An American in Paris: Thinking about France, Taxes and the Good Life

Café "les deux magots" Paris, France ©  Robyn Lee | Flickr

At a Sixteenth Arrondissement party soon after I arrived in Paris in late 1984, I was cornered by a tipsy Frenchman who repeatedly exclaimed–in a tone more resigned than angry–“You’ve won! You’ve won.” This was all he would say, elaborations and explanations apparently being unnecessary.

Once I began to look for them, signs of American triumph were everywhere: Carl Lewis’s Olympics a few months before, Reagan’s enthusiastic re-election a few weeks before, and a sense that personal computers coming from garages in Silicon Valley would displace the tiny Minitel terminals linked to a central network for which the French had instead opted (a prescient model, but ten years before the internet could have made real use of them). After several months in Paris, I realized this handwringing was a daily theme in the Parisian press: the United States had won the economic game.

The idea was everywhere: the news detailed France’s economic crisis and America’s ascendency; top journalists and other members of the intelligentsia analyzed how France had gotten into its sad state; academics wrote books setting the crisis in world-historical context; politicians spun grandiose plans for pulling France out of its malaise. But no one took the schemes of the politicians seriously: the crisis, everyone knew, was there to stay. Thus Le Monde‘s annual report on the economic state of the world in early 1985 had on its cover a tiny boat, its sail in disarray, about to drop from the crest of a wave, and a large ocean liner placidly moving along in the distance. The dinghy flew several European flags, the steamer those of Japan and the United States.

It was not just France: the entire “old world” was implicated. It was just that: old, weary, perhaps exhausted. Many French, if it fit their current political rhetoric, were fond of pointing out that France had done better than most European countries. The French were happy that they were not the Germans, the Swiss, or even the Swedes who had beaten them this time. It was America, which is after all America, and Japan, that . . .

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Romney Wins! So What?

Twitter message © Unknown | barackobama.com

As a strong supporter of Barack Obama, I found the debate last night painful. Romney performed well. Obama didn’t.

I take solace in a dial group session by a respected Geoff Garin, which found that sixty percent of the study group of undecided voters and weakly committed Democrats viewed Obama favorably for his performance, and that eighty percent of this crucial group after the debate saw the President as more likable and down to earth. And on key issues, Obama decisively prevailed on improving the economy and on Medicare, though the group did marginally shift to Romney on taxes. A small study suggested that a key target audience of the debate didn’t go along with the talking heads.

I also am somewhat relieved by Nate Silver, the statistics guru now publishing at The New York Times, who first made his name in sports, then in politics. He judged, using a football analogy, that Romney in his strong debate scored a field goal not a touchdown or the two touchdowns that Silver earlier declared Romney would have to score to win in November. He gained only a slight advantage.

Yet, as I watched the debate and then listened and read a great deal of commentary, not sleeping through most of the night, I worried that an Obama defeat seemed again to be a possibility, if not a probability. Just about all the commentators and instant polls judged that Romney won the debate, though the meaning of the victory was contested: from nothing has changed, to a reset, to the beginning of the end for Obama.

I want to believe, as also has been discussed, that the debate presents an opportunity for Obama (with the support of his powerful campaign staff), known for his impeccable timing and strategic prowess, to counterpunch in ads and speeches and in the coming debates. I certainly would like to believe that Barack Obama, as Muhammad Ali would put it, was playing “rope – a – dope,” and still “floats like a . . .

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The State of the Union: Opening the Debate of 2012

President Barack Obama delivers the State of the Union address in the House Chamber at the U.S. Capitol in Washington, D.C., Jan. 24, 2012 © Pete Souza | Whitehouse.gov

I continue to be struck by the constancy of Barack Obama. His tactics shift and weave, but his overall principles and project are firmly rooted. In the State of the Union address, he revealed his core convictions, explained his policies and their consequences, and linked his accomplishments with his promises.

Obama is a centrist, working to define common sense, working to move the center left, as I have earlier argued. In his speech last night, he focused on fairness and the viability of the American dream. He argued for the way the government can support economic development and the interests of the vast majority of the American public. Though he did not use the language of Occupy Wall Street, his focus on fairness was clearly supported by the fruits of the social movement’s labors. And the principled debate before the American people in the coming election was illuminated, as Obama argued for his side: a “smarter more effective government” versus limited government, the Republican ideal.

The speech was elegantly crafted and delivered, something that is now expected from Obama and therefore doesn’t impress and is not really news. But the fine form delivered a well rounded argument.

He opened and closed with a call for common purpose, exemplified by the military and its virtues, as he highlighted major milestones in foreign affairs: the end of the war in Iraq and the killing of Osama Bin Laden. A move that makes me uncomfortable, though I understand that it works well.

The opening:

“Last month, I went to Andrews Air Force Base and welcomed home some of our last troops to serve in Iraq. Together, we offered a final, proud salute to the colors under which more than a million of our fellow citizens fought — and several thousand gave their lives.

We gather tonight knowing that this generation of heroes has made the United States safer and more respected around the world. (Applause.) For the first . . .

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Means Testing: The GOP’s Surprising Class Warfare

Rich man & poor man © N.I | Dreamstime.com

I’m puzzled. For as long as I can recall I have been assured that the Grand Old Party will do just about anything to advantage their wealthy friends and benefactors. Of course, no party desires no taxes – not even Republicans — and none – not even Democrats – want full confiscation. So the issue always comes down to the question of how one will square the circle. Should the top marginal rate be 35% or 40%? Aside from the flat tax advocates and a few outré progressives, few are now arguing for 25% or 50%.

Statecraft inevitably involves a distribution of responsibilities and benefits. And, as I have noted, it is traditionally the case that Democrats ask for more sacrifice from the wealthy and Republicans advocate for fewer benefits for the needy.

This being part of our political logic, how then do we explain a central feature of the Republican plans for Medicare and for Social Security, and how do we explain the hesitancy of most elected Democrats to embrace this plan?

One area in which there appears to be some measure of agreement between President Obama and Speaker of the House John Boehner is that means testing Medicare and perhaps even Social Security should be “on the table” – a Thanksgiving turkey, as it were. The argument is that the wealthy might receive fewer benefits or should have to ante up more in the way of co-payments. What’s up with that? In important ways, one should appreciate why Democrats would like that idea and why the Republicans should resist, but things have not quite transpired in that logical way.

Despite the element of soaking (or at least dampening) the rich, some Democrats have pushed back on the idea of means testing Social Security and Medicare. One could readily make the argument that it is unjust or undesirable for the federal government to send out checks to those same rich folks on whom Democrats wish to raise the marginal tax rates. Couldn’t receiving fewer benefits be a form of shared sacrifice so integral to Democratic talking points?

. . .

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President Obama on Taxing and Spending, and the American Center

Obama giving his speech on deficit reduction © Samantha Appleton | WhiteHouse.gov

Barack Obama is a centrist, trying to move the center left, defending it against the right. Health care reform has been his great legislative “left moving” achievement. Though far from perfect, he established the principle of universal coverage.

In the past months, he has been primarily on defense, fighting back against the Republican attack on government. Obama is not a left-winger, to the dismay of many on the blogosphere. He is now defending a new center, which he helped establish, against right-wing attack.

The opening shot of the attack was the Tea Party protest against the bank bailout, the stimulus package, and “Obamacare.” In the recent elections, Obama and the Democrats suffered a defeat, a “shellacking” as he put it. But now as we are approaching the main event, the Republican attack has taken the form of Congressman Paul Ryan’s budget proposal.

William Milberg asserted here that with this proposal the President is just about assured re-election. I have talked to a number of friends and colleagues about this. Their response, put bluntly: “from his mouth, to God’s ears.” But just perhaps, God won’t have anything to do with it. Perhaps, it will be a matter of leadership and political direction, along with the political economic fundamentals Milberg highlighted. The quality of the leadership was revealed in Obama’s speech on the deficit yesterday.

In his speech, the President was forthright in his rhetoric and policy recommendations. He addressed the problems of the deficit, emphasizing that deficit reduction will require taxing as well as cuts in spending. He drew a sharp distinction between his and the Republican plans. The contrast was stark. The political thrust of the speech was clear.

Obama and the Democrats promise to defend Medicare and Medicaid, while the Republicans will dismantle them. The Ryan budget provides many tax advantages for the rich, while what they present means that “50 million Americans have to lose their health insurance in order for us to reduce the deficit.”

As the President declared:

“And worst of all, this is a vision that says even though . . .

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