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TOPIC: "Senator Bunning’s Universe" (Paul Krugman, Op-Ed Columnist, NY Times, 3/4/10)


Diamond

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"Senator Bunning’s Universe" (Paul Krugman, Op-Ed Columnist, NY Times, 3/4/10)
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"
So the Bunning blockade is over. For days, Senator Jim Bunning of Kentucky exploited Senate rules to block a one-month extension of unemployment benefits. In the end, he gave in, although not soon enough to prevent an interruption of payments to around 100,000 workers.

But while the blockade is over, its lessons remain. Some of those lessons involve the spectacular dysfunctionality of the Senate. What I want to focus on right now, however, is the incredible gap that has opened up between the parties. Today, Democrats and Republicans live in different universes, both intellectually and morally.

Take the question of helping the unemployed in the middle of a deep slump. What Democrats believe is what textbook economics says: that when the economy is deeply depressed, extending unemployment benefits not only helps those in need, it also reduces unemployment. That’s because the economy’s problem right now is lack of sufficient demand, and cash-strapped unemployed workers are likely to spend their benefits. In fact, the Congressional Budget Office says that aid to the unemployed is one of the most effective forms of economic stimulus, as measured by jobs created per dollar of outlay.

But that’s not how Republicans see it. Here’s what Senator Jon Kyl of Arizona, the second-ranking Republican in the Senate, had to say when defending Mr. Bunning’s position (although not joining his blockade): unemployment relief “doesn’t create new jobs. In fact, if anything, continuing to pay people unemployment compensation is a disincentive for them to seek new work.”

Continues @ The New York Times

"

I believe Sen.Bunning picked the wrong case to make his point on PAYGO. It has further underscored the existing image of GOP as a party that is relatively heartless towards the unemployed, underprivileged, that is callous about "life" when it is towards military, but is all holy about "life" when a woman has to choose between her (larger) life,  aspirations, issues and concerns and that of what may have been a mishap or unplanned event... Often the GOP comes across as favoring a demand / high population/ consumption driven economy that also wants the government to spend a lot to give business to military companies. 

Sen.Bunning lowered my view of GOP as a party. He had any number of other opportunities to exercise his power and emphasize PAYGO.. especially on the income side where tax rebates are lapsing.. or new tax breaks are being devised... which could very well be left alone to finance programs that are essential function of the government..  I see basic unemployment insurance as one such essential function.  I just hope the gap created did not result in some people loosing their medical coverage; it has the potential as it was over 30 days gap already.


-- Edited by Sanders on Friday 5th of March 2010 03:10:34 PM

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