Commentary Magazine


Topic: budget deal

The Budget and the Light Bulb

When the House of Representatives voted earlier this week to pass a budget it was widely, and rightly, considered a defeat for the Tea Party. Conservatives who opposed the compromise devised late last year by Republican Rep. Paul Ryan and Democratic Senator Patty Murray to put an end to the partisan impasse on fiscal issues have lost their ability to pressure the House leadership into following them into suicidal stands that undermine the country’s confidence in the GOP. But Tea Party members weren’t the only losers in that vote. Along with them, light bulb manufacturers also took one on the chin as Republicans insisted on including in the $1.1 trillion deal a measure that will defund the enforcement of the regulations that forced consumers to give up their preferred incandescent bulbs and replace them with new halogen, LED, or fluorescent lights.

While proponents of the law forcing the end of incandescent sales claimed it as a victory for the environment, the regulations in fact came about more through the workings of crony capitalism than the arguments favoring energy conservation. Though this move comes after repeated failures by conservatives to end this travesty that enacted bans on various bulbs that have already been implemented, it is not too late to halt a ban that constrains the freedom of consumers to make their own choices and reinstates some slight semblance of a free market. Though a minor part of the compromise both parties have forged, it should give some satisfaction to those who lament the passage of laws that value social engineering over consumer choice.

Read More

When the House of Representatives voted earlier this week to pass a budget it was widely, and rightly, considered a defeat for the Tea Party. Conservatives who opposed the compromise devised late last year by Republican Rep. Paul Ryan and Democratic Senator Patty Murray to put an end to the partisan impasse on fiscal issues have lost their ability to pressure the House leadership into following them into suicidal stands that undermine the country’s confidence in the GOP. But Tea Party members weren’t the only losers in that vote. Along with them, light bulb manufacturers also took one on the chin as Republicans insisted on including in the $1.1 trillion deal a measure that will defund the enforcement of the regulations that forced consumers to give up their preferred incandescent bulbs and replace them with new halogen, LED, or fluorescent lights.

While proponents of the law forcing the end of incandescent sales claimed it as a victory for the environment, the regulations in fact came about more through the workings of crony capitalism than the arguments favoring energy conservation. Though this move comes after repeated failures by conservatives to end this travesty that enacted bans on various bulbs that have already been implemented, it is not too late to halt a ban that constrains the freedom of consumers to make their own choices and reinstates some slight semblance of a free market. Though a minor part of the compromise both parties have forged, it should give some satisfaction to those who lament the passage of laws that value social engineering over consumer choice.

The key fact about the ban on the old bulbs that was usually ignored in discussions of this issue is that the chief advocates of it were not so much the environmentalists but the far wealthier manufacturers who were thrilled to force Americans to buy a new product that cost up to 10 times more than the old reliable bulbs. The profit margin on the new bulbs is significantly higher. The new bulbs may be more efficient and may last longer, but they also contain toxic mercury, are slow to turn on, and don’t work with dimmers and many other fixtures in American homes. While improved LED bulbs may eventually sweep the market and make us forget the old bulbs we chose, the new ones are being shoved down our throats merely to line the pockets of manufacturers while allowing them to pretend to “save the planet.”

The point here isn’t that innovation is bad. To the contrary, if the new bulbs are more cost-effective and reliable they should make the incandescent as obsolete as lamps that ran on whale oil. But legislating such change makes no sense. No laws were needed to force Americans to use cell phones rather than rely solely on landlines. Nor were regulations required to make us give up long-playing records for compact discs and then to embrace digital devices that don’t require either to play music. If the new bulbs prove to be better, the old ones would have become extinct without Washington dictating the change.

Some on the left may lament this vote as a sop to troglodyte conservatives who don’t believe in science. But the truth here is that the reversal of the regulation is a victory for consumer choice over a market model in which bureaucrats and intellectuals dictate what the public must do. Though a small and belated victory, it is one that those who love freedom and the free market are celebrating.

Read Less

Has John Boehner Learned His Lesson?

It was a short sound bite but it was replayed endlessly yesterday, angering some conservatives and leaving liberals chortling. When House Speaker John Boehner was asked during a press conference with other Republican leaders about criticisms from conservative activist groups of the budget deal struck by Budget Committee Chair Paul Ryan, he exploded:

REPORTER: Mr. Speaking, most major conservative groups have put out statements blasting this deal. Are you –

BOEHNER: You mean the groups that came out and opposed it before they ever saw it?

REPORTER: Are you worried –

BOEHNER: They are using our members and they are using the American people for their own goals. This is ridiculous. Listen, if you’re for more deficit reduction, you’re for this agreement.

This is not the first time Boehner has responded to criticism with anger and frustration. But it was a dramatic change of tone on the part of the convivial and often-teary-eyed and sentimental House speaker when it came to the conservative groups and their Tea Party supporters within his caucus. After all, it was only three months ago that Boehner was dragged reluctantly into a damaging government shutdown by the same organizations and members who were carping about the Ryan deal yesterday. Though no one should expect Boehner to be a changed man from the indecisive speaker of the shutdown crisis, he may have learned at least a couple of important lessons from that difficult experience. The days of the Tea Party tale wagging the House Republican big dog appear to be over.

Read More

It was a short sound bite but it was replayed endlessly yesterday, angering some conservatives and leaving liberals chortling. When House Speaker John Boehner was asked during a press conference with other Republican leaders about criticisms from conservative activist groups of the budget deal struck by Budget Committee Chair Paul Ryan, he exploded:

REPORTER: Mr. Speaking, most major conservative groups have put out statements blasting this deal. Are you –

BOEHNER: You mean the groups that came out and opposed it before they ever saw it?

REPORTER: Are you worried –

BOEHNER: They are using our members and they are using the American people for their own goals. This is ridiculous. Listen, if you’re for more deficit reduction, you’re for this agreement.

This is not the first time Boehner has responded to criticism with anger and frustration. But it was a dramatic change of tone on the part of the convivial and often-teary-eyed and sentimental House speaker when it came to the conservative groups and their Tea Party supporters within his caucus. After all, it was only three months ago that Boehner was dragged reluctantly into a damaging government shutdown by the same organizations and members who were carping about the Ryan deal yesterday. Though no one should expect Boehner to be a changed man from the indecisive speaker of the shutdown crisis, he may have learned at least a couple of important lessons from that difficult experience. The days of the Tea Party tale wagging the House Republican big dog appear to be over.

The incident and the debate about the budget deal are bringing out into the open a conservative civil war that had previously been conducted behind closed doors, at least as far as the House leadership was concerned. Prior to the shutdown there was little doubt that Boehner wasn’t happy about the way some House conservatives and, even more importantly, advocacy groups like Heritage Action and FreedomWorks were helping to limit his options in negotiations with the Democrats. Though he made it clear enough that he knew the decision to try and force the defunding of ObamaCare was doomed to failure and that it would hurt his party, Boehner wound up bowing to the demands of Heritage, Ted Cruz, and the rest of the suicide caucus in the House.

The thinking then was that Boehner worried that if he thwarted those who believed such radical tactics were the only possible response to the health-care law’s implementation, the House Republican membership would be irretrievably split and his speakership might be threatened. What followed was a disaster that not only materially damaged the Republican Party but, just as importantly, served to obscure the ObamaCare rollout fiasco for three weeks as the mainstream media focused instead on those who had warned him against letting himself be buffaloed into a futile shutdown. After 17 days of a shutdown, Republicans were forced to give in having accomplished nothing other than to make his party and congressional Republicans look just like the extremist caricature Democrats had tried to paint them as being.

However, the conclusion of this drama also exploded the myth that Heritage and company really had the power to thwart any effort to pull back from the brink. When Boehner finally concluded a deal that was little more than a face-saving surrender to end the shutdown, the activists screamed bloody murder and warned they would back primary challenges against any Republican who went along. But the tide had shifted against them and few heeded their threats. By the time the dust settled, even some on the right like Senator Rand Paul were admitting the whole thing had been a mistake.

The speaker emerged from this trial chastened by the experience but perhaps also realizing that the bark of the Tea Party caucus was worse than its bite. Many Republicans will oppose the Ryan deal that more or less formalizes a truce with the Democrats on budget issues for the next year and Heritage and others will, as they did with the shutdown, try and make it a litmus test of conservative bona fides. But Boehner and even a conservative deep thinker like Ryan have rightly come to the conclusion that the agreement with Senate Budget Committee chair Patty Murray is not only as much as they can reasonably hope to get. Even more to the point, they understand that paralyzing the government and Congress with manufactured crises, in order to push for more deficit reduction and the entitlement reform the nation needs but won’t get so long as control of Congress is split between the two parties, is a critical mistake. The nation as a whole and even most rank-and-file Republicans have had enough of the shutdown mentality. Three months ago, it may have seemed as if Boehner had no choice but to accede to the demands of the Tea Partiers. The shutdown may have convinced him that he doesn’t have to do that anymore.

Having methodically worked his way to the leadership over the course of a long career in the House, Boehner is no pushover. But during his time as speaker he hasn’t exactly come across as the sort of politician whom challengers cross at their peril. But the events of the last few months may mean that he will never again be bullied into taking a course of action that he knows is mistaken. This week he has called the Tea Party’s bluff in exactly the manner that many in his party wish he had done back in September. If he sticks to this resolve, both the Congress and the Republican Party will be better off for it.

Read Less

Ideologues Shouldn’t Torpedo Budget Truce

The first reviews are in on the budget deal agreed to by Republican House Budget Committee Chair Paul Ryan and Democratic Senate Budget Committee Chair Patty Murray, and people on both the left and the right have found plenty not to like about it. This is no grand bargain or long-term settlement of the great divide over how to achieve fiscal sanity.  It neither reins in spending nor does it provide for what Ryan has always said was most needed for the government to get its fiscal house in order: fundamental entitlement reform. That’s more than enough reason for many conservatives and Tea Partiers to reject it out of hand as an inadequate compromise that merely keeps feeding the government leviathan that they rightly believe needs to be cut back rather than maintained.

But, if, like the those on the left who will vote against it because it makes some cuts and doesn’t give them their wish list items like an expansion of unemployment benefits, conservatives manage to torpedo Ryan’s efforts, they will be making a huge mistake. After a three-year standoff between the parties on the budget, it was time for a truce. The modest deal restores certainty to the economy and eliminates some of the most painful sequester cuts, including those involving defense. Though it falls far short of anything that might be called reform, it does establish a principle that is necessary to it: any discretionary spending increases are offset by mandatory spending cuts. That is a step toward fiscal sanity that should be taken.

Read More

The first reviews are in on the budget deal agreed to by Republican House Budget Committee Chair Paul Ryan and Democratic Senate Budget Committee Chair Patty Murray, and people on both the left and the right have found plenty not to like about it. This is no grand bargain or long-term settlement of the great divide over how to achieve fiscal sanity.  It neither reins in spending nor does it provide for what Ryan has always said was most needed for the government to get its fiscal house in order: fundamental entitlement reform. That’s more than enough reason for many conservatives and Tea Partiers to reject it out of hand as an inadequate compromise that merely keeps feeding the government leviathan that they rightly believe needs to be cut back rather than maintained.

But, if, like the those on the left who will vote against it because it makes some cuts and doesn’t give them their wish list items like an expansion of unemployment benefits, conservatives manage to torpedo Ryan’s efforts, they will be making a huge mistake. After a three-year standoff between the parties on the budget, it was time for a truce. The modest deal restores certainty to the economy and eliminates some of the most painful sequester cuts, including those involving defense. Though it falls far short of anything that might be called reform, it does establish a principle that is necessary to it: any discretionary spending increases are offset by mandatory spending cuts. That is a step toward fiscal sanity that should be taken.

Those on the right who are dismayed about the abandonment of the sequester have a point. Only by insisting on mandatory and draconian across-the-board cuts have Republicans been able to make any kind of an impact on the fiscal debate. But as useful as the sequester has been, it is too imprecise an instrument to become a permanent part of the process. As our Max Boot has repeatedly pointed out, the cuts that have been imposed on defense are damaging national security and must, sooner or later, be eliminated.

Many on the right are also denouncing Ryan’s deal not just because it doesn’t give them what they want on taxes and spending but because they don’t see the need to compromise at this moment. They see President Obama’s poll numbers falling and think the time is right to push hard again for the kind of reform that is needed, not an agreement that merely kicks the can down the road. But this is the same kind of faulty thinking from groups like Heritage Action and Freedom Works that led conservatives to shut down the government as part of a vain effort to defund ObamaCare. Apparently they’ve learned nothing from that debacle.

This is exactly the wrong time for the GOP to go back to a scenario where they can be depicted as impeding efforts to keep the government working. Doing so would distract the country from the ongoing worries about the devastating impact of ObamaCare on individuals and the economy.

Tactics aside, the deal is necessary because it reflects the reality of divided government that both President Obama and the Tea Party have been butting heads over ever since the 2010 midterms. Under the current circumstances there is simply no way for either the Republicans in charge of the House of Representatives or the Democrats running the White House and the Senate to get their way. The accord reached between Ryan and Murray is simply an acknowledgement of this fact and an effort to keep the nation on an even keel until we can have another election to try and resolve this mess next November.

Avoiding compromise and setting off another cataclysmic fight over the budget or the debt ceiling (the latter is not part of this deal, leaving both parties free to set off another confrontation sometime in 2014 if they wish) satisfies the conservative impulse to draw a line in the sand over an ever-expanding government. But, as Ryan has said, Congress must deal with the world as it is rather than merely operate on the basis of how they’d like it to be. The only hope of getting closer to real entitlement reform is for the GOP to win the 2014 midterms. Some on the right are still laboring under the delusion that staging another shutdown or threatening a default is the right way to make their case to the country. But only someone utterly insensitive to the mood of the country would think that is either good politics or good public policy. If they go back to those tactics, Republicans will be forfeiting any chance of winning back the Senate in the coming year.

There’s little doubt that Republicans worried about primary challenges from the right or thinking about running for president in 2016 will be inclined to eschew any such compromise. But passing this budget will give their party a shot at winning in the midterms and take the wind out of the Democratic effort to paint them as irresponsible. Compromise is often the coward’s way out and leads to more trouble. But in this case, it is simply good sense. Though the cuts it imposes are no more than a rounding error, Republicans will do well to take what they can rather than to seek the impossible and thus render more progress less likely.

A truce is something you embrace when it will enable you to go back into the fray better prepared to prevail. Ryan is smart enough to know this, even if some of his colleagues don’t. It’s time for the GOP to keep its powder dry and come back to the table when they’ve got the votes and the seats to pass the kind of reform budget that Ryan and the rest of his party would prefer.

Read Less