SPENDING CUTS WILL BE, OR HOW
CATASTROPHIC, TRULY, DEFAULTING
ON THAT IT WOULD BE FOR THE
FIRST TIME IN AMERICAN HISTORY,
TONIGHT I WANT TO TALK ABOUT
SOMETHING A LITTLE DIFFERENT,
BECAUSE NOT ENOUGH PEOPLE ARE
TALKING ABOUT WHY THIS IS ALL
HAPPENING IN THE FIRST PLACE.
AND I MEAN LIKE, REALLY, JUST
GO DOWN TO THE FUNDAMENTALS.
WATCHING THE STORY, MAYBE
YOU'VE SEEN IT.
WHAT IS THIS ABOUT?
WHY ARE WE HAVING A DEBT
CEILING SHOWDOWN?
WHY ARE REPUBLICANS THREATENING
TO TANK THE GLOBAL ECONOMY AND
DEFAULT FOR THE FIRST TIME IN
THIS COUNTRY'S HISTORY, UNLESS
THEY GET THEIR WAY TO IMPOSE
AUSTERITY AND CUT FEDERAL
SPENDING ON THOSE PROGRAMS
SEVERELY?
NOW, THE STATE JUSTIFICATION
FOR THE HOSTAGE TAKING, YOU
HEARD IT EVERYWHERE, DOESN'T
MAKE ANY SENSE.
AND THIS IS REALLY KEY TO
UNDERSTAND THIS WHOLE THING,
THIS SORT OF TOP LINE ANSWER,
WHICH HAS BEEN TAKEN FOR
GRANTED AS THE ANSWER IN MOST
MAINSTREAM COVERAGE, IS THAT
REPUBLICANS WANT TO CUT
SPENDING.
AND THEY WANT TO CUT SPENDING
BECAUSE THEY HAVE AN
IDEOLOGICAL COMMITMENT TO
CUTTING SPENDING.
YOU SEE THAT EVERYWHERE.
KEVIN MCCARTHY SAYS IT.
THE REPORTERS, BY AND LARGE,
ACCORDING TO HIM, THEY GO ALONG
WITH THAT.
THAT'S THE FIGHT.
IT IS SIMPLY NOT TRUE.
IT IS MADDENING TO SEE IT
REPEATED BECAUSE IT CANNOT
POSSIBLY BE THE ACTUAL ANSWER.
AND THIS IS IN SPECULATION OR
MIND READING ON MY PART, THESE
ARE JUST THE FACTS, THE
HISTORY.
THIS IS AN EMPIRICAL SITUATION.
WE KNOW THAT CANNOT BE THE
ANSWER BECAUSE WE HAVE SEEN
WHAT THE REPUBLICAN PARTY DOES
WHEN IT HAS CONTROL OF THE
GOVERNMENT AND IS FREE TO
PURSUE ITS AGENDA.
WHEN REPUBLICANS CONTROL BOTH
HOUSES OF CONGRESS AND THE
PRESIDENCY, YOU ARE ALIVE FOR
THIS, I WAS TOO, WE SAW IT ALL
HAPPEN, RIGHT?
WHAT DID THEY DO?
WELL, THEY CUT TAXES FOR
CORPORATIONS AND RICH PEOPLE.
AND THEY DO THAT EVERY TIME
WITHOUT FAILURE, RIGHT?
AND THAT'S BECAUSE THE
REPUBLICAN PARTY REALLY DOES
BELIEVE IN THAT.
THEY REALLY DO BELIEVE IN
CUTTING TAXES FOR CORPORATIONS
AND RICH PEOPLE.
THEY REALLY DO USE OUR POWER TO
MAKE IT HAPPEN.
IT'S THE ONE PIECE OF
LEGISLATION THEY WILL MANAGE TO
GET PAST, EVEN WHEN THEY ARE
SCREWING UP LEFT AND RIGHT.
THEY DID IT WITH GEORGE W. BUSH,
RIGHT?
THEY PUSHED DEREGULATION.
THEY MAKE LIFE HARDER FOR
UNDOCUMENTED IMMIGRANTS.
THEY RESTRICTED LEGAL
IMMIGRATION.
SOMETIMES, THEY PICK CULTURAL
FIGHTS.
THEY TEND TO BOOST SPENDING FOR
DEFENSE.
BUT ONE THING THEY DO NOT DO IT
WHEN THEY HAVE UNIFIED CONTROL
OF THE FEDERAL GOVERNMENT IS
REDUCE SPENDING.
AGAIN, THIS IS JUST A
HISTORICAL FACT.
I'M NOT DOING ANY MINUTE
READING.
I'M JUST TELLING YOU THE SIMPLE
FACT OF THE MATTER.
WHEN THEY HAVE CONTROL OF THE
GOVERNMENT, THEY DO THE
OPPOSITE OF REDUCING SPENDING.
THEY INCREASE SPENDING WHEN
THEIR PARTY IS IN POWER, WHEN
THEY CONTROL THE WHITE HOUSE,
WHY?
WELL, I THINK BECAUSE IN THE
MAIN, GOVERNMENT SPENDING IS
POPULAR, AND TENDS TO BOOST THE
POLITICAL FORTUNES OF THE WHITE
HOUSE AND THE PRESIDENT, IN
THIS CASE, THE REPUBLICAN
PRESIDENT.
IT HELPS THAT REPUBLICAN
PRESIDENT GET HELP REELECTED.
AXIOS PUT TOGETHER THIS HANDY
CHART OF GOVERNMENT SPENDING,
THE PURPLE LINE IS DEFENSE, THE
BROWN LINE IS EVERYTHING ELSE.
YOU CAN SEE THERE, IT GOES UP
DURING THE ADMINISTRATION OF
REAGAN, AND GEORGE W. BUSH.
AND THEN IT SLOWS DOWN A BIT,
SEE THAT LITTLE FLATLINE,
DURING THE CLINTON YEARS, OKAY?
AGAIN, THAT'S WHEN BILL CLINTON
WAS PRESIDENT.
AND THEN, AFTER THE HOUSE GOT
TAKEN OVER BY NEWT GINGRICH,
REPUBLICANS HAD A BIG BUDGET
STANDOFF, AND THEY IMPOSED
SPENDING CUTS, RIGHT?
THEN WHAT HAPPENS?
WELL, SPENDING SKYROCKETED
UNDER GEORGE W. BUSH.
OKAY, SEE?
SEE HOW THAT LINE GOES UP?
AGAIN, GEORGE W. BUSH TAKES
OFFICE.
HE'S GOT THE HOUSE AND SENATE,
RIGHT?
REPUBLICANS, THEY FORCE THE
COUNTRY INTO TWO VERY POINTLESS,
VERY EXPENSIVE WARS.
THEY ALSO RAN UP A LOT OF
DOMESTIC SPENDING.
AND THEN WHAT HAPPENS AFTER
THAT?
LOOK, IT DROPS AGAIN!
PRETTY DRAMATICALLY, UNDER THE
DEMOCRATIC PRESIDENT.
AND SEE THE DIP AROUND 2011
THERE?
THAT'S THE LAST TIME THAT
REPUBLICANS WERE IN OPPOSITION
AND HELD THE HOUSE, AND HELD
THE DEBT CEILING HOSTAGE.
THE EXACT SAME PLAYBOOK AS
RIGHT NOW.
THEY DEMANDED DEMOCRATS AGREE
TOO PAINFUL, UNPOPULAR SPENDING
CUTS, OR ELSE REPUBLICANS WOULD
GREATER THE ECONOMY.
SO, AGAIN, REPUBLICANS IN POWER,
SPEND, SPEND, SPEND FOR DECADES,
WHILE THEY HAVE THE PRESIDENCY.
TURN AROUND TO CARE ABOUT
PUBLIC SPENDING, ONCE DEMOCRATS
ARE IN POWER, BILL CLINTON,
CERTAINLY BARACK OBAMA.
AND AGAIN, WHY?
WHAT'S GOING ON?
WHY ARE THEY NOT CONSISTENT,
RIGHT?
THE ANSWER IS VERY SIMPLE AND
STRAIGHTFORWARD.
THEY WANTED TO MAKE IT HARDER
FOR BARACK OBAMA TO GET
REELECTED.
HERE IS MITCH MCCONNELL JUST
DAYS AFTER REPUBLICANS WE TOOK
CONGRESS IN 2010.
>> OVER THE PAST WEEKS, SOME
HAVE SAID IT WAS INDELICATE OF
ME TO SUGGEST THAT OUR TOP
POLITICAL PRIORITY OVER THE
NEXT TWO YEARS SHOULD BE TO
DENY PRESIDENT OBAMA A SECOND
TERM.
, BUT THE FACT IS, IF OUR
PRIMARY LEGISLATIVE BOTH ARE TO
REPEAL AND REPLACE THE HEALTH
SPENDING BILL, TO END THE BAIL
OUTS, CUT SPENDING, AND SHRINK
THE SIZE AND SCOPE OF
GOVERNMENT, THE ONLY WAY TO DO
ALL OF THOSE THINGS IS TO PUT
SOMEONE IN THE WHITE HOUSE WHO
WON'T VETO ANY OF THESE THINGS.
>> BUT THEY WANT TO SHRINK THE
SCOPE OF GOVERNMENT.
THEY JUST HAD CONTROL OF THE
GOVERNMENT UNDER GEORGE W. BUSH,
AND THEY DID NOT SHRINK ITS
SCOPE OR ITS SIZE.
AGAIN, YOU CAN'T TAKE WHAT THEY
ARE SAYING AT FACE VALUE
BECAUSE IT MAKES NO SENSE.
SO, OBAMA WAS FORCED TO STRIKE
A DEAL TO GET THE DEBT CEILING
RAISED, WHICH PUSHED AUSTERITY
MEASURES THAT SLOWED THAT
RECOVERY FROM THE FINANCIAL
CRISIS.
IT MADE THE ECONOMY WORSE.
IT CREATED UNNECESSARY MISERY
FOR MILLIONS.
IT ALSO MADE IT WORSE THAN IT
SHOULD HAVE BEEN WHEN HE WAS
RUNNING FOR A SECOND TERM IN
2012.
YOU COULD SEE IT RIGHT HERE ON
THIS CHART, THE TOP LINE IS HOW
MUCH THE GOVERNMENT WAS
PROJECTED TO SPEND DURING THE
OBAMA YEARS.
THE BOTTOM LINE IS HOW MUCH THE
GOVERNMENT ACTUALLY SPENT AFTER
THE TEA PARTY FORCED DEMOCRATS
TO CUT SPENDING.
SEE HOW THE BOTTOM LINE, THE
AMOUNT COUNTRY SPENT IS WAY
LOWER THAN ORIGINALLY PROJECTED
BEFORE REPUBLICANS DEMANDED
CUTS?
THEN, YOU'LL SEE SOMETHING
ELSE.
SEE HOW IT BLOWS UP THEIR,
STARTS TO GO UP.
IT LOOKS LIKE THE BOTTOM LINE
START TO TICK UP AROUND,
DRUMROLL PLEASE, ONE COULDN'T
BE?
I.S. 2017, RIGHT AFTER DONALD
TRUMP WAS ELECTED AND
REPUBLICANS CONTROL CONGRESS.
WHAT DID THEY DO?
THEY STARTED SPENDING, OF
COURSE.
LET'S GO BACK TO THE FIRST
START FOR A SECOND AND LOOK AT
GOVERNMENT SPENDING UNDER
TRUMP.
OH, YEAH!
IT SKYROCKETED.
LOOK AT THE LINE SHOOT UP.
NOT A MILITARY SPENDING,
PARTICULARLY, WENT WAY UP UNDER
TRUMP AND THE REPUBLICANS.
IN FACT, REPUBLICANS SPENT SO
MUCH, PARTNERED WITH MASSIVE
TAX CUTS TO THE RICH AND
CORPORATIONS, THAT THE DEFICIT
INCREASED NEARLY 40% UNDER
TRUMP.
NOW, AGAIN, I AM --
I JUST CAN'T BEAR IT, OKAY?
I THINK AT THIS POINT, EVERYONE
SORT OF AGREES THAT THE
REPUBLICANS DON'T CARE ABOUT
THE DEFICIT, THAT WAS THE OLD
EXCUSE, AND NO ONE BUYS IT
ANYMORE.
CLEARLY, THEY DON'T.
YOU CAN'T CARE ABOUT THE
DEFICIT WHILE YOU ARE ALSO
PUSHING MASSIVE TAX CUTS TO THE
RICH, UNTENABLE.
BUT PEOPLE STILL HAVEN'T REALLY
COME AROUND TO THE EVEN MORE
BASIC IDEA THAT REPUBLICANS,
THEY DON'T CARE ABOUT SPENDING
EITHER, THE SIZE AND SCOPE OF
GOVERNMENT.
BUT THAT'S WHAT THE NUMBERS SAY,
AGAIN, I AM JUST READING YOU
THAT HISTORY.
SO, THEN THE QUESTION BECOMES,
AND THIS IS A BIT OF A MYSTERY,
WELL NOT REALLY A BIG ONE --
BUT THE QUESTION IS, IF
REPUBLICANS DON'T CARE ABOUT
SPENDING, WHICH THEY DON'T,
THEN WHY ARE THEY FORCING A
CRISIS OVER THE DEBT CEILING?
WHAT IT'S REALLY ALL ABOUT?
AND, AGAIN, THE ANSWER IS VERY
SIMPLE.
IT IS ABOUT ASSERTING DOMINANCE
OVER THE DEMOCRATIC PRESIDENT,
AND HURTING HIS POLITICAL
FORTUNES.
I KNOW THAT SOUNDS CYNICAL.
BUT THERE IS LITERALLY NO OTHER
WAY TO INTERPRET THE REMARKABLY
CONSISTENT POSITION REPUBLICANS
TAKE ABOUT THESE MATTERS FOR
SPENDING.
PRESIDENT BIDEN HIMSELF
ACKNOWLEDGED THIS OVER THE
WEEKEND.
>> I THINK THERE ARE SOME MAGA
REPUBLICANS IN THE HOUSE WHO
KNOW THE DAMAGE THAT IT WOULD
DO TO THE ECONOMY.
AND BECAUSE I AM PRESIDENT, AND
THAT PRESIDENT IS RESPONSIBLE
FOR EVERYTHING, BIDEN WILL TAKE
THE BLAME, AND THAT'S ONE WAY
TO MAKE SURE BIDEN IS NOT
REELECTED.
>> LOOK AT IT THIS WAY.
REPUBLICANS RECOGNIZE HIGH
DEGREES OF SPENDING UNDER A
PRESIDENT TEND TO BE
POLITICALLY POPULAR.
IN FACT, MITCH MCCONNELL
ADMITTED THIS BACK IN 2019,
EVERYONE ELSE HAS FORGOTTEN
THIS QUOTE, BUT I HAVE NOT.
THIS IS TACKED IN MY BRAIN.
BECAUSE BACK IN 2019, THE
WASHINGTON POST REPORTED, QUOTE,
MITCH MCCONNELL TOLD PRESIDENT
TRUMP PRIVATELY THAT NO
POLITICIAN HAS EVER LOST AN
ELECTION FOR SPENDING MORE
MONEY.
INVERSE IS ALSO TRUE, LOWERING
THE AMOUNT OF GOVERNMENT
SPENDING TENDS TO HURT THE
ECONOMY, HURT AMERICAN VOTERS.
IT TENDS TO BE POLITICALLY
UNPOPULAR.
SO, AGAIN, THE REPUBLICAN
CALCULUS IS SIMPLE.
YOU SPENT LIKE THERE IS NO
TOMORROW WHEN YOU ARE IN POWER,
BECAUSE IT HELPS YOU
POLITICALLY.
WHEN YOU ARE OUT OF POWER, YOU
DO EVERYTHING POSSIBLE TO STOP
DEMOCRATS FROM SPENDING IN
ORDER TO HURT THEM.
AND IT JUST SO HAPPENS
REPUBLICANS HAVE SOME PRETTY
GREAT LEVERAGE IN THESE
NEGOTIATIONS BY, AGAIN,
THREATENING TO BLOW UP THE
WORLD ECONOMY.
THE CURRENT MAGA REPUBLICAN
PARTY IS COMPLETELY UNTETHERED
FROM ANY UNIFYING VISION OF THE
SOCIAL CONTRACT, PARTICULARLY
ON MATTERS OF THE POLITICAL
ECONOMY, THEY'RE ALL OVER THE
PLACE.
THEY DON'T REALLY KNOW EVEN
WHAT THEY WANT.
SO, THEY ARE TOTALLY FINE
TAKING THAT ECONOMY HOSTAGE TO
GET THEIR WAY.
THEY HAVE A LEVERAGE, BECAUSE
SO MANY OF THEM ARE POLITICAL
NIHILISTS, WHO DON'T REALLY
BELIEVE IN ANYTHING EXCEPT
THEIR OWN POWER.
AND THERE'S A REASON WHY YOU
HAVE THIS CLICHÉ.
YOU'VE HEARD IT ALL THE TIME,
RIGHT?
NEGOTIATING WITH TERRORISTS.
AND THE REASON PEOPLE INVOKE
THAT CLICHÉ IS THAT YOU ARE AT
AN INHERENT DISADVANTAGE AND
NEGOTIATING WITH SOMEONE WHO IS
GOING TO DO SOMETHING
MALEVOLENT AND DESTRUCTIVE,
COMPLETELY UNBOUND BY ANY RULES
AND NORMS.
BUT ALSO, IF YOU GIVE INTO THAT
PERSON AND THEIR DEFENSE, AND
THEN INTO DESENSITIZES THEM TO
ACT IN THE SAME WAY IN THE
FUTURE.
AND THIS IS WHY WE ARE HERE.
BARACK OBAMA GIVEN LARGELY TO
THEIR DEFENSE IN 2011.
AND HERE WE ARE, MORE THAN A
DECADE LATER, IN THE EXACT SAME
POSITION, ONLY NOW, I WOULD
ARGUE, REPUBLICANS ARE EVEN
POSSIBLY MORE SO SOCIOPATHIC
ABOUT THE STUFF THEY WERE DOING
IN THE TEA PARTIER'S.
LIKE, DO YOU REALLY THINK A
VERY PUBLIC IN CONFERENCE THAT
VOTED FOR TRUMP'S COUP IS GOING
TO THINK TWICE BEFORE BLOWING
UP THE ECONOMY TO HURT JOE
BIDEN?
I FRANKLY DON'T HAVE A SOLUTION
HERE.
PRESIDENT BIDEN SAYS HE WON
SIDESTEPPED ISSUE BY INVOKING
THE CONSTITUTIONAL REQUIREMENT,
FOR THE GOVERNMENT TO PAY ITS
DEBTS, IT'S WRITTEN IN THE 14TH
AMENDMENT.
THAT SEEMS PRETTY DEFINITIVE TO
ME.
AND MANY OF THEM HAVE CALLED TO
DO THAT.
AND THAT DEMOCRATS GET SOME
BLAME HERE BECAUSE THEY DID NOT
RAISE THE DEBT CEILING DURING
THE LAME DUCK SESSION AFTER
LAST YEAR'S MIDTERMS, LIKE MANY
FOLKS, INCLUDING MYSELF AND
SENATOR BERNIE SANDERS SAID
THEY SHOULD DO.
SO, HERE WE ARE.
WE ARE IN THIS POSITION SAFELY
BECAUSE REPUBLICAN PARTY ONCE
MORE THAN ANYTHING ELSE IN THE
WORLD FOR JOE BIDEN TO LOSE,
AND THAT REPUBLICAN, MOST
LIKELY THE GUY WHO TRIED TO END
AMERICAN DEMOCRACY TO WIN IN
2024.
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