Anwar Richardson School of Economics Award: Tim Pawlenty

Anwar Richardson School of Economics Award is given to people that make economic claims that have no basis in reality. The award is named after sports writer Anwar Richardson making up stories about Brett Farve becoming a Tampa Bay Buccaneer and the economic impact Farve would have on Tampa. Richardson wrote these stories without citing any sources.

Tim Pawlenty is getting plenty of attention for calling President Barack Obama a "chicken." Pawlenty played chicken when Candy Crowley pointed out that "cut, cap and balance" is not going to pass in the Senate. Pawlenty avoids answering what concessions he would make in order to get the debt ceiling raised.

CROWLEY: Sure, but where would you -- what I'm asking is where we -- I think we know what you would push for, where would you compromise? Because "cut, cap, and balance" is not passing the Senate. You have to come up with something. And so I guess my question is, where do you -- where's the give here, if there is? Because you have to get it passed the Senate and the Senate is controlled by Democrats?

PAWLENTY: Yes. Well, first, let's -- I do want to say, let's remember how we got here. President Obama took office with a $500 billion or so deficit, and he ran it up the deficit to $1.5 trillion -- excuse me, $1.5 trillion.

CROWLEY: Can I just interject that he inherited two wars. He inherited an ongoing prescription drug plan that was passed under the Bush administration, and a recession that went deeper and deeper.

Troop levels are down in Iraq. Obama has increased combat operations in Afghanistan. Obama also authorize the use of airstrikes in Libya. Three wars cost money. Best of all is Pawlenty dodges the question of how he would break the Congressional gridlock on raising the debt ceiling. For someone who is questioning the courage of the President, Pawlenty isn't displaying his own courage.

Pawlenty repeats the line that Obama inherited a $500 billion deficit from President Bush.

PAWLENTY: The two wars were taking place under President Bush at a larger level in Iraq. So, again, when President Bush left office there was a $500 billion deficit. Now it's about $1.5 trillion under President Obama's watch. He tripled the deficit of this country.

Actually, Obama inherited a $1.2 trillion deficit from Bush. From the CBO January 2009 report.

CBO projects that the deficit this year will total $1.2 trillion, or 8.3 percent of GDP. Enactment of an economic stimulus package would add to that deficit. In CBO’s baseline, the deficit for 2010 falls to 4.9 percent of GDP, still high by historical standards.

Pawlenty is off by $700 billion from the CBO deficit numbers. The fact that Pawlenty repeats this means it is a talking point. Pawlenty receives a Joy-Ann Reid Award for knowingly lying. I could buy Rick Santorum being too stupid to know the real deficit numbers. Pawlenty does not get that free pass.

Pawlenty's support for the "cut, cap and balance" bill shows how unserious he is. It is impossible to get a balance budget amendment into the Constitution before August 2nd. It doesn't matter to Pawlenty because he refuses to acknowledge reality.

Anwar Richardson School of Economics Award: Rush Limbaugh

The Anwar Richardson School of Economics Award is named after the Tampa Tribune sports writer. Richardson boldly predicted Brett Farve coming to the Tampa Bay Buccaneers "It's actually gonna pump some money into this economy. Especially, in the Tampa Bay economy." Farve never came and several economic stuidies have shown sport franchises have zero economic impact on the community. Tampa area residents are still paying for the construction of Raymond James Stadium.

New York Gov. David Paterson is facing a budget deficit. Paterson plans to address the problem by raising the tax rate of income earners making $500,000 to 8.97%. Naturally, this has angered part-time New York resident Rush Limbaugh.

“When I am there working I pay whatever, you know, my rate is based on income for that day in New York,” Limbaugh said. “And I try to go as little as possible. If it weren't for hurricanes down here (his regular studio in Florida), I would never go up there.

“So I'll tell you what I'm going to do,” Limbaugh continued. “I'm going to look for an alternative studio somewhere outside New York, perhaps Texas -- another no-income-tax state -- and I'm going to get the hell over there, when a hurricane starts coming our way, 'cause I told Mayor Bloomberg: I'll be the first to lead the way. “

I would be more sympathic if Limbaugh didn't own mansions in two states. Floridians are suffering from a lack of property tax relief. Limbaugh was able to save $25,000 on his property taxes. Limbaugh and other wealthy Palm Beach residents spend much of the year away from their Florida homes. For tax purposes, they are still homesteaded.

Limbaugh threw down the gauntlet. Limbaugh told the state of New York to "drop dead." He showed he really meant business by threatening to work less.

“When you raise taxes on an activity, you reduce that activity,” Limbaugh explained to his listeners. “People start doing that activity less. In this case: working. When you reduce taxes on an activity, then that activity increases. When you reduce taxes on income, people start working harder to earn more. Governor Paterson needs to cut taxes on people. He needs to spur investment. He needs to get people going and working. It's just the exact opposite. Governor Paterson is like most other liberal Democrats: zero-sum game. The economy is a pie. It never grows. Somebody gets their slice; somebody gets their slice.”

I wonder if Limbaugh knew he is reciting the Laffer Curve theory. Arthur Laffer believed less taxes would make people work more hours and bring in more tax revenue to the government. The reserse has proven to be true. The federal budget went from surplus to deficit under the Bush tax cuts. A Congressional Budget Office study found that the budget would have been balanced in 2005, if not for the Bush tax cuts. American workers are making less due to inflation and stagnant wages. George Clooney can afford to vacation with Cindy Crawford. Many Americans are forced to work more than one job.

MS. MORNIN: Okay, I'm a divorced, single [57 year-old] mother with three grown, adult children. I have one child, Robbie, who is mentally challenged, and I have two daughters.

THE PRESIDENT: Fantastic. First of all, you've got the hardest job in
America, being a single mom...

MS. MORNIN: I work three jobs and I feel like I contribute.

THE PRESIDENT: You work three jobs?

MS. MORNIN: Three jobs, yes.

THE PRESIDENT: Uniquely American, isn't it? I mean, that is fantastic that
you're doing that. (Applause.) Get any sleep? (Laughter.)

MS. MORNIN: Not much. Not much.

Bush thinks it is funny Ms. Moran has to support a special needs child by working three jobs. His economic policies hardly rewarded her hard work.

"[T]he “Laffer Curve” idea that tax cuts would actually increase revenues turned out to deserve the ridicule with which sober economists had greeted it in 1981." wrote Noble prize-winning economist James Tobin. Limbaugh citing the Laffer Curve earns him the Anwar Richardson School of Economics Award.

Anwar Richardson School of Economics Award: John Boehner

Anwar Richardson School of Economics Award is named after the Tampa Tribune sports writer. Richardson boldly predicted Brett Farve coming to the Tampa Bay Buccaneers "It's actually gonna pump some money into this economy. Especially, in the Tampa Bay economy." Farve never came and several economic stuidies have shown sport franchises have zero economic impact on the community. Tampa area residents are still paying for the construction of Rayomond James Stadium.

Minority Leader John Boehner calls for a spending freeze. Policy-wise this would accomplish nothing. Politically, Boehner can attack Barack Obama's stimulus package as pork. Boehner was in the Republican House leadership during the Bush years. Where was his concern about spending then? In 2006, Boehner backed President Bush's wildly off-the-mark projection there would be a surplus in 2012.

"Raising taxes . . . won't help balance the budget -- it will slow the economic growth that is creating the new jobs of tomorrow and increasing revenue to the federal government," House Minority Leader John A. Boehner (R-Ohio) wrote in an essay distributed yesterday by his office. "Keeping our economy strong and promoting fiscal responsibility will get the job done. Raising taxes won't."

Boehner attacked Obama's stimulus package as raising taxes. The Citizens For Tax Justice found Obama's Making Work Pay tax cuts will be be savings for most Americans.

Lowest 20% - 12.2 percent

Second Lowest 20% - 16.1 percent

Middle 20% - 20.2 percent

Fourth 20% - 26.4 percent

Next 15% - 22.5 percent

Next 4% - 2.5 percent

Top 1 0.0 percent

Boehner and other Republicans are false about Obama increasing taxes. If Boehner's political strategy hinges on fighting to restore Britney Spears' tax cuts then good luck in the midtern elections. The CTJ study found:

Tax cuts are generally less effective in stimulating demand than direct government outlays. But tax cuts targeted to the people who are most likely to immediately spend any money they receive, namely low- and middle-income people, are more effective than upper-income tax reductions. Tax cuts for business are far less likely to be an effective stimulus.

The middle and lower class are a larger part of the population than the top one percent income earners. Their spending is the best chance the economy has to itself out of recession.

Tax cuts do not pay off the deficit. The Congressional Budget Office found without the Bush tax cuts there would have been a surplus in 2005. The Bush/Republican tax cuts cost three times more than domestic spending.

I'm not even sure where Boehner is going with a spending freeze. Obama has brought back paygo in the stimulus bill. Conservative columnist David Brooks calls the spending freeze idea "insane."

BROOKS: The problem with them and the problem with Limbaugh in terms of intellectual philosophy is they are stuck with Reagan. They are stuck with the idea that government is always the problem. A lot of Republicans up in Capitol Hill right now are calling for a spending freeze in a middle of a recession/depression. That is insane. But they are thinking the way they thought in 1982, if we can only think that way again, that is just insane.

John Boehner, you are the first winner of the Anwar Richardson School of Economics Award.