GOPers and the Absence of Reason

Sen. Richard Shelby (R-Ala.). Lauren Victoria Burke/wdcpix.com

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Today, a slew of Democrats and Republicans from the House and Senate delivered their opening shots in financial reform’s final round. In what’s called “conference,” members of both parties and both chambers will spend the next two weeks reconciling their two 1,500-plus-page pieces of legislation that would create a new consumer agency, end taxpayer bailouts, cast light on the $600 trillion dollar derivatives markets, and crack down on financial players from Goldman Sachs to car dealers to payday lenders. By some counts, the path to the conference process has taken two years or more. Yet one of the most striking things from today’s opening statements is how stale and unoriginal the Republicans’ critiques are of the two bills. (In Washington, some call that discipline, I suppose.)

One by one, on the House and Senate sides, from Sen. Richard Shelby (R-Ala.), the ranking member of the banking committee, to the most junior House member, Republicans rehashed the same tired talking points to justify their opposition to financial reform. Chief among those points is the role of Fannie Mae and Freddie Mac, the two government-sponsored housing corporations that are now basically wards of the state. Republicans have a very valid argument when they decry the rising tab needed to bail out Fannie and Freddie, now around $150 billion; and yes, there needs to be legislation to decide the futures of these two wounded companies. But the bills the House and Senate are trying to merge are meant to address the causes of the financial crisis—and, as I’ve explained before, Fannie and Freddie did not cause the crisis. (For an in-depth explanation, read this.)

Still, Republicans far and wide continue to rail against Fannie and Freddie as playing an huge, integral, AIG-esque role in melting down the US economy in 2008 and 2009. And it’s a canard they’ve been espousing since debate on new financial reforms began last spring.

The other beloved GOP talking point is that both the House and Senate bills will usher in an era of perpetual government bailouts of too-big- or too-interconnected-to-fail banks. This one is straight out of the playbook (pdf) of Frank Luntz, the well-known Republican strategist. As Luntz wrote, “Public outrage about the bailout of banks and Wall Street is a simmering time bomb set to go off on Election Day. Frankly, the single best way to kill any legislation is to link it to the Big Bank Bailout.” And that’s exactly what Republicans have done, time and time again.

Which is too bad. We’ve seen what a handful of engaged Republicans—like Sen. Bob Corker (R-Tenn.), a lead negotiator on financial reform earlier this year, or Sen. Judd Gregg (R-NH)—can do if they actually engage with Democrats and offer substantive solutions, instead of slapping a “Bailout Bill” label on the whole thing. But if today’s opening remarks are any indication, it’s look like we’re in for several weeks of bickering and blame-trading that won’t make this bill any better.

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

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