Congressional Republicans passed a “continuing resolution” Thursday to keep the governing funded into next year. And with it, they passed a waiver that allows Congress to avoid automatic spending cuts under the “pay as you go” (PAYGO) law that Democrats passed in 2010 (while running a massive deficit).
That kicks spending cuts down the road again, somewhat to the chagrin of the conservative House Freedom Caucus, and the Tea Party that preceded it.
The Tea Party movement was launched in February 2009, as President Barack Obama and the Democrats passed a massive “stimulus” bill that was little more than a giveaway for public sector unions and well-connected cronies. It powered the Republican takeover of the House in 2010, and made the annual deficit and the national debt important priorities — so much so that Republicans began to discuss entitlement reform, the “third rail” of American politics.
Now that the Republican Congress has passed a $1.5 trillion tax cut, potentially raising the deficit — at least in the short term — the Tea Party (what remains of it) has to ask itself whether this is really the outcome it envisioned, and what to do going forward.
Put bluntly: how can a movement that campaigned on balancing the budget and paying down the debt tolerate a massive tax cut that is only going to be followed by demands for more federal spending?
If the Tea Party movement was not, as its critics suggested, merely the tool of billionaire right-wing donors, the question must be taken seriously. And Republicans must be challenged to tackle the deficit and the debt before the Democrats seize those issues.
It is, of course, laughable that Democrats who cheered President Barack Obama as he doubled the national debt now purport to criticize Republicans over deficits. But people have short memories.
One answer is that the Tea Party always supported tax cuts — particularly those tax cuts that might, in fact, create new revenues for the federal government.
I can say this on the basis of personal experience, when I ran as a Tea Party-backed Republican for Congress in Illinois in 2010. Our campaign specifically supported lowering the U.S. corporate tax rate, precisely on the argument that doing so would create more investment and hence more revenue.
But the missing piece, thus far, of the Republican agenda is spending cuts. Practically speaking, the only cuts the Tea Party managed to achieve were the sequesters in the Budget Control Act of 2011. The sequester cuts were successful in reducing government spending for two consecutive years for the first time since the Korean War. But the sequester caps were broken in 2015, and President Trump wants to eliminate the defense sequester entirely.
That may be entirely appropriate, given the urgent need to build up our military again. And the White House wants Congress to pass an infrastructure spending bill — one that will actually fund the “shovel-ready” projects that the Obama administration had promised, but failed, to provide. Defense and infrastructure are the two things on which the federal government should be spending money.
The problem is that there is no plan to cut spending elsewhere.
Add to that the fact that President Trump promised voters not to touch Social Security and Medicare, sending Paul Ryan’s carefully calculated reform proposals to the bottom of the pile.
The only option left is to cut discretionary domestic spending, which no government — not even Ronald Reagan’s — has succeeded in doing, because each item in the discretionary budget is defended by an army of activists and lobbyists ready to cause major political damage.
Without spending cuts, there are only three ways to deal with persistent national debt, as economic historian Niall Ferguson has warned. One is inflation, through printing money, which reduces the value of the debt — but also cuts the value of workers’ paychecks. Another is default — simply refusing to pay, which is something that has arguably already happened in Puerto Rico.
The other, and hardest, option is growth — rapid, sustained economic growth.
So all the Tea Party can do is hope that the tax cuts deliver the kind of economic growth that President Trump has promised — and which, in fairness, many economists now believe is possible. With faster economic growth comes greater tax revenues. Once those arrive, fiscal conservatives can push for spending restraint.
But the time to lay the political foundations for fiscal restraint is now, not several years from now, when Congress may be in other hands.
Joel B. Pollak is Senior Editor-at-Large at Breitbart News. He was named one of the “most influential” people in news media in 2016. He is the co-author of How Trump Won: The Inside Story of a Revolution, is available from Regnery. Follow him on Twitter at @joelpollak.
The post Blue State Blues: We Have Tax Cuts, But Where Are the Spending Cuts? appeared first on News Wire Now.
Nuclear annihilation just one miscalculation away, UN chief warns
The world is one misstep from devastating nuclear war and in peril not seen since the Cold War, the UN Secretary General has warned.
“We have been extraordinarily lucky so far,” Antonio Guterres said.
Amid rising global tensions, “humanity is just one misunderstanding, one miscalculation away from nuclear annihilation”, he added.
His remarks came at the opening of a conference for countries signed up to the nuclear Non-Proliferation Treaty.
The 1968 deal was introduced after the Cuban missile crisis, an event often portrayed as the closest the world ever came to nuclear war. The treaty was designed to stop the spread of nuclear weapons to more countries, and to pursue the ultimate goal of complete nuclear disarmament.
Almost every nation on Earth is signed up to the NPT, including the five biggest nuclear powers. But among the handful of states never to sign are four known or suspected to have nuclear weapons: India, Israel, North Korea and Pakistan.
Secretary General Guterres said the “luck” the world had enjoyed so far in avoiding a nuclear catastrophe may not last – and urged the world to renew a push towards eliminating all such weapons.
“Luck is not a strategy. Nor is it a shield from geopolitical tensions boiling over into nuclear conflict,” he said.
And he warned that those international tensions were “reaching new highs” – pointing specifically to the invasion of Ukraine, tensions on the Korean peninsula and in the Middle East as examples.
Russia was widely accused of escalating tensions when days after his invasion of Ukraine in February, President Vladimir Putin put Russia’s substantial nuclear forces on high alert.
He also threatened anyone standing in Russia’s way with consequences “you have never seen in your history”. Russia’s nuclear strategy includes the use of nuclear weapons if the state’s existence is under threat.
On Monday, Mr Putin wrote to the same non-proliferation conference Mr Guterres opened, declaring that “there can be no winners in a nuclear war and it should never be unleashed”.
But Russia still found itself criticised at the NPT conference.
US Secretary of State Antony Blinken condemned what he called Russia’s sabre-rattling – and pointed out that Ukraine had handed over its Soviet-era nuclear weapons in 1994, after receiving assurances of its future security from Russia and others.
“What message does this send to any country around the world that may think that it needs to have nuclear weapons – to protect, to defend, to deter aggression against its sovereignty and independence?” he asked. “The worst possible message”.
Today, some 13,000 nuclear weapons are thought to remain in service in the arsenals of the nine nuclear-armed states – far lower than the estimated 60,000 stockpiled during the peak of the mid-1980s.
Read from: https://www.bbc.com/news/world-62381425
Australia election: Why is Australia’s parliament so white?
With this year’s election, political parties did have a window to slightly improve this. But they chose not to in most cases, critics say.
Tu Le grew up the child of Vietnamese refugees in Fowler, a south-west Sydney electorate far from the city’s beaches, and one of the poorest urban areas in the country.
The 30-year-old works as a community lawyer for refugees and migrants newly arrived to the area.
Last year, she was pre-selected by the Labor Party to run in the nation’s most multicultural seat. But then party bosses side-lined her for a white woman.
It would take Kristina Kenneally four hours on public transport – ferry, train, bus, and another bus – to get to Fowler from her home in Sydney’s Northern Beaches, where she lived on an island.
Furious locals questioned what ties she had to the area, but as one of Labor’s most prominent politicians, she was granted the traditionally Labor-voting seat.
Ms Le only learned she’d been replaced on the night newspapers went to print with the story.
“I was conveniently left off the invitation to the party meeting the next day,” she told the BBC.
Despite backlash – including a Facebook group where locals campaigned to stop Ms Kenneally’s appointment – Labor pushed through the deal.
“If this scenario had played out in Britain or the United States, it would not be acceptable,” says Dr Tim Soutphomassane, director of the Sydney Policy Lab and Australia’s former Race Discrimination Commissioner.
“But in Australia, there is a sense that you can still maintain the status quo with very limited social and political consequences.”
An insiders’ game
At least one in five Australians have a non-European background and speak a language at home other than English, according to the last census in 2016.
Some 49% of the population was born or has a parent who was born overseas. In the past 20 years, migrants from Australia’s Asian neighbours have eclipsed those from the UK.
But the parliament looks almost as white as it did in the days of the “White Australia” policy – when from 1901 to the 1970s, the nation banned non-white immigrants.
“We simply do not see our multicultural character represented in anything remotely close to proportionate form in our political institutions,” says Dr Soutphomassane.
Compared to other Western multicultural democracies, Australia also lags far behind.
The numbers below include Indigenous Australians, who did not gain suffrage until the 1960s, and only saw their first lower house MP elected in 2010. Non-white candidates often acknowledge that any progress was first made by Aboriginal Australians.
Two decades ago, Australia and the UK had comparably low representation. But UK political parties – responding to campaigns from diverse members – pledged to act on the problem.
“The British Conservative Party is currently light years ahead of either of the major Australian political parties when it comes to race and representation,” says Dr Soutphomassane.
So why hasn’t Australia changed?
Observers say Australia’s political system is more closed-door than other democracies. Nearly all candidates chosen by the major parties tend to be members who’ve risen through the ranks. Often they’ve worked as staffers to existing MPs.
Ms Le said she’d have no way into the political class if she hadn’t been sponsored by Fowler’s retiring MP – a white, older male.
Labor has taken small structural steps recently – passing commitments in a state caucus last year, and selecting two Chinese-Australian candidates for winnable seats in Sydney.
But it was “one step forward and two steps back”, says party member and activist Osmond Chiu, when just weeks after the backlash to Ms Le’s case, Labor “parachuted in” another white candidate to a multicultural heartland.
Andrew Charlton, a former adviser to ex-PM Kevin Rudd, lived in a harbour mansion in Sydney’s east where he ran a consultancy.
His selection scuppered the anticipated races of at least three diverse candidates from the area which has large Indian and Chinese diasporas.
Party seniors argued that Ms Kenneally and Mr Charlton – as popular and respected party figures – would be able to promote their electorates’ concerns better than newcomers.
Labor leader Anthony Albanese also hailed Ms Kenneally as a “great Australian success story” as a migrant from the US herself.
But Mr Chiu says: “A lot of the frustration that people expressed wasn’t about these specific individuals.
“It was about the fact that these were two of the most multicultural seats in Australia and these opportunities – which come by so rarely – to select culturally diverse candidates were squandered.”
He adds this has long-term effects because the average MP stays in office for about 10 years.
The frustration on this issue has centred on Labor – because the centre-left party calls itself the “party of multiculturalism”.
But the Liberal-National government doesn’t even have diversity as a platform issue.
One of its MPs up for re-election recently appeared to confuse her Labor rival for Tu Le, sparking accusations that she’d mixed up the two Asian-Australian women – something she later denied. But as one opponent said: “How is this still happening in 2022?”
Some experts like Dr Soutphommasane have concluded that Australia’s complacency on areas like representation stems from how the nation embraced multiculturalism as official policy after its White Australia days.
The government of the 1970s, somewhat embarrassed by the past policy, passed racial discrimination laws and “a seat at the table” was granted to migrants and Indigenous Australians.
But critics say this has led to an Australia where multiculturalism is celebrated but racial inequality is not interrogated.
“Multiculturalism is almost apolitical in how it’s viewed in Australia,” Dr Soutphommasane says, in contrast to the “fight” for rights that other Western countries have seen from minority groups.
What is the impact?
A lack of representation in parliament can also lead to failures in policy.
During Sydney’s Covid outbreak in August 2021, Fowler and Parramatta electorates – where most of the city’s multicultural communities reside – were subject to harsher lockdowns as a result of a higher number of cases.
How will things change?
Liberal MP Dave Sharma, the only lawmaker of Indian heritage, has said all parties – including his own – should better recruit people with different backgrounds. He called it a “pretty laissez-faire attitude” currently.
Mr Albanese has urged Ms Le to “hang in there”, insisting she has a future.
But more people like Ms Le are choosing to speak out.
“I think I surprised a lot of people by not staying quiet,” she told the BBC.
“People acted like it was the end of my political career that I didn’t toe the party line. But… none of that means anything to me if it means I’m sacrificing my own values.”
She and other second-generation Australians – raised in a country which prides itself on “a fair go” – are agitating for the rights and access their migrant parents may not have felt entitled to.
“Many of those from diverse backgrounds were saying they felt like they didn’t have a voice – and that my case was a clear demonstration of their suppression, and their wider participation in our political system.”
She and others have noted the “growing distrust” in the major parties. Polls are predicting record voter support for independent candidates.
“This issue…. matters for everyone in Australian society that cares about democracy,” says Mr Soutphommasane.
“If democratic institutions are not representative, their legitimacy will suffer.
US military leader warns Chinese security deal with Solomon Islands sounds ‘too good to be true’
A senior US military general has warned during a visit to Australia that China’s offer to deepen security ties with Solomon Islands will come with strings attached, suggesting the Pacific island country may come to regret the planned deal.
“My parents told me if a deal sounds too good to be true, it probably is,” the commandant of the United States Marine Corps, general David Berger, said on Wednesday.
Berger was cautious when asked about longstanding US concerns relating to a Chinese company’s lease over the port of Darwin, stressing it was a sovereign decision for Australia as part of its yet-to-be-completed national security review.
Ahead of a trip to Darwin, the site of increasing rotations of US Marines, Berger said: “If it’s not of concern to Australia, then it’s not of concern to me.”
Berger’s visit comes amid a flurry of diplomatic activity by the US and Australia attempting to head off a proposed security agreement between China and Solomon Islands, which could allow regular visits by the People’s Liberation Army Navy.
A leaked draft from last month raised the possibility China could “make ship visits to, carry out logistical replenishment in, and have stopover and transition in Solomon Islands”, while Chinese forces could also be used “to protect the safety of Chinese personnel and major projects in Solomon Islands”.
The prime minister of Solomon Islands, Manasseh Sogavare, has sought to allay concerns, saying his country has no intention of allowing a Chinese naval base. But Sogavare has also said it is “very insulting to be branded as unfit to manage our sovereign affairs”.
Speaking in Canberra on Wednesday, Berger said the US needed to show humility in its outreach to Pacific nations, but also needed to be open about the potential long-term consequences.
Berger reflected on the fight for control of Guadalcanal in Solomon Islands during the second world war, when the US and allies sought to prevent Japanese forces from gaining a foothold in the strategically important location.
“A lot of things change in warfare. Not geography. Where … Solomon Islands are matters. It did then and it does now,” Berger said at the Australian Strategic Policy
He said the proposed agreement was “just another example” of China seeking to broaden and expand its influence. He raised concerns about “the way that [it] happens and the consequences for the nations” involved.
Sogavare has argued Solomon Islands pursues a “friends to all and enemies to none” foreign policy, but Berger implied countries making agreements with Beijing might regret it down the track.
“We should illuminate, we should draw out into the open what this means long term,” Berger said.
“This is, in other words, an extension of ‘hey we’re here with a cheque, we’re here with money, we’d like to improve your port or your airfield or your bus station’. And that just sounds so great, until a year later or six months later.”
The US plans to reopen its embassy in Solomon Islands, a move the nominee for US ambassador to Australia, Caroline Kennedy, has said “can’t come soon enough”.
Berger acknowledged there were limits to US insights in Pacific island countries, so the US needed to rely on allies such as Australia.
“We’re not going to have always the best view, the clearest picture,” he said.
“We have to understand the neighbourhood and we’re never going to understand it as well as Australia.”
Earlier, the Australian prime minister, Scott Morrison, denied that the US had conveyed any concerns that Australia had dropped the ball in the region.
Morrison said the Australian government was continuing to raise concerns with Solomon Islands without acting in a “heavy-handed” way.
Australia’s minister for the Pacific, Zed Seselja, met with Sogavare in Honiara on Wednesday and “asked Solomon Islands respectfully to consider not signing the agreement” with China.
Seselja suggested Solomon Islands “consult the Pacific family in the spirit of regional openness and transparency”. Australia would work with Solomon Islands “swiftly, transparently and with full respect for its sovereignty”.
“We welcome recent statements from prime minister Sogavare that Australia remains Solomon Islands’ security partner of choice, and his commitment that Solomon Islands will never be used for military bases or other military institutions of foreign powers,” Seselja said.
Sogavare has previously said Solomon Islands welcomed “any country that is willing to support us in our security space”.
But Matthew Wale, the leader of the opposition, has argued the deal “would make the Solomons a geopolitical playing field” and “further threaten the nation’s fragile unity”.
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