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Earth to John Boehner
For the last month, Barack Obama has made a direct connection between the $10 Billion per month we are spending in Iraq and the unmet fiscal needs of an America falling into a potentially deep recession. Yesterday Republican House Leader John Boehner tried to counter this argument.
“While American consumers are dealing with spiking fuel prices today, these costs would pale in comparison with those they would face if radical jihadists or the Iranian regime gained the upper hand in the Middle East.”
But most oil analysts believe there has been at least a $25 per barrel "war premium" built into the price of oil since our invasion of Iraq. In addition, Paul Wolfowitz's idea that Iraqi oil could be the new "swing producer" (flooding the market to lower prices) turned out to be another fantasy. Although I have written extensively about the role of Cheney's Oil Task Force in the run up to the Iraq War, Boehner's notion that somehow our imperial control of Iraqi oil benefitted the American economy is totally false.
As David Leonhardt pointed out this morning, the Bush economic recovery has been a bust for the middle class, with the median family income lower now than in 2000.
“We have had expansions before where the bottom end didn’t do well,” said Lawrence F. Katz, a Harvard economist who studies the job market. “But we’ve never had an expansion in which the middle of income distribution had no wage growth.”
Leonhardt goes on to point out that in the past we have used the fiscal stimulus of great infrastructure projects like the Interstate Highway System or the G.I. Bill to help build up the middle class. And there are many worthy greentech and educational projects that could serve this same function to support a slipping middle class. But none of this can really happen until the $2 trillion drain of the Iraq War on our economy is extinguished.
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. . . Boehner's notion that somehow our imperial control of Iraqi oil benefitted the American economy . . . .
Did Boehner say anything at all along these lines? It wouldn't seem that he did.
April 9, 2008 7:52 PM | Reply | Permalink
The clear implication of Boehner's comments were, "better we control the Iraqi oil than the Iranians"
April 9, 2008 9:02 PM | Reply | Permalink
even clearer, 9 days after clowning before the house committee on energy independence and global warming, boehner is simply & effectively reprising his inner fool:
of course, all kidding aside, what boehner really meant to say was: "If our nation abandoned efforts to stabilize Iraq ... it would lead to chaos in the Middle East that would wreak havoc on our national and economic security.
shorter boehner: 100 yrs in iraq? don't worry, be happy.
April 10, 2008 12:43 AM | Reply | Permalink
Nothing Bush or the Boehner Republicans have done the last 8 years has 'benefited' the American economy, unless you are a war profiteer or in the grave digging business.
April 9, 2008 8:08 PM | Reply | Permalink
Somebody should tell Boehner 'jihadists' and the influence of Iran were never a problem in Iraq until George W. Bush invaded Iraq and turned it into a killing field. TheRepublicans were wrong then, and they are also wrong now.
April 9, 2008 11:00 PM | Reply | Permalink
The only part I disagree with is the built-in $25/bbl war premium. I'd argue it's $50/bbl, minimum.
Within 5-6 years, I bet we'll see $45-$60/bbl again, assuming, of course, that a Democrat takes the White House.
The middle class can look for gains again, after paying off the Republican debts and profiteering. I estimate things will start looking up around 2011-12.
April 9, 2008 10:11 PM | Reply | Permalink
The military runs on jet fuel and diesel, the increased demand in this area ALONE can account for the $70 increase per barrel.
Here in Alaska we watch oil prices very carefully, I can clearly recall in the recent past $28-30 prices, was shocked at $60 and now... I'm not sure I see any way that it could come down.
April 10, 2008 3:55 AM | Reply | Permalink
We can only undo the disasters brought to us by the voters who reelected Bush in 2004 if we can somehow get those voters to look beyond their desire to pay no taxes. As long as Repubs can point out to the voters that we, the Democratic Party, are the "tax and spend" party, we will continue to lose, unless we can defuse that accusation.
In 2000 the Repub fat cats searched for someone who could attract voters, while at the same time being so inept, so dumb, so incurious, that he/she wouldn't interfere with their desire to accumlate a still larger percentage of the nation's wealth. They found George W. Bush.
This year, they didn't even have to search - John McCain stepped up. Now you can expect them to put someone in as McCain's VP who is so repulsive to all Americans, that impeachment will never be an option. But, this time, given McCain's age and infirmity, they will need that repulsive candidate to be equally inept, incurious, dumb, in case he becomes the president unexpectedly. Now that is the challenge being worked on by the Repub fat cats.
April 10, 2008 12:36 AM | Reply | Permalink
I tend to agree with the argument that a rogue middle eastern state mucking with the oil supply could be more devastating to 'average Americans' by way of outrageous gasoline prices affecting the price of everything, than another terrorist attack would be. Theoretically, if the movement of goods comes to a standstill and/or the cost of getting to work exceeds the pay for that work... you get the picture.
But...
I also tend to think the invasion of Iraq has given MORE power to Iran to do this, not less. At this point, we can't put the proverbial toothpaste back into the tube. Iran has some influence over two major aspects of our foreign policy issues, Iraq and Oil.
I agree with Obama that we should deal with Iran on a diplomatic level, their power and influence in Iraq is not likely to change. It is in our best interest to find some common ground and work towards creating disincentives for Iran to create chaos in the oil market, OTHER than sabre-rattling of course.
The argument that 'the U.S. President is too-special' to meet with them has a ring of imperialism to my ears.
April 10, 2008 2:46 AM | Reply | Permalink
actually, the reason for invading iraq was to eliminate that "swing" producer.
prior to the invasion, iraq had the role as the destroyer of the saudi control of the cartel.
so, if you were a saudi ally, as are the rockefellers and their acolytes[the bushits, the cheneys, the rices], you would understand that your pockets would be enriched by disrupting iraq's hydrocarbon production.
when you recognize that, then you will understand the reason[s] for the invasion/occupation. then you will understand jay rockefeller. and all the congressional infants sucking on that rockefeller teat.
April 10, 2008 2:48 AM | Reply | Permalink
Re: The military runs on jet fuel and diesel, the increased demand in this area ALONE can account for the $70 increase per barrel.
I rather doubt there has been that much usage.
Re: I'm not sure I see any way that it could come down.
Back down to $20/bbl-- probably not. Down to around 50-60 , doable. We need to quit playing Bull In The Mideast China Shop, and take measures to burst prick the oil speculation bubble. The latter is doable too-- it was done back in September of 2006 right before the election of course.
Re: We can only undo the disasters brought to us by the voters who reelected Bush in 2004 if we can somehow get those voters to look beyond their desire to pay no taxes.
I don't recall taxes being a particularly large issue in 2004. It was all about national security, gays, and, oh yes, John Kerry was a liar per the Swifties.
Re: tend to agree with the argument that a rogue middle eastern state mucking with the oil supply could be more devastating to 'average Americans' by way of outrageous gasoline prices
Just how is that rogue state supposed to "muck around"? Even the nastiest dictator can't nullify the laws of supply and demand. And we've no shortage of rogue states and tyrants in that region all along. They've pulled a few stunts, but over the long haul the laws of economics smack them back down.
April 10, 2008 6:23 AM | Reply | Permalink
Boner has brain damage because of too many hours in the tanning bed.
He's well paid to spout nonsense at every available opportunity.
And to be honest, he sounds good in comparison to the clowns he replaced, Delay and his sock puppet Hastert. Of course that is damning with faint praise.
April 10, 2008 9:23 AM | Reply | Permalink
The team of DeLay and Doolittle may be gone, but the philosophy of "delay and do little" is still alive and well in the Republican ranks....
April 10, 2008 8:38 PM | Reply | Permalink
We need to show that the inflation we are all feeling is exactly the same as taxes, just less planned.
What would you prefer, taxes that you can predict a year or more in advance or at least twice the cost in inflation hitting you unexpectedly? That's the choice.
Our grandchildren will be paying for Iraq and the housing bubble this administration foisted on us in both taxes and inflation, as well as many other idiocies from the conservatives who love the Reagan myth more than they do America.
April 10, 2008 10:34 AM | Reply | Permalink