Regulatory apparatus

1. Ezra Klein on Rep. Paul Ryan, Health Care, and the Deficit. If you want a serious, policy-oriented daily take on health care and fiscal issues, turn to Ezra Klein. This week, he began the opinionosphere’s discussion of Rep. Paul Ryan’s serious attempt to balance the budget (which has no chance of being embraced even by the Republicans or Democrats.) Later, he interviewed Rep. Ryan – though it read more like a discussion between two serious people about fiscal policy and health care reform. Klein later attempted to see where along the political spectrum the Senate health care reform bill fell:

Take Rep. Paul Ryan’s health-care plan…as the conservative pole on this issue. Then take single-payer and place it on the other side of the spectrum. Where does the Senate bill fall?

It’s closer to Ryan’s plan than to single-payer. A lot closer, in fact.

Yet this basic fact – that Obama has taken a rather conservative approach to health care substantively similar to the 1994 plan Republicans counter-proposed to Bill Clinton – has been obscured by a Republican Party intent on obstructing Obama’s agenda to gain partisan advantage. As Klein explains, the problem is that the incentives for each party don’t line up:

[T]hat’s the underlying reality of health-care reform. Substantive compromise is easy. In fact, the bill is a substantive compromise. It’s a deficit-neutral, universal-coverage scheme that relies on the private insurance market and looks like one of the Republican alternatives from 1994. What’s hard is political compromise. Because there, the two positions are that Democrats are helped if a bill passes and Republicans make gains if a bill fails. There’s no way to split the difference between those positions.

At the same time, however, Klein castigates Democrats as well as Republicans for failing to put the national good over their own political situations:

The distinguishing feature of the budget conversation, however, is that it happens at a very abstract level. This red line needs to come down to meet this black line, and this huge number needs to eventually become this slightly-smaller number. That’s all fine for a floor speech, but when you start trying to muscle the red line into position or subtract from the very big number, things get real specific, real quick. Suddenly, you’re telling seniors that there are treatments they just can’t get and you’re telling workers that the insurance system is going to have to change. And just as Conrad doesn’t have much appetite for doing that to his constituents on the small things that most of them don’t notice, very few legislators have demonstrated much appetite for doing this to the country on the big things that pretty much everyone notices.

2. I do not accept second place for the United States of America. Edward Alden and E. J. Dionne comment on what is brewing to become the big issue of the 2010 elections, not coincidentally countering the main narrative put forth by the right wing.

3. A successful first year. Norm Ornstein and John P. Judis explain some of the significant accomplishments of Obama’s first year in office.

4. Virtual insanity. Andrew Sullivan’s main theme this week has been the virtual insanity of the Republican Party. He writes: “On every single major issue of the day, they are incoherent.” He quotes Daniel Larison:

Republicans have been treating temporary, tactical political victories as if they were far more significant, strategic victories, when, in fact, they have no political strategy worth mentioning.

Then of course are the highlights from that Daily Kos poll in which – for example – 59% of Republicans believe Obama should be impeached for something-or-other.

5. Reid v. Abdulmutallab. Steve Benen at the Washington Monthly gets some hard hits in on the ridiculousness of the Republican response to Obama’s handling of the panty-bomber. And Benen doesn’t even get into the fact that Abdulmutallab is now cooperating.

6. Obstruction. I examined some of the theories of why the Republicans are so uniformly obstructionist.

7. Madden vs. Real Life. As a football-related article for this Super Bowl weekend, Chris Suellentrop for Wired explored how the video game Madden is affecting the real game of football.

[Image by Doug Kim, used with permission of the creator, and in anticipation of the snowstorm that might rock Manhattan today as I’m commuting home.]

Let’s keep all that talk of a failed first year in office to a minimum.

[digg-reddit-me]Andrew Sullivan pointed to two rather positive takes on the Obama administration over the past year from right wing Congress-watcher Norm Ornstein and liberal magazine reporter John P. Judis reporting on the regulatory agencies.

Judis in The New Republic:

[T]here is one extremely consequential area where Obama has done just about everything a liberal could ask for–but done it so quietly that almost no one, including most liberals, has noticed. Obama’s three Republican predecessors were all committed to weakening or even destroying the country’s regulatory apparatus: the Environmental Protection Agency (EPA), the Occupational Safety and Health Administration (OSHA), the Securities and Exchange Commission (SEC), and the other agencies that are supposed to protect workers and consumers by regulating business practices. Now Obama is seeking to rebuild these battered institutions. In doing so, he isn’t simply improving the effectiveness of various government offices or making scattered progress on a few issues; he is resuscitating an entire philosophy of government with roots in the Progressive era of the early twentieth century. Taken as a whole, Obama’s revival of these agencies is arguably the most significant accomplishment of his first year in office.

The regulatory agencies, most of which date from one of the three great reform periods (1901–1914, 1932–1938, and 1961–1972) of the last century, were intended to smooth out the rough edges (the “externalities,” in economic jargon) of modern capitalism–from dirty air to dangerous workplaces to defective merchandise to financial corruption. With wide latitude in writing and enforcing regulations, they have been described as a “fourth branch of government.”

Judis explains several ways conservatives attempted to eviscerate the regulatory apparatus including appointing lobbyists for those being regulated to head the agencies and through the clever use of cost-benefit analysis:

The conservative version of cost-benefit analysis stressed costs rather than benefits and subjected only regulation–not deregulation–to cost-benefit scrutiny. Conservatives also sometimes adopted bizarre formulas for assessing costs and benefits. They assigned less monetary value to improvements or protections in poor communities because the residents were willing (that is, able) to pay less for them, and they used a spurious correlation between a society’s wealth and the health of its citizens to argue that the costs of regulation outweighed the benefits. Under George H.W. Bush, for example, OIRA argued that OSHA regulations on chemical contaminants would end up harming workers more than exposure to chemicals. Wrote James McRae, the acting head of OIRA, “If government regulations force firms out of business or into overseas production, employment of American workers will be reduced, making workers less healthy by reducing their income.”

(Presumably it was this article that Jon Stewart was referring to in his O’Reilly interview.)

Norm Ornstein of the American Enterprise Institute – no fan of Obama’s agenda – can’t deny the significant accomplishments of this Democratic Congress:

[T]his Democratic Congress is on a path to become one of the most productive since the Great Society 89th Congress in 1965-66, and Obama already has the most legislative success of any modern president — and that includes Ronald Reagan and Lyndon Johnson. The deep dysfunction of our politics may have produced public disdain, but it has also delivered record accomplishment.

The productivity began with the stimulus package, which was far more than an injection of $787 billion in government spending to jump-start the ailing economy. More than one-third of it — $288 billion — came in the form of tax cuts, making it one of the largest tax cuts in history, with sizable credits for energy conservation and renewable-energy production as well as home-buying and college tuition. The stimulus also promised $19 billion for the critical policy arena of health-information technology, and more than $1 billion to advance research on the effectiveness of health-care treatments.

Education Secretary Arne Duncan has leveraged some of the stimulus money to encourage wide-ranging reform in school districts across the country. There were also massive investments in green technologies, clean water and a smart grid for electricity, while the $70 billion or more in energy and environmental programs was perhaps the most ambitious advancement in these areas in modern times. As a bonus, more than $7 billion was allotted to expand broadband and wireless Internet access, a step toward the goal of universal access.

And of course, this has something to do with Obama, as NPR reported:

In his first year in office, President Obama did better even than legendary arm-twister Lyndon Johnson in winning congressional votes on issues where he took a position, aCongressional Quarterly study finds.

As I wrote last week, listing some additional accomplishments:

He pulled the nation back from the brink of a financial crisis and recession without nationalizing the banks or bailing them out yet again. He moved America back from the panicked emergency measures adopted by George W. Bush in the aftermath of September 11. He salvaged some deal from Copenhagen despite the Chinese attempts to undercut America’s position. He appointed a moderate, liberal pragmatist to the Supreme Court. He has made many long-term bets in domestic and foreign policy which we have yet to see play out. And of course, there is his attempt at health care reform – combining the most significant attempt at cost control in a generation with the most significant expansion of access to medical insurance. (The two goals being surprisingly compatible as Milton Friedman acknowledged.) Though this last bill still has not had its fate decided, these are serious and substantial accomplishments that form the basis of a solid legacy.

(Of course, there are disappointments as well – but let’s keep all that talk of a failed first year in office to a minimum.)