Jeb Bush discovers a hypothetical he’s willing to address—and assures us that he, unlike Obama, would have ensured a second Great Depression. Jeb for President!
Questioned by a voter inside a sports bar about whether there is “space” between himself and his older brother on any issues, Bush offered a clear critique.
“Are there differences? Yeah, I mean, sure,” Bush said. “I think that in Washington during my brother’s time, Republicans spent too much money. I think he could have used the veto power — he didn’t have line-item veto power, but he could have brought budget discipline to Washington, D.C. That seems kind of quaint right now given the fact that after he left, budget deficits and spending just like lit up astronomically. But having constraints on spending across the board during his time would have been a good thing.”
— Jeb Bush: George W. spent too much money, Eli Stokols, Politico, yesterday
Okay, so Bush has now found a hypothetical that he wants to discuss. Two hypotheticals, actually: (1) what his fiscal policies would have been between Jan. 2001 and Jan. 2009; and (2) what his fiscal policies would have been between Jan. 2009 and, oh—at what point did the federal budget deficit decline dramatically? 2013? And … what is the deficit now, as compared with the Bush years? And what role did the Bush tax cuts play in that?
But really, since these are to separate hypotheticals, we—well, the people who actually can ask and maybe get an answer (i.e., the news media; Hillary Clinton)—should ask two sets of questions.
First, we (they) should ask what spending, specifically, Jeb Bush would not have authorized during his brother’s presidency that his brother authorized. The military spending for the wars in Afghanistan and Iraq? The massive spending on increased security after 9/11? The Medicare Part D prescription-drug law? The frantic stopgap finance-industry bailout that George Bush’s Treasury secretary, Henry Paulson, put together in the fall of 2008 in order to try to fend off a near-complete collapse of the banking system?
Or maybe the initial part of the auto-industry bailout, without which George Bush said the unemployment rate would have jumped to about 20%?
So, would Jeb Bush—knowing then what we know now, about the near-collapse of the banking system, and of the economy, late in his brother’s presidency, and the fact that the Iraq war went on and on and on—have supported his brother’s two massive tax cuts, mostly for the wealthy, during his first term?
Just askin’. Although I’d bet that’s a hypothetical that he’d take even longer to answer than the five days it took him to answer the infamous Iraq one. Maybe even as long as 18 months.
Then, of course, there’s that second hypothetical that Bush answered yesterday—the one in which he said the budget deficits at the end of his brother’s term seem “kind of quaint right now given the fact that after he left, budget deficits and spending just like lit up astronomically,” indicating that he (Jeb) thinks Obama, in the face of the collapsing economy and banking system, should have … what, exactly?
Cut funding for unemployment compensation, or capped it at its 2007 level? Refused to allow extensions of it? Cut funding for food stamp access, or capped it at its 2007 level?
Ended the financial industry bailout begun under his brother?
Let Detroit go bankrupt? (That wasn’t such a winning tack for Mitt Romney. But, I mean, ya never know. …)
Ah. Maybe he means the stimulus bill, which provided funding for job training and college for hundreds of thousands of people, especially in states hardest hit by the collapse of the economy. States like Michigan, Ohio, Nevada, Florida. And the direct spending from that bill, on infrastructure projects and such. Y’know, the stuff that virtually all mainstream economists now say helped keep the unemployment rate from reaching Great Depression levels and helped start the recovery.
It’s not surprising, I suppose, that the political media played up Bush’s comments yesterday–at least in headlines and soundbites if not in the actual reportage itself by reporters who wrote full articles about the comments (see, e.g. the quote at the opening of this post, and the title given the article)–as Bush Brother v. Bush Brother. Because of course it’s the family saga, not the specifics of the policies, that matter, right?*
And some mainstream political reporters, including a couple of them from Politico, where (unrelatedly) the above quotes were originally published, couldn’t analyze their way out of a paper bag. And Clinton herself pretty clearly has settled on a campaign of mindless clichés, Republican soundbites about federal regulation, and cutesy gimmicks. Does she really not understand that most small business red tape has nothing at all to do with federal regulations? Or does she just think that most people don’t know the difference between private-bank business-loan operations and federal regulation, and between state and local business regulations—a.k.a., red tape—and federal regulations? And that no one will ask her what regulations, exactly, she thinks are holding back small-business owners and aspiring small-business owners?
On that last point, she may be right, since she has almost no direct contact with the press and no contact at all with everyday Americans who haven’t been prescreened as props.
So maybe Bernie Sanders or Martin O’Malley—or Elizabeth Warren—will question the specifics of Jeb Bush’s answers to those hypotheticals. And the specifics of Clinton’s claim that federal regulations are hindering small business. Like, which federal regulations, specifically? And maybe, at least regarding Bush’s, a Dem SuperPAC that is not coordinating with Clinton and her silly campaign, will run web ads or TV ads eventually that do that.
And maybe Sanders, O’Malley, Warren, or a progressive Democratic SuperPAC will point out that the biggest hindrance to small business loan availability, by far, is not federal regulation, or even state or local regulation, but instead federal deregulation—of the banking system. Specifically, the disastrous repeal of the Glass-Steagall Act. And mention the incessant Republican push to repeal the Dodd-Frank bank-regulation law, and their fight against instituting the Volker Rule.
Clinton is right that “[t]oo many regulatory and licensing requirements are uneven and uncertain” and that “[i]t should not take longer to start a business in the U.S. than it does in Canada, Korea, or France.” But small-business regulation is mostly, and licensing is entirely, state and local, not federal. So maybe she’ll get around to pointing that out and detailing what she, as president, would propose as a national fix. In any event she should not further the Republican misrepresentation that small-business regulation and licensing is done by the federal government. With the exception of federal tax laws, including FICA tax laws, and environmental laws and worker-safety laws, “cutting the red tape that holds back small businesses and entrepreneurs” means tackling state and local, not federal, red tape.
As for my earlier dismay at Clinton’s senior policy adviser Jake Sullivan’s Fox News-ish claim that Democrats support obstacles for small businesses, and are against small businesses having easy access to loans—we don’t want them to compete with Walmart, see—I now get it. Sadly. Blame imagined Democratic anti-small-business sentiment, and big federal gummint, rather than the deregulated banking industry, for the labyrinthine high-hurdle event that is the small-business loan situation now.
Clinton speaks of her father’s success in opening and running a very profitable small business. His business loans, though, weren’t from banks competing for profits with multinational hedge funds masquerading as JPMorgan Chase Bank, Citibank and Bank of America.
But, as for Jeb Bush, at least he’s honest. He’s told us now that had he, instead of Obama, been president in the aftermath of his brother’s presidency, he’d have ensured a complete collapse of the economy. Vote for Jeb!