MORNING MESSAGE: Washington’s Stupid, Destructive Game
OurFuture.org's Richard Eskow: "...as this stupid game goes on – how much do we cut, and where? – Washington’s past flings with austerity madness are already carving chunks out of our economy. The GDP, which grew 3.2 percent in the third quarter of 2012, shrank by 0.1 in the fourth quarter as their cuts began to take effect ... The official unemployment rate ticked up to 7.9 percent last month ... Consumer confidence is plunging – and why wouldn’t it? Nobody’s offering to help the average consumer ... One of the meanings of the word 'sequester,' according to Merriam-Webster, is 'to requisition and confiscate.' Another is 'to remove or set apart,' which is a surprisingly accurate description of Washington’s relationship to the rest of the nation as it indulges in this meaningless – and, by implication, confiscatory – exercise."
4 Days Til Sequester
WH puts pressure on Congress by details sequester pain to states. NYT: "'Ohio will lose approximately $25.1 million in funding for primary and secondary education, putting around 350 teacher and aide jobs at risk,' the White House said. 'In Georgia, around 4,180 fewer children will receive vaccines for diseases such as measles, mumps, rubella, tetanus, whooping cough, influenza and hepatitis B due to reduced funding for vaccinations of about $286,000. Pennsylvania could lose up to $271,000 in funds that provide services to victims of domestic violence, resulting in up to 1,000 fewer victims being served. In Texas, approximately 52,000 civilian Department of Defense employees would be furloughed, reducing gross pay by around $274.8 million in total.' In addition, the White House said, many of the nation’s 398 national parks would be partly or fully closed."
While Congress is acting "blasé" reports TPM: "...congressional leaders are hardly even pretending to negotiate a viable sequestration replacement plan. Later in the week, the Senate will vote on Democratic and Republican sequestration alternatives, but both are expected to fail. Republican and Democratic leadership aides believe negotiations won’t begin in earnest until after the sequestration order is issued. The question is how long those negotiations drag on."
Did Democrats underestimated Republican willingness to let military cuts happen in order to shrink government, asks NYT: "'Fiscal questions trump defense in a way they never would have after 9/11,' said Representative Tom Cole, Republican of Oklahoma. 'But the war in Iraq is over. Troops are coming home from Afghanistan, and we want to secure the cuts.' ... Dan Pfeiffer, a senior adviser to Mr. Obama, said on Sunday that there was no miscalculation. In the final months of last year’s presidential campaign, Republicans 'racked up a lot of frequent flier miles booking flights to Virginia' to denounce the coming military cuts, he said. If Republican leaders would step out of the way, he said, rank-and-file Republicans most worried about the military cuts would step forward to compromise on taxes."
"Democrats Zero In on Vulnerable Republicans Tied to Cuts" reports Bloomberg: "...the impact will fall directly on residents of military communities like [Aurora, CO] -- and their congressman: Republican Representative Mike Coffman, whose suburban Denver district is home to Buckley Air Force base and an active aerospace industry ... Last week, the Democratic Congressional Campaign Committee posted its first web advertisement of the 2014 cycle, entitled: 'Your pink slip - Brought to you by Congressman Mike Coffman.'"
Grand Bargain Odds Drop
Slower Medicare spending growth reduces chances for "grand bargain". NYT: " That diminishes the willingness of Congressional Democrats, and perhaps the administration, too, to accept the sort of Medicare curbs that Mr. Obama has indicated that he favors ... That $400 billion decline exceeds the $303 billion in savings over that period recommended in 2010 by the [Simpson-Bowles report.] ... Dean Baker of the Center for Economic and Policy Research argues that the trend, if it continues, will eventually resolve 75 percent of the long-term budget challenge posed by Medicare."
British austerity making governing coalition "jittery." NYT: "On Friday Moody’s became the first ratings agency to strip Britain of its prized triple-A investment grade, reducing the country to Aa1. In its report, Moody’s said one of the core factors behind its decision was the very slow pace of the British recovery ... Economic stagnation has made it harder for the government to reduce the deficit because tax revenues are not increasing as much as had been projected ..."
Breakfast Sides
Grassroots right-wing backlash threatening immigration reform. Politico: "In a town hall meeting in a Phoenix suburb, McCain faced off with a constituent who said Congress should 'cut off [immigrants’] welfare and stuff, and they’ll go back.' He added that McCain had broken a promise to help 'build the dang fence.' ... McCain seemed unfazed by the response and called one of the residents a 'jerk.' ... But the coverage of the meeting is likely to raise some eyebrows among GOP-ers who are being cautious about endorsing immigration reform just yet, many of whom still freshly remember the backlash at home from 2007."
Senate deal on gun background checks close. Bloomberg: "New York Senator Chuck Schumer, a Democrat, and Republican Tom Coburn of Oklahoma have worked out 90 percent of their differences over legislation that would expand criminal background checks to most private sales of guns, according to two Senate aides who asked for anonymity to discuss the talks. They remain at odds over whether private sellers must maintain records of their sales, which some Republicans oppose and advocates say is necessary to enforce a more comprehensive background check law."
