Punting the Pundits

“Punting the Pundits” is an Open Thread. It is a selection of editorials and opinions from around the news medium and the internet blogs. The intent is to provide a forum for your reactions and opinions, not just to the opinions presented, but to what ever you find important.

Thanks to ek hornbeck, click on the link and you can access all the past “Punting the Pundits”.

Paul Krugman: Downgrade of US Credit Rating Is Baseless – ­and Outrageous

Standard & Poor’s has gone ahead with the threatened downgrade of the United States’ credit rating. It’s a strange situation.

On one hand, there is a case to be made that the madness of the right has made America a fundamentally unsound nation. And yes, it is the madness of the right: If not for the extremism of anti-tax Republicans, we would have no trouble reaching an agreement that would ensure long-run solvency.

On the other hand, it’s hard to think of anyone less qualified to pass judgment on America than the rating agencies.

The people who rated subprime-backed securities are now declaring that they are the judges of fiscal policy? Really?

Dean Baker: President Obama Joins the Cult of Economics Deniers

President Obama has abandoned evidence-based economics to return the US to growth in favor of the politics of deficit-cutting

A front page story in Sunday’s New York Times gave the country the bad news. President Obama is no longer paying attention to economists and economics in designing economic policy. Instead, he will do what his campaign people tell him will get him re-elected, presumably by getting lots of money from Wall Street.

The article said that President Obama intends to focus on reducing government spending and cutting programs like social security and Medicare. This is in spite of the fact that: “A wide range of economists say the administration should call for a new round of stimulus spending, as prescribed by mainstream economic theory, to create jobs and promote growth.”

In other words, President Obama intends to ignore the path for getting the economy back to full employment that most economists advocate. Instead, he is going to cut government spending – because his chief of staff and former JP Morgan vice president Bill Daley and his top campaign adviser David Plouffe both say this is a good idea.

New York Times Editorial:  The Clear Case for the Gas Tax

Unless Congress extends it, the 18.4 cents-a-gallon federal gas tax will expire on Sept. 30. Allowing that to happen would be tremendously destructive. It would bankrupt the already stressed Highway Trust Fund, with devastating effects on the country’s highways, bridges, mass transit systems and the economy as a whole.

Reports suggest that some House Republicans may push to let the tax lapse or use the threat of expiration as leverage in the budget wars. This is a dangerous idea. If anything, the tax should rise to maintain a system that constantly needs upkeep – the backlog of bridges needing repair is estimated at $72 billion – creates jobs and encourages drivers to buy more fuel-efficient cars.

Steven Rattner: Republican Extremism, Bad Economics

IN the middle of all the debt default drama and stock market turbulence, the leading Republican presidential candidates have begun to fill in the shadowy outlines of their positions on major economic issues.

And what a picture it is, a philosophy oriented around shrinking the role of the federal government in every imaginable way, by slashing spending, cutting taxes and halting or rescinding regulations. Their mantra is repeal and retrenchment, devoid of new initiatives or a positive agenda.

Some of these views are to the right even of the Tea Party; they amount to the most radically conservative positions of any set of candidates at least since Barry M. Goldwater in 1964.

John Nichols: FDR Went to Wisconsin to Battle ‘Economic Royalists,’ But Obama Avoids the State and the Fight http://www.thenation.com/blog/…

President Obama is interrupting his long vacation to bus across the battleground states of the Midwest this week, on an officially “non-political” journey that his aides obviously hope will renew a connection with the people who overwhelmingly elected him president in 2008. It is an essential endeavor, as Obama’s uncertain tenure has frustrated voters who once saw him as a transformational leader but now wonder whether there is a point to his presidency.  

The disconnect between Obama and his base has grown more profound this year, as he has focused on the compromises of Washington while working people in Wisconsin, Michigan, Ohio and other states have engaged in “Which side are you on?” fights against a Republican austerity agenda that threatens the very underpinnings of civil society and democratic experiment.

Eugene Robinson: Straw Poll Winner – Obama

Ames, Iowa – Strolling through the pageant of unhealthy food and unsound ideology that is the Iowa Straw Poll, amid the good-natured Republicans who swept Michele Bachmann to an impressive victory, I couldn’t help but reflect that this quadrennial exercise is one crazy way to pick a major-party candidate for president.

You’ll note that I used the words “Michele Bachmann” and “president” in the same sentence. That someone with views as extreme as Bachmann’s could win — and that Ron Paul, who seems to inhabit his own little reality, could finish second — would seem to rob the straw poll of all but comic value, making it analogous to the opening joke a dinner speaker might tell to warm up a stone-faced audience. But the ritual is serious business, as poor Tim Pawlenty found out. Less than 24 hours after he finished a distant third in the straw poll, “former candidate” became his new honorific.

Long before the results were tallied, it seemed clear that Pawlenty was in trouble. Like the other candidates who participated Saturday, he had a big tent on the grounds of the Iowa State University coliseum where voters could enjoy free food and entertainment. People were happy to line up for the Famous Dave’s barbecue that Pawlenty was serving, but they didn’t stay long — and when they walked away, they weren’t wearing the green Pawlenty T-shirts that signaled support. By mid-afternoon, volunteers were glum.