “U‑5” proposal at the beginning of February and Trump lamented how “94 million Americans are out of the labor force,” at his first speech to Congress at the end of the month.
And at this point who knows which, if any, of Trump’s pre‑3/10/2017 (when the February jobs report came out) views on the unemployment rate are still in effect after his bizarre embrace of the jobs report that was in direct contradiction of his bizarre repeated lamentations of the idea that 94 million Americans are out of the labor force. Are there any other clues he’s left for us?
Well, there was one big clue, and it’s an ominous one. The clue came in the form of Trump’s decision to nominate fast-food CEO Andy Puzder as labor secretary. Specially, the clue comes from the choice of Puzder for that labor secretary role and how Puzder’s well known views on replacing all social safety-net and welfare programs with a national work requirement and wage subsidies in the form of the Earned Income Tax Credit (EITC) for low-income worker and how closely those views align with another key figure in this mess: House Speaker Paul Ryan’s desire to do the same. If Trump defines all adults physically and mentally capable of working as “out of the labor force”, that means all recipients of welfare and safety-net programs can be considered eligible for a work-requirement to get their government assistance (with an EITC). And that’s all required if Paul Ryan’s long-held goal of eliminating welfare programs (including Medicaid) can come to fruition.
So first, let’s take a look at the Andy Puzder’s views on replacing all welfare with a check from the government. A check you only get if you’re working in the form of the EITC. If you want food and shelter you’ll need find a job. At minimum wage if that’s all that’s available (perhaps at a fast food restaurant?). And while Puzder isn’t going to be labor secretary because he withdrew his nomination over a variety of personal scandals, this was still the well known views of Puzder when Trump selected him. And, again, Puzder’s dream of creating a giant work force of government subsidized minimum wage workers (for the benefit of all employers who might want to employ minimum wage workers) is the same as House Speaker Paul Ryan’s dream. So Puzder’s views on these matters, which he made clear in the following opinion piece he write in 2015, is a big clue as to why Donald Trump keeps talking about 94 million Americans being out of work:
The Hill
More work, less welfare
By Andy Puzder — 06/22/15 06:31 PM EDT
After six years of a recovery that has failed to meaningfully help working-class Americans, our nation is facing a crisis of entrenched poverty and declining opportunity.
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Not surprisingly, the number of people dependent on the Supplemental Nutrition Assistance Program (SNAP), federal housing assistance and Medicaid continues to grow. The number of people receiving SNAP benefits (food stamps) alone has doubled since 2008, to 74.7 million; in troubled cities like Baltimore, more than 1 in 3 residents receives them.
These important programs genuinely help people in need, and we are a nation rich enough to assist the economically disadvantaged. But these programs have the unintended consequence of discouraging work rather than encouraging independence, self-reliance and pride.
At quick-service restaurant brands Carl’s Jr. and Hardee’s, we’ve seen these policies’ unintended consequences firsthand.
Consider that some of our crew members are declining promotions to shift leader positions because the increase in income would disqualify them for food, housing, medical or other government benefits.
These promotions are the first step on the ladder to becoming a general manager, potentially making up to $80,000 a year. It’s a shame they’re unable to take a promotion for fear of losing public assistance. Following local minimum wage increases, other employees have refused additional hours or requested fewer hours to keep their incomes below the cutoff for receiving benefits.
Called the “welfare cliff” by policy wonks, this growing trend is little more than people responding to incentives. Simply, people get trapped into working less and keeping valuable benefits over working more and losing them.
For example, eligibility for food stamps ends when annual income exceeds 130 percent of the poverty line, or a little more than $15,000 a year, for an individual. At $8.25 an hour or less, employees can work a full-time schedule of 35 hours a week and still qualify for these benefits. But when the minimum wage increases above this level, as it has recently in many cities and states, employees must reduce their hours to keep their benefits.
Similarly, in most states, Medicaid eligibility ends when annual income exceeds 138 percent of the poverty line. Understandably, some employees choose to work less and keep the thousands of dollars’ worth of benefits instead of working a little more and losing them.
The impact a loss of government benefits has on financial security for people living in poverty can be draconian. It can lock them into poverty by making the chasm between government dependence and independence too broad to cross.
As a result, people forgo opportunity for safety, which prevents them from realizing the independence and self-reliance that come with personal success and a job.
There is a solution that fulfills society’s obligation to help the poor without reducing opportunity: the earned income tax credit (EITC).
The EITC supplements incomes of the working poor through the tax code. Rather than access to myriad and complex government programs, people receive a government check supplementing their paycheck.
As their income from work increases, their government supplement declines. The decline, though, is never so steep that it results in a decline in total income. You make more when you work more, thus rewarding work, without the perverse incentives and massive government bureaucracy that characterize existing social programs.
The IRS recently estimated that nearly 28 million Americans received more than $66 billion in EITC payments in 2013, lifting an estimated 6.5 million people out of poverty, including 3.3 million children. While programs that provide food, housing and medical benefits are certainly important, the EITC is more effective in helping people rise out of poverty. These existing programs should be rolled into an expanded EITC.
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The IRS recently estimated that nearly 28 million Americans received more than $66 billion in EITC payments in 2013, lifting an estimated 6.5 million people out of poverty, including 3.3 million children. While programs that provide food, housing and medical benefits are certainly important, the EITC is more effective in helping people rise out of poverty. These existing programs should be rolled into an expanded EITC.
Replace all federal programs that provide food, housing and medical benefits with an expanded EITC (that you only get with a job). That was published view of Trump’s first labor secretary. A view that makes defining a very “loose” definition of the “unemployed” a requirement because you can’t force people getting welfare services (like Medicaid) to work for those benefits if they aren’t considered “unemployed”.
Paul Ryan Gives Us Another Clue: His Long-Held GOP Agenda
So how closely do Puzder’s views on these matters match that of Paul Ryan’s? Well, the last time Ryan issued an poverty-program “reform” agenda it was last year and the agenda was just a vague set of goals that gave little idea of what he actually intended to do (it was a presidential election year). But we don’t need to guess what Ryan intends, since he’s been very clear when it’s not a presidential election year. Like he made clear in 2014 when he laid out a plan to fold all saftey-net programs in one big program that would be block-granted to states and scheduled to slowly whither away and die as people were pushed onto and expanded EITC (with an implicit work requirement):
The Nation
Paul Ryan’s Welfare Reform Ideas Are Even Worse Than You Think
Ryan is asking the poor to be more flexible in being oppressed.
By Michelle Chen
August 15, 2014If you ask congressional conservatives about their plan to revive the economy, you’re not likely to get a very detailed answer, since they tend to doubt that the government is the solution—to a bad economy or anything else. But the neoliberal philosopher king of Capitol Hill, Representative Paul Ryan, has rolled out a plan to reduce government and reduce poverty simultaneously. He calls it “Expanding Opportunity in America”—and he plans to do it by shrinking what’s left of the welfare state.
Under the banner of “flexibility for accountability,” Ryan presents an agenda that reflects “deregulation for deprivation,” systematically reducing public assistance in hopes of “incentivizing” people to be somehow less poor. New research shows us that the plan would deepen the damage already inflicted by eighteen years of reforming welfare out of existence.
The centerpiece of Ryan’s latest budget plan is the so-called “opportunity grant,” which consolidates eleven federal programs into a single chunk of funding, including food stamps, subsidized childcare, and housing funds. This ultimately forces welfare admnistrations to parcel out money for, say, rehabilitation programs for people with disabilities, senior centers and subsidized daycare for toddlers, all from the same capped fiscal pot, which in turn dilutes overall funding streams and undercuts resources for directly assisting the poor.
Progressive critics say that this formula has been tried before, with the 1996 welfare reform law that gutted key public assistance programs. Those measures capped benefits and lumped programs into a single pot of funding, with disastrous effects on the poor.
Ryan’s “opportunity grant,” as Bob and Barbara Dreyfuss reported earlier, would impose the same austerity two-step of capping and consolidating. Following the “accountability” framework of the current welfare laws, Ryan’s “opportunity” program would impose strict requirements on welfare recipients, which would humiliatingly micromanage their household spending work-related activites.
The program also promotes the Earned Income Tax Credit, which subsidizes incomes through income tax refunds, as an alternative to direct cash benefits, suggesting that tax breaks are a form of assistance superior to cash payments.
At the heart of Ryan’s plan is an all-out assault on food stamps. Food stamps are a favorite target for small-government conservatives because (1) they run the way a welfare program should—benefits expand based on people’s need, not the political whims of Capitol Hill; and (2) even though benefits are extremely lean, only a few dollars per day, food subsidies are extremely effective at reducing poverty—so it’s the kind of welfare libertarians hate.
The restructuring proposed in the Ryan Plan, according to an analysis by the CBPP, would directly target crucial (and fragile) pillars of the welfare state: because about 80 percent of the Opportunity Grant goes toward food stamps and housing assistance, “the cuts would almost certainly reduce families’ access to these programs, which are effective at reducing poverty—particularly deep poverty.”
Although the 1996 welfare reforms were supposed to promote self-sufficiency—and overall poverty has fallen by some measures—CBPP’s longitudinal analyses shows that “deep poverty”—or living on less than roughly $8.50 per day—has actually surged, particularly among children. And according to new research by H. Luke Shaefer and Kathryn Edin, published in Pathways, the number of households surviving in extreme poverty, or on less than about $2 per day, has more than doubled since the Clinton-era reforms were enacted.
Although all demographics experienced greater poverty and instability over a fifteen-year period, racial and gender disparities aggravate the effects. Extreme poverty shot up 186 percent among blacks, and 134 percent among whites. While households headed by married couples saw extreme poverty nearly double, single-woman households saw a staggering 230 percent rise.
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Today funding for the Temporary Assistance for Needy Families Block Grant, the main source for cash assistance, managed jointly by states and Washington, is not only frozen but melting away. TANF has seen much of its value erode through inflation since 1996. According to the CBPP, spending on basic assistance declined in real dollars by 50 percent between 1997 and 2011.
Ryan’s plan, which embraces an elitist concept of flexibility by giving more freedom to employers to pay workers as little as possible and more freedom to officials to cut public spending, encapsulates the free-market logic of empowering capital through the unfreedom of labor. The working poor get to eat all the cake they can get. The hierarchy of employers over workers that the Ryan plan promotes reflects a profound mistrust of, along with social disinvestment from, those who already have the least power over their economic lives.
In contrast to Ryan’s rhetoric, numerous studies show that when entrusted with the flexibility to spend cash assistance however they want, people generally use it to fit their rational needs. These actual studies, of course, defy the stereotypes that the poor would rather splurge on frivolous expenses like cigarettes and beer.
Plus, the dignity of having control over your life—something that chronic poverty tends to rob people of—is priceless. When the economy declines, Schaefer explains, “cash support offers a flexibility to recipients that is absolutely essential if they want to succeed in the labor force. Let’s say someone loses their job and cannot get unemployment insurance (which is pretty common among the working poor). They need some amount of cash to use for the things that will help them find that next job (as long as the government continues to be unwilling to fund jobs of last resort)…. some amount of cash, immediately available when a crisis strikes, is crucial for people to pursue their self interest at the very bottom—and the lack of this is a gap in the current system.”
Ryan is asking the poor to be more flexible in being oppressed—to seize the opportunity to sleep under the bridge of their choice. This rationale presents the poor themselves, not the social system of poverty, as the scourge the government must get rid of. And as long as they’re wiped off the welfare rolls, they really do disappear, in a way. To many in Washington, they were never visible.
“If you ask congressional conservatives about their plan to revive the economy, you’re not likely to get a very detailed answer, since they tend to doubt that the government is the solution—to a bad economy or anything else. But the neoliberal philosopher king of Capitol Hill, Representative Paul Ryan, has rolled out a plan to reduce government and reduce poverty simultaneously. He calls it “Expanding Opportunity in America”—and he plans to do it by shrinking what’s left of the welfare state.”
Reducing government programs and reducing poverty simultaneously. That’s the plan. Officially. Unofficially the plan isn’t actually about reducing poverty, but that’s the sales pitch: if we just set bundle all wefare and safety-net programs into one big federal block-grant to states, and then set that block-grant on a schedule for slow (or fast) death, people will be incentivized to find work because their government support will be constantly shrinking and the EITC tax credit for low-wage workers increases:
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The centerpiece of Ryan’s latest budget plan is the so-called “opportunity grant,” which consolidates eleven federal programs into a single chunk of funding, including food stamps, subsidized childcare, and housing funds. This ultimately forces welfare admnistrations to parcel out money for, say, rehabilitation programs for people with disabilities, senior centers and subsidized daycare for toddlers, all from the same capped fiscal pot, which in turn dilutes overall funding streams and undercuts resources for directly assisting the poor.Progressive critics say that this formula has been tried before, with the 1996 welfare reform law that gutted key public assistance programs. Those measures capped benefits and lumped programs into a single pot of funding, with disastrous effects on the poor.
Ryan’s “opportunity grant,” as Bob and Barbara Dreyfuss reported earlier, would impose the same austerity two-step of capping and consolidating. Following the “accountability” framework of the current welfare laws, Ryan’s “opportunity” program would impose strict requirements on welfare recipients, which would humiliatingly micromanage their household spending work-related activites.
The program also promotes the Earned Income Tax Credit, which subsidizes incomes through income tax refunds, as an alternative to direct cash benefits, suggesting that tax breaks are a form of assistance superior to cash payments.
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Are you too poor to afford food, shelter, and medicine? Well, you better find a job at any wage at all and hope the expanded EITC covers the cost of living. Literally living. Have fun bargaining with the boss:
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Ryan’s plan, which embraces an elitist concept of flexibility by giving more freedom to employers to pay workers as little as possible and more freedom to officials to cut public spending, encapsulates the free-market logic of empowering capital through the unfreedom of labor. The working poor get to eat all the cake they can get. The hierarchy of employers over workers that the Ryan plan promotes reflects a profound mistrust of, along with social disinvestment from, those who already have the least power over their economic lives.
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That’s the plan. And it’s a plan that requires a “loose” a definition of the unemployed as possible. And even if you do have a job and are hoping that EITC government wage subsidy will cover your costs of living, that EITC is going to have to be expanded dramatically if the worker poor of tomorrow aren’t going to be the working deeply-poor:
Center on Budget and Policy Priorities
Commentary: The EITC Works Very Well – But It’s Not a Safety Net by Itself
March 26, 2014
by Sharon ParrottHouse Budget Committee Chairman Paul Ryan’s recent report on safety net programs rightly praised the Earned Income Tax Credit (EITC) for reducing poverty and promoting work. But, Ryan’s report criticizes much of the rest of the safety net. And, over the past several years, Chairman Ryan’s budget plans have targeted low-income programs such as SNAP (formerly food stamps) and Medicaid for extremely deep cuts. While it’s heartening to hear Chairman Ryan trumpet the EITC’s success, policymakers need to understand that the EITC alone can’t do what’s needed to ameliorate poverty and hardship.
The EITC serves a specific role in our safety net: easing the taxes and supplementing the wages of low-income working families. It promotes work by providing the most help to families with significant earnings. A single parent with two children, for example, must earn between $13,650 and $17,850 in 2014 to qualify for the maximum credit. Those earnings are modest, to be sure, but most people in this earnings range work most of the year and work at least 30 hours per week when they have a job. In short, they have significant attachment to the labor force.
Here’s what the EITC (and its sibling the Child Tax Credit or CTC, which helps offset the cost of raising children) are not designed to do — and cannot do without other safety net programs:
* Help people who are out of work or can’t work. The EITC and CTC are designed to help families with at least modest earnings. But, some people don’t have jobs, particularly in a weak economy, or have long periods of unemployment during a year. Others can’t work due to illness or disability or the need to care for an ill or disabled child. Still others can’t work because they have young children and can’t earn enough to afford child care.
Without programs such as SNAP, Supplemental Security Income (SSI), and Medicaid, people in these families, including millions of children, couldn’t put food on the table, keep a roof over their head, and get needed health care. Helping them isn’t only the right thing to do — it’s also an investment in children. Research shows that basic assistance to children not only reduces short-term hardship but also improves their academic performance and long-term prospects. And, Medicaid coverage enables children to receive preventive care as well as treatment for everything from ear infections to cancer.
* Keep people out of “deep poverty.” Because the EITC and CTC aren’t targeted to the very poorest families, they don’t do much to keep people out of deep poverty, or above half the poverty line. Overall, the EITC and CTC plus other programs targeted on low-income individuals — such as SNAP, SSI, and Temporary Assistance for Needy Families — kept an estimated 15 to 20 million people above halfthe poverty line (about $11,000 for a family of three) in 2010. (That estimate is based on the federal Supplemental Poverty Measure, which most analysts favor. The upper end of the range reflects estimates based on Urban Institute data that correct for the underreporting of government benefits.) Roughly 70 to 80 percent of these people would have remained in deep poverty if the EITC and CTC were the only forms of income-tested assistance for very poor families (see Figure 1).
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* Help families get health care. The average EITC benefit for families with children was $2,254 in 2011 — not enough to buy health insurance for a family or pay health care bills when someone gets sick or needs expensive medications. The programs designed to help low-income people get decent health care are Medicaid, the Children’s Health Insurance Program, and subsidies to buy private coverage through health reform’s new marketplaces, not the EITC.
* Help families on a monthly basis. Recipients get their EITC and CTC for the year in one lump sum when they file their income tax return. That works fine for many working families, helping them save for larger expenses and budget for the coming year, but poorer families and families whose incomes drop sharply due to a mid-year job loss need help during the year. And, for families that need significant help with large monthly expenses — such as putting groceries on the table and paying high rent or child care costs — monthly assistance programs are often a better fit. If a new mother needs help paying for child care to go back to work, for example, a tax credit that she needs earnings to qualify for and doesn’t arrive until she files her tax return the following winter or spring isn’t going to help her get back to work.
* Serve as an automatic stabilizer for the economy in recessions. Programs like unemployment insurance, SNAP, and Medicaid automatically expand during recessions when more people lose their jobs and need help. Since the EITC only goes to people who work, in contrast, it doesn’t help those who are out of work throughout the year. And, for people who still have earnings but whose earnings shrink during a downturn, the EITC rises for some, but falls for others. A recent study found that the EITC is only weakly counter-cyclical — that is, it expands only a small amount overall when unemployment rises.[1] For single-parent families, the largest group of EITC recipients, the study found “no evidence that the EITC stabilizes income” overall as unemployment rises. By contrast, other programs such as unemployment insurance and SNAP are far more responsive to increases in unemployment, according to the study.
The bottom line? The EITC is a critically important and highly effective part of the safety net, but it can’t — and wasn’t meant to — stand alone as our answer to poverty.
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“The EITC and CTC are designed to help families with at least modest earnings. But, some people don’t have jobs, particularly in a weak economy, or have long periods of unemployment during a year. Others can’t work due to illness or disability or the need to care for an ill or disabled child. Still others can’t work because they have young children and can’t earn enough to afford child care.”
Can’t afford to eat? Well, you better find a job, any job, if you want to eat in the America Paul Ryan and Donald Trump want to make. And if the economy sucks that’s tough so you better not complain about your working conditions.
And if you think that this agenda is just going to impact low-income workers (and you’re sick enough not to care about their plight), keep in mind that the creating a sea of millions desperate workers who will work at just about any wage under any conditions just to get enough government assistance for basic food and shelter is a recipe for dragging down wages everywhere but the top. Imagine all the people who aren’t currently working and aren’t looking for work for whatever reason — maybe they can’t find any jobs that aren’t paying poverty wages or maybe they have physical or mental health issues that make employment difficult but don’t entirely prevent them from working — and now imagine them being forced to take any job at all at any wage just to get the most basic government assistance. How is that going to do anything other than drive down wages?
And What About the Poor Retirees. They’ll Might Need to Work For Thier Government Pittance Too
Now, so far, all the proposed changes to the “official” unemployment rate and how that ties into the broader agenda to replace the safety-net with a work-requirement and an inadequate government check haven’t involved programs for retirees. But don’t forget that in addition to the block granting of Medicaid — with the idea of steadily shrinking it to death which is already part of Paul Ryan’s Obamacare replacement proposal — Paul Ryan and the GOP has also championed a similar idea for retirees: voucherizing Medicare. And ensuring those vouchers shrinking every year while the eligibility age is steadily ratcheted up. And if you’re a poor retiree who can’t afford health insurance with your future Medicare voucher, there’s also the option of bankrupting yourself and going on Medicaid...which just might include a work-requirement to receive after it gets block-granted if you particular state decides to implement a Medicaid work requirement that includes seniors. This is all on the agenda even if Paul Ryan, Trump, and the rest of the GOP don’t want you to know it:
The Huffington Post
Not Just Obamacare: Medicaid, Medicare Also On GOP’s Chopping Block
The health care safety net as we know it could be bound for extinction.By Jonathan Cohn , Jeffrey Young
11/15/2016 11:50 am ET | Updated Nov 15, 2016Donald Trump and Republican leaders in Congress have made clear they are serious about repealing Obamacare, and doing so quickly. But don’t assume their dismantling of government health insurance programs will stop there.
For about two decades now, Republicans have been talking about radically changing the government’s two largest health insurance programs, Medicaid and Medicare.
The goal with Medicaid is to turn the program almost entirely over to the states, but with less money to run it. The goal with Medicare is to convert it from a government-run insurance program into a voucher system — while, once again, reducing the money that goes into the program.
House Speaker Paul Ryan (R‑Wis.) has championed these ideas for years. Trump has not. In fact, in a 2015 interview his campaign website highlighted, he vowed that “I’m not going to cut Medicare or Medicaid.” But the health care agenda on Trump’s transition website, which went live Thursday, vows to “modernize Medicare” and allow more “flexibility” for Medicaid.
In Washington, those are euphemisms for precisely the kind of Medicare and Medicaid plans Ryan has long envisioned. And while it’s never clear what Trump really thinks or how he’ll act, it sure looks like both he and congressional Republicans are out to undo Lyndon Johnson’s health care legacy, not just Barack Obama’s.
Of course, whenever Trump or Republicans talk about dismantling existing government programs, they insist they will replace them with something better — implying that the people who depend on those programs now won’t be worse off.
But Republicans are not trying to replicate what Medicaid, Medicare and the Affordable Care Act do now. Nor are they trying to maintain the current, historically high level of health coverage nationwide that these programs have produced. Their goal is to slash government spending on health care and to peel back regulations on parts of the health care industry, particularly insurers.
This would mean lower taxes, and an insurance market that operates with less government interference. It would also reduce how many people get help paying for health coverage, and make it so that those who continue to receive government-sponsored health benefits will get less help than they do now.
It’s difficult to be precise about the real-world effects, because the Republican plans for replacing existing government insurance programs remain so undefined. Ryan’s “A Better Way” proposal is a broad, 37-page outline without dollar figures, and Senate Republican leaders have never produced an actual Obamacare “replacement” plan.
But the Republican plans in circulation, along with the vague — and shifting — health care principles Trump endorsed during the campaign, have common themes. And from those it’s possible to glean a big-picture idea of what a fully realized version of the Republican health care agenda would mean.
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Medicaid
As of August, 73 million Americans had benefits from Medicaid or the Children’s Health Insurance Program, according to the Centers for Medicare and Medicaid Services, which doesn’t break up the numbers for the two programs. All but around 16 million of them are covered by pre-Obamacare rules, but all Medicaid beneficiaries stand to be affected by the GOP’s plans.
Until the Affordable Care Act, working-age adults without disabilities were ineligible for this benefit in most cases, with some exceptions, including low-income pregnant women and very poor parents of children who qualified for Medicaid or CHIP.
As an entitlement like Medicare and Social Security, Medicaid gets however much money it takes to cover the medical expenses for everyone enrolled.
Over a 10-year time period, the Medicaid plan the House Budget Committee approved this year would reduce federal spending on the program by about one-third, or roughly $1 trillion, not even counting the effects of repealing Obamacare’s expansion of the program, according to the Center on Budget and Policy Priorities.
Repealing the Affordable Care Act and its Medicaid expansion fully would eliminate the coverage for the roughly 16 million people the Centers for Medicare and Medicaid Services reports have enrolled under this policy.
The federal government paid for 62 percent of the $532 billion in Medicaid expenditures in fiscal year 2015, the most recent year for which such a breakdown is available. In 25 states, the federal share of spending is higher still, so even states that may want to maintain today’s Medicaid benefits would find it extremely difficult, if not impossible, to replace the federal dollars that would disappear under GOP proposals.
One result could be 25 million fewer Medicaid beneficiaries, according to the RAND Corp.’s analysis of Trump’s plans.
Trump and other Republicans have long promoted “flexibility” that would enable states, which jointly finance and manage Medicaid with the federal government, to alter the program.
While this may seem on its face like simple federalism, the purpose is not to allow states to cover as many people as they do now in different ways, but to significantly reduce federal spending on Medicaid and to permit states to cut back on who can receive Medicaid coverage and what kind of benefits they have.
Ryan’s latest version of this 35-year-old idea would establish either “block grants” to states — that is, a flat amount of money each state would get from the federal government each year to spend on Medicaid as they like — or “per capita allotment” — meaning a flat amount of money for each person enrolled. These approaches would differ in terms of how much money states would receive yearly and how much the funding would increase from year to year.
In any case, the funding wouldn’t be high enough to maintain current coverage, inevitably leading to millions of currently covered individuals losing their benefits. And the financing would grow at a slower rate than health care costs, portending more lost coverage over time. For those who remain on Medicaid, Ryan would permit states to charge them monthly premiums and add other strings, such as a work requirement.
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Medicare
The Medicare revamp in “A Better Way” would result in wholesale changes to the entitlement — ones that would realize Ryan’s long-term goal of privatizing the program.
Today, most of the 55 million Medicare beneficiaries enroll in the traditional, government-run program and then buy private supplemental insurance to cover remaining out-of-pocket costs. A sizable minority opts to buy private insurance plans, through the Medicare Advantage program. The government regulates these plans tightly, to make sure they provide coverage at least as generous as the traditional Medicare program does.
Ryan would replace this arrangement with a “premium support” system, under which each senior would get an allotment of money — a voucher, in other words — he can use to get insurance. When Ryan introduced the first formal version of his proposal, in 2010, he envisioned ending the traditional government program altogether. Now he says it should continue to exist alongside the private plans, competing with them for business..
What would this mean for beneficiaries? A great deal would depend on details Ryan has yet to provide, particularly when it comes to the value of that voucher — and how quickly it would increase every year — compared to the cost of the insurance. But the whole point of the system is to ratchet down the value of the vouchers over time.
That would reduce spending on Medicare, which Ryan always says is a goal, and some seniors would likely end up saving money, because they could easily switch to cheaper plans. The question would be what happens to everybody else. Without adequate regulation of benefits and other safeguards tailored to the special needs of an older, frequently impaired population of seniors, the consequence of moving to premium support could be higher costs for individual seniors who have serious health problems — with low-income seniors feeling it most intensely.
If at the same time Republicans shrink Medicaid, those seniors will suffer even more, since today the poorest seniors can use the program to pay for whatever medical bills Medicare does not.
Ryan promises that the proposal would not affect seniors who are 55 or older, since the new system wouldn’t begin operating for 10 years. But realistically the entire Medicare program would change once premium support took effect — private plans would almost certainly find ways to pick off the healthiest seniors, for instance — and, at best, the damage would simply take longer to play out.
Ryan’s Medicare scheme includes one other element — a provision to raise the eligibility age gradually, so that seniors would eventually enroll at 67, rather than 65. Particularly in a world in which the Affordable Care Act no longer exists, 65- and 66-year-olds searching for private coverage would find it harder to obtain, more expensive and less generous than what they’d get from Medicare today.
The end result would almost surely be higher out-of-pocket costs for those younger seniors — and a significant number of them, maybe into the millions, with no insurance at all.
“But Republicans are not trying to replicate what Medicaid, Medicare and the Affordable Care Act do now. Nor are they trying to maintain the current, historically high level of health coverage nationwide that these programs have produced. Their goal is to slash government spending on health care and to peel back regulations on parts of the health care industry, particularly insurers.”
Yep, the goal isn’t “repeal and replace” Obamacare as Republicans made their rallying cry. The goal is “repeal all entitlements and replace them with something steadily cheaper”. That’s it. That’s the goal. And that means things like turning Medicare into a steadily shrinking voucher and converting Medicaid into steadily-shrinking block grants that can include things like work-requirements:
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Ryan’s latest version of this 35-year-old idea would establish either “block grants” to states — that is, a flat amount of money each state would get from the federal government each year to spend on Medicaid as they like — or “per capita allotment” — meaning a flat amount of money for each person enrolled. These approaches would differ in terms of how much money states would receive yearly and how much the funding would increase from year to year.In any case, the funding wouldn’t be high enough to maintain current coverage, inevitably leading to millions of currently covered individuals losing their benefits. And the financing would grow at a slower rate than health care costs, portending more lost coverage over time. For those who remain on Medicaid, Ryan would permit states to charge them monthly premiums and add other strings, such as a work requirement.
...Today, most of the 55 million Medicare beneficiaries enroll in the traditional, government-run program and then buy private supplemental insurance to cover remaining out-of-pocket costs. A sizable minority opts to buy private insurance plans, through the Medicare Advantage program. The government regulates these plans tightly, to make sure they provide coverage at least as generous as the traditional Medicare program does.
>Ryan would replace this arrangement with a “premium support” system, under which each senior would get an allotment of money — a voucher, in other words — he can use to get insurance. When Ryan introduced the first formal version of his proposal, in 2010, he envisioned ending the traditional government program altogether. Now he says it should continue to exist alongside the private plans, competing with them for business..
What would this mean for beneficiaries? A great deal would depend on details Ryan has yet to provide, particularly when it comes to the value of that voucher — and how quickly it would increase every year — compared to the cost of the insurance. But the whole point of the system is to ratchet down the value of the vouchers over time.
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If at the same time Republicans shrink Medicaid, those seniors will suffer even more, since today the poorest seniors can use the program to pay for whatever medical bills Medicare does not.
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Shrinking Medicare by pushing health care costs onto seniors, which will push more seniors onto Medicaid, whil simultaneously shrinking Medicaid and giving states the option creating things like work-requirements to get it. That’s the plan. And while President Trump hasn’t formally agreed to that plan, don’t forget that his “94 million out of the labor force” comments that he repeatedly made implicitly assumes that all retirees are potential employees.
And then there’s the fact that privatizing (and cutting) Social Security is very much part of the GOP/Ryan agenda too.
:
Forbes
Why Social Security Cuts Are Still In GOP Agenda
John Wasik
Mar 10, 2017 @ 09:19 AMDespite what President-elect Trump says, Social Security cuts are still very much on the table. His Secretary for the Department of Health and Human Services — Rep. Tom Price (R‑Georgia) — filed legislation last year to trim the program’s benefits. And I suspect it’s still on his radar screen.
Price’s strategy was to bury Social Security “reform” inside of a a massive budget bill, so the issue wouldn’t necessary receive a separate hearing in Congress. Price was chairman of the powerful House Budget Committee in the last Congress.
The conservative Georgia doctor has long been a proponent of major cutbacks to Social Security, Medicare, Medicaid and Obamacare. In a speech before the conservative group Heritage Action for America on January 12, 2015, Price told the group about his plans for Social Security:
“This is a program that right now on its current course will not be able to provide 75 or 80 percent of the benefits that individuals have paid into in a relatively short period of time. That’s not a responsible position to say, ‘You don’t need to do anything to do it.’
So all the kinds of things you know about – whether it’s means testing, whether it’s increasing the age of eligibility. The kind of choices — whether it’s providing much greater choices for individuals to voluntarily select the kind of manner in which they believe they ought to be able to invest their working dollars as they go through their lifetime. All those things ought to be on the table and discussed.”
None of these ideas are new and have been floated by Republicans such as Paul Ryan, speaker of the house, and conservative think tanks for years. But the word Price doesn’t use — privatization — is still very much on the GOP agenda for Social Security and Medicare.
Even worse, Price used false information as a scare tactic to provide political cover to carve up the program. Social Security is not in any danger of not being able to provide “75 or 80 percent of benefits in a short period of time.”
According to the non-partisan Congressional Budget Office (CBO), the Social Security trust fund that serves as a kitty for retirees, will be forced to reduce benefits in 2030. And that’s only if Congress does nothing to boost funding of the system.
That means that only complete inaction by Congress will drive the trust fund balances to zero. Even then, Social Security will still pay benefits.
By 2030, “the Social Security Administration would no longer be permitted to pay full benefits when they were due,” with future benefits by annual income, the CBO report said. At most, benefits would likely be cut by 29%.
President-elect Trump has said on the campaign trail that he wouldn’t touch Social Security or Medicare, but he’s clearly at odds with his party, which has wanted to trim or privatize Social Security and Medicare for more than a decade.
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“None of these ideas are new and have been floated by Republicans such as Paul Ryan, speaker of the house, and conservative think tanks for years. But the word Price doesn’t use — privatization — is still very much on the GOP agenda for Social Security and Medicare.”
Privatization, the word that GOPers always think about but dare not speak. But they sure love proposing it:
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So all the kinds of things you know about – whether it’s means testing, whether it’s increasing the age of eligibility. The kind of choices — whether it’s providing much greater choices for individuals to voluntarily select the kind of manner in which they believe they ought to be able to invest their working dollars as they go through their lifetime. All those things ought to be on the table and discussed.”
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Those were the words of Tom Price, Trump’s choice for Secretary of Health and Human Services and the House GOP’s long-time point man on gutting entitlements. And what those word describe is a Social Security privatization option even if he doesn’t use the word “privatization”. But that’s what it is, even if it’s not the full privatization of Social Security and merely a private option. That’s how privatization is supposed to work under the Paul Ryan agenda: start with the option to have your social security taxes go into a Wall Street-run private fund, and then steadily shrink the defined benefits of the traditional program.
And don’t forget that when you move people away from a defined benefit system — the way social security operates today — and towards a defined contribution option — which is how the private option would work — that is a plan allow people to make really bad investments when they’re young and have almost nothing left in that Social Security private personal account when they hit retirement age. And if ther’s a massive financial crisis, a whole generation of retirees or near-retirees could see their Social Security accounts wiped out. Which means the privation of Social Security is a recipe for pushing seniors onto Medicaid because they will be poor enough to qualify. And, again, Medicaid in the future just might require work requirements. Maybe for people over 65 if that’s allowed. Or 67. Or whatever the retirement age ends up being in the future.
So, once again, when Donald Trumnp repeatedly refers to a 42 percent unemployment rate and 94 million people being out of the labor force it’s not inconceivable that he’s intentionally framing the unemployment definition required for a “Ryan” vision of the future where everyone needs to work for government assistance. Including the elderly.
Yes, Trump Thinks We’re Stupid. Or Has Dementia
Of course, now that Donald Trump embrace the 4.7 percent unemployment rate it unclear what to think about what Trump actually thinks when it comes to the veracity of past and present unemployment rates. Especially after Donald Trump had Sean Spicer deliver to the press a mysterious tragicomic message: “I talked to the president prior to this, and he said to quote him very clearly: ‘They may have been phony in the past, but it’s very real now.’ ”:
The Washington Post
19 times Trump called jobs numbers ‘fake’ before they made him look good
By Christopher Ingraham
March 10, 2017 at 4:49 PMWe may assume President Trump is quite pleased with the strong jobs report from his first full month in office: He retweeted the Drudge Report’s triumphant “GREAT AGAIN” framing of the numbers Friday morning, after touting employment figures released by payroll firm ADP earlier in the week.
Not so long ago, however, Trump’s view of the monthly jobs report, which comes courtesy of the nonpartisan federal Bureau of Labor Statistics, was markedly different. As recently as December, he described the report as “totally fiction.”
If there was any argument over whether Trump was flip-flopping on the jobs report at the precise moment it reflected positively on him, White House press secretary Sean Spicer laid it to rest Friday afternoon, telling reporters: “I talked to the president prior to this, and he said to quote him very clearly: ‘They may have been phony in the past, but it’s very real now.’ ”
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“If there was any argument over whether Trump was flip-flopping on the jobs report at the precise moment it reflected positively on him, White House press secretary Sean Spicer laid it to rest Friday afternoon, telling reporters: “I talked to the president prior to this, and he said to quote him very clearly: ‘They may have been phony in the past, but it’s very real now.’ ””
“I talked to the president prior to this, and he said to quote him very clearly: ‘They may have been phony in the past, but it’s very real now.’ ” WTF. Is he trolling us? Because Trump is either suggesting that the unemployment rate dropped from 42 percent to 4.7 percent in the first month, which would indeed be pretty impressive, or he thinks that the entire world is stupid. Dementia perhaps? Only Trump knows. Unless it’s dementia in which case maybe not.
But something very weird and very ominous is going on with Trump and the unemployment rate. It’s possible the Trumnp administration is merely going to shift the “official” rate from the “U‑3” to “U‑5” rate the way Steve Mnuchin recommended expand it to include everyone who would like to find work, even the long-term unemployed who are so discouraged they’ve stopped looking.
But when we look at all the clues available it’s becoming increasingly clear that Donald Trump’s repeated references to a 42 percent unemployment rate with 94 million Americans out of the labor force isn’t dementia. It’s laying the rhetorical groundwork to redefine who is considered “unemployed” in order to lay down the conceptual groundwork required to replace the US safety-net with a “work for a pittance to receive a government pittance” safety-net. And including retirees in that potential workforce. That’s where all the clues are pointing.
Although when you consider that in implementing this agenda Donald Trump is basically setting himself up to be Paul Ryan’s ghoulish and super-villain stand-in who will be loathed for generations to comes. As conservative columnist Reihan Salam recently wrote in Slate, if Donald Trump listens to Paul Ryan he’s committing political suicide. And it’s hard to see why Salam isn’t correct. What Paul Ryan and the GOP want to do — make almost all poor American adults a new serfs-for-welfare class of desperate low-wage employees — is beyond cruel and just bad policy that’s going to end up harming the entire economy and make living in America that much more stressful for almost everyone. The idea of losing your job in America is already scary enough. It’s about to become terrifying. And Donald Trump, when he used that “94 million Americans out of the labor force” line during his first address to Congress, gave a very strong indication that he’s willing to lead America into Paul Ryan’s vision of the future. As his policy agenda unfolds and becomes more and more aligned with the Paul Ryan ‘granny starver’ agenda that really does appear to be Trump’s plan . And Trump increasingly appears willing to take the bulk of the public blame for making it a reality. So while it’s unclear what exactly Trump meant when he had his spokesperson troll the world, you know, maybe it really is dementia.
Mick Mulvaney, the Trump administration’s director of Office of Management and Budget (OMB), added a new twist to the general the confusion over the White House’s sudden celebration of a job report after dismissing all previous reports as fraudulent during an appearance on CNN today. When asked by Jake Tapper about how Mulvaney makes sense of Trump’s past dismissals of the official Bureau of Labor Statistics (BLS) unemployment numbers he first gave a response notably similar to the argument Treasury Secretary Steve Mnuchin gave to Congress when Mnuchin argued that the “official” unemployment rate should be the “U‑5” rate instead of the current “U‑3” rate. Mulvaney went a bit further in arguing that the official rate should be a “U‑6” rate (you should actually look at all the rates) and then immediately concluded that the unemployment rate isn’t really what you should look at at all. Instead, it’s the number of new jobs that’s really important:
So that’s the first part of Mulvaney’s nonsense answer to Tapper’s question and could give us a clue as to how the Trump administration is going to proceed in its attempt to redefine who is truly “unemployed”: constantly assert that there’s a conspiracy to underreport the unemployment rate and then when questioned on the details deflect and assert that the unemployment rate doesn’t matter. It’s only the number of new jobs that matter. Keep an eye out for that kind of spin.
But right after that in the interview Mulvaney goes on to to charge the BLS with cooking the books on the jobs reports during the Obama administration. But it wasn’t the same kind of charge Trump frequently made that the unemployment rate was artificially low due to an undercounting of the number of people who are truly unemployed (like Trump’s “94 million Americans are out of the workforce” line that he kept using, including in his first address to Congress). Instead, Mulvaney seemed to be suggesting the BLS during the Obama administration was faking the number of new jobs created:
And that all was just in the first minute of Mulvaney’s interview with Tapper. He then goes on to make all sorts of laughably deceptive deflections for the growing number of questions about the Trump/Paul Ryan Obamacare replacement plan and how its poised to lead to millions losing health care coverage to pay for tax cuts for the rich. Mulvaney’s basic response what that they aren’t really cuts to health care because the market was going to magically make health care so much more cost effective that the same levels of service were going to be available despite the massive cuts to actual government spending on health care.
It was a revealing interview overall and just one of the Sunday morning interviews he did today:
““Just because you spend less money on something doesn’t mean it can’t get better,” Mulvaney said, insisting that improvements in efficiency and increased state-level control would improve the system for those using it.”
“Just because you spend less money on something doesn’t mean it can’t get better,”: And that, right there, is going to be one of the big meta-messages going forward coming from the White House and the rest of the GOP. Something like:
That’s the gist of the GOP’s meta-meme that it’s going to be using: the cuts to these programs merely encourage greater efficiencies that make up for the cuts! Isn’t that great? That’s the meta-meme. At least one of them.
But there’s clearly going to be an “everyone is lying about the numbers but the GOP” meme too. Not only did Mulvaney add the conspiracy theory that the Obama BLS was rigging the new jobs numbers in the past to their public worldview, but he then went on to ABC to assert that the Congressional Budget Office (CBO), which isn’t too enthusiastic about the Big Numeric Lies in the GOP’s health care proposals, wasn’t fairly assess the cost and likely impact of the GOP’s American Health Care Act replacement for Obamacare because the CBO doesn’t take into account “the benefits of competition”:
““We continue to think and have for a long time that CBO is scoring the wrong thing,” he said. The congressional budget watchdog, he said, fails to consider the benefits of market competition”
Don’t trust the CBO because it doesn’t appreciate the awesomeness of the market. That’s the other big meme Trump and the GOP are clearly pushing. So it’s going to be important to keep in mind that the CBO can indeed use “dynamic scoring” factor in the magic of “the market” and the current head of the CBO is a conservative who was nominated for that position in 2015 by Tom Price, the head of Health and Human Services. And this conservative head of the CBO doesn’t appear to think the GOP’s “American Health Care Act” dynamically scores very high:
“Hall, in the post for two years, has signaled that his office won’t soft-pedal the coverage assessments. If a health plan doesn’t have comprehensive benefits, it won’t count as coverage. Fearing a bad CBO “score,” Republicans facing backlash in their drive to gut Obamacare are turning the budget agency and its team of professional economic analysts into a punching bag as they try to discredit it.”
Fearing a bad score from the Congressional Budget Office, the GOP is already trying to discredit the Congressional Budget Office. Despite the fact that CBO Director Keith Hall is quite conservative and was selected by HHS Secretary Tom Price to lead the CBO just two years ago. And Hall isn’t an Obamacare fan either. This is the guy getting discredited as not being right-wing enough in his analysis of the GOP’s plans:
So that gives us a taste of just how bad the Trump/Ryan plan really is and why the the Trump administration and rest of the GOP apparently feel the need to launch a preemptive attack on the CBO.
And note how in Mick Mulvaney’s response in the prior interview, his attacks on the CBO include the charge that the CBO wasn’t factoring in the magic of competition and the magic of things like tax cuts for the rich (otherwise known as “dynamic scoring). But as we just saw, the CBO has been “dynamic scoring” since 2015 (and still is likely to say the GOP’s plan is a disaster):
So if the GOP is going to use dynamic scoring to justify supply-side junk policy to push tax cuts for the rich and austerity for public programs, it’s going to need to subvert the CBO and complaining about dynamic scoring models how the CBO won’t subscribe to their junk supply-side models enough is going to be one of the vehicles for carrying out that subversion. That’s becoming increasingly clear.
And note how the CBO under Hall has taken the position that the CBO won’t allow “junk” insurance plans that cover almost nothing to count as actual insurance coverage:
“In other words, people with limited health care benefits that are unlikely to protect them against expensive or catastrophic medical events won’t meet the CBO standards for health coverage”
Uh oh. There goes the GOP’s plan to give “everyone access” to health insurance by deregulating insurance so cheap crap plans with minimal coverage are legal again. Then the GOP’s “patient centric” markets, where you pay directly for the rest of your medical services, will be the norm: crap insurance and individuals pay for the rest. That’s the baseline plan. It’s a core pillar of the GOP’s plan for claiming high insurance coverage rates and transferring health care costs away from government programs and employer sponsored plans and onto individual consumers. So you can see why the GOP is so pissed at the CBO. And also see why the White House is trying to undermine the CBO by discrediting it by having people like Mick Mulvaney go out there and claim that the CBO isn’t factoring in dynamic scoring even though it is (and probably shouldn’t because it’s generally a bad model). But it’s still hard to see why the White House is using such self-discrediting arguments in their attempts to discredit the CBO, but you can see why they’re doing it.
The Congressional Budget Office came out with its projection of the impact the GOP’s “American Health Care Act” replacement for Obamacare will have. With the expectations that the CBO would project roughly 20 million people losing their health care over the next decade it wasn’t going to be too hard for the GOP’s plan to exceed expectations. And sure enough it did exceed those expectations. In the wrong direction:
“Many of the provisions in the Republican bill, the American Health Care Act, would not take effect until 2020. But according to Monday’s CBO score, its effects on coverage would be felt almost immediately. The agency projected that in 2018, just in time for mid-term elections, 14 million more people would be uninsured than under current law, if the GOP bill was implemented. The difference would grow to 21 million in 2020, which is when the Republicans’ massive overhaul of Medicaid would kick in, and then to 24 million in 2026.”
14 million poised to lose their insurance coverage by 2018: that’s almost impressive. And 24 million by 2026. And the eventually lowered premiums are concentrated for younger people who are less likely to get coverage anyway now that the individual mandate is gone. And last but not least, don’t forget that these projections don’t even include the long-term death spiral that the GOP is sending Medicaid into with this bill.
Of course, those are CBO numbers, not Trump administration numbers. And as the Trump administration has stressed over and over, you can’t any numbers that don’t come from the Trump administration. Especially if those numbers came from the CBO. That was the GOP’s message in the lead up to this much anticipated CBO report. So, surprise, it was still the message from HHS Secretary Tom Price, although he acknowledged he hadn’t actually read the report:
“One reporter asked if he was implying the CBO was wrong in their estimates. Price responded that, while he hadn’t yet read the report, its estimates were “virtually impossible.””
So according to the Secretary of Health and Human Services, it’s “virtually impossible” that the CBO’s projections could be accurate. Hopefully once Price actually reads the report it will make more sense. Although it sounds like Price could just ask House Speaker Paul Ryan to explain how those projections could be accurate since Ryan had no problem at all accepting the CBO projections and actually saw them as a “validation” of his envisioned reforms:
““Of course the CBO is going to say, if you’re not going to force people to buy something they don’t want to buy, they won’t buy it,” Ryan said. “That’s why you have those uninsured numbers, which we all expected.””
Yes, Paul Ryan was expecting these projections. And why not? He basically designed the whole plan. So as Paul Ryan made abundantly clear, the loss of health insurance coverage for tens of millions of people was the plan. The way Ryan spins it, those tens of millions will consist entirely of young people who didn’t want plans any. As Ryan recently put it, the number of people who will lose coverage under his plan ‘is up to the people’. As he put it, “You get it if you want it. That’s freedom.”
So, according to Ryan, those 24 million people who are about to lose their health care insurance want to lose it. That actually happened. And then the CBO projections came out even worse than expected and Paul Ryan acted downright excited. That also happened. So you have to wonder how giddy Ryan is acting in secret after learning about the secret analysis by the White House that actually exceeded the CBO’s projections of lost coverage:
“The executive branch analysis forecast that 26 million people would lose coverage over the next decade, versus the 24 million CBO estimate — a finding that undermines White House efforts to discredit the forecasts from the nonpartisan CBO.”
Well that’s awkward.
Of course, there’s one obvious path out of this trap of words that the White House has created for itself. And it’s the same path it’s been using all along when dealing with the CBO, BLS, and anything or anyone else that contradicts the spoken Truth of Trump: just declare that the White House’s secret internal projections were totally false and can’t be believed. Maybe a bunch of Obama moles were behind it! Or perhaps the CIA hacked the document and switched all the numbers. And don’t forget that George Soros could be secretly paying the White House’s analysts. There’s all sorts of implausibly plausible explanations. As long as you accept the underlining explanation: You can’t believe the Trump White House...except when you can.
Is the Trump team ready to do what it takes and spin its way out of this situation by truly taking its public mind games to the next level? Do we even need to ask? Of course. They’re more than ready.
One of the more interesting and alarming aspects of the increasingly feudal nature of the Trump/GOP agenda is how the GOP transitioned from Trump leading the public like a political Pied Piper peddling “you can have your cake and eat it too” campaign rhetoric seamlessly and effectively into the political reality of the Paul Ryan “let them eat cake” real agenda. And now we have the White House leading the assault against the Congressional Budget Office’s credibility after the CBO’s dire projections of the impact Ryan/Trump Obamacare replacement plan while Paul Ryan celebrates the CBO findings as a everything going to plan. Some sort of Orwell award is clearly warranted at this point, and it looks like the Senate GOP would like to share in that award:
“McConnell responded by doubling down. “The part I think is an accurate reflection is the tax reduction, the likelihood of premiums going down, and the Medicaid reforms,” he said. “What Senator Blunt pointed out that it’s pretty hard to predict coverage when the government stops telling you that you have to buy something you may not want.””
So that dual message the Senate GOP leadership is putting forward is that the fiscal savings the CBO projects are indeed accurate and should be trusted. But the projections of tens of millions of people losing their insurance coverage? That’s all bogus and you should trust it because the CBO is an untrustworthy source. Also, many of those people who are going to lose coverage want to lose that coverage. That’s the message.
It’s a message very similar to Paul Ryan’s celebration of the CBO report coupled with his assertion that anyone who wants health insurance coverage will be able to get it under Trumpcare (so if you lose coverage it’s because you didn’t really want it. You wanted to lose it). It’s also a message designed to obscure the fact that the lower premiums projected by the CBO are inextricably intertwined with CBO’s projected loss of coverage...specifically loss of coverage for older and sicker people who simply won’t be afford to afford coverage once the GOP pulls the Obamacare subsidies rug out from under them:
Just remember: those older and sicker people who can’t afford coverage and opt to go with out it didn’t really want that coverage anyway and they’re very thankful that there’s no more Obamacare individual mandate. Yep.
So it looks like the GOP is settling on a general rhetorical framework that will allow the party to frame the massive upcoming loss of health insurance as a celebration of freedom. The freedom to not have health insurance and buy an iPhone instead. That’s going to be the underlying message, and not just in the medium-term as the GOP tries to push its Trumpcare package through Congress. That’s going to be the GOP’s message for years and years to come. Is there a massive spike in the uninsured? Great! Everything is going according to plan. At least it seems like that’s going to be the message for years to come because it’s unclear what else they’re going to come with and it’s very clear that those years to come is going to include millions and millions of people involuntarily losing their insurance coverage. The GOP is going to have to say something, and “they wanted to lose their insurance” is about as good a fraud answer as anything else they’ve come up with.
But as the House leadership scrambles to wrangle the support it needs from its far-right “Freedom Caucus” faction which wants Obamacare repealed with no subsidies or help for the poor at all, there’s another message emerging that could also be both a party unifier now and politically effective in coming years too as the health care coverage crisis the GOP is about to unleash specifically upon the Medicaid population grow and grows: Hey, look at how many people we’ve kicked off Medicaid after creating a mandatory work-requirement! All these people we kicked off Medicaid were clearly lazy layabouts who don’t want to work and now we’re going punish them for being so poor and lazy. Isn’t that great!:
“Walker and several other members of the RSC emphasized their desire to amend the bill—either in the Rules Committee or on the House floor—to make any able-bodied adult currently enrolled in Medicaid have to prove employment in order to qualify for health insurance.”
And note that the proposed Medicaid proof-of-employment requirement isn’t just for the people covered under the Medicaid expansion. This would be for everyone on Medicaid. At least those that are deemed able-bodied (even if their bodies are barely able to function or heal). And if the Republican Study Committee gets what it wants, this proof-of-employment requirement isn’t going to be simply optional for states. It’ll be a national mandate for all Medicaid recipients:
So the big gift to the House GOP’s faction of far-right Trumnpcare hold outs is going to be putting in place a system that will make it easier to kick people off Medicaid. A LOT easier because for many of the unemployed on Medicaid employment isn’t really an option for a variety of reasons:
“Many of those not employed care for a family member full-time, have a criminal record, live in an area without job opportunities, or face other “major impediments” to employment.”
“Got a major impediment to employment? That’s nice. Please go die in a ditch somewhere. You’re free now.” That’s going to be the GOP message to poor Americans, to be paired with a “look at how many horrible lazy people we kicked off Medicaid! Doesn’t it feel great to know all these horrible people aren’t getting a dime of your tax-dollars? Also, they didn’t really want health insurance...otherwise they would have gotten a job” message for everyone else.
Well, almost everyone else. The GOP’s real constituency will get an additional message.
Now that the Trump Administration officially proposed a budget apparently designed to kick the poor to death and the GOP continues to rally around the idea of creating a national work-requirement for Medicaid recipients, one of the many questions worth asking at this point has to do with one of the cruelest comments made by an elected GOPer thus far in our Trumpian era: Rep. Jason Chaffetz’s suggestions that poor people who won’t be able to afford health care under Trumpcare can blame themselves because they splurge all their money on new iPhones. So are all those “Obamaphones” — cell phones provided by the federal government to the poor through a program started by Ronald Reagan that continues today — that the GOP spent years fraudulently whining going away too under a Trump administration? Because if work requirements for the unemployed poor are going to be required just to get basic government assistance for things like health care, all those unemployed people are going to need, you know, jobs. And it’s not easy to get a job without getting a phone first:
“Chaffetz is framing his choice on terms that position the poor as ignorant and wasteful so that he can bolster the case for revamping health care policy. But “iPhone” is a particularly weird foil for that argument. A smartphone is not a luxury, it’s a critical tool of modern society. The newest iPhone isn’t critical, but some smartphone is, particularly in households without Internet access otherwise. Recognizing that necessity, the government provides subsidies for phone and Internet service to those who participate in welfare programs. This, of course, was the much-derided “Obamaphone” program — actually called “Lifeline” — which originated under President Reagan.”
Want all those unemployed poor people to find work before they can get Medicaid (or any other government assistance, which is the Paul Ryan end game)? Want them to be able to email those resumes and send emails back and forth with potential employers? Well, that’s going to require a very specific kind of assistance: “Obamaphones” a.k.a “Reaganphones”.
So what’s the status of the “Obamaphone”/“Reaganphone” program under Trump? Do we even need to ask?
“They noted that providing the telephone service has in some years cost more than $1.75 billion on its own, so Pai’s cap would have made it impossible to provide help to everyone who needs it. In addition, Pai attempted to set the pricing for Lifeline plans so high that they probably would not be affordable to most low-income families, even with the subsidy.”
Yep, Trump’s FCC chief has a plan for the “Obamaphone”/“Reaganphone” program: price the poorest out of the phone market even with subsidies Pai wants to cut.
So if you’re really poor and scrambling for employment so you don’t die from a lack of health care get ready to spend more than you can afford on one of the basic services required to get a job these days: cell phone service. It’ll be a de facto government mandate in our Trumpian future so presumably Jason Chaffetz won’t complain.
With the Trump administration’s scorched earth budget proposal — which decimates almost all federal discretionary spending and slashes programs vital to rural poor voters who make up a key segment of the Trump/GOP electoral base to pay for increased defense spending — facing opposition even from some congressional GOPers who fear the backlash from these cuts and other GOPers who don’t feel it increases defense spending enough, it’s worth keeping in mind that it was already clear that there was going to be a major showdown between the Trump White House and his congressional colleagues well before this budget proposal was released. Specifically, a showdown over how Trump was going to keep his pledge to not cut Social Security and Medicare despite the fact that Congress writes the actual budget and the GOP has long made “entitlement reform” (cuts to Social Security and Medicare) a top policy objective:
“This is not simply a fight for an ideological core — it is a question of what can pass Congress. A budget with no entitlement cuts and one that does not balance most likely has no chance of passing the House, and could be rejected by Senate Republicans, as well. Mr. Trump’s proposals are too far to the right in terms of domestic cuts and too far to the left in terms of balance”
Yep, in addition to the tensions within the GOP between elected officials fearing a voter backlash over cuts that could seriously harm their constituents and those fearing a voter backlash for budget not increasing military spending more (which is also an argument for more cuts in spending elsewhere) the Trump budget is also going to facing widespread GOP opposition to the fact that it doesn’t include entitlement cuts too. And as the article noted, Paul Ryan himself has long championed entitlement cuts as an alternative to exactly the kind of draconian cuts to discretionary programs that the Trump budget proposes:
If there’s one thing that can unify the two dueling factions of the GOP — those wanting fewer cuts to discretionary programs and those wanting more cuts to pay for higher military spending — it’s entitlement cuts. That’s the grand unifyer for a Trump budget. Instead of devastating almost every discretionary federal program just cut entitlments instead. Paul Ryan is already on board with that idea and it’s hard to see why the rest of the GOP wouldn’t be more than happy to come around to that kind of ‘compromise’.
But, of course, there’s the many campaign promises Trump made about no cuts to Social Security at all. So what’s going to yield? Well, it turns out Trump’s Budget Chief, Mick Mulvaney, gave us an idea shortly before the unveiling of Trump’s budget. All Trump needs to do is tweak his ‘saving Social Security and Medicare without any cuts’ pledge in a couple simple ways: Make it a ‘save Social Security and Medicare with no cuts to current Social Security and Medicare recipients or those about to qualify in the near future but cuts for everyone else’ pledge.
Could that approach work in terms of unifying Trump with the congressional GOP for his first budget? We’ll find out soon since Mulvaney already said he’s going to propose exactly that kind of ‘entitlement reform’ tweak to Trump’s campaign pledges just as soon as the first budget proposal is done (and it’s now done):
“Mulvaney, a fiscal hawk, said he’s trying to garner support for entitlement reform that follows Trump’s campaign promise not to touch Social Security and Medicare payments for current recipients.”
And that’s the plan. At least all signs are pointing towards that being the plan. Soon:
That sure sounds like those discussions are already happening which means talk about gutting Social Security and Medicare for ‘younger Americans’ is probably going to be coming soon. Although note Mulvaney’s example of the kind of cuts to Social Security Trump could apparently make while still sticking to his campaign ‘no cuts’ pledge: cutting Social Security disability fund (presumably by declaring people not actually disabled and kicking them off of it):
So could kicking people off of it under the banner of ending ‘abuse’ of the program be the kind of start to first step in the GOP’s long-held dreams of rolling back Social Security and Medicare? Well, let’s not forget that on the first day of Congress in 2015 the GOP threatened to hold the disability fund hostage unless Congress and President Obama agreed to a much larger Social Security reform package. Might cuts to the Social Security disability program, in exchange for fewer cuts to other discretionary programs and more defense spending, be the GOP compromise that eventually unifies the GOP? Perhaps, but don’t be surprised if cuts to the general Social Security retirement fund are also part of the package since GOPers, including Trump’s budget chief Mick Mulvaney, are already trying to come up with rationalizations for how cuting Social Security and Medicare actually counts as sticking to Trump’s campaign pledges:
“But Republicans, who generally favor deep cuts to entitlements, have increasingly argued that Trump could make good on his promises by signing on to reform.”
That sure sounds like benefit cuts are potentially on the table. Especially with Mulvaney backing it:
So, all in all, if you were wondering what on earth the White House was thinking when it released its scorched earth seemingly bloodthirsty budget proposal that would gut almost all federal programs designed to help people in need, keep in mind that it may have been done with the intent of eventually rolling back some of those proposed cuts as part of a big entitlement reform ‘grand bargain’. Maybe it will just start off with kicking people off Social Security disability. Or perhaps it will involve benefit cuts for the retirement fund too. Heck, maybe Medicare cuts will be involved. Who knows.
And if it seems like it would just be too politically risky and toxic for Trump to go back on a signature campaign pledge, keep in mind that since Congress actually holds the purse strings it’s possible for the GOP to create a situation where they can at least attempt to say “We didn’t have a choice!”. Especially if, for instance, the GOP can’t actually come to an agreement over the 2018 budget and ends up facing the ‘fiscal cliff’ that risks defaulting of the US debt because Congress refuses to raise the debt ceiling. Under that kind of scenario the White House could potentially blame the ‘Freedom Caucus’ of far-right GOPers who come from ultra-conservative districts and face minimal political risk for creating a budget showdown with Trump. And of course they would all blame the Democrats. The GOP made debt ceiling showdowns with demands for entitlement cuts routine under President Obama. Could it happen with Trump in the White House? Well, considering that Mick Mulvaney was actually an advocate of exactly these kinds of ‘fiscal cliff’ budget showdowns while he was in Congress, as long as the GOP appears to be unable to come to any sort of consensus with itself it’s unclear why the GOP couldn’t hold itself hostage to demand entitlements cuts couldn’t happen:
“Mulvaney, however, was unconcerned about the debt ceiling brinkmanship. In 2010, he said, “I have heard people say that if we don’t do it it will be the end of the world ... I have yet to meet someone who can articulate the negative consequences.””
That was Mulvaney’s justification for the GOP’s past threats to force a default on US debt unless Obama and the Democrats agreed to some sort of bipartisan (via hostage taking) entitlement cuts back when he was still in Congress. And it didn’t sound like becoming Trump’s budget director changed his views:
Yeah, that definitely sounds like Mulvaney was basically saying, “well, there are some good points and bad points to debt ceiling hostage taking showdowns...I’ll be sure to explain that to President Trump.” And that was just a couple months ago. Now here we are with the Trump administration putting out a budget so brutal that even some GOPers can’t support it while other GOPers are demanding even more cuts. They’ve literally created a crisis where the only ‘fix’ that meets GOP orthodoxy is to cut entitlements instead.
And this intra-GOP paralysis is all happening as the countdown for next debt ceiling has already begun, although the real debt ceiling deadline doesn’t hit until the Fall, so the looming debt showdown probably won’t be a factor. But as the article below reminds us, the debt ceiling showdown isn’t the only showdown worry about this year. Thanks to the fact that a budget resolution was never passed in 2016 for the 2017 year and a partial funding extension was passed in December that would only fund the federal government for its 2017 spending through April as a solution to the last budget showdown, there is now a looming April 28 deadline for Congress to come to an agreement to simply fund the federal government for the rest of 2017 and if that agreement isn’t reached by the end of next month a partial shutdown ensues. And that’s only two weeks after the April 15 deadline for Congress to arrive at its 2018 budget proposal and it’s not uncommon fro Congress to miss that April 15 deadline. So it’s not inconceivable that the April 28 deadline for avoiding a partial government shutdown for the rest of 2017 could overlap with the congressional negotiations over the 2018 budgets. It’s like a GOP hostage-taking eclipse:
“The congressional budget law directs that Congress agree to a concurrent budget resolution by mid-April.”
Congressional law directs that Congress agree to a budget resolution by mid-April. That’s the law. Congress wrote it. And if the GOP abides by its own law this year it means we’re going to have two deperate showdowns two weeks apart, the April 15th budget resolution intra-GOP showdown and the April 28 showdown to finally resolve last year’s budget resolution (this is sad). And if the April 15th deadline isn’t met, that budget resolution debate could easily become another bargaining chip in the April 28th negotiations to avoid a partial shutdown of the federal government potentially for the rest of the year. All that has to happen is for the budget resolution not to be resolved by April 28 like what happened last year when the ‘Freedom Caucus’ refused to let Paul Ryan’s budget out of the Budget Committee as of April 29:
“One idea discussed in detail was what lawmakers are calling a “sidecar” package that would cut $30 billion — a sum identical to new spending tacked on in last year’s bipartisan budget deal — from mandatory programs like Medicare and Medicaid. Budget Committee Chairman Tom Price (R‑Ga.) has crafted a bill based on proposals already approved by other panels and said he was ready to move on it.”
As of April 29th, 2016, Paul Ryan hadn’t been able to even get a bill out of the House Budget Committee because he couldn’t placate the ‘Freedom Caucus’ of extra-far-right GOPers who wanted deeper spending cuts. Despite offering Medicaid and Medicare cuts as a deal sweetener:
That was the dynamic last year, and it’s shaping up to be the same so far this year despite across-the-board GOP control.
And don’t forget that Tom Price, the guy who crafted Paul Ryan’s budget proposal last year, is now the secretary of Health and Human Services. And that means HHS will be ready and very able to facilitate any last-minute Medicare and Medicaid cut proposals that might be made in the midst of the intra-GOP’s ’emergency negotiations’ (theatrics) should the April 15 budget resolution deadline once again get missed and bleed into the April 28 deferred budget resolution showdown from last year (sad!).
All in all it’s looking like the tensions in the GOP for this budget resolution are roughly falling into a Trump/Ryan vs Freedom Caucus vs GOPers terrified of the electoral consequences of the Trump/Ryan plan dynamic. And while some of those tensions might be organic and non-theatrical, it’s the perfect situation for some intra-GOP budget showdown theatrics. They control all the levers of power and basically get to write the script. A script where somehow everyone and no one is to blame for the GOP suddenly cutting entitlements as the only solution to the crisis, something the GOP has long championed doing with the notable exception of Trump. And specific blame is placed on Freedom Caucus members who can lead the hostage taking like they do every year these days (or they try to blame Obama). And then Trump removes some of his draconian cuts and acts like he’s not a psycho as part of the deal sweetener.
In other words, Trump’s budget proposal could be the opening bid in a negotiation showdown between Trump/Ryan and the Freedom Caucus acting as bad cop/worse cop in a twin budget standoff that predictably culminates in a crisis on April 28 that leads the US to the brink of a partial government shutdown. This is the kind of crap the GOP always does and now Steve Bannon is writing the script. A script where they have a Freedom Caucus vs Trump/Ryan squabble leads into a government shutdown and Trump uses his amazing ‘Art of the Deal’ skills to negotiate less extreme entitlement cuts than what the Freedom Caucus demands as a grand compromise that saves the day and lets him return a few dollars to Meals on Wheels. This is the kind of crap the GOP does.
So don’t be super surprised if Steve Bannon is writing a script where they have a Freedom Caucus vs Trump/Ryan squabble that leads into a government shutdown and they save the day by agreeing to only some of the Freedom Caucus’s entitlement cut demands.
Also don’t be surprised if a bunch of disable people get thrown off Social Security disability. They’ll presumably go on Medicaid. Block-granted Medicaid that’s turned into personal vouchers. And then be forced to work for that voucher at minimum wage. Still disabled of course. Because making life worse for people in need and acting like it was an act of compassion and responsibility is a key element of any GOP script written for maximal exploitation of the twin 2017/2018 budget crisis. It’s what the GOP does, Trump or not.
We’re now getting reports about tweaks to Paul Ryan’s Obamacare replacement bill designed to lesson the impact on older people. Although it sounds like the tweaks Ryan is pushing for mostly just involve expanded tax credits for older people, presumably on Medicare, who want to buy extra private insurance. Which means it’s actually a plan to make the Obamacare replacement better for wealthy older people while setting up a tax credit structure for people to flee to after Ryan puts in motion his eventual plan to send Medicare into a death spiral and voucherize it. So those kinds of tweaks are apparently still coming and despite the nice tax credit for people who can afford extra insurance, they aren’t the kinds of tweaks design to help older people:
“At the same time, insurance premiums will continue to rise in the near term, especially for older Americans. As the bill now stands, older, poorer Americans will have far less help from Republican tax credits starting in 2020 than they get through Obamacare subsidies.”
So as the bill stands now, older, poorer Americans are about to get extra screwed by 2020. But Paul Ryan wants to assure us that he’s on the case. With tax credits for private insurance. That should do the trick:
“So you could call it a trade-off. Younger, higher-income Americans pay less, while older, poorer Americans—many of whom are likely Trump supporters—pay far, far more for less useful insurance. This is part of a bill, mind you, that would force many of these lower-income households into the individual market by cutting hundreds of billions from Medicaid. These trade-offs might be less severe if Republicans weren’t determined to turn their legislation bill into a vehicle for massive, regressive tax cuts. But hey, everybody has their priorities.”
Older, poorer Americans are going to pay far, far more for less useful insurance. That’s Trumpcare/Ryancare!
A 64 yr old making $26,500 might owe $14,600 vs $1,700 under Obamacare. For a crappier plan. But at least there might be tax credits for them to purchase extra private insurance. Isn’t TRyancare grand?
And as the article notes, this is specifically talking about all those older people about to be kicked off/denies access to the expanded Medicaid coverage, so that gives us a sense of what the status is going to be for the older Americans who lose out on access to the Medicaid expansion: they’re totally screwed.
Also keep in mind that a lot of those people about to be kicked off the Medicaid expansion because they make just over the poverty-line are probably going to qualify for non-expanded Medicaid just as soon as they’re bankrupted by their soon-to-spike medical costs. So that’s a horrible trend that has yet to be unleashed.
But at least hopefully most of the people who fall into that TRyumpian crack won’t be forced to work for their Medicaid after the GOP imposes a Medicaid work requirement because most talk around that involve the work requirement for people under 50. Then again, don’t forget that Paul Ryan wants to eventually turn Medicaid (and the safety-net in general) into a voucher. And that’s a recipe for expecting holder Americans to work until the day they drop dead or are too disable for the GOP to kick off of disability. When you consider how much of a poorer American’s individual medical costs are going to get gobbled up once the TRyancare plan is put in place and they do the same to entitlements, extreme poverty in old age is going to be the norm. Along with no retirement until you physically break or die. So there’s no reason to impose a work requirement on older Americans. Unless they’re unusually healthy, the costs of healthcare passed along to older Americans under TRyancare is going to be it’s own work requirement.
The House is scheduled to vote in their big Obamacare replacement bill on Thursday. Unfortunately for Paul Ryan and Donald Trump, the two key champions of this plan, it’s looking like the House is scheduled to vote, but not necessarily pass, the Trump/Ryan “American Health Care Act” thanks in to the combined resistance of “moderate” GOPers who want to see more government assistance to help people buy insurance and the extra-far-right “Freedom Caucus” who don’t think the bill cuts that government assistance enough. More “Yes” votes need to be found somewhere. Soon. So what are Paul Ryan and Trump going to do? Well, as the article below points out, they’ve already tried a combination of threats and goodies for the holdouts, but so far that’s not enough (Sad!).
There is however one approach that might work: caving to the “Freedom Caucus” demands. Specifically, their demand that Trumpcare stripping out the Essential Health Benefits (EHB) rule — the Obamacare rule that creates a minimum level of services covered by insurance and basically outlawed super cheap insurance policies — and let those joke policies that covered almost nothing be legal again. But there’s a problem with this plan: if those super cheap plans are legal again, the skimpy subsidies to low-income Americans under Trumpcare that aren’t currently useful for low-income Americans (because the subsidies aren’t nearly enough to make insurance affordable) might suddenly become useful...useful for buying the super cheap crap insurance. And if those subsidies are suddenly used by low-income Americans the projected costs of the bill will go up. And if that happens, the GOP can no longer depend on using the “budget reconciliation” rule that lets bills avoid a filibuster in the Senate as long as the bill is budget neutral.
So the last minute attempt to get the “Freedom Caucus” on board with the Trumpcare plan to move it through the House just might end up blocking it in the Senate all because the change required to get the Freedom Caucus on board will end up wasting federal funds to subsidize crap insurance:
“Asked if the EHB provision could pass the Senate’s reconciliation rules, which allow certain budget bills to pass with a simple majority and avoid a filibuster, Hudson was unsure.”
It’s quite a gamble. A legislative gamble and, of course, a gamble with people’s lives since the removal if the EHB rule is recipe for millions of personal medical disasters. And subsidizing all those cheap crap plans isn’t going to be cheap
So the GOP is in quite a bind. But that doesn’t mean there aren’t other options. For instance, as “Freedom Caucus” member Trent Franks suggests below, how about the Senate gets rid of the filibuster? Or maybe just slash the overall subsidies enough to make it all budget neutral again:
“In other words: If you loosen regulations, more people might actually find it worthwhile to use the dinky tax credits offered them to purchase dinky insurance, driving up the cost to the federal government. It’s quite the conundrum. Republicans want to deregulate, but they also feel they have to offer some refundable tax credit to sell the bill to moderates and the public. If they deregulate through law, though, the policy analyzers will show that more people might actually use the tax credit and the Congressional Budget Office spending score would blow up.”
Yes, that’s quite a conundrum. But not a conundrum without solutions. Solutions like ditching the filibuster or slash the subsidies. They might be politically toxic solutions, but they’re solutions:
Yes, now the GOP is in a position where it gets to choose between the following headlines:
or maybe:
or how about:
So which headline is the least politically toxic? That’s the question of the hour of the GOP. Although when you look at how physically and financially toxic the American Health Care Act is going to be to all these GOPers’ actual constituents, headline #3 is clearly the least toxic in the long run. At least in most congressional districts. Headline #1 is probably fine for the really wealthy districts. Not fine morally, but it could work politically.
There is no shortage of questions raised by the GOP’s seemingly unthinkable failure to to repeal and replace Obamacare with Paul Ryan’s Nightmarecare, but perhaps the most immediate question whether or not the GOP just did the least bad thing it could have done to itself. After all, while totally flailing and destroying Trump’s leadership cred looked pretty bad, it’s not like making Trumpcare law was a better alternative:
“The new numbers show that geography, cost of living, family income, rural/urban divides and state-by-state healthcare rules mean people in areas that voted for Trump would get less in tax credits than those who voted for Clinton under the new legislation — even with the exact same age and income.”
Yep, the new health care law the GOP failed to pass wasn’t just going to be nightmare for Americans in general. The GOP’s voters were about to get extra screwed by a plan designed exclusively by the GOP. Imagine how they would feel after figuring that one out. So as bad as the GOP’s failure was politically speaking, it’s unclear that actually passing that plan wouldn’t have been a far, far worse political disaster that lasts years.
Given all that, one of other the questions raised is who should Trump thank for his fortuitous massive fail? The “Freedom Caucus” of far-right GOPers who voted ‘No’ is the obvious answer, although a more complete answer is probably “whoever Trump’s team is blaming for his disaster,” which at this point is everyone but Trump:
“Standing on the precipice of a legislative failure likely to damage the political capital he will need to steer the priorities he truly cares about through Congress, Trump was “pissed” Thursday night, one source close to the President said, and so were his advisers. Blame fell everywhere but in the Oval Office.”
Well, it sounds like it’s “good job” for almost everyone on Capital Hill: the Freedom Caucus, HHS Secretary Tom Price, House Speaker Paul Ryan, Trump’s staffers who convinced him to listen to Paul Ryan, Democrats, and even perhaps Jared Kushner and Ivanka. If we listen to who the Oval Office is blaming it’s everyone but Trump, although given his lackluster attempts to actually sell the bill it seems like he should be taking some credit too.
So it’s congrats all around for GOP at replacing the long-term slow motion political disaster that would have been Trumpcare with the immediate political disaster of looking like a bunch of incompetent jokes. It could be worse! It could be Trumpcare.
It’s a rather ironic blame game dynamic. Although perhaps not as ironic as the blame game dynamic that Trump has already signaled he’s going to be pursuing for the next attempt at health care “reform”: intentionally letting Obamacare “explode” before they try again and blaming it all on the Democrats while coaxing them into a bipartisan Trumpcare reattempt:
““ObamaCare will explode and we will all get together and piece together a great healthcare plan for THE PEOPLE. Do not worry!” Trump tweeted before playing golf.”
Don’t worry about letting Obamacare explode! It’ll be just fine (but don’t die in the meant time)! He actually tweeted that.
And while it’s unclear what exactly Trump’s team is planning for their next health care reform attempt, it looks like he’s at least going to go through the theatrics of trying to coax Democrats into joining into a bipartisan health care plan. It’s a strategy that makes sense on one level since any health care plan Trump and GOP sign onto would almost certainly be politically toxic enough that the party will surely want to share the political blame with the Democrats if that’s an option. But it’s also a rather strange strategy since the Democrats have already signaled that they’re more than happy to play that game by agreeing to improve and strengthen Obamacare now, before it actually ‘explodes’:
Trump just handed the Democrats a free talking point: they’re ready to fix Obamacare now...why wait for things to get worse so Trump and the GOP can dismantle the entire thing and replace it with something worse? And it’s a pretty compelling talking point because it naturally leads into a discussion for all sorts of proposals that actually would improve the US health care system.
It’s also a risky rather strategy since Trump also handed the Democrats an excuse to do something the should have been doing all along but haven’t yet had much success in doing: explaining to the US public the myriad of ways the GOP has sabotaged Obamacare is ways that reduced healthcare access and drove up premiums. For instance, what about the change the GOP snuck in in late December 2015 that killed the “risk sharing corridors” provision designed to help keep premiums for spiking? Or how about how one major insurer, Aetna, pulled out of Obamacare exchanges not due to a “business decision” as the company claimed but instead as retribution for the Obama administration’s refusal to allow them to do a mega-merger with Humana. The public hasn’t heard much about that yet. The public barely has any awareness of that sabotage but they’re going to have plenty of opportunities to learn about it now.
That’s all part of what’s going to make Trump’s threat to let Obamacare “explode” while simultaneously blaming the Democrats for not participating in the reform process so grimly fascinating to watch play out: it’s a really risky strategy, but it’s a strategy that could have a high payout for the GOP in the long run if it can somehow create a situation where the Democrats end up sharing in the blame for whatever Obamacare replacement the GOP comes up with.
And don’t forget that none other than GOP spinmeister guru Frank Luntz told the GOP back in February that ditching the “repeal” plan and replacing it with a “repair” plan for Obamacare is what the public wants. So if Trump and the GOP managed to keep the “Obamacare” label on their program while still radically overhauling it and making it horrible that could be an effective way to transfer future blame.
In other words, while Trump threatened to just let Obamacare “explode” to somehow force the Democrats to the bargaining table, perhaps the real strategy the GOP is planning on pursuing is to keep Obamacare around and just making it crappier and crappier. And as it gets worse, the GOP will use that as an excuse to make various “fixes” that by and large make it even worse. A nice slow motion death spiral. Done long enough and Obamacare could eventually become Trumpcare via a thousand little cuts and tweaks. Some done at the regulatory level and some through changes in law. Changes that can be made step by step over the next decade or so. Or by the Supreme Court.
Yes, it would take a lot longer than simply “repealing and replacing” Obamacare now, but a time penalty for is a “Obamacare to Trumpcare” slow motion health care transition is a pretty small price to pay as long as the Democrats eventually share the blame for the health care nightmare the GOP is trying to create. Don’t forget that Trumpcare is sort of like slow motion mass denial of vital health care while the GOP denies that will be the case and sell some sort of ponies and rainbows version of what will happen. That’s politically toxic. Eventually. As long as it’s brand “Trumpcare”. So slowly turning Obamacare into Trumpcare really might be the best path for the GOP even if it comes at the cost of embarrassments like what Trump and the GOP had to go through on Friday.
Keep in mind that a key ingredient for such an “Obamacare becomes Trumpcare” scheme to work is, of course, that the public never really learns about all the ways the GOP will sabotage Obamacare to create a crisis that it can use as an excuse to move it closer to Trumpcare. The GOP has done a good job on that so far, but we’ll see how they do going forward. Trump has certainly made a review of past GOP sabotage (or Supreme Court sabotage) much more likely now that he pledge to let it explode to bring everyone together. And as Chuck Schumer pointed out, there’s no shortage of improvements that can be proposed for Obamacare. So if it does end up being a slow motion “Obmacare to Trumpcare” transition there’s no reason to believe it won’t be very awkward for the GOP. But that still might not be as bad as passing Trump/Ryancare. Because it was just that awful.
And yet TRyancare wasn’t awful enough for the Freedom Caucus. Or, it’s important to note, the Koch brothers, who had their networks launch a “grassroots” campaign called “You Promise” that called the Trump/Ryan plan “Obamacare 2.0” and demanded Trump repeal Obamacare. Then days before the vote they promised millions of dollars in ads to protect House GOPers who vote against the bill. Don’t forget that Paul Ryan is a wholely owned subsidiary of the Koch brothers so the fact that they detest a bill he created is quite amazing.
Another key ingredient required for an “Obamacare becomes Trumpcare” scheme to work is a continuation of the GOP’s domination of Congress. And lots of time in the White House to have people like Tom Price sabotage the system from the executive branch. And for that to happen, the key ingredient is not actually passing a Trumpcare bill. Horribleness like Trumpcare shouldn’t be done too quickly by a single party. It was political doom. And in its first big Trump Era test of “how to use power to do horrible things, but not too quickly”, the GOP has so far managed to do exactly that. Or rather, managed to not do that. They chose political mockery over political doom. Job well done. Forget assigning blame, Trump should be giving someone a reward.
All that said, even if it really is the case that not passing a Trumpcare law is less politically damaging than passing one, there’s still the question of how this defeat will affect the rest of the Trump agenda. And as the article below notes, it just might end up thwarting the thing people like the Koch brother care most about: tax cuts. Why? Because Trumpcare made changes to the tax code that were going to made the budget estimates for the long-term costs of the GOP’s big tax cut plan allow for bigger tax cuts. As Grover Norquist put it, they will soon realize that “they didn’t shoot and wound health-care reform, they shot and killed permanent tax reform.”:
“Americans for Tax Reform President Grover Norquist said the bloc of hard line Republicans who helped stymie the health-care overhaul were guilty of “ripping the lungs out of tax reform.” If they don’t revisit the health-care bill immediately, Norquist said, they will soon realize that “they didn’t shoot and wound health-care reform, they shot and killed permanent tax reform.””
Uh oh! It looks like Trumpcare had a bunch of tax code accounting changes and tax cuts for the rich in it that were necessary to pull off the kind of tax cut dream that Paul Ryan and Grover Norquist were about to make reality at Donald Trump’s behest:
Did the collapse of Trumpcare’s savings (cuts to health care services) “shoot and kill permanent tax reform” like Grover Norquist suggest? Well, considering Trumpcare included a bunch of tax cuts for the rich it certainly didn’t help Grover’s crusade.
We’ll find out relatively soon if the collapse of Trumpcare leads to a collapse of Trumptax. But considering that Trumptax is a steaming pile of fiscal garbage that is only somewhat less politically toxic than Trumpcare — because people won’t die as a consequence as directly from Trumptax’s toxic effects — it may not be all that bad for Trump and the GOP if Trumptax really does suffer a mortal wound. Donald Trump is the biggest beneficiary. It’s a horrible plan. And as with Trumpcare, something that horrible should be done slowly over time instead. It’s just too horrible to do all at once. So if the collapse of Trumpcare collapses Trumptax, that might be ok for Trump and the GOP too.
And since one of the horrible elements of Trump’s tax plan is that it makes the tax code far less capable of being progressive by reducing the number of tax brackets from seven to three(it’s not quite a flat tax, but it’s getting there), it’s worth noting that one of the changes the Democrats should probably propose in the next health care reform package is a progressive tax to help pay for health care that is so progressive with so many brackets (like one for millionaires, ten millionaires, hundred millionaires, etc) that it has the highest tax rate for ten of billionaires. A tax scaled to our Trump/Koch reality. Because why shouldn’t they pay the most? They
damn nearrun the country. Obamacare’s taxes on the wealthy kicked in around $250,000, but why shouldn’t a billionaire like Trump or the Kochs pay a MUCH higher rate for health care related taxes than someone making. That only makes sense given the incredibly screwed income distribution. And with Trump trying to pass Paul Ryan’s tax plan as his next big policy project that cuts the number of tax brackets from seven to three, why not call for a Bigly tax on billionaires for health care. A very progressive tax that is bigly on billionaires but not so bigly on everyone else. Because that’s how a progressive tax with lots of brackets can work. Since Trump and the rest of the GOP are about to obliterate the government and the job of the Democrats is going to include rebuilding large chunks of the how government operate we’re probably going to need to raise taxes a fair amount to do that rebuilding and it’s going to be important to keep in mind that much of the policy madness that Trump and the GOP almost unleashed on health care and are going to unleash on the rest of the government being done to pay for tax cuts for Trump and the Kochs. So the rebuilding tax cuts should be really, really progressive. Perhaps starting with a really, really progressive health care tax to improve Obamacare.One of the obvious questions raised by the collapse of the Trump/Ryan Obamacare replacement scheme is when are they going to try again. Paul Ryan declared that Obamacare is going to remain the law of the land “for the foreseeable future” in the immediate wake of the collapsed negotiations, but that didn’t stop House Majority Whip Steve Scalise from declaring a few days ago that the GOP leadership was still working on a repeal and was “closer than ever” to making that happen (despite Paul Ryan’s refusal to give a timeline).
And as we’re going to see, while we shouldn’t really take seriously the suggestions/threats to the ‘Freedom Caucus’ of GOP holdouts that Trump will end up working with the Democrats if the ‘Freedom Caucus’ won’t come around to Trumpcare 2.0 and while it’s very unclear how the GOP would go about making Trumpcare 2.0 law any time soon anyway, that doesn’t mean we aren’t going to see plenty of future suggestions that Trumpcare 2.0 is just around the corner. Why? Because the threat of Trumpcare 2.0 becoming law soon is absolutely vital for one of the GOP’s top legislative priorities: preventing the Obamacare Medicaid expansions in the 19 states that have yet to do it. Since Obamacare mandates that the federal government cover 90 percent of the of the cost the expansion indefinitely, the argument that the Obamacare was going to repealed, and repealed soon, has long been a central argument for GOP governors to refuse the expansion. So if GOP governors are going to continue refusing the Medicaid expansion, an ongoing threat from the GOP leadership at the federal level is going to be very handy.
But as we’ll also see below, Government Sam Brownback points us towards another argument against the Medicaid expansion that some states can use that sort of apply even if you assume the Medicaid expansion, with its 90 percent federal cost coverage, will be around forever: thanks to Sam Brownback’s massive tax cuts for the rich which effectively bankrupted the state, that 10 percent that Kansas will still have to pay really is too much for Kansas to afford. Ok, maybe not for real, but that’s the argument Brownback made. Right after vetoing a bill by the GOP-controlled Kansas state legislature to finally accept the Medicaid expansion (while governors normally can accept the expansion on their own, Brownback pushed for a law that required the legislature to approve it first). So if states manage to preemptively bankrupt themselves with massive tax cuts for the rich they’ll still have a quasi-excuse to refuse the expansion. But without that preemptive bankrupting, those 19 states are going to need the threat of an imminent future Obamacare repeal to keep up the ‘no Medicaid expansion’ charade.
Although it’s worth noting that Brownback did have an addition argument he used to justify the veto: he didn’t want the state to waste money expanding Medicaid for able-bodied adults. First, keep in mind that the able-bodied adults he was referring to are people making 100–138 percent of the Medicaid income cutoff, so they’re most likely already working. Also keep in mind that the prize that the entire GOP was super excited about the Trumpcare 1.0 plan to get states to impose work-requirements for Medicaid recipients. Including traditional Medicaid recipients (those making below the 100 percent Medicaid income cutoff). Not the Medicaid expansion recipients since the plan was going to phase out the expansion entirely.
And yet here we have Governor Sam Brownback saying the working poor who aren’t poor enough to qualify for traditional Medicaid don’t deserve the Medicaid expansion (of which the Federal government would cover 90 percent of the costs). Why? Because they’re able-bodied. So while we should probably expect plenty of GOP chatter about how Obamacare’s doom is just around the corner so don’t bother expanding Medicaid, keep in mind that for states with governors like Sam Brownback they won’t need that excuse. Just being really, really spiteful towards the working poor will be adequate enough excuse to not expand Medicaid:
“The notion that able-bodied Americans are getting away with something is what animates the crusade to add work requirements to expansion Medicaid. The flaw here is that Medicaid is not a welfare program for the jobless, but a healthcare program. Its benefits never have been predicated on recipients’ seeking or holding a job, in part because that’s unnecessary: About 80% of all Medicaid recipients already are members of working households, and 60% are working themselves. Of the others, according to a 2016 survey by the Kaiser Family Foundation, all but 3% are ill or disabled, going to school, are family caregivers at home, retired, or unable to find a job. In other words, work requirements appear to be more an ideologically punitive step than a practical one.”
If farcical fears over the Medicaid expansion busting Kansas’s budget aren’t enough, there’s always an ideological desire to kick the poor as being lazy and unworthy of help...even the working poor (not that kicking the non-working poor isn’t scummy). But thanks to Brownback’s decision to make Kansas a giant failed experiment in supply-side economics, the “we can’t afford the 10 percent of the Medicaid expansion” argument is there too:
Thanks to Brownback’s failed economic experiment Kansas can’t even afford the 10 percent of the Medicaid expansion that the state would have to cover. Sure, Brownback doesn’t make that exact argument, but that’s basically the argument he’s making. And here’s the kicker: even if Brownback approved the Medicaid expansion but then Obamacare gets repealed and the federal government stops coverage 90 percent of the cost (or keeps the expansion but cuts the amount of federal coverage below 90 percent), Brownback can’t claim that as a reason not to approve the expansion at this point because the Medicaid expansion bill passed by Kansas state legislature has a provision that explicitly repeals the expansion if federal burden sharing drops below 90 percent:
“A key provision of the Kansas bill meant to address financial concerns would end expansion if federal funding for expansion falls below 90 percent.”
Even with an escape clause built in, Governor Brownback vetos an expansion backed by his own party. For reasons that are probably best explained by fellow GOPers State Senator Dennis Pyle: even though Pyle admits the failure of Trumpcare 1.0 remove one of the arguments against Medicaid expansion, he’ll still vote against it anyway. Because ‘Big Government’ or something...
“I just think it’s more government...We have to look at things from that standpoint.”
That’s the Brownbackian mentality. Poor people, especially the working poor, shouldn’t get government assistance for health care because government is bad. And yet that mentality, which reigned supreme in the Kansas GOP back when Brownback was passing massive tax cuts, reigns supreme no more. Instead, it’s been replaced with an anti-Brownback mentality, a mentality that’s been a proven winner at the ballot box of late. Even within Brownback’s own Kansas GOP:
In the Republican primaries last year, moderates ousted more than a dozen Brownback supporters, most of them explicitly declaring their opposition to the Governor. In the general election, more than a dozen more Brownback Republicans lost to Democrats. When the legislature reconvened, in January, a moderate coalition rejected Brownback’s budget and voted to expand Medicaid. (Yesterday, Brownback vetoed the legislation; the moderates may be a few votes short of overriding him.) At a forum after the election, the executive director of the Kansas Republican Party suggested that there were “some voters who were anti-Brownback and there were others whose main motivation was they didn’t like the status quo.” He conceded, “They had this uncomfortable feeling about Kansas.”
Yep, even the executive director of the Kansas Republican Party admitted that a lot of Kansas voters imply have “this uncomfortable feeling about Kansas” amidst a wave of anti-Brownback sentiment. And why shouldn’t there be an uncomfortable feeling about Kansas amidst a wave of anti-Brownback sentiment? His policies have been such a massive failure that it’s entirely possible that Kansas really can’t afford that 10 percent of the Medicaid expansion costs that it would have to cover. It can’t even afford to fund public education.
But despite all that, Brownback vetoed the Medicaid expansion laughable citing the state’s budget crisis but also the expectation that Obamacare would be repealed at some point in the future and the Medicaid expansion along with it. And that’s the political dynamic around the Medicaid expansion in just one of the 19 states that has yet to accept it which raises the question of just how much the failure of Trump and Ryan to pass Trumpcare will impact state-level politics in coming years. Sure, it’s possible that Trumpcare 2.0 is just around the corner, but it’s very unclear how likely that is given how unpopular a proposal Trumpcare 1.0 was — 17 percent approval — and given how Trumpcare 2.0 is almost certainly going to have to become even more unpopular to get the required ‘Freedom Caucus’ support.
But beyond the possible political impact that the Medicaid expansion’s increased viability could have at the state-level now that Trumpcare 1.0 went down in flames, part of what makes the political situation in Kansas so fascinating is that if you look at Trump’s tax cut proposal he’s basically proposing to do the entire US what Sam Brownback did to Kansas and it was so loathed even Kansas’s GOP tried (unsuccessfully, but just barely) to reverse Brownback’s tax cuts just a couple months ago. And what’s the big agenda item that Trump is apparently planning on doing next move past the Great Trumpcare Flail? Those Brownbackian tax cuts. Yes, Trump’s next big move is tax plan is based on a tax plan that was such a spectacular failure in Kansas that the GOP had its own ‘revolt of the moderates’ and almost reversed them with a veto-proof majority less than two months ago:
“Kansas, whose economy ranks 30th among states, may not drive the national economic conversation as frequently California or Texas do. But the state’s dramatic 2012 tax overhaul was heralded as a model for the nation, with a number of provisions later adapted for the national tax plans proposed by President Trump and other Republicans.”
Kansas really was turned into a GOP fever-dream not that long ago. And now it’s a nightmare. But still the GOP fever-dream. It’s one of the big problems with the contemporary GOP. The nightmare is the fever dream:
Not only did the GOP’s dream experiment not lead to the economic “shot of adrenaline,” it created a state-wide emergency where basic services aren’t being maintained. And the deficits are up and everything is a giant disaster. Because of course because that’s what the GOP fever dream always ends with. Take a look at the aftermath of Bobby Jindal’s recent experiment in GOP fever dreaming in Louisiana. It’s a recipe for disaster and also the template for Trump’s overall tax and cut-everything policy. And also a recipe to get almost everyone to Trump after he trashes the government to pay for his tax cuts. At least, it’s hard to see how his tax cuts are going to win him many fans:
“The tax overhaul plan put forward last fall by Trump, as well as a separate one designed by House Speaker Paul Ryan, would both cut taxes across the board, but would deliver the biggest savings by far to the wealthy. In fact, the Trump plan gives roughly half the savings to the top 1%, according to the nonpartisan Tax Policy Center.”
Roughly half of the savings in Trump’s tax plan is for the top 1 percent. And the public prefers the exact opposite, including a majority of Republicans:
Trump’s big tax cut bonanza that’s supposed to help him rebound from the collapse of Trumpcare is set to be another dud with the public at large and that’s before people actually experience it. Just imagine what it’s going to be like after Trump ‘Brownbacks’ the US. The consequences will be way worse than they were for Kansas because at least Brownback’s tax cuts were taking place within the context of the relatively stable Obama years. Trumptax is national shock therapy which makes it far, far riskier than anything Brownback could do. Brownback could only risk Kansas and have the rest of the US to fall back on. Trumptax could sink the ship. Including sinking things like Medicaid, starting with the expansion and slowing killing the rest off under block grants and perpetual cuts. And then eventually sink Medicare and Social Security.
That’s all part of why it’s going to be critical during the upcoming tax cut debates to keep in mind that he tax cut debate is actually deeply intertwined with the previous Trumpcare/Medicaid negotiation that just collapsed and also deeply intertwined with the Medicaid expansion debates in the 19 states that haven’t accepted it yet because that Trump tax cut is a plan to turn the US into Brownbackistan and Brownbackistan doesn’t get Medicaid expansions. Or anything else nice. We know what Paul Ryan’s fever dream looks like. Brownbackistan looks like what Sam Brownback did to Kansas. And that GOP fever dream nightmare that Sam Brownback just unleashed upon Kansas over the last few years is about to be unleashed nationally because Trump’s tax cuts require it and his budget does it. Deep long-term cuts to almost everything including all the unpopular cuts to Medicaid and an end/freeze to the Medicaid expansion in Trumpcare. That’s what you get in Brownbackistan as Sam Brownback made clear with his recent veto of the Medicaid expansion and clear throughout his six year run. We know how this ends.
And we also know it ends with a very unhappy electorate. And that’s part of what makes the Medicaid expansion debate extra fascinating when you view it in the frame of the Brownbackization of America: if Trump’s precipitous drop in popularity and general out of control behavior doesn’t end he just might become as unpopular as Sam Brownback. Which is pretty damn unpopular (23 percent approval in September), although not as unpopular as Trumpcare or tax cuts for the rich. Just imagine how unpopular Trump will be if he ‘Brownbacks’ the nation with massive tax cuts for the rich and massive cuts to everything else. Paul Ryan’s dream. And Sam Brownback’s dismal reality. Trump’s voters didn’t vote for that by and large. So could the GOP ‘revolt of the moderates’ happening to Sam Brownback right now just might start happening in the 19 states where the Medicaid expansion hasn’t happened yet if the rest of Trump’s agenda comes to pass? Because that’s exactly that kind of environment that could make Trump and the GOP in general deeply unpopular as the grim reality of their agenda sets in at the same time they slash taxes for the rich. And don’t forget the infrastructure privatization agenda. All at once. That’s the kind of national shock therapy that’s going to prompt some sort of general negative response in the public, so it will be interesting to see if the fight for the Medicaid expansion in the remaining 19 states as Trumpcare 2.0 and the presumed end of the Medicaid expansion looms ends up fueling the fight to both stop Trumpcare and save the Medicaid expansion and Medicaid in general.
In other words, while the failure to pass Trumpcare complicated the upcoming Trumptax negotiations don’t forget that the actual passage of Trumptax would probably make the future passage of Trumpcare 2.0 much more difficult. Because it would be clear at that point that things like the end of the Medicaid expansion in Trumpcare 2.0 are happening to pay for those tax cuts for the rich. And that makes it all extra dickish.
And in Brownbackistan we’re seeing what happens to Sam Brownback after he was extra dickish. There’s almost a veto-proof bipartisan majority ready to overturn his agenda. The Brownback template, which is really the Paul Ryan/GOP dream template, is so bad so fast so completely that it creates the seeds of its own political demise almost immediately. So that’s at least one positive aspect of Brownbackistan template that Trump is basing his agenda on. One positive aspect of what is still a horrible situation.
So if the GOP is going to dangle the threat of the GOP eventually cutting the Medicaid expansion in their eventual Trumpcare 2.0 attempt as a reason for states not to accept the Medicaid expansion while it’s still available we should be clear on the total package the GOP offering with that Medicaid expansion refusal. It’s not just Brownbackistan-style kicking the poor. It’s the Brownbackistan-style tax cuts too. It’s Sam Brownback’s vision for Kansas applied to America that Trump and the GOP are pushing. And especially in those 19 state-level Medicaid expansion debates. It’s a critical new political context for the Medicaid expansion and health care debate in general now that Trump is in the White House and the GOP has total control. Trumplandia is Brownbackistan Bigly. And refusing to expand Medicaid is a key part of turning us into the United Brownbackistans of America. It’s all part of the same awful package. And an extremely unpopular package too so there’s not actually a good excuse for making this agenda a reality. And the best solution is the solution Americans have been clamoring for forever. Bipartisanship. Specifically a bipartisan Brownbackistan-style: a veto-proof bipartisan super-majority to stop the Trump agenda. Hopefully that will become a possible form of bipartisan healing now that it’s increasingly clear that Trump’s agenda is less popular than Sam Brownback.
The Daily Signal, a publication of the far-right Heritage Foundation, has glowing piece on a new proposed ‘reform’ for Social Security Disability Insurance (SSDI) moving through the House and Senate. It’s about a GOP proposal to change the SSDI rules in a way that encourages people to heal from their disability and go back to work. And as the Heritage Foundation would like you to believe it’s totally not about kicking people off disability once they’re not ‘disabled enough’. No, it’s about being positive and encouraging healing and a return to the rewards of work:
“The Social Security Disability Insurance Return to Work Act sets the firm expectation that individuals with temporary or marginal conditions who are expected to, or likely to, improve will return to work. It also allows them to re-enter the workforce before their benefits expire, enabling a smooth transition out of the program.”
The GOP wants to set up a “firm expectation” that people with “temporary” disabilities will heal enough to return to work within a predetermined amount of time. So that’s one additional incentive to get health care insurance: you’re going to need to heal fast if you ever need to go on disability. Or at least not heal too slow. So hopefully anxiety about this won’t harm your healing. It’s supposed to be a positive incentive:
Planning on being disabled in the future? Well, get ready for needs-based SSDI benefits, for a limited time, if you’re suddenly disabled by an injury or condition that *might* be something you can rebound from. If you never heal you’ll presumably be able to prove it over and over and keep your benefits. Hopefully. So as long as there’s no hope of recovery you’ll have nothing to worry about in terms of keeping your SSDI benefits. It’s a complicated incentive structure:
“The Return to Work Act of 2017 would requires disability determiners to classify new beneficiaries based on whether medical improvement is expected. Beneficiaries who are expected to recover would be given a timeline and additional resources to obtain employment while on Disability. Those same beneficiaries would also be able to re-apply if they have not recovered. Beneficiaries who are not expected to recover will have no timeline for program participation.”
As we can see, if you’re going to fake being disabled in the future, you’re going to have to fake a disability where recovery isn’t expected. What a money-saving incentive.
And, of course, for the vast majority of people on SSDI who really are disabled enough to not be able to find work and who *might* recover will have to keep proving that they’re still disabled enough to not be able to work or risk getting auto-kicked off according to some sort of generic [insert-disability-here] time-limit algorithm. At which point they had better find a job. Especially if there’s more recovering to do. How compassionate.
Also note that setting SSDI time-limits within which someone is “expected” to recover is probably going to require hiring a lot more people working for the Social Security system involved with the assessment of whether or not someone is disabled. At least a lot more people will have to be required if a massive backlog of cases isn’t a problem. And who knows whether or not a massive backlog of SSDI cases to processed will be deemed acceptable given the chronic backlog of SSDI cases to be processed that is caused, in part, by a shortage of staff but also how stringent the criteria for qualifying for SSDI already is:
“The problem: An overwhelming number of applications for disability — about 2.3 million in 2016, up from 1.7 million in 2002 but down from a peak in 2010 — flow into a system in which 77 percent of initial claims have, over the last decade, been denied. Moreover, the backlog of decisions on first-time claims is massive.”
77 percent of initial claims for SSDI have been denied over the last decade and there’s a massive backlog and people with a genetic disorder like Barbara Sales that killed her mother and sister just might fall in that 77 percent group of denied people. And now a bill moving through Congress will add the category of built-in preset time-limits for classes of disabilities that will have to be enforced with the threat of kicking people off who don’t seem disabled enough. Which means a lot more claims to be assessed by the SSDI people so hopefully this proposed scheme involves hiring a lot more SSDI employees, although since the underlying goal appears to be reducing claims at all costs a mega backlog of claims doesn’t seem like the kind of the backers of this bill would mind. The backlog is an austerity bonus if that’s how you roll.
So since means testing the poor and disabled is increasingly a major theme in American politics, it’s probably worth noting that this is a theme that centers around the meta-question of “how many innocent men would you send to prison to ensure a guilty one doesn’t get away,” just applied to everything else. And the answer appears to be “many, many innocent men.” based on American politics. It’s kind of the opposite of a ‘graceful’ society if you think of grace as being an attitude of routing benefit of the doubt and forgiveness.
So be sure to move with grace...so you don’t slip and fall. And don’t do anything else that might get you injured. Mild injuries are ok. But don’t have any serious injuries unless they’re REALLY serious and you are super disabled and it’s very obvious you’re not recovering, in which case you’ll get like $1000/month. Maybe. For a very limited period of time.
With the March US jobs report scheduled to be released this week, here’s something that should make the upcoming US jobs report extra interesting: Donald Trump reversed his sudden embrace of the official unemployment rate after spending years suggesting it was a fake statistic during a town hall with CEOs where Trump instead reiterated his old claims that every single American adult not currently employed is in reality “unemployed”, including students and retirees. He also raised that number of unemployed from his previous claim of 94 million to a whole 100 million American adults. And then he added a new twist to his alt-understanding of how the unemployment rate is calculated by suggesting that once people stop looking for work they’re now considered “employed” by the government. And, yes, people who give up looking for work aren’t actually considered “employed” — they’re considered “out of the labor force” — but that’s apparently how it works in Donald Trump’s mind.
So we’re back to Trump declaring that every single American adult should be factored into the unemployment rate regardless of whether they’re retired, a student, or not looking for work for whatever reason which, again, should make future jobs reports extra interesting:
“Appearing to reference the number of Americans out of work, Trump said, “We have 100 million people if you look. You know, the real number’s not 4.6 percent (for the unemployment rate). They told me I had 4.6 percent last month. I’m doing great. I said yeah, but what about the hundred million people? A lot of those people came out and voted for me. I call them the forgotten man, the forgotten woman. But a lot of those people — a good percentage of them would like to have jobs and they don’t. You know, one of the statistics that, to me, is just ridiculous — so, the 4.6 sounds good. But when you look for a job, you can’t find it and you give up. You are now considered statistically employed. But I don’t consider those people employed.””
Yes, 100 million Americans are unemployed according to Trump. That stat is back. So while we’ll eventually find out what the implications are of Trump’s enduring insistence that the unemployment rate is somewhere around 42 percent (and closer to 45 percent if we go with the new 100 million figure), one thing is pretty clear: The message Trump had his spokesman make right after the March jobs report about how how the that 4.7 percent numbers was “very real now ” and not phony like all the past unemployment reports was phony. Well, ok, the message itself was true in the sense that the March jobs report was indeed “very real now” (mostly). But the message Trump wanted to send that he suddenly accepted the unemployment rate calculated by the Bureau of Labor Statistics was phony. Unless he suddenly changed his opinion on how the unemployment rate is calculated after the jobs report and later changed it back. Or maybe he doesn’t actually have a real view on the matter in which case we can’t say he changed his view because he doesn’t possess one. That seems possible. And, of course, there’s always ‘option D’.
Donald Trump appears to have drawn a line in the sand in the upcoming budget negotiations. A nasty line. A line that appears to hold the premium subsidies Obamacare provides to low income people hostage unless the Democrats agree to fund Trump’s wall with Mexico. To reiterate, Trump is reportedly considering holding Obamacare subsidies hostage unless the Democrats agree to fund his wall in the upcoming budget negotiations. And if this isn’t resolved, the government might shutdown because the the budget negotiations are coinciding with the left-over unresolved budget negotiations from last year. So, one more time, Donald Trump is apparently seriously considering holding Obamacare subsidies that people need to pay their health insurance premiums hostage unless Democrats agree to fund the wall with Mexico in next year’s budget. And if the Democrats don’t agree the government could shut down. Friday. Again, it’s a nasty line in the sand:
“Mulvaney has said that the administration is willing to negotiate with Democrats — funding insurance subsidies under the Affordable Care Act (ACA) in exchange for support for wall funding.”
And that right there is the language the Trump administration is using for its remarkably audacious hostage taking plan: no border wall funds, no funding insurance subsidies. In terms of the politics you also couldn’t have come up with a worse line in the sand to draw: holding health care hostage and taking responsibility for undercutting Obamacare all to pay for an unpopular border wall, and yet here we are.
Maybe. There were still signs that the White House might back down, amidst the signs that it might not. But the fact that congressional GOP leaders don’t seem to be on board Trump’s health-care-for-border-wall hostage taking scheme suggests this hostage taking talk could have all been Trumpian bluster. As of now, the message for the White House is a solid yes, no, maybe:
That’s a solid ‘maybe’ from the OMB Chief and a solid ‘maybe not’ from the Chief of Staff. So is Trump really going take the health care subsidies of low income people hostage in order to get his wall funded? Or might Trump show ‘flexibility’, settle for something symbolic, and avoid a government shutdown showdown with the Democrats that’s just makes Trump look awful? Given the horrible politics of Trump’s threat, it’s definitely looking like ‘maybe not’:
The issue here or rather the driver is, I suspect, less the Democrats than Republicans who won’t go along with it either.
“Between the lines: By refusing to demand funding for the bricks-and-mortar “wall,” Reince tipped his hand. Trump can’t stomach a shutdown on his watch, so he’ll likely take a “win” on some form of funding for border security, even if it’s not specifically for building the wall.”
Figuring out how to turn Trump’s hostage threat idea they kinda sorta floated into a symbolic ‘win’ is now part of the budget negotiations. And it just might include something as lame as touting ‘border security’ funding or some generic planning as a big legislative victory that keeps Trump’s campaign promises. We’ll see. But what we likely won’t see is the Democrats caving in the event of Trump really carrying through with his threat and shutting down the government. Because, again, it’s one of the worst political threats you could have conceived of given Trump’s options:
“We have already seen from the repeal fight that those developments are politically toxic. President Trump and his aides appear to view Obamacare beneficiaries as Democrats’ charges, something akin to family members the President can take hostage and threaten to injure or kill to extort concessions. This is a rather dire miscalculation of the politics of the situation. Democrats have made great political sacrifices to maintain coverage under Obamacare. But the people who are likely to suffer political damage by this action are not Democrats but rather congressional Republicans, indeed Trump himself. After all, that’s why Obamacare repeal went down in flames in the first place. One might say that the eventual harm is to beneficiaries. But there’s little reason for Democrats to think they’d lose this fight. Indeed, a fair analysis of the situation suggests the best way to protect beneficiaries is to call the President’s bluff. After all, they just won basically the same fight a month ago. The simple reality is that the President is threatening to set himself and his party on fire unless Democrats relent.”
So...yeah, we’re probably not going to see Trump actually threaten a government shutdown as a result of Trump’s threat to hold low income people’s health care hostage to get funding for ‘The Wall’. It’s too self-destructive for even Trump’s congressional allies to play along with and the Democrats will have no reason to cave. And Reince Priebus is already signaling Trump will back down. Still, it’s pretty amazing that this whole episode actually happened. And given the ham-handedness of the whole scheme it raises a rather significant question for the next week: What are the terms of the next hostage-taking scheme. Because they are clearly interesting in these kinds of tactics. It was just too stupid in this instance. But Team Trump appears to be up for some budget-negotiating hostage-taking.
What’s the next ‘line in the sand’ from Team Trump? We’ll find out. There’s a broad spectrum of vulnerable groups that could be held hostage. But one thing is increasingly clear in terms of what to expect from Trump in the various negotiations: Until he’s able to cajole the Democrats into overturning Obamacare he’s going to to be undercutting it. Burning down Obamacare is the ends and the means. So those subsidies probably probably aren’t surviving too many more negotiations.
With the release of a one page ‘tax plan’ just days before Trump’s “first 100 days” milestone, one of the big questions facing the entire Trump agenda at this point is whether or not any of Trump’s major legislative agenda items will actually become reality. But perhaps an even more important related question is whether or not any of Trump’s major legislative agenda items will actually be popular with the American public. After all, if Trump and the GOP-controlled Congress pass Trump’s agenda but it’s a super unpopular agenda, Trump and the GOP aren’t going to be setting the agenda for very long. So it’s a pretty important question. And given that the ‘tax plan’ was simply a vague document of bullet points that that left almost everything to the imagine and yielded just enough information to belittle it as unfeasible but little else and given that ‘Trumpcare’ was stunningly unpopular (only 17 percent of Americans supported it), it looks like the answer to that question is that it probably depends on whether or not Trump’s infrastructure plan is popular because this Trumptax plan is probably going to be about as popular as Trumpcare once the public learns the details:
“GOP tax reform proposals face the same problem. Americans want their tax system to be simple and fair and they don’t want their elected leaders recklessly running up more debt. GOP tax plans don’t deliver.”
A simple and fair tax system that doesn’t blow up the deficit. That’s what Americans by and large want. And it’s hard to see the GOP passing a tax plan like that ever. No matter how many iterations they go through. Kind of like the GOP and health care. The GOP doesn’t do good legislation. It does good cons. Or, rather, effective cons.
So if Trump’s tax plan ends up being as popular as ‘Trumpcare’ and runs into resistance do to its blatant unfairness and the reality that it’s just a giant con designed to extend the larger “supply-side/tax cuts for the rich help everyone” con that the GOP has been running for decades, what’s the plan to push this through Congress and make it a reality? Another con? Perhaps, but how about blackmailing the country instead: do you like a big infrastructure program? Well, no tax cuts (for the rich), no infrastructure. Issuing an ultimatum like that is an option. An option Trump was reportedly considering just last month as a way to ensure he gets a big ‘win’ in the wake of his Trumpcare debacle:
“In theory, running infrastructure along with tax reform gives Trump bargaining chips with Democrats and Republicans. Both parties have recognized the importance of infrastructure investment in recent years, and both have independently crafted their own pieces of ideal legislation laying out plans to prioritize and fund spending on roads, bridges, airports, water systems and the litany of other building blocks that make up the country’s infrastructure grid.”
Trump’s popular pledge to do a big trillion dollar infrastructure package can be turned into a bargaining chip to pass a tax plan that’s dominated by tax cuts for the rich despite the fact that most Trump voters don’t want to see tax cuts for the richand more people are convinced Trump’s plan will raise, and not lower, their taxes. That certainly seems like the kind of plan Trump could be seriously contemplating. Especially since all signs indicate that Trump’s infrastructure plan is in reality going to just be a couple hundred billion dollars in tax-credits to help catalyze a mass privatization scheme. So if the infrastructure package is just a bunch of tax cuts, it sort of makes sense to do it with the tax reform plan at the same time. It’s all the same scam:
The synergy is undeniable. Trump’s tax plan is primarily a tax-cuts for the rich plan and in infrastructure plan is a tax-cuts-for-corporate-investors plan. So why not bundle them together? It makes sense even of the plans themselves don’t make sense.
Although the underlying logic of how tying the tax plan to the infrastructure plan does sort of break down if it turns out the public ends up souring on the infrastructure plan after everyone learns that it’s just a bunch of tax cuts to help finance a mass privatization scheme (e.g. the infrastructure plan is a toll road plan). And that raises the question of what happens if Trump attempts this, ties the two plans together, and then ends up with two big unpopular plans he can’t pass. Simultaneously. Is there another con or blackmail scheme he could try? Well, how about tying infrastructure and taxes to Trumpcare too:
““Everything in the present plan requires the health part – the tax increases of Obamacare – to be eliminated. And that gives you the plan – 20 percent corporate rate, has the business adjustable, full business expensing, three individual rates, no death tax, no AMT, all of the good stuff in the package,” Grover Norquist, the president and founder of the Americans for Tax Reform conservative advocacy group, said last month in an interview with CNBC. “But without doing health care first, you can double the size of border adjustable or you give up on any meaningful corporate rate reform.””
Yep, as none other than Grover Norquist gripes, Trumpcare — being a stealth tax cut for the rich coupled with a massive divestment in public spending on American healthcare — really was an critical element of Trump’s tax plan. All that money for the tax cuts for the rich has to come from somewhere:
So as with the infrastructure package, why not bundle health care reform into the infrastructure/tax cut bundle? It’s a question the White House is undoubtedly asking:
“I see it as part, perhaps, of the health care plan,” Trump said of his promised infrastructure overhaul. “Because phase 2 of the health care plan, in order to get the votes, I need 60 percent for that. And if I put that in, the Democrats are actually going to love the infrastructure plan.”
That’s apparently the plan. Bundle all of Trump’s unpopular signature legislative agenda items into one giant horrible package. And while the pitch is going to be that bundling them together is all part of scheme to ensure the passage of Trump’s agenda, as we can see there’s parallel incentive to bundle them together: maximizing the potential for tax cuts for the rich.
And who knows how much larger this bundle will get. Like, how about ‘The Wall’ with Mexico? Could that be part of the bundle? Given the need to find funding for the wall it’s not inconceivable. Who’s going to pay for the wall?
Mexico!Obamacare and Medicaid beneficiaries. And all the people impacted by the cuts to almost everything helpful from the federal budget. And the future. That’s who’s going to pay for the ‘The Wall’. Much like they’re paying for tax cuts for the rich. And probably some corporate tax credits to privatize infrastructure. It’s a package deal.So as we can see, while it remains unclear how the Trump/GOP legislative agenda will actually become reality, in part because it’s still unclear on what that agenda actually is given the lack of details, there’s an abundance of hints at this point that part of the plan to make that whole agenda reality is bundling. Blackmail bundling. Because three or more wrongs make a right in Trumplandia.
Party time! It’s a celebration. A celebration of a dream. Paul Ryan’s dream. A dream he’s had since college. A dream to cast a vote in Congress capping Medicaid expenses and dramatically reduce health care spending on the poor and needed. And a dream that’s suddenly become a reality now that the House GOP just barely passed its revised American Health Care Act (AHCA/Trumpcare) that’s even more miserly and cruel than the failed Trumpcare 1.0 attempt that went down in flames and will undoubtedly be even more unpopular, which is no easy feat given the 17 percent approval rating the American public gave the first Trumpcare attempt. So yeah, it’s apparently time for the GOP to have a celebration. A twisted, macabre celebration:
“Earlier this year, House Speaker Paul Ryan told National Review editor Rich Lowry that he has been “dreaming” of capping Medicaid expenses ever since he and Lowry “were drinking at a keg” in college. Ryan said on Thursday ahead of the vote that he had been eagerly waiting for seven years to cast his vote in favor of a bill that is expected to deprive 24 million people of their insurance.”
Now we know what Paul Ryan would say if he ever had to give an “I have a dream...” speech. And part of Paul’s dream is now a reality. College Republicans everywhere must be getting a little teary-eyed.
Except that dream isn’t actually a reality. Not even close. Because passing the bill through the House is just the first step in making this a law and passing the House was the easy part. Relatively speeaking. The Senate still needs to come up with its own version and then both the House and Senate need to agree on a consensus bill. That’s quite a few steps and they aren’t going to be nearly as easy as this first step. It’s only seemed difficult because the bill was/is so horrible and politically toxic due to it being literally lethal for millions of GOP constituents.
So while a mini macabre celebration might have been appropriate, a full on Congressional kegger seems a bit much. Especially given the widely held expectations that it’s going to die in the Senate. And maybe that’s what some GOPers in the House are celebrating: that they can claim they tried to overturn Obamacare, but that pesky Senate got in the way, thus avoiding the politically damaging real-world consequences that would be inevitable if this bill became law. Heck, maybe most House GOPers are hoping for that outcome. It would make sense politically.
But as the following piece by Josh Marshall reminds us, any hope that ‘moderate’ GOPers in the Senate are going to kill this bill and allow the GOP to dodge its own bullet has to be squared with an unsettling reality: ‘moderate’ GOPers always cave in the end. And if that rule holds true, the common wisdom that this bill is DOA in the Senate isn’t a wise assumption. And as Marshall also points out, if the bill passes the House by just one vote, every ‘moderate’ GOPer who voted for it is going to be facing waves of attack ads in the 2018 elections about how they were the one that made this horrible law a reality. Well, the bill passed by two votes (217–213).
And while the 2018 attack ads against the ‘moderate’ GOPers who supporting this mess might not be quite as bad as they would have been if it passed by a one vote margin, those attack ads are still going to write themselves. Passing a bill by a super-tight margin isn’t necessarily a major political risk, but it is if it’s a bill that’s guaranteed to be very unpopular for the foreseeable future. All of the ‘moderates’ who voted suddenly shifted to support the bill after rejection Trumpcare 1.0 can effectively be cast as the member who voted one of the two deciding votes that tipped the balance. That’s the attack ad the ‘moderate’ GOP House members just wrote for themselves in order to pass a bill that many are undoubtedly hoping will die in the Senate. But it probably won’t because in the Senate because , as Josh Marshall reminds us, ‘moderate’ GOPers always cave. When you view today’s Trumpcare vote in the House from that perspective, it’s a pretty poor reason for a kegger:
“I don’t see how it can get through the Senate. But remember The Iron Law of Republican Politics.”
And what is that The Iron Law of Republican Politics?
“That’s the Iron Law: the ‘GOP moderates’ will always cave.”
It’s not a law of physics, but it’s an Iron Law of our contemporary political reality: GOP ‘moderates’ cave. Eventually. It’s what they do. And the whole premise behind the notion that this bill is dead in the Senate is based on the assumption that the Senate GOP ‘moderates’ won’t cave. And they won’t instead come up with some sort of horrible Senate version of the Trumpcare that’s maybe not quite as horrible as the House’s version but still totally horrible. That’s what people are expecting to happen in the Senate despite the fact the House GOP ‘moderates’ just caved to version of Trumpcare that’s more extreme than the one they initially rejected.
So we’ll see if Josh’s Marshall’s Iron Law of Republican Politics once again holds up. But it’s hard to see why the GOP’s House kegger isn’t like a kegger that your horrible fraternity throws right before a finals week that you all know is going to flunk out and expel half the members. Getting blotto one last time before reality hits. In that sense, the GOP’s kegger is quite understandable. It’s not a bad idea for people with pre-existing conditions either, although people with pre-existing conditions should probably consult their doctors before getting blotto. And just consult them in general. While they still can.
If there’s one group that should be unambiguously pleased with this whole situation it’s the millionaires billionaires about to get a BIG tax cut since Trumpcare gets rid of all those billions in Obamacare taxes on the rich. But if there’s another group that should be pretty pleased with the GOP’s health care reform agenda, especially with the provision that will make pre-existing conditions A LOT more expensive, it’s the bankruptcy lawyers. Of course. Because, surprise!, if the pre-existing conditions provision that got added on to the House GOP’s AHCA/‘Trumpcare’ bill to get the ‘Freedom Caucus’ on board makes it into the final version that Trump signs (after a lot of ‘moderate’ caving that we should expect) medical bankruptcies are back! Bigly:
““It’s absolutely remarkable,” says Jim Molleur, a Maine-based bankruptcy attorney with 20 years of experience. “We’re not getting people with big medical bills, chronically sick people who would hit those lifetime caps or be denied because of pre-existing conditions. They seemed to disappear almost overnight once ACA kicked in.””
Ka-ching! Not for the bankrupted people, but for the bankruptcy lawyers, Ka-ching! Obamacare killed the medical bankruptcy market and the GOP is in the processes of killing Obamacare. Good news! For bankruptcy lawyers:
Lawyers can finally return to the field of medical bankruptcy that they were driven out of by Obamacare’s pesky pre-existing conditions protections. That alone warrants a kegger.
But other than the bankruptcy lawyers, it’s still hard to see what Trump and the GOP are all excited about. Because before they passed this bill, they were trapped in a choose-your-own-adventure health care dilemma, largely of their own creation, that provided them no non-disastrous paths forward. They chose to go down a horrible path and now they’re at a dead end with only horrible options. Will they never overturn Obamacare and keep getting mocked for their ineptness? Pass a mild ‘reform’ package that doesn’t do nearly as much harm as the far-right wants and ends up pissing off the ideological base? Or pass the law and inflict mass harm to both public health and their own electoral prospects? That was the choose-your-own-adventure health care dilemma. So now we’re finding out which disastrous route they chose: Mass harm. The worst choice, of course.
It’s unclear why today’s vote, and this whole situation, warrants a kegger. Unless it’s a despair kegger. Or a wake. A GOP wake would be a reasonable use of kegger-league congressional beer deliveries. And thematically appropriate. There’s going to be a lot more tragically avoidable wakes in our Trumpian future.
Yowza! According to a new report in Axios, Trump is considering a “huge reboot” of his White House team in response to the spontaneous combustion dumpster fire his administration has been thus far. And it really does appear to be pretty huge if the reports are accurate. Let’s just say Sean Spicer has company. It sounds like the advice Trump is getting from longtime friends and outside advisors is to do a mass firing that affects almost everyone but Jared, Ivanka, and Rex Tillerson. Reince Priebus and Steve Bannon are on the chopping block. And maybe even Jeff Session too. So there’s about to be a lot more job openings for Jared.
HehSeriously, it actually kind of sounds like this is going to create a lot of job openings for Jared:“If Trump follows through, his innermost White House circle would shrink from a loop to a straight line of mid-30s family members with scant governing experience: Jared and Ivanka. So while the fighting and leaking might ease, the problems may not because it’s the president, not the staff, calling the shots.”
Jared and Ivanka are the final two survivors left on the island. Plus Rex:
But that appears to largely be it in terms of those still left in Trump’s good favor. It’s Almost All in the Family.
Who knows how seriously Trump is considering this, but if this is true and Jared and Ivanka (and Rex) and the only ones left with Trump’s ear, the Alt-Right’s snuff nightmare — that Jared Kushner would end up Trump’s biggest influences — could sort of be coming to fruition. This wouldn’t mean that Trump is abandoning his far-right agenda...just that it would have a very different face. And probably better public relations.
And if this report is true, and there really is a “huge reboot” that Trump is planning to get himself out of the quagmire of scandals he’s found himself in, it’s probably worth noting that one of the most effective ways he could do that just might be to embrace that fear that so many right-wingers had about Trump: that he would campaign like Republican but was secretly a Democrat at heart. Like, just imagine of Trump really did drop the Paul Ryan agenda of destroying the health care saftey-net to pay for tax cuts for billionaires? And what if, instead of “trillion dollar infrastructure package” that’s just a bunch of corporate tax cuts and privatizations, it was an actual trillion-ish dollar massive government stimulus package? And what if Trump’s tax cut package wasn’t a just a giant recipe for bankrupting the government but actually focused on closing loopholes for billionaires to pay for that infrastructure spending. And how about taking Joe Biden’s “Cancer Moonshot” and expanding on it to include a “Green Energy Moonshot”? Sure, this would all be antithetical to the Trump agenda we’ve seen thus far, but if Trump is serious about a “huge reboot”, there’s no reason that can’t include a reboot his policy vision to make him that ‘different kind of Republican’ that so many of his voters thought he was going to be. Think of all the people who voted for Trump thinking he was a secret moderate? Shouldn’t they get represented too?
Don’t forget that the biggest threat to Trump is probably the eventual erosion of support from Trump’s GOP base of support. With the GOP in control of Congress, and therefore control of any congressional investigations, Trump’s support with his GOP base of voters is basically his shield of protection against serious investigations. So if Trump is intent on not getting hounded out of office, either by investigators or eventually at the ballot box, why not just seriously hand policy over Jared and Ivanka? It’s probably smart politics. At least smarter than the Bannon/Ryan hybrid nightmare of corporatist white nationalism.
For instance, just take a look at the latest version of Trumpcare that just passed the House and the intertwined Trump tax cut proposal. According to a recent poll, only 21 percent of American voters support it, with less than a majority of Republicans supporting this latest version of the proposed Obamacare replacement and 59 percent of those GOP voters opposing the options to opt-out of pre-existing conditions protections. And 74 percent of respondents disapproved of a tax reform package that added to the national debt, including 66 percent of GOP voters (and boy would Trump’s tax package add to the national debt). With numbers of like, and given how critical popular support for his health care and tax reform packages is for the overall legacy of Trump’s administration, isn’t this a good time for Trump ask W.W.J.D (What Would Jared Do)?:
“Seventy-five percent of respondents – and 59 percent of Republicans – said it is a “bad idea” to allow states to opt out of cost-lowering protections for those with preexisting conditions. Sixty-four percent of those polled said they approved of the current Obamacare provision that stops insurance companies from charging more for those with preexisting conditions.”
W.W.J.D? Well, Jared probably wouldn’t do Paul Ryan’s incredibly unpopular agenda. Why would he? That’s just stupid. So why not throw health care reform on Jared’s to-do list? Maybe Ivanka can handle it? How about a Jared and Ivanka couples project? Heck, maybe he could make a reality TV show about their quest to come up with a health care package that doesn’t horrify most of the nation. That seems like a Trumpian approach to things and it’s not like it would be any more unpopular than what he’s currently doing.
Or take, for example, Jeff Sessions’ agenda. As the above article noted, Trump wasn’t too happy about the Attorney General reversing the previous ‘smart sentencing’ approach to non-violent drug-related crimes, and especially marijuana crimes, at the same time Jared is working on a big, and popular, criminal-justice reform project:
W.W.J.D? How about medical marijuana decriminalization? At least at the federal level. Let the states decide! If ever there was an issue that would allow Trump to rebrand himself as a sensible, genuinely populist Republican, it’s this issue. Not only would it create a surge in youth support for Trump, or at least youth open-mindedness, but if you were looking for a stand-alone policy that simultaneously threads of needle of improving health care, the opioid epidemic, prison overcrowding, dehumanizing draconian sentencing, economic stimulus, empowering states over the federal government, and really reignite the kind of national discussion about how to heal a frayed civic police/minority community relations (in part by by highlighting the critical role politicians, not police, played in spoiling those relations with misguided laws) you almost couldn’t ask for a better issue for a politician of Trump’s variety than medical marijuana reform. Plus, it’s not like the libertarians or Alt-Right are going to complain. It’s a giant gimme sitting right there ready to confound Trumnp’s critics! Thread that needle! Would Jared recommend Trump thread the needle? It seems like it so maybe Trump should ask him after he’s done with his “reboot”.
Or, you know, he could stick with the Bannon/Ryan agenda and let people like Richard Spencer define his public identity. After all, there’s plenty more to do the Paul Ryan agenda. The incredibly unpopular Paul Ryan agenda:
“It’s not just Ryan that’s trying to make Medicare privatization happen. Trump’s Office of Management and Budget Director Mick Mulvaney, a former House member with a reputation as a budget hawk, said last month that it was his “guess is the House will do either that or something similar to that.””
Is OMB chief Mick Mulvaney on Trumnp’s sh#t list yet? If not, why not? Either way, privatizing Medicare and Social Security are clearly s still on the Paul Ryan/Mulvaney agenda:
So does Donald Trump seriously want to become the most unpopular president in modern American history? Well, just keep sticking with Paul Ryan and Congressional Republicans. That should do the trick. Being super unpopular should do wonders for all those Congressional investigations.
But if he doesn’t want to be the most unpopular president in modern American history there is always another option: W.W.J.D. Sure, we don’t really know Jared’s politics, but what are the odds they’re less popular than the Trump/Bannon/Sessions agenda Trump has been pushing so far? Plus, if this pans out and the W.W.J.D. approach saves Trump from presidential infamy, it will probably go a long ways towards excusing all the nepotism stuff.
W.W.J.D.? #MakeNepotismGreatAgain. That’s what.
Remember how, in the wake of the House GOP’s initial failure to repeal Obamacare and replace it with Trumpcare, Donald Trump tweeted “ObamaCare will explode and we will all get together and piece together a great healthcare plan for THE PEOPLE. Do not worry!” Well, now that the House GOP passed an even more draconian version of Trumpcare it looks like Donald Trump is starting to worry. Worry that Obamacare isn’t exploding fast enough. And he’s got a plan to address that worry: end the Obamacare insurance subsidies which will force an almost immediate collapse in the Obamacare individual insurance market.
And this isn’t just some random Trumpian whim. Thanks to a lawsuit filed by House Republicans against the Obama administration charging that Obamacare’s insurance subsidies were never approved by Congress, the Trump administration has to inform the U.S. Court of Appeals for the District of Columbia by Monday how it wants to resolve the case. And Trump’s senior advisors are scrambling to convince him not to use this opportunity to end those subsidies and cause an immediate crisis in the US private insurance market. Presumably Trump is assuming a synthetic crisis of Trump’s own doing will force the Democrats to sign on to Trumpcare and give the GOP bipartisan cover for the disaster they’re about to unleash. And presumably his advisors think this is crazy. And presumably they’re correct because it’s a crazy idea. But that’s what’s reportedly under consideration. Specifically by Trump.
So, yeah, Trump appears to seriously want to create an immediate national health care crisis. And he apparently thinks this is good politics:
“Trump told aides in a Tuesday Oval Office meeting that he wants to end the payments to insurers because he doesn’t gain anything by continuing them, according to a senior White House adviser. “Why the hell would we?” he asked about continuing the payments, according to the adviser. Trump added that if Congress wants the subsidies, lawmakers would find a way to pay for them, the adviser said.”
Trump thinks creating a giant individual health insurance crisis that could be easily blamed on him would be a political “gain”. Are we sure he isn’t demented? Although the blame wouldn’t be exclusively placed on Trump since the House GOP was the group that filed this lawsuit in the first place:
Is the GOP sure it doesn’t want to impeach Trump? Really sure?
And for that matter, is the GOP really sure it actually wants to pass its horrible Obamacare replacement law which will reverse the Medicaid expansion and steadily erode and eventually destroy Medicaid itself? If so, then, yeah, they might as well just blow up Obamacare because it’s a party that clearly isn’t trying to win any popularity contests. Or elections. Especially future elections. Replacing Obamacare with Trumpcare isn’t going to help with the GOP’s youth deficit:
“If enacted, AHCA would create credit risks and related financial concerns for children’s hospitals, Fitch Ratings said in a report last week. “Proposed reductions to Medicaid and other supplemental healthcare funding cuts currently contemplated in Congress are likely to pressure these hospital providers over the longer term if enacted,” said Fitch director Emily Wadhwani.”
Those greedy children’s hospitals will just need to cut costs. For a long, long time. Same with the greedy sick kids. Especially those greedy sick kids with vision and dental issues. Or pre-existing conditions, which hopefully won’t be an issue since they haven’t existed that long:
Take that greedy sick kids!
But those greedy sick kids won’t get their comeuppance until Obamacare is repealed. Hence, blowing up Obamacare. Because those greedy sick kids can’t get their comeuppance soon enough.
So that’s all part of what Trump and the GOP are fighting for in their quest to make Trumpcare a reality and part of what Trump is hoping to catalyze by immediately blowing up Obamacare: long-term austerity for children’s hospitals. And medium-term health care austerity for sick kids. It’s not long-term austerity because they’ll become adults in the long-term. Assuming they, you know, make it to adulthood.
If it seems unbelievable that Trump would intentionally blow up Obamacare so as to speed up the implementation of a health care plan that could devastate health care for millions of children, keep in mind that that’s the plan anyway. Just not quite so quickly. In Trumplandia anything is possible. As long as it involves the exploitation of the poor.
Also keep in mind that there were some early hints that the Trump administration already has a solution in mind. Ok, not really, but since children’s hospitals are apparently on the GOP chopping block, it’s worth noting that there was one possible solution someone from the Acton Institute put forth just days before the 2016 election. And the Acton Institute happens to be a right-wing think-tank that Trump’s education secretary and GOP billionaire mega-donor Betsy DeVos sat on the board of for a decade, so it at least gives is a sense of the kind of ideas getting bandied about by the Education Secretary’s think-tank: We should relax child-labor laws and promote child labor because a job would be good for kids character. So, you know, don’t be shocked if the Trumplandian replacement for government assisted children’s health care coverage is a child job to help the kids cover their soon-to-be out-of-pocket health care costs:
““Let us not just teach our children to play hard and study well, shuffling them through a long line of hobbies and electives and educational activities,” said the post’s author, Joseph Sunde. “A long day’s work and a load of sweat have plenty to teach as well.””
Yes, let’s teach our children to play hard, study well, and also weaken child labor laws so its easier for our children to get hired by random companies spending days sweating at the workplace. Let’s do it for the children (and all the adult employees who will now be competing with children for those jobs). That was the grand idea put out by the Acton Institute, an ‘institute’ Trump’s Education Secretary (and major GOP donor) Betsy DeVos is pretty familiar with since she spent a decade sitting on its board:
And if it seems like there’s no way these kids are going to be able to make enough money to cover their medical costs, note that the Acton Institute essay was specifically citing a passage from another study from the Foundation for Economic Education that called for ending compulsory education too. So, you know, there might be time. Not enough time, but more time.
Of course, there’s no way Trump and the GOP could seriously have in mind the weakening of child labor laws at the same time they’re planning on gutting the medical safety-net for children, right?
Of course. There’s no way they’re actually pro-child laborWell, actually...:“The cuts would cripple the government’s ability to monitor child exploitation around the world and potentially interfere with tenets of 13 separate trade agreements. Furthermore, the measures would ultimately have the opposite effect of what the president intends. By allowing other countries to exploit child workers and other laborers, U.S. workers will be put at a disadvantage for using fair labor practices.”
That’s right, when the Trump Administration’s proposed a budget, it basically gutted the pittance of funding for the federal agencies that monitors the globe for labor violations like child exploitation. And while Congress actually creates budget, the Trump budget proposal is still a reflection priorities. Priorities that, in this instance, put pretty much everything at a lower priority than tax cuts for the rich. So, you know, don’t be super shocked if getting Jr a second job a second job becomes part of Jr’s health insurance plan. Especially after personally bankruptcy, due to medical costs, once again skyrocket when Trumpcare kicks in.
Hopefully the kids won’t be forced to buy their insurance on the individual market but since Trumpncare is getting rid of the employer mandate so, you know, It’s a distinct possibility. Which is extra scary. Because as the GOP has repeatedly taught us with all its successful attempts to hobble Obamacare’s ability to function — the Supreme Court ruling that made the Medicaid expansion optional, Marco Rubio’s elimination of the “risk-corridor” subsidies that drove insurers out of the market, the GOP lawsuits like the one now that allows for Trump to implode Obamacare’s individual markets next week if he wants to — the biggest problem with government playing a role in the health care market is the GOP. And the GOP isn’t going anywhere. Unless people stop voting for it.
And they might stop voting for the GOP enough to throw it out of the majority in short order if the GOP’s policies are actually put in place. They’re demonstrably bad for the masses. Which, of course, is a big reason why Trump might be seriously thinking about blowing up Obamacare to force the Democrats to come to the table and make Trumpcare a bipartisan nightmare. Another reason is that he appears to be crazy, or at least plays the part well. But the political poison that is Trumpcare really is so toxic that blowing up Obamacare as part of some sort of tragicruel gambit to force the Democrats to the bargaining table does make a bit of sense. If it works and the Democrats sign on to some sort of not-quite-as-bad-Trumpcare that would be massive win for Trump and the GOP, in the short, medium, and long-run.
It doesn’t quite make sense why such a scheme would play out the way Trump says since the Democrats can probably win the politics by simply pointing out that Trump just destroyed the independent health insurance market as a means of holding people hostage to force the Democrats to sign on to Trumpcare. But if Trump and the GOP has such a scheme that could allow them to come out ahead after such a horrid gambit that would allow for such a horrid gambit to make political sense. Once the GOP gets all the power it has nothing to lose because it’s bound to become super unpopular due to its horrible policies anyway. So why not take a gamble on blowing up Obamacare now in order to force the Democrats to table? That’s what Trumpcare is anyway. Blowing up Obamacare and replacing it with mostly crap and tax cuts for the rich. That’s seriously the situation. So while it’s becoming increasingly tempting to simply assume that Trump is kind of mentally losing it (Trumpcare doesn’t do great things for children’s mental health care, BTW), it’s also possible he’s doing it because the GOP’s agenda is so crazy that Trump already has nothing to lose. Obamacare blows up now or a year from now right before the mid-terms.
So keep in mind if Trump does decide to go against the advice of most of his advisors and blow up Obamacare, while it’s very possible he’s crazy, it’s also possible someone in the GOP has thought this through and realized that Trumpcare is crazy enough and non-child-friendly enough that the blowback will be almost immediate when it comes into effect so some sort of Obamacare-subsidy-blackmail-for-bipartisan-cover gambit kinds of starts making sense because at least there’s a chance they’ll somehow spin it into a victory or at least confuse the GOP base. In other words, a lot of Trump’s apparent madness might just be the madness required to shepherd through the GOP’s crazy agenda without blowing up the GOP.
Here’s a bit of good news: Donald Trump isn’t going to immediately trigger the implosion of Obamacare by pulling the Obamacare insurance subsidies and sending the individual insurance markets into a tailspin. He’s going to take 90 days to think about it. So the Obamacare markets might not immediately implode due to Trump’s actions. At the same time, by maintaining the threat to do so 90 days from now, Trump is still destabilizing Obamacare by greatly contributing to uncertainty and basically incentivizing insurers to pull out of the market because insurers have to tell the federal government if they’re going to participate in the health care exchanges in 2018 by next month. So the Obamacare destabilization continues, it’s just more of a stealth destabilization:
“That won’t happen for at least another 90 days. But that’s a problem, too, since insurers have to notify the feds of their 2018 Obamacare rates by next month. So the extended uncertainty over the CSR subsidies — the absence of which could terminate coverage for an estimated 7 million low-income people — will continue to hang over the insurers, aggravated by the knowledge Donald Trump personally wants to kill them.”
Do you want to sign up to provide insurance in a market the president really, really, really wants to kill? That’s the question Trump and the GOP are presenting to private insurers. Which is less of a question and more of a strong suggestion:
So that the bit of good news for Obamacare today. Coming on the same day we got an update on the the Trump budget proposal.
So remember Trump’s “skinny budget” that was proposed back in March, a budget that basically horrified the nation in how it slashed almost all non-military spending federal to pay for tax cuts for the rich? Well, here’s the update from the Trump team on their new budget: It’s just as bad as before, but with more options for states to impose work requires on almost all entitlement and welfare programs. Social Security and Medicare for retirees is basically the only program not slashed and without additional work-requirements/restrictions added. Social security disability and Medicaid are slated to be slashed. Almost all welfare, especially food stamps, is to be severely restricted. And the official underlining premise of it all is that the tax cuts for the rich will replace the need for any social safety-net because the economy will be so incredible:
“A key element of the budget plan will be the assumption that huge tax cuts will result in an unprecedented level of economic growth. Trump recently unveiled the broad principles of what he has said will be the biggest in U.S. history, and Treasury Secretary Steven Mnuchin told a Senate panel last week that these tax cuts would end up creating trillions of dollars in new revenue, something budget experts from both parties have disputed.”
Magical tax cuts for the rich that somehow pay fore themselves and create such a strong economy that there’s simply no need for a safety-net. The key element of the whole plan to slash almost every federal program designed to help those in need is to give to those with the most.
And while the Trump proposals don’t mandate work requirements for almost all programs but instead gives states the right to do so if they choose, don’t forget that the GOP controls almost all states so, you know, the shredding of the safety-net is sort of a given:
And if you’re assuming that, since the draconian measures are merely optional for states, and therefore maybe the GOP-controlled states will soon learn from their mistakes and eventually pull back from draconian restrictions on welfare programs and entitlements after they see the damage this causes, don’t forget, for that scenario to play out we’d have to be the kind of society that learns from its mistakes. At least in a timely fashion and not after we’ve collectively made the same horrible blunder over and over for generations. So, you know, considering that this horrid experiment in work-requirements-for-almost-all-help is part of a package centered around tax cuts for the rich as a universal cure for all ills, if it turns out be a social disaster it is possible states will realize this and reverse this policies. In about 50 years or so if ever. Quite possibly never. At least that’s what we should expect if we use history as our guide about how we use history as a guide.
So that was the news from the Trump team today on its plans for the safety-net. Yes, it was almost uniformly horrific, but, hey, at least Obamacare won’t be overtly artificially imploded. For another 90 days. It will still be stealth-imploded. But not directly imploded. It wasn’t all bad news. At least not overtly.
Here’s something to watch in the ongoing GOP health care reform follies. Or rather, here’s a someone to watch: Given the extremist nature of the GOP agenda, almost all the major legislation Trump signs into law is going to have to be legislation passed exclusively by Republicans. And that means a heavy reliance on the “reconciliation”, the special rule in the Senate that allows for the passage of a bill by a simple majority without the threat of a filibuster. But only as law as the changes involved in the new law only impacts federal spending and don’t fundamentally change the nature of existing programs.
And the person who decides whether or not proposed legislation meets that “reconciliation” criteria is the Senate parliamentarian. Currently, that person is Elizabeth MacDonough — someone who appears to have broad bipartisan support as being both fair and non-partisan. So someone widely considered fair and non-partisan has to the power to grant her blessing to Trumpcare or tank it. And that’s what makes her someone to watch. Especially now that some GOPers, including Ted Cruz, are murmering about replacing her or just ignoring her if she doesn’t give Trumpcare her stamp of approval:
“MacDonough’s primary task over the next few weeks will be to rule on whether the AHCA qualifies as a budget reconciliation bill. If she finds that individual parts of the bill wouldn’t have a direct budgetary impact through a process known as a “Byrd bath,” those parts would be stripped out. That doesn’t mean, however, that the House would have to vote again on its measure — just that lawmakers could consider only a pared-back version.”
When (or if) the Senate actually tries to pass its own version of Trumpcare, all eyes are going to be on MacDonough. And since she has the power to strip out just specific portions of the bill, without leading to the whole thing getting rejected, that means those interests behind the portions of the bill most likely to be potentially stripped are going to be keeping a very close eye. Including one of the most powerful factions of the GOP. The anti-abortion lobby:
“Another questionable part of the House bill is its language banning federally subsidized insurance plans from covering abortions. Abortion opponents insisted that such a ban must be included, even though that, too, might raise MacDonough’s eyebrows.”
Will the GOP be allowed to provide federal health care subsidies that are banned for use for plans that cover abortions? That’s one of the big questions MacDonough gets to answer. And while she has shown leniency towards the GOP’s previous proposals to prevent Planned Parenthood from receiving Medicaid reimbursements, that doesn’t mean she’ll make the same ruling for Trumpcare’s federal subsidy abortion clause. Something some GOPers are already planning to deal with:
Yep, Ted Cruz and others are apparently talking about not just replacing MacDonough if she doesn’t rule in their favor but just overruling her. And if that happens, wouldn’t the GOP simply overule her on the rest of their legislative agenda? In other words, could we be on the verge of seeing the filibuster effectively break, not by getting rid of the filibuster, but by getting rid of any meaningful restrictions on the “reconciliation” process?
Or are Ted Cruz and his merry band of far-right Senators outliers in the Senate GOP caucus? We’ll find out. Probably very soon now that MacDonough has told the GOP its no-subsidies-for-abortion-coverage provision probably won’t be allowed, potentially sinking the bill:
“The parliamentarian, Elizabeth MacDonough, has flagged language that would bar people from using new refundable tax credits for private insurance plans that cover abortion, according to Senate sources.”
Uh oh. Yeah, that just might doom the bill. Ted Cruz is going to be pissed. Along with potentially the rest of the GOP after this enrages one of the most influential factions of their base:
———-
“Parliamentarian threatens deadly blow to GOP healthcare bill” by Alexander Bolton; The Hill; 06/08/17
Ted Cruz’s little ‘let’s ignore MacDonough’ idea is probably sounding a lot more tantalizing right now.
But note the rather remarkable backup plan also under consideration: since Medicaid already bans the use of federal funds going towards abortion services, one way to get around MacDonough’s ruling is to make those federal health care subsidies paid through a program that already bans funding for abortion services. Like the Federal Employee Health Benefits program. Or Medicaid:
After years of trying to undoing the Medicaid expansion, could the GOP seriously be considering expanding the number of people who receive funds through Medicaid? It sounds like it. Or maybe they’ll do it though the Federal Employee Health Benefits program. But if this happens, it’ll probably happen though Medicaid. Why? Well, keep in mind that turning Medicaid (and Medicare) into a crappy, insufficient voucher program is basically the GOP’s long-term plan anyway. So if those crappy insufficient federal subsidies in Trumpcare for lower-income Americans who earn too much to qualify for Medicaid have to be processed through an existing federal program that already bans abortion funding there’s a logic to running it through Medicaid. It could possibly speed up the process of voucherizing the rest of Medicaid. Plus, all those new restrictions on Medicaid that states are going to be allowed to create will probably to all the new Trumpcare Medicaid recipients that get added by this move too.
At the same time, the more people there are on the Medicaid, the more people there are that will personally care about the quality of the program. So if the GOP does end up doing a ‘Medicaid expansion’ of its own, that will at least increase the inevitable political backlash to Medicaid’s gutting.
And that’s why the seeming good news that the Senate parliamentarian just sowed serious seeds of doubt about the prospects of Trumpcare making it through the Senate is really mixed news. Or perhaps even bad news: It’s possible the GOP will turn the Senate parliamentarian into a purely symbolic position and the “reconciliation” process will become whatever the GOP wants it to be. Or maybe Trumpcare will get a Medicaid expansion that doubles as a poison pill for the entire Medicaid program. That’s all yet to be determined. By really mean people.
What we do know at this point is that if you’re planning on getting pregnant under Trumpcare, you better start saving now. The same presumably applies for unplanned pregnancies.
Is someone using Whoville black magic to grow the shriveled heart of Donald Trump? Or maybe sort of rift in space and time brought us an anti-Trump from a parallel universe? Or is the inevitable personal infamy of the GOP’s horrific health care plan being nicknamed ‘Trumpcare’ finally dawning on him?
We’ll likely never know, but something is making Donald Trump question the virtue of meanness. A rift in the space-time continuum is probably a safe bet:
“One source said Trump called the House bill “mean, mean, mean” and said, “We need to be more generous, more kind.” The other source said Trump used a vulgarity to describe the House bill and told the senators, “We need to be more generous.””
Wow, what a difference five weeks makes:
But credit where credit’s due: Parallel-universe Trump is right. That House GOP’s Trumpcare bill really is “mean, mean, mean.” Although according to a new analysis provided by the Centers for Medicare and Medicaid Services (CMS) — the federal agency that administers the programs — the House’s Trumpcare plan might not be quite a mean as the Congressional Budget Office’s (CBO) earlier projections. Both the CBO and CMS estimates still projects significantly higher health care costs for large numbers of Americans, especially sicker Americans. But the CMS only projects 4 million people will lose their coverage in the first year of the AHCA/Trumpcare whereas the CBO projected 14 million would immediately lose their coverage, so the CMS is only projecting 13 million few people will have health care coverage by the year 2026 compared to Obamacare’s projected coverage compared to 23 million people less people getting coverage under the CBO projection.
So if the CMS’s projections turn out to be more accurate than the CBO’s — which we’ll mostly discover in the first year by looking at how many millions lose coverage — the AHCA/Trumpcare will still be much, much meaner than Obamacare, but it might not be as mean to people poised to lose their coverage right away compared to the the CBO projections...but also might be meaner to people who manage to keep their coverage with higher out-of-pocket expenses than the CBO projected. Especially sicker people. So while the net meanness of the House GOP bill is somewhat in question with this CMS report contrasting somewhat with the CBO report, it’s still definitely not a “generous” or “kind” bill no matter which estimate you look at:
“If Obamacare stays the law as is, an estimated 28 million people would be uninsured by 2026. In the actuary’s report, a total of 41 million would be uninsured by that year if the AHCA is passed. CBO estimated the total will be 51 million.”
Well, 41 million uninsured people is better than 51 million. Hooray for less projected meanness. And if the CMS’s reduced projected meanness is accurate, we’ll find out next year:
4 or 14 million people. That’s the projected range of people potentially impacted by near-term extreme meanness under Trumpcare. So let’s hope it’s only 4 million (this is where we are)!
And note the CMS still projects significant meanness even for those that keep their coverage, because they are going to be paying a lot more. Not necessarily more in terms of higher premiums. That will depend on whether or not they have a preexisting condition. What’s guaranteed is that everyone will be paying more in direct out-of-pocket expenses. Although the wealthy get a tax cut so they’ll be paying quite a bit less overall:
“Elsewhere in his new report, CMS’s actuary estimated there would be an increase of direct out-of-pocket health spending by households of almost $221 billion under the AHCA. That increase in spending will be “almost entirely offset by lower spending because of declines in employer-sponsored coverage, a reduction in the additional Medicare tax for high-income earners, and the effect of the elimination of the health insurance tax on premiums” under the bill.”
Trumpcare: At least it’s not mean to wealthy people!
That’s Trumpcare’s meanness status under the House version. But that still leaves the Senate to weigh in and craft its own version. And it was GOP Senators who Trump was addressing when he called for less meanness.
So will they do it? Well, if they do heed Trump’s words and engage in meanness-reduction on their Trumpcare bill, they better do it fast because the Senate GOPer are reportedly almost ready to send the Senate’s Trumpcare bill to the CBO for review. And it’s reportedly so bad (i.e. mean) that they’re keeping the bill secret from the public until the CBO gets done scoring it, and then planning on ramming it through the Senate (with minimum time for public review) a week later:
“Senate Republicans are working to finish their draft health care bill, but have no plans to publicly release it, according to two senior Senate GOP aides.”
And why isn’t the GOP planning on releasing its Trumpcare plans to public? Because “we aren’t stupid”:
Yep, the GOP Senators aren’t stupid. They’re mean. And they realize that their bill is so mean it will spark public outrage. You know, like what happened to House GOPers before and after they unleashed their mean, mean, mean Trumpcare bill. Why would the GOP Senators want all that public meanness directed at them? Better to hide all the meanness and them ram it through at the last minute and hope everyone gets distracted by one of the other debacles going on.
So it appears that the meanness will proceed full steam ahead, but in stealth-mode for the time being. At some point they’ll have to make the Senate bill public, which apparently will be shortly followed by an actual vote. And then, who knows, maybe Trumpcare will become a reality. A very mean reality.
Except for the rich. There will be significant niceness heading their way. With some notable exceptions.
When James Hodgkinson — a Bernie-or-Buster driven violently mad by his anti-Trump/GOP feelings — attacked the GOP baseball team, part of what made the tragedy so tragic was the tragic response seen across the right-wing media landscape that almost immediately used the attack to feed into a narrative that had already taken hold since Trump’s electoral victory that the left was growing violent, with open promotion of violence against Trump by Democratic leadership. That’s been one of the primary memes that was already reverberating across Fox News, right-wing talk radio, and outlets like Brietbart well before the Hodgkinson attack thanks in part to ongoing scuffles between Alt-Rightists and ‘antifa’ groups typically affiliated with Black Bloc. Thanks to antifa and Black Bloc activities alone, the ‘violent left’ meme has been a staple of right-wing media in the Trump era.
So when someone predictably snaps (as happens like sickening clockwork in America), a giant media campaign to decry the left as a violent threat to American society was already in full swing and kicking into overdrive. The ‘violent left’ meme is isn’t just an hourly meme on Fox News. It’s like every 15 minutes there’s a ‘violent, dangerous left!’ meme reminder.
But the deranged nature of the right-wing media’s response to the Hodgkinson attack has been elevated to a whole new level with an attempt to push a meme that’s almost impressive in its audaciousness: we’re now being told that all the harsh criticism of Trump and the suggestion that he might not have the American people’s best interests in mind are creating a dangerous political environment and the US needs a period where everyone just kind of stops criticizing Trump so much and lay off the investigations. And to do otherwise is to promote political violence against Trump and Republicans. That’s seriously the new right-wing meme and it’s dominating conservative media.
So get ready for the next phase of the Trump era lunacy thanks to the madness actions of James Hodgkinson: the period when dissent against the Trump agenda is literally harming the President in a way that shouldn’t be allowed. That’s where we are. Again, it’s been a pretty tragic response. Yowza:
“Perhaps most disturbing was Rush Limbaugh’s description of Hodgkinson as the “personification” of the “deranged base” of the Democratic Party and his suggestion that the media, federal investigations, and Congressional investigations of Trump and his administration were somehow to blame for this violence”
And as we just saw, Limbaugh was just one voice in the right-wing din trying to make criticism of Trumnp dangerous. Especially Trump’s personality. His increasingly erratic personality. It’s a deeply trouble new phase of the Trump era because there’s no reason to assume this meme is going to end at all. It’ll just keep getting pushed as some sort of ‘truth’ that there’s a problem with left-wing violence in America. And if you had to come of up with a terrifying scenario to see unfold when someone like Steve Bannon is sitting where he’s sitting in the White House while the Trump continues to isolate and implicate himself and the Alt-Right continues to sell itself to American conservatives, the right-wing media complex spending the next four years trying to convince its audience that Democrats are promoting violence would have to be near the top of the list of terrifying scenarios.
So it’s going to be worth keeping in mind that this new phase of trying to stifle criticism of Trumnp under the banner of ‘toning it down’ is actually a great excuse to do something the whole media, especially the right-wing media, should have been doing this whole time much more than it’s generally done so thanks to all the attention placed on Trump’s Russia probe and the subsequent self-inflicted obstruction of justice inquiries: covering the Trump/GOP policy agenda slowly winding its way through Congress. It’s a nightmare agenda that in other times would be making one headline after another as all the details drip out day by day. But in Trump’s era we just get a few brief periods when policy gets a lot of media coverage, like when the House fails to pass Trumpcare and finally does so and throws a kegger, and the rest of the time all eyes are on #TrumpRussia. So, how about in the spirit of bipartisan comradery, the media pledges to spend a lot more time cover the Trump/GOP nightmare policy agenda.
For instance, as we saw in a recent debate in the Georgia special election between Republican Karen Handel and Democrat John Ossoff, much more attention to how the GOP Senate is refusing to provide the public any details on its Trumpcare plan is clearly required for Georgia voters to make an informed vote so how about a bipartisn focus on those details (which are secret because the GOP won’t reveal its Senate Trumnpcare bill to the public yet):
“According to the recent Atlanta Journal-Constitution poll of this race, more than 80% of likely voters said health care is an “extremely important” or “very important” issue regarding their vote, and just 1‑in‑4 voters said they approved of the House health-care plan. And remember, this is the race to fill the seat vacated by Republican Tom Price, who is now Trump’s HHS secretary — and that’s another way health care is an issue in this contest.”
Yep, 80 percent of the voters in this congressional district view health care as extremely important, and yet Karen Handel and John Ossoff are nearly tied while Handel stands up there during a debate defending a Trumpcare bill that will gut the vast majority of Obamacare’s most popular provisions. Like protections for people with pre-existing conditions. And at this point he GOP won’t even let the public see the bill its working on and appears to be planning on ramming the thing through a vote right after revealing the final product. So when Karen Handel suggested earlier this month to the public that the Senate GOP bill is going to have more generous pre-existing condition protections, she was asserting something she can’t really know at this point since those negotiations are ongoing and private, but it was also exactly the kind of information that the media and politicians should be following closely right now. Especially given the importance the public gives to this issue:
“The facts are, ladies and gentlemen, that the bill in the Senate right now it provides more protections for individuals with pre-existing conditions...”
Well, no, the facts are not that the Senate the bill has more generous pre-existing conditions than the House bill (which is a low bar). We don’t know what’s in the Senate bill. But we should know. And it’s the kind of thing the public would really like to know. So how how, in the spirit of trans-partisan harmony, the American media pledge to spent much, much closer attention to the GOP agenda moving through Congress in order to extract from the politicians all the information the public needs. After all, if you look at much of what’s driving division in America, it’s misinformation. And if there’s one thing that can create a new spirit of coming together it’s correcting that misinformation. Yes, right now that misinformation campaign has taken an extremely dark turn by trying to push a ‘dissent promotes a violent left’ meme, but that’s just the latest in a long line lf misinformation campaigns promoted primarily be right-wing media and politicians. So how about a bipartisan commitment to correcting misinformation about the GOP policy agenda and focusing on the agenda’s actual winners and losers from the agenda.
No personal attacks are required...unless misinformation is being peddled in which case there’s a ‘you’re lying’ personal attack that’s required at a minimum. But other than that, a focus on policy really could be a great way to reset the nation dialogue on a more constructive path. A sustained closer look at the Trump/GOP agenda could be shockingly unifying.
The big secret Senate Trumpcare bill is finally being revealed to the public. And finally being revealed to the Senate Democrats too since the entire thing was written behind closed doors by 13 Republicans. And while we didn’t actually have to see all the details to know that this was going to be a horrible bill, at least we get to finally see the details. Hooray/Uh oh!
So did the bill avoid being “mean”, as Donald Trump requested? And does it have “heart”, as Trump recently predicted? Well, maybe, but only if we add the provisions that the bill’s “heart” was at some point in the past a decent heart that is now suffering from significant heart failure:
“Trump explicitly pledged he would make no cuts to Medicaid. Instead, the bill will cut Medicaid by hundreds of billions of dollars. He promised “insurance for everybody” backed by federal spending: Instead the bill will likely cover millions fewer people than current law. He repeatedly promised lower deductibles: Instead a core feature of the bill pushes customers towards higher deductible plans. He argued his dedication to providing more generous health care distinguished him from conservative Republicans who sought smaller government.”
Wow, almost every health care-related pledge Trump made on the campaign trail is broken by the Senate’s bill. That’s almost impressive. But don’t assume passage of the bill is a done deal. Because as was the case with the House version of Trumpcare, the Senate bill is suffering from the same problem of some GOP Senators saying it’s too heartless and others saying it’s not heartless enough.
But as we also saw with the House version of the bill, it’s really just a matter of time before the ‘moderates’ cave. So if you were hoping that this bill might be stopped by GOP ‘moderate’ senators searching their hearts and suddenly having an epiphany, don’t forget that ‘heart’ isn’t the only symbolic organ required in this this instance. A spine is needed too which means nothing is stopping this bill:
“Anyone who watched the House dynamics around the passage of their version of a Obamacare repeal bill will remember this old song and dance well. A tantrum by the conservatives there led to the bill being pulled farther to the right. When some House GOP moderates then revolted, some money was thrown at their problems with the bill —namely its rollback of Obamacare protections for pre-existing conditions—and House GOP leadership got enough moderate Republicans back on board to assure its narrow passage.”
Don’t forget, the GOP ‘moderates’ aren’t interested in actually crafting a bill that improves health care for their constituents. If they were they wouldn’t be Republicans. They’re interested in political cover for heartlessly ruining the future health and finances of their constituents. And there’s no shortage of bones the GOP leadership can throw them:
Yep, the GOP Senate’s bill is so focused on tax cuts for the wealthy that it even includes retroactive tax cuts. So why not repeal some of those retroactive cuts to placate the moderates while making even deeper future cuts to get the four far-right holdouts like Ted Cruz on board? Sure, a reasonable answer for “why not?” would be “because that’s a mean, heartless thing to do.” But since we’re dealing with mean, heartless people it’s hard to see why they won’t eventually agree to such a deal. This bill fulfills long-held GOP goals: tax-cuts for the rich, repudiating Obama, and gutting entitlements. The only possible obstacle left is a lack of the political cover needed to get away with it.
And that’s what this final phase where the GOP negotiates with itself is all about: establishing political cover. That’s basically the only phase left:
And what’s the “really special” political cover going to be? Well, that’s sort of up to the American public because the cover is going to come in the form of whatever bones the GOP has determined it can throw to each Senator so that Senator can throw that bone to their constituents. That’s how this kind of grift is supposed to work. So we’ll get to see what sort of “really special” political cover gets inserted into the bill at the last minute. Which means at this point we can say with confidence that the final bill isn’t going to have any ‘heart’ at all, but it’s going to have an abundance of ‘bones’.
Well that’s a relief: the Democrats just experienced a mini-wave election in Tuesday’s 2017 off-year elections that includes a sweep in Virginia’s elections after the GOP went into full Trump/Bannon nativist mode for Ed Gillespie’s gubernatorial campaign. And while it’s probably in part a backlash against Trump’s low ratings due to his white nationalist agenda and highly unpresidential behavior, and it’s worth keeping in mind that Trump’s appeal to a lot of cross-over voters who aren’t die-hard Republicans came from his portrayal of himself as someone who isn’t a Republican on economic and entitlement issues like Medicare and Medicaid in addition to his white nationalism. At least that’s the language he used and it was part of this appeal.
So while the GOP’s losses are undoubtedly going to generate a lot intra-party finger-pointing, including the Trump administration pointing at the congressional GOP over their inability to pass any major legislation initiatives like Trumpcare for Trump to sign, it’s important not to forget that one of the big reasons voters might be turning away from Trump is that the GOP almost did pass major legislation and it was horrifying legislation. And where the GOP has failed, Trump has succeeded where his executive powers allowed.
In other words, and as the following article makes clear, if there’s going to be a backlash against Trump, it almost certainly includes a backlash against his classic GOP agenda of cutting entitlements, starting with Medicaid:
“Whereas in the past states had to prove that proposed changes would “increase and strengthen” health coverage of their low-income population, that requirement is gone, replaced with language that welcomes proposals for work requirements, drug tests and other hurdles that experts predict would reduce the Medicaid rolls by hundreds of thousands of people.”
The goal of expanding health coverage for the poor has been replaced by the goal of kicking as many people off Medicaid as possible. Which, again, isn’t a Trumpian agenda based on Trump the candidate. It’s classic cruel GOP agenda. But it’s Trump’s agenda now that he’s in office, which probably doesn’t help with his popularity:
“Centers for Medicare & Medicaid Services (CMS) Administrator Seema Verma called the goal of covering more people a “hollow victory of numbers””
Yep, Trump’s Centers for Medicare & Medicaid Services Administrator thinks the expanded health care coverage for poor people is just a “hollow victory”. Instead, adding work requirements that include kicking people off if they can’t find work is the real victory. Which, again, is classic GOP and probably not super popular with a lot of Trump’s voters:
The floodgate for dismantling Medicaid were just opened up by the Trump administration. On Tuesday, the morning of the 2017 November special elections. Perhaps experiences like that played a role in the surprisingly strong Democratic results.
And in related news, the state of Maine had a referendum on expanding Medicaid that was also part of Tuesday’s elections. It was approved. Maine expanded Medicaid over the objections of its Trumpian governor, making Maine the first state to expand Medicaid via a a popular vote. Or as the GOP would put it, another “hollow victory.” And if Trump and the GOP succeed in their quest to destroy Medicaid and the Obamacare Medicaid expansion that really will be true. Maine’s Medicaid expansion really will have been a hollow victory. Which, again, might have something to do with the Democratic off-year mini-wave.
So the question of whether or not to impose a work requirements is, on some level, a question of which mistakes society is comfortable knowingly making: the ‘mistake’ of granting able bodied unemployed poor people health care? Or the mistake of forcing people to find work when they can’t realistically do so — either because they really aren’t able bodied or because there are no jobs available — and then kicking them off the only program that can keep them alive? Which type of guaranteed mistake is society most comfortable making? We’ll find out, one state at a time.
It’s the first Martin Luther King Day with Donald Trump as President, so where do we start? Well, given the fact that the GOP control all branches of the federal government after Trump won the presidency with a campaign predicated on race-baiting and ‘Alt-Right’ white supremacist dog-whistling only to implement an agenda of massive tax cuts and gutting the safety-net, it’s probably a good time to remind ourselves that MLK wasn’t just leading a civil rights movement. Labor and the fight for a fair and just economic environment was seen as inseparable from that civil rights vision. And that means MLK wasn’t only fighting for a better future for oppressed minorities. He was fighting for a better future economic future for the bigots too. Bigots need economic security and fairness too and MLK was fighting for that. That seems like something more Americans learn more about.
And that history of a multi-racial civil rights coalition that was also fighting to labor rights and economic justice isn’t just an important historical fact that people should know because it’s important to know your history. It’s an extremely relevant historical fact because one of the biggest elements of right-wing propaganda in the post-Civil Rights era that really needs to be ‘unlearned’ by GOP-leaning voters is the notion the GOP has been hammering into white voters’ minds for decades now: that government programs are all just ‘giveaways to lazy minorities.’ Because that meme hasn’t just been a convenient racist dog whistle the GOP has been using to communicate an anti-black sentiment to voters without sounding openly racist. That meme has also been a central element is convincing poor and middle-class conservative white voters to hate and resent the kinds of government programs that benefit people of all backgrounds.
So, sadly, perhaps one of the most useful speeches for Americans to hear on MLK day isn’t an inspiring speech by MLK (although they should hear that too). It’s the following interview by Lee Atwater about how the GOP has been winning elections by systematically teaching white Americans to channel their racial animus into hatred of government:
“You start out in 1954 by saying, “Nigger, nigger, nigger.” By 1968 you can’t say “nigger”—that hurts you, backfires. So you say stuff like, uh, forced busing, states’ rights, and all that stuff, and you’re getting so abstract. Now, you’re talking about cutting taxes, and all these things you’re talking about are totally economic things and a byproduct of them is, blacks get hurt worse than whites.… “We want to cut this,” is much more abstract than even the busing thing, uh, and a hell of a lot more abstract than “Nigger, nigger.””
It’s amazing what you can learn when someone opens up. And note the spin Atwater initially had during this interview. He was actually trying to argue that the GOP had moved completely past racial animosity by shifting the party’s messaging emphasis to economic issues:
“Now, y’all aren’t quoting me on this?”
Yes, Atwater was indeed quoted. And that’s to that quote this interview is one of the most infamous and revealing interviews about political strategy in American history. Whoops!
And thanks to that long-standing GOP ‘South Strategy’ messaging campaign (a strategy applied to the entire US and not just the South) designed to fuel and exacerbate existing sentiments, a generation of Americans has been taught that the ‘Great Society’ of public safety-net programs was just about giving ‘those people’ (black Americans) a bunch of government handouts so they don’t have to work. It’s a sick and contemptible smear, but it’s what a lot of American really do seem to believe. Including very prominent Americans with enormous power over government policy:
“The president was incredulous. “Really? Then what are they?””
Yep, the president was incredulous about the idea that ‘welfare reform’ (cutting safety-net programs) wouldn’t predominantly harm black Amerians. That’s where we are. Still. And given how much time President Trump spends consuming right-wing media it’s not remotely surprising that he would hold such views. This smear against black Americans, that they’re all ‘Cadillac-driving welfare queens’ has been a GOP-refrain for decades. Don’t forget, that Lee Atwater interview was from 1981.
While President Trump isn’t exactly the target audience for a messaging campaign dedicated to teaching working-class white Americans about how the GOP has been intentionally misleading them about who uses ‘welfare’ (it’s mostly the working poor) and why (because they are working and still poor), the reality is that Trump’s views reflect an attitude widely held by white Americans, rich and poor. And that’s part of what’s going to make the current GOP assault on the safety-net so fascinating to watch play out in terms of those attitudes towards the safety-net, because the way the GOP strategy has been formulated — transferring safety-net programs from the federal government to states and then encouraging the states to do the the big cuts — the next wave of entitlement gutting is going to happen at the state-level. And that’s going to make it much harder for voters to assume that all the cuts are just going to be cuts for minorities living in big urban centers like Chicago or New York.
Take, for example Kentucky, a state that’s 88 percent white, very poor, and one of the prime beneficiaries of the Obamacare Medicaid expansion. It’s also the state that’s the first to impose work requirements for Medicaid recipients. But beyond that, Kentucky is set to impose all sorts of new requirements for Medicaid access are clearly designed to find excuses to cut off access. Requirements like a new premium that has to be paid and re-enrollment requirement. And if you don’t meet these requirements, you get cut off from Medicaid for 6‑months. Which means a whole bunch of poor people in Kentucky are in for a very rude awakening and almost all the people getting cut off are going to be poor whites. Because it’s Kentucky:
“As the governor himself stated in the waiver application, a full third of Kentucky’s population is on Medicaid, and a main goal of the new work requirement and other restrictions is to cut down that number. “This is an expense Kentucky cannot afford,” Bevin wrote.”
Yep, Kentucky’s GOP government has straight up said the purpose of these new Medicaid rules is to cut down the number of people on Medicaid. And that’s almost entirely going to be poor white people. Because, again, it’s Kentucky.
And look at the fun new reason to kick people off Medicaid that go beyond finding a job: premiums and re-enrollment rules that appear to be set up solely to give a reason to kick someone off:
So how is the upcoming health care nightmare that’s about to be unleashed on poor Kentuckians by their GOP governor going to impact that long held GOP messaging strategy of telling poor whites that all those government cuts are primarily going to harm blacks and other minorities? Sure, cuts of this nature have been happening at the state level for a long time, but the Medicaid cuts are a very high-profile round of cuts and just the beginning of the GOP’s ‘welfare reform’ agenda. A whole lot of poor white rural Republican-voting Americans are going to be learning a lot of nasty lessons about the GOP’s willingness to cut government support for them in coming years. Not cuts for the hypothetical ‘welfare-queen in Chicago.’ Cuts for them. Compliments of the GOP.
Will Lee Atwater’s reprehensible meme survive the GOP’s policy agenda intact when a central element of that agenda is state-level cuts? We’ll see, but given that the GOP’s government-slashing agenda is set to be unleashed and grow in coming years it seems like MLK Day will be a very good day to remind working-class whites that the GOP doesn’t just hate poor and working-class blacks. The GOP hates poor and working-class everyone. Could a growing recognition that the GOP was using negative sentiments towards minorities to trick poor and working-class whites into slitting their economic throats help jostle someone out of their ‘my race vs the world’ worldview? Hopefully. It’s not the best source for solidarity — it would be far better if we could achieve a sense of cross-racial unity out of a general sense of enlightened decency — but beggars can’t be choosers.
And here it is, the next phase of the GOP’s never-ending War on the Poor: The Department of Housing and Urban Development (HUD) is get ready to impose work requirements for pubic housing assistance for all ‘able-bodied’ adults, according to leaked documents. And this is the kind of policy change the Trump administration can potentially do on its own. Congress isn’t required.
And it’s actually much meaner than it sounds because when you look at the details it just gets meaner and meaner. For starters, it’s not just work requirements for public housing. Private landlords who own Section 8 housing (government subsidized privately-own housing) will also have the option of imposing the work-requirement on their tenants, which clearly creates a scary power dynamic. Imagine the kind of alternative ‘work’ unscrupulous landlords will come up under threat of imposing the requirement.
And unlike the new Medicaid work requirements, which can be up to 20 hours a week, the HUD work requirements can be up to 32 hours a week. That is a much, much harder requirement to reach than 20 hours, especially if the local economy is weak.
Oh but there’s more meanness. Much more. If you’re a parent who needs child-care there’s no provision to help cover the costs. And if you’re taking care of a family member who’s ill or has a disability there’s no provision that either. You’re just . You night still have to work those 32 hours , there’s no provision for that. And new rules are actually eliminating an existing provision to help with child-care that’s already part of the rent formula.
But the meanness isn’t over. People struggling with opioid or other substance use addictions would face the risk of losing assistance even if they’re seeking treatment. And agencies and owners won’t have to count time spent in treatment toward the work-requirement hours.
There’s also going to be some hikes in the ‘rent’ that people have to people. Hikes that will be on top of all the new fees getting tacked on to programs like the Medicaid premiums introduced in Kentucky and Indiana. The government is about to use the anti-poverty programs to nickle and dime the poorest people off of them.
Elderly and families with disabled people don’t escape the GOP’s wrath either. They would have to contribute 30 percent of their monthly income, with a minimum rent of at least $50 per month. The minimum rent current for most households on public housing assistance ranges from $25 to $50 per month. And some of the poorest families pay no rent.
And the Trump administration is confident that this all won’t lead to people in need getting kicked out of their homes. They point to a recent study of a pilot work-requirement program in Charlotte, NC, that didn’t find an increase in eviction rates. This pilot program, of course, happened during a period of low unemployment in the US. But more importantly, it was a 15 hour a week requirement, not 32 hours, which is radically different in terms of feasibility of regularly attaining. And that’s pretty much the only evidence the administration is pointing towards as evidence that this is a safe and sound new policy to implement because there’s almost no other research into the wisdom of this which is something the study authors pointed out. The paper actually points out that it’s the first study to empirically examine the impact of work-requirements on employment. So there’s been one study, done during a time of historically low unemployment levels.
Oh, and foods stamps are also going to get increased work-requirement rules. In addition the new Medicaid work-requirements and premiums popping up now that states are free to do so. It’s an all you can eat buffet of kicking the poor designed to create hungry homeless people
“The changes detailed in the draft could have sweeping consequences for the estimated 5 million low-income households receiving federal rental assistance, reflecting the White House’s broader effort to tighten the federal safety net. Last month, the Trump administration invited states to introduce work requirements to Medicaid and has approved Kentucky and Indiana’s plans to do so. The administration is also aiming to bolster work requirements for food stamps.”
5 million low-income households are about to get a new bureaucratic Sword of Damocles hanging over their heads. If you can’t find a job that will let you work for 32 hours a week you might find yourself evicted. And maybe go hungry at the same time. And it might be a private landlord holding this Sword of Damocles over you:
And each adult in the household who is not elderly or disable will potentially have to work 32 hours a week. Job training will count towards those hours, but not volunteer service:
Keep in mind that volunteering is potentially an option for things like Medicaid work-requirements. But if housing assistance doesn’t allow volunteering to count and requires 32 hours of work, that more or less precludes people for going with the volunteering option for their other public service work-requirement.
And, of course, like almost all of these new work-requirements for public assistance, it’s really only impacting a relatively small percentage of people using the program because a majority of the non-elderly recipients already work (despite the public attitude that people on public assistance are lazy and undeserving). And of the remaining non-elderly non-disabled adults, a significant percent are caregivers for preschool children or a disabled person. But they’ll have to work now too on top of caregiving:
An then there’s the across-the-board rent increases. Oh, and elderly and disabled families would have to contribute 30 percent of their monthly income, with a minimum rent of at least $50 per month:
“Yentel says the rent increases that the Trump administration have previously proposed, and that are outlined in the draft, would have the greatest impact on seniors, the disabled and families with young children, who would no longer be able to deduct medical costs and child care from the income used to calculate their rent payments. “That means less money they have of their very limited income to pay for medication, healthy food, clothes for kids to go to school,” she said.”
Yep, as opposed to these policies primarily impacting ‘those people’ — the archetypal lazy able-bodied person who doesn’t work and fuels public backing for these kinds of policies — the real targets are likely seniors, the disabled and families with young children.
And this all can happen without Congress’s approval. The Trump White House can simply expand a ‘demonstration program’ that’s been around since 2015:
And what did those demonstration programs demonstrate? They found “work requirements increased employment without increasing tenant evictions”, which, again is during a time of historically low US unemployment:
Also note that the North Carolina study found that a 15 hour per week work-requirement had a “modest” positive impact and had a small sample (read the study, it has an abundance of limitations).
And what additional help is there for parents who need childcare services? As the Center for Budget Policy Priorities points out, there’s no additional help. And actually less help because existing child-care subsidies are getting cut. And as they also point out, while the studies on the impact of work-requirements for housing subsidies are slim, it’s not like there haven’t been studies on work-requirements for other public safety-net services. And what we’ve learned from those other work requirement programs is that they have generated little or no long-term increase in earnings and employment and have caused many families — often those with the greatest disadvantages — to lose assistance. Of course:
“Many of those harmed would be people who already work. (See chart.) Low-wage jobs often have unpredictable hours, ranging from 40 hours in some weeks to just a fraction of that amount in others. As a result, workers who are doing their best to earn a living could lose rental assistance because their employers don’t give them enough hours to meet the requirement. In addition, workers could struggle to keep up with the paperwork needed to prove they worked a set number of hours each week or see their assistance end due to administrative mix-ups.”
An administrative mix-up might get you kicked out of our home and/or kick off Medicaid and/or kicked off of the food stamp program. Or maybe it won’t be an administrative mix-up but instead just a really bad month when everything goes wrong in your life. Maybe you suddenly need to pay for a car repair payment so you can keep your job, and that means you miss one of the new fees or premiums. Or a sudden health problem gobbles up most of your income and what little savings you have. It’s really astonishing just how much the new system is designed to ensure people fall through the cracks by widening them and pushing people into them. But that’s the system they’re about to put a place. A system designed to fail the people its intended to serve.
And, again, when work-requirements have been imposed for other public services they didn’t actually work. And the poorest got kicked the hardest:
And for those who need help wit childcare and taking care of a disabled relative? Nothing. Same with opioid and drug addicts. Treatment doesn’t count towards work (and good luck finding work while in treatment):
Also note how this all works synergistically with the new work requirements and premiums being introduced for Medicaid by states like Kentucky and Indiana. Because the people facing the new monthly Medicaid premiums are probably the same people who need to pay the new rent increases for public housing subsidies. So all these new fees could hit the poorest Americans in coming years and if they can’t afford to pay they fall through the cracks. And possibly fall into a grave. Because we’re talking about setting people up to lose subsidies for food, shelter, and medicine if they don’t successfully navigate the new maze of requirements.
And let’s not forget that there are plenty of people who are on the edge of being ‘able-bodied’ people who aren’t actually able-bodied but get classified as such by mistake by the bureaucracy set up to establish able-bodiedness. These rules could destroy the lives of people in that group. Homelessness isn’t a ‘kick in the pants’. It’s an anchor that can drown people.
It’s a reminder that while these new policies are going to be sold as not impacting the ‘truly needy’ but just ‘those people deserve it’, it’s actually designed to impact people like those taking care of relatives. Or people where the local economy doesn’t make a 32 hour a work week a realistic prospect for an individual.
And all these fees are synergistic when it comes to kicking people off of these programs. It’s the people who can’t work the 32 hours a week and get kicked out off the housing subsidy who won’t be able to pay the higher housing fees and will also get kicked off of Medicaid for not paying their new Medicaid premiums. It’s a
Part of what makes this issue so poignant is that its a highly illustrious example of this meta-issue that plagues American society: at the root of the desire to kick ‘able-bodied’ people off of public services like subsidized housing for the poor is sentiment that ‘some lazy bastards just need to be allowed to die in a ditch’. A desire to punish ‘those people’ really is a major policy-driver in American society because things like work requirements are foolishly popular among Americans. Kicking the poor and feeling like the poor have somehow failed or deserve their circumstances (a perspective that indicates a profound lack of understanding of socioeconomic realities) really is almost American orthodoxy from the historical capitalist social Darwinism perspective that permeates the Koch-dominated GOP of today. People who know someone they think is super lazy and should be homeless if they don’t ‘turn themselves around’ might feel like government policy should punish people ‘like that’ and that’s clearly a major sentiment behind the public support for policies that focus on ensuring all ‘able-bodied’ persons have to work 32 hours a week. People want ‘those people’ to pay. That archetypal ‘lazy bastard’. And setting up a giant bureaucracy to assess their ‘able-bodiedness’ is worth it for large chunk of the Americans public.
It’s really quite a tragically vindictive sentiment because it cascades throughout a society and creates all sorts of other horrible things. The kinds of horrible things that one might expect if you ask the question “how many innocent men should be sent to prison in order to avoid a guilty man going free?” and the answer is “as many as it takes!” When that’s the guiding spirit for public policy you’re going to have mass disasters. Like the prison industrial complex. The prison industrial complex was created, in part, by popular demand and there’s a BIG dose of ‘those people deserve it’ sentiment behind. And that sentiment is the kind of sentiment that feeds on itself. Because the destructive forces unleashed impoverish a society in ways that aren’t measured in dollars and cents. They’re felt in the lost human potential and damaged or lost lives caused by bad policy decisions.
But there is hope. Because as the following recent article in Vox pointed discusses, there was a recent poll that showed a surprising opposition to work-requirements for Medicaid, with 57 percent opposing it. This is in stark contrast to most US polling on public support for work-requirements. So what explains this recent polls? Well, as the article suggests, it could have to do with how this poll framed the question. Because the poll asks whether or not people should actually lose their Medicaid coverage if they don’t meet a work requirement. As opposed to how the question is asked in other polls which is often like “do you support work-requirements for Medicaid?” which is phrasing that doesn’t point out that you would lose your Medicaid if you don’t meet that requirement. So it’s possible that Americans don’t actually support letting people fall through the cracks if they don’t meet all the new rules the GOP is setting up. Rules that appear to be designed to throw people through the cracks:
“There is a conventional wisdom that, even as Medicaid has shown its political resilience, the public is pretty open to work requirements. But some new polling, shared exclusively with Vox, complicates that picture.”
Yep, the American ethos that fetishizes work as the highest calling in life has long been reflected in public opinion polls about things like work-requirements for a safety-net. But as the recent Center for American Progress poll suggests, Americans might be more conflicted on the topic than is widely assumed. When asked whether states should be allowed “to deny Medicaid health coverage to recipients ages 18 to 64 who do not have a job with a certain amount of hours and do not participate in state-approved work programs”, 57 percent of Americans oppose the idea:
So is this new poll a statistical blip or otherwise flawed and unreliable? Well, as the article points out, there’s a very plausible explanation that incorporates both the long-standing American public support for things like work-requirements as well as the long-standing public support for a safety-net: This poll asked the question in a way that highlights the loss of Medicaid coverage for people who didn’t meet the requirement, whereas the Kaiser poll which showed 70 support for work requirements phrased the question in a way that emphasized needed to work to qualify for Medicaid. So when Americans were reminded that work requirements mean people who don’t meet them lose access, a majority of Americans didn’t support them. In other words, it’s entirely possible that the primary reason there’s has been so much support for work requirements for public safety-net services by the American public is because the American public hasn’t actually thought this through which might be why the phrasing of the question could impact polling results so much:
Is it possible that Americans literally aren’t consciously thinking about the fact that work requirements aren’t just about work but also about throwing people off services? Let’s hope so, because it would be nice if the turbo-charged nightmare government surveillance regime that’s constantly measuring the poor to assess their worthiness for services is all just a misunderstanding. A giant horrible misunderstanding.
But it’s hard to ignore the recognition that there’s still significant support in the US for the idea that there’s a segment of society that falls into the category of ‘those lazy bastard people who need to be allowed to die in a ditch’ and that sentiment is undoubtedly animating a lot of America’s support for these kinds of policies. But who knows, maybe when Americans are faced with the actual consequences of putting such sentiments into policy — consequences like ‘those lazy bastards’ actually becoming homeless and dying in ditches — maybe the public support won’t be there. Is that possible? It at least seems possible Americans won’t actually support the consequences of the GOP’s unfolding War on the Poor. Tragically, we’ll probably get an answer to that question but only after all these new rules are put in place and create a human catastrophe after the next big recession.
It’s all a reminder that, at the same time the GOP is holding the ‘Dreamers’ hostage to extract an immigration reform plan that is more or less a refutation of the ‘Give me your tired, your poor, Your huddled masses yearning to breathe free’ line on the Statue of Liberty (which wouldn’t be the first time this administration has refuted that line), the GOP is busily working on creating a fresh new supply of tired, poor, huddled masses.
And they’ll free all right. Free to die in a ditch. Which, in the context of the GOP’s War on the Poor, is be a feature, not a bug. A brutal feature that will hopefully become unpopular if and when people actually stop and think about it.
Mission Accomplished! Specifically, the White House mission to troll the nation with a new outlandishly cruel proposal in the GOP’s expanding War on the Poor. And trolling was seriously their mission. They admit it:
The White House just proposed replacing half of the food assistance people currently receive in food stamps — government funds provided to the poor specifically for buying food — with a “Harvest Box” of government-provided food that will be delivered to people instead. What’s the state motivation behind this plan? Increasing access to fresh, health foods that often aren’t available in low-income ‘food deserts’? No, that’s not the goal. The boxes won’t contain any fresh food. Only non-perishable goods.
Instead, the goal is the same goal the GOP always has for any program that helps the poor. Gutting them. In this case, the goal is shrinking the food assistance programs for the poor by $21 billion dollars over the next decade. Yep, after that giant tax cut for the super-rich someone has to help pay the nation’s bills.
But according to White House officials, this proposal wasn’t serious at all. It was just trolling. That’s literally the explanation two White House sources give in the following article. The real plan, according to these insiders, was to enrage progressives with the “Harvest Box” idea and “stir up” Republicans in Congress as a way of “laying down a marker” so show that the administration is serious about a different proposal it has for food stamps: new food assistance work requirements and numerous other cuts designed to cut another $85 billion from food assistance programs over the next decade.
And this $21 billion in proposed “Harvest Box” cuts and the projected $85 billion from the new work requirement and other cuts are merely a fraction of the self-imposed administration goal of reducing federal food assistance programs by $214 billion over the next decade. Yep, they’re seriously calling for $214 billion in cuts to food assistance for the poor over the next decade.
So while the “Harvest Box” proposal may have been trolling, it was the kind of trolling that actually understated the administration’s cruelty. It was highly strategic trolling. As right-wing trolling so often is these days. A giant trolling distraction that is designed to draw attention away from the cuts to food assistance programs that are 10 times larger than the “Harvest Box” cuts and draw attention away from the $85 billion in additional cuts.
In other words, the “Harvest Box” idea is just the fake appetizer for the feast of cuts the White House just proposed. Because, again, someone has to pay for that tax cut for the super-rich. And that ‘someone’ who will pay is people too poor to eat. And they will pay BIGLY. Bigly malnutrition:
“But on Monday, the Trump administration sprung a surprise: Under a proposal in the president’s budget many participants in the program would be given half their benefits in the form of a “Harvest Box” full of food preselected for nutritional value and economic benefit to American farmers. The cache of cheaper peanut butter, canned goods, pasta, cereal, “shelf stable” milk and other products would now be selected by the federal government, not by the people actually eating it.”
Note how, because the federal government would be choosing what America’s poor eat, the ‘kicking the poor’ political dynamic would suddenly shift to coming up with the most unpalatable food choice people can come up with. Because that’s how politics in America works these days. Tragically. But that’s the can of worms the Trump administration just floated...the kind of ‘can of worms’ that would likely eventually result in Republicans suggesting we should be sending poor people nutritious cans of worms. As motivation to stop being so poor. Because, again, that’s how politics in America works these days.
And the $21 billion in cuts that the “Harvest Box” idea was projected to generate were just a quarter of the $85 billion in projected cuts from work requirements and a slew of other proposed cuts. Cuts that will frequently come form of just kicking people off of food assistance if they can’t find a job and letting them head to the food banks or die in a ditch:
And let’s pause for a moment and imagine a scenario of “Harvest Boxes” and new work requirements for food assistance. So you have to work at least 20 hours a week, often at jobs with hard to predict hours, and you also have to receive a box carrying half your weekly food supply. So what happens if you have to be at work when the Harvest Box arrives? Won’t pretty much everyone potential porch thief know which day of the week the “Harvest Boxes” arrive and day and run around picking up all boxes left on porches? Will people be expected to drive to a Harvest Box pick-up location if they aren’t home to receive it? That will be fun in rural areas. Lots of driving and lots of unnecessary car repairs.
And if the local grocery stores in poor areas go out of business, will everyone else in that area be able to sign up for a Harvest Box? Or will they just have to drive to the closest Walmart? These are the kinds of questions that led the Democrats in Congress to openly assume this was trolling and a distraction. It was bad even by Trump administration standards.
But note how the White House officials who admitted this plan wasn’t seriously being proposed didn’t suggest that it could never happen. Just that it wasn’t going to happen anytime soon. And when you look at the self-imposed Trump Administration goal of shaving $214 billion off of food assistance programs over the next decade, it’s not hard to imagine that the “Harvest Box” might eventually become a reality. Because $21 billion + $85 billion is roughly half of the $214 billion goal:
“Agriculture Secretary Sonny Perdue stealthily pitched the idea over the last few weeks to the White House’s Domestic Policy Council as a novel way to reach the administration’s self-imposed goal of slashing federal food assistance programs by $214 billion over the next decade.”
Whether or not the Trump administration is acting like it thinks these kinds of proposed cuts are realistic, they are clearly desired. These guys really do want to hit that $214 billion goal by eviscerating these programs. So this “Harvest Box” idea was both a $21 billion distraction from the rest of the $214 billion in cuts and also a zany scheme that would only achieve 10 percent of that $214 billion goal.
And notice how the “Harvest Box” idea would replace roughly half of the overall assistance people get (not all recipients, only the neediest half), and yet the $21 billion in savings expected from the “Harvest Box” is 1/10th of the goal of $214 billion in cuts. So 90 percent of the ‘savings’ are expected to be found from the remaining half of the program that remain a traditional ‘food stamps’ and don’t get converted into a delivered “Harvest Box”. And as the following article makes clear, those ‘savings’, at least the $85 billion that have been proposed so far, will almost entirely come in the form of more cuts to eligibility — including 4 million households that would be kicked off entirely — and cuts to assistance for those who remain. So when we’re told that the “Harvest Box” would cover about half the food for recipients, it would probably be a lot more than half of what recipients receive given the plans to eviscerate the other half of the program:
“President Trump’s 2019 budget proposes to cut the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps) by more than $213 billion over the next ten years — or by nearly 30 percent. It calls for radically restructuring the delivery of benefits, which would cut benefits for the overwhelming majority of households, and other benefit and eligibility changes that would leave at least 4 million people losing SNAP benefits altogether. The cuts would affect every type of SNAP participant, including the unemployed, the elderly, individuals with disabilities, and low-income working families with children. The proposed cuts would come on top of other Administration proposals to shrink the safety net, particularly health coverage, and on the heels of a tax law that will mainly benefit the wealthy and corporations and is expected to add $1.5 trillion to deficits over ten years.”
Almost 30 percent. That’s what a $214 cut would do. And that’s the Trump administration’s goal for cutting food assistance for the poor in America.
The proposed cuts so far will result in 4 million households losing access to those SNAP benefits entirely. But don’t forget that they’ve only given details on $106 billion of the $214 billion desired cuts. So that 4 million household number will probably skyrocket.
And as the piece made clear, almost all of the $85 billion in cuts are in the form of kicking people off of the SNAP program. Through one new bureaucratic hurdle or another:
“Penalize large families by capping SNAP benefits at the level for a household of six, effectively eliminating SNAP to the additional household members.”
That’s your pro-family GOP: capping the food assistance levels to 6 people in a household. Now, it’s true that large families don’t want to be encouraged because the world can’t afford endlessly growing human populations. But starving large families probably isn’t the way to achieve that. But that’s our GOP.
And that family cap is just one of the many cuts that are obviously going to lead to hunger. So when you look at the callous and grim nature of those cuts, it’s not hard to see what the administration was more than happy to distract from all those other cuts. The “Harvest Box” is unique in the proposed cuts in that it’s a cut that doesn’t involve directly kicking people off the program. Instead it purports to be a more efficient way to deliver food which is very different from the rest of the proposed $85 billion in cuts as we just saw. The “Harvest Box” at least pretends to give ‘more for less’ as opposed to the rest of the cuts which are unambiguously ‘less for less’.
Will the “Harvest Box” successfully distract from the rest of the proposed cuts? We’ll see. Odds are the many other daily Trump scandals will provide any additional distraction if that’s required, but it would be nice if the American public learned about what the Trump administration is proposing. Because when a democracy is about to start starving itself, it should know about that. Not only because the GOP War on the Poor is cruel but also because it’s stupid and dangerous. Weak safety-nets don’t create strong societies. They create dysfunctional troubled societies filled with desperation and turmoil. And when the safety-net is being shredded to pay for tax cuts for the rich that’s just sick.
It’s a reminder that policies sold as ‘promoting rugged-individualism’ (which is the meta-sales-pitch/branding for the GOP’s ‘kick the poor’ policies) are typically the kinds of policies that actually make society collectively more fragile and disturbed. And the fact that this is done largely for the benefit of billionaires in control of vast personal empires supporting their every action is, of course, the opposite of supporting ‘rugged individualism’.
It’s also a reminder that, with the Trump administration, as bad as things appear they could be worse and probably are worse because the bad things are probably just a Machiavellian distractions designed to obscure worse Machiavellian actions.
Here’s a story that’s a reminder that the GOP is going to have to start getting extra creative in how it wages its War on the Poor, because we’re running out of things they haven’t already proposed: Guess what people on Medicaid are about to start getting in GOP-controlled ‘Red states’ in addition to the new work requirements the Trump administration has already started approving. Lifetime Medicaid time limits that still apply even if you’re working. Yep, even if you’re working you’re entire adult life, you can still get kicked off of Medicaid under the proposals multiple states are submitting the Trump administration for approval. Utah wants a 5 year limit, Wisconsin a 4 year, and Kansas a 3 year lifetime limit. Even if you work.
So a real-life mass death panel was just submitted by these three states. And Congress’s approval isn’t required. This can all be approved with a state waiver and that makes it exclusively a Trump administration decision:
“Jessica Schubel, a senior policy analyst at the Center on Budget and Policy Priorities, said there’s a “50–50 chance” that the Trump administration approves the time limits.”
50–50 chance of the Trump administration making this a reality. That’s perhaps the scariest fact in an article filled with very scary facts. Because as the article notes, this is one of those changes to America’s safety-net that doesn’t require congressional approval. All the Trump administration has to do is issue a waiver for a state:
So that 50–50 estimate of this happening wasn’t outlandish. If anything it’s not pessimistic enough. This is exactly the kind of thing the Trump administration would love. Because as the article also noted, the Trump administration has made it pretty clear that it would like to limit Medicaid to children, pregnant women, and those with disabilities. That’s it:
So it seems like the odds of these new lifetime limits getting Trump administration approval should be a lot higher than 50–50. They must be salivating over these plans.
Another very scary fact in this article is that we no longer have to ask the question if any states would be so heartless enough to actually do something like this. We are have answer: Yes, plenty of GOP-run states will jump at the chance to do this. Even when it’s going to cause a surge of people going to emergency rooms and getting much, much more expensive care there that the public has to pay for:
Of course the GOP will presumably try to change the laws and let emergency rooms turn people away (they’re working on it!).
And behold the range of cruelty on display in the state proposals: Arizona and Utah want a 5‑year lifetime limit, Wisconsin wants 4 years, and Kansas 3 years. And for Utah, Wisconsin and Kansas, the time-limited coverage would apply even to Medicaid enrollees who meet employment and work requirements. Don’t forget that a majority of Medicaid recipients work, they just work at jobs that don’t provide health insurance and don’t pay them enough to buy their own. So this really is a plan to set up massive indiscriminate death panels for the poor:
And look at Maine’s bizarro suggestion: working age adults without a job could get up to three months of coverage in a given 36-month period. Got diabetes in Maine? Get ready to die after you lose your job and can’t afford the insulin:
And, while all these newly uninsured people will flood emergency rooms and end up costing the public much more, we can be guaranteed that part of the sales pitch for these state plans will be the argument that this will just encourage the poor to just up and move to ‘Blue’ states who choose not to impose lifetimes with lots of ghastly snickering. Along with lots of suggestions about how this will allow states to become more ‘competitive’ by allowing for lower taxes. And chortling. Lots of chortling.
So you have to wonder how that’s going to affect the current political polarization gripping the US if a whole bunch of poor people from ‘Red states’ are basically forced to move to ‘Blue states’ just to live. How will that change American politics? Because that seems like a big deal that could shape opinions on things like public support for universal health care policies. When people in Utah learn that that their poor cousin or uncle just had to move to California to get the medicine they need to live, how will that change American politics? Because that kind of situation isn’t unimaginable. In Kansas it could start happening in about three years. And then Wisconsin, and then Utah. An inter-state medical refugee crisis where ‘Blue’ state safety-nets start becoming life rafts for the ‘Red’ states’ poor could all start happening in the next 3–5 years.
How likely is this nightmare mass death panel scenario? Well, this policy is more or less guaranteed to be a disaster if implemented, and there’s about a 50–50 chance of it getting implemented soon. So about 50–50.
Here’s a series of article that hint at a new dark twist in the GOP’s plans to use state waiver to cut Medicaid services and, more generally, impose work requirements on potentially the entire US safety-net:
First, it turns out that Uber is offering a new service: Uber Health.
It’s the same taxi-like service Uber normally provides, but it’s specifically for the sick or elderly going to the doctor. That’s pretty much it.
And while that might sound like a nice new option for Medicaid patients, as the following article notes, it also just happens to be the same kind of service that the Trump administration is allowing states to cut from Medicaid using a “waiver”:
“Yesterday Uber, a company launched under the premise that every under-employed American’s car could transform into a lucrative side-gig, announced Uber Health. The service is nearly identical to Uber, in that it pairs drivers making $3.37 an hour with people who need a ride. It differs in that those riders are the sick or elderly on their way to see a doctor. In a conceit to “accessibility,” Uber has added a feature allowing patients to print out driver information that would otherwise appear on the app’s screen.”
Uber Health: It’s Uber, but for a target market. Behold the innovation!
And from a business sense it might be a real innovation. That innovation being providing the services the GOP is actively trying to cut. In this case, that would be Medicaid’s non-emergency transportation service:
And we don’t have to aske whether or not GOP-led states are going to use the waivers to cut the non-emergency transportation services. It’s already happened in Iowa, Kentucky, and Indiana:
So that’s a probably a sign of things to come: Uber or Uber-like services offering to offset cuts on public services by offering to adapt their low-pay/no-benefits business model to fill in the gap. It’s both a cut in government and a cut in worker status, which is the kind of business/government model the GOP and businesses are surely go to embrace.
And that brings us to our next article that points towards a different area of the economy tied into the social saftey-net that’s experience an Uber-ization of its own: Walmart employees.
Yep, Walmart has decided it too is going to get into the ‘gig economy’. By turning a large number of its current jobs into gig jobs. It’s one of the strategies for how Walmart plans on raising employee wages: by turning large numbers of its employees into non-employee ‘gig’ workers.
Also, robots. Walmart wants a lot more robots to do the work that it’s employees are currently doing.
And this shift towards robots and gig work is happening in the context of the ongoing drive in the US by the GOP to impose a work requirement on as many safety-net services as possible. So Walmart, one of the largest employers in the US and the kind of employer that many of those facing work requirements will go to find entry-level work when faced with those work requirements, is planning on systematically eliminating entry-level jobs and replacing them with robots and gig work:
“Over the past few weeks, Walmart executives have sketched a picture of the company’s future that features more self-checkouts and a grocery-delivery business—soon escalating to 100 cities from a pilot program in six cities. Personal shoppers will fill plastic totes with avocados and paper towels from Walmart store shelves, and hand off packages to crowdsourced drivers idling in the parking lot. Assembly will be outsourced, too: Workers on Handy, an online marketplace for home services, will mount televisions and assemble furniture.”
So long, underpaid Walmart employees, and hello more underpaid Walmart non-employee gig workers!
And when a company as large and influential as Walmart goes down this path, you can be sure others will follow. Of course, it’s a path that Walmart has followed others down. As the article notes, “flexible work arrangements”, which include platforms like Uber but also freelancers and independent contractors, accounted for 94 percent of the net employment growth in the United States between 2005 and 2015:
And as the article also notes, while “flexible work arrangements” could, in theory be good for workers, that’s not what’s actually happening. Instead, this “flexibility” appears to have been largely used to expand employer profits:
And that’s why we should expect Walmart’s future gig employees to be paid even less than their current employees. Because Walmart obviously wouldn’t be doing this if they thought it would cost them more:
And then there’s the other side of Walmart’s vision for the future: robots and automation. And much like the “flexible work arrangements” trend, automation doesn’t necessarily have to lead to lower pay. But lower pay is indeed what automation has led to in the form of lower wage growth:
And this vision for Walmart’s future appear to how Walmart is planning on ‘raising wages’: by turning its lower paid employees into lower-paid non-employee gig workers and hiring a relatively small number of higher paid employees to take care of all the robots and automation:
Finally, as the article, this transition to the gig economy could be particularly hard on young people between the ages of 16 and 24 seeking retail work since this demographic is far more likely to find retail work than the rest of the US workforce:
But, of course, as work requirements for safety-net services become the norm, it’s not just going to young people who are going to be pushed into the gig economy. It’s going to be any unemployed poor person.
And that’s part of what what’s so disturbing about this trend: it’s a trend seemingly designed to make the poor poorer for the benefit of employers. And Walmart is about turbo charge this trend.
But there’s another disturbing aspect about all this. And, of course, this disturbing aspect involves the GOP: It turns out
:
“The Washington insider publication Politico has a habit of publishing revealing op-eds by right-wingers in Washington that show their ideology in an unvarnished way. It’s a place you can see their true feelings about the poor and the American entitlement system—which is to say runaway contempt for both. One so-bad-it-borders-on-self-parody op-ed dropped January 27, and it wants to massively overhaul several entitlements by subjecting those most in need to the Dickensian nightmare of the “gig economy”: “Uber for welfare: A bold proposal to use the ‘gig economy’ to reboot the safety net.””
The ‘gig’ safety-net: in order to get basic safety-net services you’ll need to find ‘work’. One gig at a time. For whatever pay the gig ‘marketplace’ is offering at that moment. And you’ll be competing with all the other people on the safety-net (and everyone else not on the safety-net in the gig economy) which should more or less guarantee really, really low pay.
Lower pay for the poor. That’s the plan. A plan that, of course, is brought to us by a pair of GOP operatives, Cesar Conda, a former chief-of-staff of Marco Rubio, and Derek Khanna, described as a “guru” who worked for the Romney campaign:
And, of course, the authors of this piece tout the virtues of “flexibility” and how “almost anyone to find a job with hours that are flexible with virtual locations anywhere”:
But as the piece doesn’t point out, the gig economy doesn’t actually offer jobs. It offers one-off tasks for whatever pay the market will bear at that moment:
And don’t forget, if Walmart and other major retailers shift to a gig model, we’ll basically be turning people who use the safety-net into a super-cheap workforce for Walmart. And any other major employers. It would be a way to not just lower the minimum wage but effectively eliminate it entirely. So, of course, the authors of this idea wildly overstate the average hourly earnings of Uber drivers:
So how likely is it that the GOP will embrace the idea of these two conservative operatives? Well, as the piece points out at the end, this ‘gig work for welfare’ idea is a GOP dream because what the far right fears most is a working class that isn’t utterly desperate and easy to exploit:
So now that we’ve seen this overview of this vision for a gig safety-net that GOP operatives Conda and Khanna laid out in their 2016 Politico piece, let’s take a look at the piece itself. Surprise! It gets even more disturbing. Not only to Conda and Khanna call for virtually all safety-net programs to get a work requirement for able-bodied adults, they also call for work requirements for the disabled too. Yep, Social Security Disability recipients should be expected to find gig work too unless they’re so disabled that even that isn’t an option.
And that, of course, is the perfect recipe for kicking people off of disability programs: if someone is currently too disabled to find gig work, all that will need to happen is for some employer to come along and find a gig job for that population to do. Can you only move your left foot? Well, there just might be a gig employer out there with a task that pays 1 cent an hour and only requires the movement of your left foot. That’s the kind of nightmare they’re trying to unleash on the disabled: with minimum wage and regular work hours no longer a requirement for employers, there can be a race to the bottom in terms of the single tasks that someone might be hired to do. And every time employers find a new way to momentarily employ those still defined as disabled that will create a whole new pool of people who can be kicked off of disability for not meeting the work requirement.
Conda and Khanna also give a general description for the types of tasks they have in mind: pretty much anything. For those who don’t drive and can’t do Uber or Lyft, they could deliver goods and groceries (like what Walmart is planning), assemble furniture (like Walmart is also planning), or mow lawns and plow driveways (like Walmart is probably planning). Plus anything on Amazon’s MechanicalTurk, Fiver and other companies pay for general tasks that can usually be done on a computer or phone anywhere across the country.
But they don’t stop there. They also have pretty much any skilled jobs in mind. Photo shoots, voice lessons, mural painting, tennis lessons, or house painting, computer coding, graphic design, and even legal services for unemployed lawyers.
They also call for a change in law so the President would no longer have the option of temporarily waiving work requirements for a program. So the next time there’s a major recession, employers could layoff as many workers as possible and then rehire them as gig workers. In other words, what they have in mind is a system that encourages every sector of the economy to gig-ify itself during economic downturns, laying off as many people as possible (sending them to welfare) and rehiring them as cheap gig workers. Just like Walmart is planning. And economic recessions and depressions will be driving forces behind this. It’s not exactly wise economic policy but that’s what we should expect from the GOP.
So when Conda and Khanna say their idea could transform both government services and the general economy, they aren’t kidding. Enjoy your job while you have one:
“The government should expect that able-bodied safety net beneficiaries be willing to engage in the gig economy before collecting benefits. But transitioning to such a system requires policymakers to rethink the entire safety net, affecting nearly every federal entitlement program, so that it is oriented around the gig economy. That’s no easy task, but there are some important decisions that lawmakers can make to move in that direction.”
Rethinking the entire safety-net and orienting every program around gig work requirements. That’s the vision of these Republican operatives. Because of course it is, they’re Republican operatives.
And they are very explicit that this vision includes virtually all federal safety-net programs, including Social Security disability benefits:
And they are very explicit that this vision includes a redefinition of what it means to be unable “to engage insubstantial gainful activity” due to a disability. Can you think of a random task you might hire a very disabled person to do for a few cents? Guess what, you will have effectively lowered the bar under Conda and Khanna’s vision for what it legally means to be too disabled to work in the US:
And they are very explicit that this vision includes no temporary work requirement waivers even during recession, thus encouraging employers to lay off their workers during recession and rehire them as gig workers on welfare for a tiny fraction of the cost:
Collapsing wages aren’t exactly great for recessions but it’s not like the GOP actually cares about a healthy economy. It’s a party run by and for billionaires looking for grow their grotesquely inflated bank account. And unfortunately these billionaires have determined that creating as much economic insecurity for as many people as possible is the best way to accomplish that. Which is why is so disturbing to see that Conda and Khanna are calling for pretty much any skill to be offered under the gig economy, thus ensuring that almost all employers during recessions will have large and growing pool of unemployed gig workers to hire. It’s policy seemingly designed to trigger a massive Depression that will turn almost everyone into cheap gig employees:
And to highlight the fact that this isn’t just about changing welfare in America but also changing employment in America, Conda and Khanna call for government programs to ensure that those who can’t find gig work for some reason, like not having a car or computer, get access to one. They also call for the government to provide information to and providing information on how lower-skilled workers can become higher-skilled workers in the gig economy. Not get out of the gig economy. They can remain in the gig economy but just provide more skillful services to employers. Because that’s their vision for America: a gig workforce:
And to underscore how they are talking about transforming the American workforce, and not just safety-net programs, Conda and Khanna suggest at the end that because some gig jobs may not pay enough for people to get buy, qualified gig employees should still receive some sort of government assistance. The implicit idea being that they are proposing basically replacing the safety-net with gig employment, and to have a shriveled safety-net left over for the poorest of the poor gig economy workers. It’s meant to be a gig ‘work’ replacement for both the safety-net and employment in general in America:
Now, this is just two conservative operatives, albeit notable ones (Marco Rubio’s former chief-of-staff and the Romney campaign policy guru). But is there anything they wrote that doesn’t sound exactly like what the GOP as a whole would love to implement? A proposal to shred the safety-net by turning the poor into vast poor of below-minimum wage gig workers with no security at all and using this to drag down wages across almost all sectors of the economy. Isn’t that the most GOP-ish welfare proposal you’ve ever heard? The main at this point is how could this not be what the GOP as a whole is planning?
So should you find yourself on Medicaid and in need of transportation to the doctor, keep in mind that the person who picks you up as part of your Uber Health ride will probably be on Medicaid too. Along with being a part-time Walmart worker. And whatever other job they’re expected to do as part of the future gig America. A country where the only skill that won’t be gigged is the skill of being too wealthy to need to work.
And it begins: the era of work requirements for Medicaid recipients official began with Arkansas’s new work requirement scheme coming into effect on June 1. And true to the spirit of this work requirement drive, the program looks to be a human disaster designed to do little more than find excuses to deny people medical care.
The specific rules are that people need to report at least 80 hours a month working, searching for a job, or doing some other approved activity. If they don’t report meeting that requirement three times in a year they lose coverage and can’t reapply until the next year. Right now it’s just people aged 30–49 who fall under the work requirement, but starting next year it will be everyone 19–49. Waivers include being a student, living with dependent children, or earning at least $736/month (the equivalent of $8.50 an hour at 20 hours a week). So, for instance, if you had a job that paid you $736/hour and worked one hour a month you would qualify for a waiver. The work requirement only applies to the poorest of the poor.
The Human Services Department estimate a 20 percent drop in Medicaid enrollees as a result of these new rules in the first year, giving a cost savings of $49 million. Notably, all but $3.4 million of that projected savings goes to the federal government according to one estimate. A more recent estimate, put the potential savings at $33.9 million, with only $2.3 million going to the state. So Arkansas’s GOP is basically kicking its own citizens off of Medicaid to save the federal government money.
But there’s another big problem with this new plan. A large number of Medicaid enrollees don’t even know about it or understand it. And the state has only allocated $800k to help inform people about this, leading experts to presume that a number of people who do actually qualify for a waiver will still get kicked off of Medicaid due to not notifying the state that they qualify. So it sounds like Arkansas is about to experience a cruel self-inflicted medical crisis in about three months:
“Starting today, some people covered by Arkansas’ expanded Medicaid program will have to spend 80 hours a month on work or other approved activities if they want to keep their coverage.”
The clock is ticking for people on Medicaid in Arkansas. At least for those in the initial set of 27,000 people who fall under these requirements. And note that those who do qualify for a waiver might not be automatically waivered according to state records and will still have to go to a new state website and fill out a form indicating why they qualify for a waiver. So out of that initial batch of 27,000 people, 16,000 qualified for automatic waivers. But of the remaining 11,000 who need to got to the new website only 4,000 of them have actually created account yet. If that’s a sign of what we can expect going forward there’s going to be a lot of people getting kicked off Medicaid in Arkansas soon:
And this initial batch of 27,000 people is set to rapidly grow. More people ages 30–49 are getting phased in in coming months and it gets expanded to include 19–29 year olds next year, bringing the total number of people to 167,000 who will be facing this work requirement in a year:
Of that 167,000 people subject to the new requirements, the Human Services Department expects 20 percent of them to lose their coverage during the year. And while that will obviously end up saving some money (if you ignore the higher emergency room costs and other indirect costs of not providing health coverage), almost all of the money is being saved at the federal level. So Arkansas’s GOP really is doing this primarily out of a desire to kick people off of Medicaid. That’s it:
And it’s not like the people who are going to get kicked off are all people who didn’t meet the requirements or qualify for a waiver. The state is spending so little on informing people of this new program that the biggest issue they’re facing is that people simply do not know about the new requirements, meaning people who qualify could still get kicked of simply by not signing into the website and filling out the form because they don’t know they have to:
A culling of poor is clearly on the agenda for Arkansas. And it’s just the first state where this is going to happen.
So given the strict reporting requirements Arkansas set up and the fact that the state website is the only for enrollees to report, what’s the state’s response to criticism that it’s the state with the second lowest rates of home internet access in the US? Well, the state has a response: forcing everyone to have internet access in order to keep their Medicaid will help people develop their computers skills. That was seriously their answer:
“One widely criticized aspect of Arkansas’ new rules is that everyone enrolled in Medicaid has to document their work hours through an online portal created by the state — with no option to submit information in person, over the by phone, or by mail.”
Yep, there is NO OPTION for enrollees other than the new website. Which is rather remarkable for a state with the second lower rates of home internet access in the US:
And what does the state government have to say about this obvious problem? Well, the director of the Department of Health Services said that by requiring low-income Arkansas to submit their information online, the state is in fact helping them improve their technological skills. In other words, this internet-only mandate is apparently some sort of job training program: if you want health care you better figure out how to access the internet. Or die trying:
““Having that little bit of computer or phone literacy is important if you are going to be able to be moving up the income ladder,” she said. “I mean, a 19- to 29-year-old who in this day and age can’t do that and is able-bodied? You know, they need — we need to help them learn to do that. We need to help them get an email and learn how to deal in that world, or they will never be successful.””
Notice how there’s no mention of what the actual help is that Arkansas is offering people without internet access.
And then there’s the Urban Institute study that found that over 30 percent of the group of people expected to lose their coverage do not have internet access:
Beyond that, there’s the issue of seasonal workers who can’t necessarily count on having work every month. If those workers end up missing three months they lose their coverage. In other words, the seasonal workers can’t afford to miss work for a season. It’s quite a rule for an agricultural state but that’s how much Arkansas’s GOP hates its poor people:
And don’t forget that Arkansas is one of the few Southern states to actually accept the Medicaid expansion and saw its uninsurance rate cut in half as a result. So we don’t have to wonder whether or not the Medicaid expansion would have helped Arkansas if implemented. It has already helped immensely and the federal government paid for almost all of that help. And that’s clearly seen as too helpful. More suffering for the poor is clearly deemed necessary:
So we can see, Arkansas is making it clear that its poorest residents need to acquire new skills if they want to health care. Specifically, how to steal your neighbor’s wi-fi and possibly their entire computer. Those are going to be some really valuable skills for Arkansas’ poorest residents. Possibly even life-saving.
The question of whether or not there’s some sort of well thought out diabolical plan at work or if they’re just winging it has been one of the meta-questions repeatedly raised during the first two years of the Trump administration. A question that the American people are once again forced to ask now that President Trump has declared that the ongoing federal government shutdown showdown over ‘the Wall’ could go on for months or even years. Did they really plan for the possibility of effectively permanently shuttering all ‘non-essential’ federal government? Or did Trump wake up one day recently and just decide to do this?
Part of the reason we can’t dismiss the possibility that they have plans for a long-term shutdown is simply because the right-wing media has been telling audiences for years that shutting the federal government down is no big deal. This is typically the right-wing narrative in the lead up to the now-annual potential shutdown showdowns that have become a regular fixture in American politics over the last decade. A narrative that simultaneously assures the audience that Americans won’t care about keeping the government shutdown because nothing is truly shut down and at the same time the federal government doesn’t do things Americans value anyway. As stupid as that meme is, it’s a real right-wing meme that audiences of figures like Rush Limbaugh have been hearing for years. And President Trump is, of course, one of the biggest fans of right-wing media in existence, so we can be sure he’s familiar these assurances.
But the fact that right-wing pundits have been lying to their audiences for years about the low-risk nature of long-term shutdowns still raises the question of whether or not the Trump administration has actually planned on how to carrying such a thing out. Because it’s possible they planned on starting a long-term shutdown without making any real plans on how to deal with all of the various nightmare stories that are inevitably going to erupt.
And based on the following Washington Post article, it does indeed appear to be the case that White House has no plans for how to deal with the realities of a shutdown because they didn’t realize that programs ranging from food stamps to the processing of tax returns really do end. Yep, the White House apparently didn’t realize that a shutdown might actually shut things down that people need. For real:
“The Trump administration, which had not anticipated a long-term shutdown, recognized only this week the breadth of the potential impact, several senior administration officials said. The officials said they were focused now on understanding the scope of the consequences and determining whether there is anything they can do to intervene.”
Two weeks into the shutdown and the White House is only now recognizing the potential impacts. Impacts like the shutdown of the food stamps program. So people could literally start going hungry as a consequence of this political stunt and the people who pulled this stunt didn’t even realize it. And these people run the executive branch. That’s not terrifying or anything.
And starting in February, the USDA needs to decide whether or not they’ll be kicking specific people off of the SNAP program or just do across the board cuts for everyone. So a little bit of starving for everyone or major starving for a few. That’s the decision they’ll have to make. For February. Starting in March all the money is gone so everyone starves:
But in the White House’s defense, they weren’t the only part of the Republican Party demonstrating profound negligence in this situation. The head of the House Freedom Caucus — the extra-far right wing of the GOP that’s always cheering on these shutdowns — also claims he was unaware of issues like the looming cuts to the SNAP program:
And then there’s the impact on the IRS, which announced last year that it wouldn’t be do any tax refunds during a shutdown. Apparently this is also a surprise to the White House. And since the people who expect refunds tend to file their taxes earlier, that means there are refunds that could be spent stimulating the economy right now that aren’t happening:
And this whole nightmare is unfolding during a period of tumult in the financial markets and growing concerns over global growth. Will the US economy be able to handle growing uncertainty over the economic impact of this stunt? We’ll find out:
And whether or not the broader economic impact ends up dragging the US into a recession, there’s going to be a very personal recession for all the federal employees sent home without pay. And by the end of the month those personal recessions could start including evictions and car repossessions:
So, of course, President Trump defended the impact of the shutdown on federal employees by assuring everyone that the federal employees going without pay are actually the biggest fans of the shutdown, declaring ““This really does have a higher purpose than next week’s pay...And the people that wouldn’t get next week’s pay or the following week’s pay, I think if you ever really looked at those people, I think they’d say, ‘Mr. President, keep going, this is far more important.’”” Yes, the fantasy federal employees living in Trump’s head are all big fans of the going without pay. What about the real federal employees? Well, as the following article describes, for the lowest paid federal employees, who are often working as contractors, they increasingly have to decide whether or not they’re going to eat or take their life-saving medications, so they’re presumably not very big fans of the shutdown:
“All I can do is pray that they open the government soon.”
Prayers that the shutdown ends soon. That’s Donna Kelly’s views of the situation, which is highly understandable since she’s a federal contractor who won’t be receiving any back pay for missed days of work and who may not be able to afford her blood pressure medication going forward:
Adding to the dire nature of the situation for people in Kelly’s situation, we learn that she risks losing her federal housing assistance if she can’t pay rent. What will Kelly and the many others in her situation do when forced to choose between shelter and medicine? Ration, or even share, medications like insulin. Those are the kinds of situations people like Donna Kelly are going to find themselves in:
And to top it all off, Kelly is planning on applying for food stamps. Ouch. That should go really well with the SNAP program about to run out of funds: