Category: Democrats

Deconstructing the Sandy Relief Numbers

LARRY HARRIS, professor of finance, USC’s Marshall School of Business.

This op-ed originally appeared in the Wall Street Journal on Jan. 11.

President Obama asked Congress for $61 billion for various relief programs following Hurricane Sandy. The Senate approved the full request late last month, but so far the House has approved just $9.7 billion, for flood-insurance claims. The House will soon vote on the remaining $51 billion in proposed aid.

Sandy was an unusually large storm that did substantial damage to the Eastern Seaboard. More than eight million people lost power and perhaps as many as 100,000 were left homeless. Thousands of buildings were destroyed or damaged along the coastline from Maryland to Maine.

Many people don’t appreciate how large these numbers are, in particular the size of the proposed relief. Consider some simple comparisons. The $61 billion aid package represents:

A Ramp Away From the Fiscal Cliff

EDWARD D. KLEINBARD, professor of law, USC’s Gould School of Law.

This op-ed originally appeared at CNN on Nov. 30.

America’s fiscal policy faces an apparent Hobson’s choice. On the one hand, we need to tame federal deficit spending by imposing new across-the-board spending cuts and higher taxes. We are told that if we do not act on this soon, the debt markets will choke on the overabundance of government debt issued to fund those deficits, causing interest rates to climb. As a result, businesses and homeowners will be unable to borrow on reasonable terms, which will lead to a slowdown of the economy.

The Future American Electorate Is California

SHERRY BEBITCH JEFFE, senior fellow, USC Price School of Public Policy, and DOUGLAS JEFFE.

This op-ed originally appeared at Reuters.

The changing face of the American electorate is etched all over the map of California. The Golden State may no longer be a partisan battleground, but it continues to be a reliable bellwether for the evolving national political landscape.

Even as President Barack Obama won a second term with an electorate that mirrored the demographic trends that have made California deep blue, Golden State voters chose to raise taxes to fund education and gave Democrats a two-thirds “supermajority” in both houses of the state legislature—meaning Democratic lawmakers will have the ability to raise taxes without a single Republican vote.

Can a Legislature Run by California Democrats Clean Up the Mess

SHERRY BEBITCH JEFFE, fellow, USC Price School of Public Policy, and DOUGLAS JEFFE.

This op-ed originally appeared at Reuters.

California is on the verge of becoming a one-party state — but policy gridlock isn’t going anywhere soon.

Democrats now hold all the statewide offices and have a shot Tuesday at achieving two-thirds majorities in the Legislature. Yet they are far from being able to unilaterally resolve California’s fiscal logjam.

For the past decade, California’s fiscal picture has been awash in red ink, legislative stalemates, borrowing and a lot of budgetary gimmickry. Three governors in a row, Gray Davis, Arnold Schwarzenegger and Jerry Brown, hit a stone wall in trying to resolve the state’s structural deficit—the imbalance between ongoing spending and available tax revenues — that has persisted in