By Robert
Reich
According to reports, one of the first acts of the Republican congress will be to fire Doug Elmendorf, current director of the non-partisan Congressional Budget Office, because he won’t use “dynamic scoring” for his economic projections.
Dynamic scoring is the magical-mystery math Republicans have
been pushing since they came up with supply-side “trickle-down” economics.
It’s based on the belief that cutting taxes unleashes economic
growth and thereby produces additional government revenue. Supposedly the added
revenue more than makes up for what’s lost when Congress hands out the tax
cuts.
Dynamic scoring would make it easier to enact tax cuts for the
wealthy and corporations, because the tax cuts wouldn’t look as if they
increased the budget deficit.
Incoming House Ways and Means Chairman Paul Ryan (R-Wis.) calls it “reality-based scoring,” but it’s actually magical scoring – which is why Elmendorf, as well as all previous CBO directors have rejected it.
Few economic theories have been as thoroughly tested in the real
world as supply-side economics, and so notoriously failed.
Ronald Reagan cut the top income tax rate from 70 percent to 28
percent and ended up nearly doubling the national debt. His first budget
director, David Stockman, later confessed he dealt with embarrassing questions
about future deficits with “magic asterisks” in the budgets submitted to
Congress. The Congressional Budget Office didn’t buy them.
George W. Bush inherited a budget surplus from Bill Clinton but
then slashed taxes, mostly on the rich. The CBO found that the Bush tax cuts reduced revenues by $3 trillion.
Yet Republicans don’t want to admit supply-side economics is
hokum. As a result, they’ve never had much love for the truth-tellers at the
Congressional Budget Office.
In 2011, when briefly leading the race for the Republican
presidential nomination, Newt Gingrich called the CBO “a reactionary socialist
institution which does not believe in economic growth, does not believe in
innovation and does not believe in data that has not been internally
generated.”
The CBO has continued to be a truth-telling thorn in the
Republican’s side.
The budget plan Paul Ryan came up with in 2012 – likely to be a
harbinger of what’s to come from the Republican congress – slashed Medicaid,
cut taxes on the rich and on corporations, and replaced Medicare with a less
well-funded voucher plan.
Ryan claimed these measures would reduce the deficit. The
Congressional Budget Office disagreed.
Ryan persevered. His 2013 and 2014 budget proposals were
similarly filled with magic asterisks. The CBO still wasn’t impressed.
Yet it’s one thing to cling to magical-mystery thinking when you
have only one house of Congress. It’s another when you’re running the whole
shebang.
Now that Elmendorf is on the way out, presumably to be replaced
by someone willing to tell Ryan and other Republicans what they’d like to hear,
the way has been cleared for all the magic they can muster.
In this as in other domains of public policy, Republicans have
not shown a particular affinity for facts.
Climate change? It’s not happening, they say. And even if it is
happening, humans aren’t responsible. (Almost all scientists studying the issue
find it’s occurring and humans are the major cause.)
Widening inequality? Not occurring, they say. Even though the
data show otherwise, they claim the measurements are wrong.
Voting fraud? Happening all over the country, they say, which is
why voter IDs and other limits on voting are necessary. Even though there’s no
evidence to back up their claim (the best evidence shows no more than 31 credible incidents
of fraud out of a billion ballots cast), they continue to assert it.
Evolution? Just a theory, they say. Even though all reputable
scientists support it, many Republicans at the state level say it shouldn’t be
taught without also presenting the view found in the Bible.
Weapons of mass destruction in Iraq? America’s use of torture?
The George W. Bush administration and its allies in Congress weren’t overly
interested in the facts.
The pattern seems to be: if you don’t like the facts, make them
up.
Or have your benefactors finance “think tanks” filled with hired
guns who will tell the public what you and your patrons want them to say.
If all else fails, fire your own experts who tell the truth, and
replace them with people who will pronounce falsehoods.
There’s one big problem with this strategy, though. Legislation
based on lies often causes the public to be harmed.
Not even “truthiness,” as Stephen Colbert once called it, is an
adequate substitute for the whole truth.
ROBERT B. REICH, Chancellor’s Professor of Public Policy at
the University of California at Berkeley and Senior Fellow at the Blum Center
for Developing Economies, was Secretary of Labor in the Clinton administration.
Time Magazine named him one of the ten most effective cabinet secretaries of
the twentieth century. He has written thirteen books, including the best
sellers “Aftershock" and “The Work of Nations." His latest,
"Beyond Outrage," is now out in paperback. He is also a founding
editor of the American Prospect magazine and chairman of Common Cause. His new
film, "Inequality for All," is now available on Netflix, iTunes, DVD,
and On Demand.