Showing posts with label Social Policy. Show all posts
Showing posts with label Social Policy. Show all posts

Ross Douthat, Political Scientist

    Douthat draws on political science research at New York Times, "Waiting For a Landslide." And for a second I thought he'd blow it, because "realignment theory," which he discusses, hasn't accurately explained, much less predicted, partisan trends for decades. But Douthat adds this, which is just right:

    In reality, the next election may be no more transformative than 2008 turned out to be. The next Republican president may find himself as hemmed in and frustrated as President Obama has become. Meanwhile, America will still have a credit rating to fix, and a deficit to close.
    More at that link at top, and Douthat had a great piece a few days ago on the debt deal, "The Liberals’ Dilemma." Note especially:
    ... American liberalism risks becoming a victim of its own longstanding strategy’s success. Because yesterday’s liberals insisted on making universal programs the costly core of the modern welfare state, on the famous theory that “programs for the poor become poor programs,” today’s liberals find themselves defending those universal (and therefore universally-popular) programs at the expense of every other kind of government spending — including, yes, programs for the poor. It’s a classic example of putting liberal political interests ahead of liberal policy priorities. In the short term, the insistence on ring-fencing Medicare and Social Security has left Democrats defending a system that often just ends up redistributing money from the younger middle class to the older middle class while accepting caps on programs that might do more (both directly and indirectly) to help downscale Americans get ahead. In the long term, by postponing any reckoning with the cost of entitlements, it’s making it more likely that the inevitable crunch will hit the poorest recipients of Medicare and Social Security harder than it should.
    Read that whole thing. Basically, progressives will never cut entitlements because gargantuan socialist welfare states form the core of socialist existentialism.



    Douthat's coming of his own as a New York Times columnist, by the way. He had cold feet or something after leaving The Atlantic, but he's been more consistent in posting some excellent commentary of late.

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Ross Douthat, Political Scientist


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America Gets Downgraded

    At Wall Street Journal, "A spend and tax policy mix always leads to economic decline":

    ... is there anything that S&P said on Friday that everyone else doesn't already know? S&P essentially declared that on present trend the U.S. debt burden is unsustainable, and that the American political system seems unable to reverse that trend.

    This is not news.

    In that context, the Obama Administration's attempt to discredit S&P only makes the U.S. look worse—like the Europeans who also want to blame the raters for noticing the obvious. Treasury officials and chief White House economic adviser Gene Sperling denounced S&P for relying on a Congressional Budget Office scenario that overestimated the U.S. discretionary spending baseline by $300 billion through 2015 and $2 trillion through 2021.

    But even adjusting for that $2 trillion would only reduce U.S. publicly held debt to 85% or so of GDP—still dangerously high. And that assumes that recently agreed upon spending caps are sustained over a decade, something which rarely happens.

    We think the larger problem with S&P, Moody's and Fitch is that they make no distinction over how a nation balances its books—whether through tax increases or spending reductions. Like the International Monetary Fund, the raters care only about balance.

    This takes too little account of the need for faster economic growth, which is the only real path out of a debt crisis. Britain's government has earned rater approval for its fiscal consolidation, but its increases in VAT and income tax rates are hurting its tepid recovery. Letting the credit raters dictate tax increases is the road to an austerity trap.

    The real reason for White House fury at S&P is that it realizes how symbolically damaging this downgrade is to President Obama's economic record. Democrats can rail all they want about the tea party, but Republicans have controlled the House for a mere seven months. The entire GOP emphasis in those seven months—backed by the tea party—has been on reversing the historic spending damage of Mr. Obama's first two years.
    Continue reading.

    IMAGE CREDIT: The Astute Bloggers.

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America Gets Downgraded


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Death of Keynesianism? Not for Paul Krugman

    Some have been speculating on the death of Keynesian economics, but folks need look no further than Paul Krugman to see how strong a grip discredited academic theories still hold on the establishment class. See Krugman's essay this morning, "Macroeconomic Folly":

    All of a sudden, people seem to have noticed that policy is moving in exactly the wrong direction. We’re getting headlines like this: Debt Deal Puts U.S. on Austerity Path as Economy Falters.

    I’ll need to write up my thoughts here at greater length, but let’s just say for now that what we’ve witnessed pretty much throughout the western world is a kind of inverse miracle of intellectual failure. Given a crisis that should have been relatively easy to solve — and, more than that, a crisis that anyone who knew macroeconomics 101 should have been well-prepared to deal with — what we actually got was an obsession with problems we didn’t have. We’ve obsessed over the deficit in the face of near-record low interest rates, obsessed over inflation in the face of stagnant wages, and counted on the confidence fairy to make job-destroying policies somehow job-creating.

    It’s a disaster – and maybe not only an economic disaster.
    Fears of far-right rise in crisis-hit Greece...
    Well, that's fear alright ... fear-mongering.

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Death of Keynesianism? Not for Paul Krugman


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Economy Grew at Weak 1.3 Percent in Second Quarter

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Economy Grew at Weak 1.3 Percent in Second Quarter


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Why Does Barack Obama Want to Cut Off Social Security Checks?

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Why Does Barack Obama Want to Cut Off Social Security Checks?


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Obama Proposes Social Security Cuts

    The PBS clip is informative, but no mention of calls to reform Social Security.

    But see the Washington Post, "In debt talks, Obama offers Social Security cuts" (via Memeorandum):

    President Obama is pressing congressional leaders to consider a far-reaching debt-reduction plan that would force Democrats to accept major changes to Social Security and Medicare in exchange for Republican support for fresh tax revenue.

    At a meeting with top House and Senate leaders set for Thursday morning, Obama plans to argue that a rare consensus has emerged about the size and scope of the nation’s budget problems and that policymakers should seize the moment to take dramatic action.

    As part of his pitch, Obama is proposing significant reductions in Medicare spending and for the first time is offering to tackle the rising cost of Social Security, according to people in both parties with knowledge of the proposal. The move marks a major shift for the White House and could present a direct challenge to Democratic lawmakers who have vowed to protect health and retirement benefits from the assault on government spending.

    “Obviously, there will be some Democrats who don’t believe we need to do entitlement reform. But there seems to be some hunger to do something of some significance,” said a Democratic official familiar with the administration’s thinking. “These moments come along at most once a decade. And it would be a real mistake if we let it pass us by.”
    The proposal doesn't seem very specific on reforming Social Security, other than perhaps reductions in the annual inflation adjustments for recipients. That's a step in the right direction, but there's no shortage of proposals for fixing entitlements, so I'll be interested to hear what else comes up.

    See also New York Times, "President Looks for Broader Deal on Deficit Cuts."

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Obama Proposes Social Security Cuts


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Michele Bachmann: Obama 'Has Failed the African American Community'

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Michele Bachmann: Obama 'Has Failed the African American Community'


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Pawlenty Defends Economic Plan on Fox News Sunday

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Pawlenty Defends Economic Plan on Fox News Sunday


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Tim Pawlenty's Economic Speech at University of Chicago, June 7, 2011

    The complete text is at Wall Street Journal. And check the report at Los Angeles Times, "Tim Pawlenty slams Obama on economy."

    He makes some radical proposals, a constitutional amendment to balance the budget and temporary emergency executive authority to freeze federal spending. He also offers a familiar list of economic proposals, like an aggressive flat tax and a restructuring of the tax system, eliminating a number of taxes, from capital gains to inheritance taxes. I listened to the whole thing, but check the text if you're short on time. He's a very gracious and polite man. I'm learning more about him, and he's hitting hard against the administration, calling out President Obama for his anti-Americanism and rejection of American exceptionalism. That's good to hear. I'm interested to see how Pawlenty does in the Iowa straw poll coming up, especially since Mitt Romney's not attending. He's also the former governor of Minnesota, so that will make for some interesting exchanges with Michele Bachmann (a congresswoman from Minnesota) if she enters the race, and I think she will.

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Tim Pawlenty's Economic Speech at University of Chicago, June 7, 2011


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MediCare: Too Good to Last

    From Charlie Cook, at National Journal:
    “Social Security and Medicare Taxes and Benefits Over a Lifetime,” a study by C. Eugene Steuerle and Stephanie Rennane for the Urban Institute that was released in January, demonstrates quite vividly why senior citizens like Medicare so much. A single man earning the average wage, $43,100 in 2010 dollars, who retired in 2010 will pay an average of $55,000 in Medicare taxes over his lifetime and will receive $161,000 in Medicare benefits. A similarly situated woman will pay the same $55,000 in Medicare taxes but will get $181,000 in Medicare benefits (because women live longer than men). A one-earner couple in that situation, again paying $55,000 in Medicare taxes, would receive $342,000 in benefits. If you’re a Medicare recipient, why wouldn’t you think that the program as we know it is a great deal?

    But, obviously, it’s not sustainable. With federal budget deficits soaring and worries about a national-debt crisis in our future rising, how is it possible to keep Medicare as we know it? If the federal government, over the long haul, isn’t in a position to make up the gap between what people are paying and the benefits they’re receiving, Medicare taxes have to go up, benefits have to be cut, or deductibles have to be raised on high-income retirees.
    That's the key nugget, but read it all. Democrats are getting a free ride on this politically, despite the fact that the GOP's got the honest approach to policy. As usual.

    RELATED: See also Andrew McCarthy, "Not Entitled."

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MediCare: Too Good to Last


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Obama 'Black Mascot' of Wall Street

    I saw this earlier, but William Jacobson's covered it for the Saturday night race card, "Progressives Devouring Their Own Tail":

    More at West's interview with Truthdig:
    “We have got to attempt to tell the truth, and that truth is painful” ... “It is a truth that is against the thick lies of the mainstream. In telling that truth we become so maladjusted to the prevailing injustice that the Democratic Party, more and more, is not just milquetoast and spineless, as it was before, but thoroughly complicitous with some of the worst things in the American empire. I don’t think in good conscience I could tell anybody to vote for Obama. If it turns out in the end that we have a crypto-fascist movement and the only thing standing between us and fascism is Barack Obama, then we have to put our foot on the brake. But we’ve got to think seriously of third-party candidates, third formations, third parties.”
    I'm just laughing at how Obama suckered these idiots. I don't care about the empire bull, but I've long hoped that Obama would genuinely work to help the disadvantaged, and he's done jack as far as I'm concerned, especially on the school choice issue. What a waste of opportunity.

    RELATED: At Saberpoint, "My Impression of CORNEL WEST (Photoshop)."

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Obama 'Black Mascot' of Wall Street


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'Adult Baby'

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'Adult Baby'


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How Long Will it Take for Jobs to Come Back?

    I used to read chapters from Greg Mankiw's introductory economics textbooks in grad school, when I took seminars in international political economy. Mankiw blogs, but he's quite the opposite of Paul Krugman: more conservative and, especially, humble. We can see that in his essay yesterday at the New York Times, "Three Questions for America's Financial Future." On the jobs picture:

    Looking ahead, an open issue is whether the recession will leave scars that prevent a return to jobless rates that were considered normal just a few years ago. A striking feature of today’s labor market is the rise of long-term joblessness. The average duration of unemployment is now almost 40 weeks, about twice what it reached in previous recessions. The long-term unemployed may well lose job skills and find their future prospects permanently impaired. But because we are in uncharted waters, it is hard for anyone to be sure.
    Actually, one of my favorite writers of all is Victor Davis Hanson. A classicist and military historian, he's also unmatched on political and social commentary on issues ranging from culture to farming to immigration. See his essay from Saturday, "Thoughts on a Surreal Depression":
    Here in Fresno County, in the heart of California’s San Joaquin Valley, the official unemployment rate in February to March ranged between 18.1 and 18.8 percent. I suspect it is higher in the poorer southwestern portions, especially near my hometown of Selma, about two miles from my farm.

    Since 2000 we have both lost jobs and gained people, and the per capita household income is about 65% of California’s average, the average home price about half the state norm.

    In some sense, all the ideas that are born on the Berkeley or Stanford campus, in the CSU and UC education, political science, and sociology departments, and among the bureaus in Sacramento are reified in places like Selma — open borders, therapeutic education curricula, massive government transfers and subsidies, big government, and intrusive regulation. Together that has created the sort of utopia that a Bay Area consultant, politico, or professor dreams of, but would never live near. Again, we in California have become the most and least free of peoples — the law-biding stifled by red tape, the non-law-biding considered exempt from accountability on the basis of simple cost-to-benefit logic. A speeder on the freeway will pay a $300 ticket for going 75mph and justifies the legions of highway patrol officers now on the road; going after an unlicensed peddler or rural dumper is a money-losing proposition for government.

    The subtext, however, of most of our manifold challenges here in the other California are twofold: we have had a massive increase in population, largely driven by illegal immigration from Latin America, mostly from Oaxaca province in Mexico, and we have not created a commensurate number of jobs to facilitate the influx.

    I often ask business people on the coast why there are not more industries in places like Selma other than agricultural related work that is locale specific. I would sum up their responses as something like the following: Our workforce does not have the educational and linguistic skills to justify, in global terms, the amount of wages and benefits necessary to employ them, hence jobs are mostly in service and government. Software engineering, computers, or Silicon Valley-like industry are out the question. But apparently so are large manufacturing jobs, despite an abundant workforce. As I understand employers, they seem to suggest that steel pipe, electrical wire, or radios would not be better manufactured or fabricated here, and yet still cost two to three times more than a counterpart assembled abroad.

    In addition, they believe that the state government would look upon any employer of a large industry not as a partner that would alleviate unemployment and lessen county expenditures, but more or less a sort of target to regulate, advise, lecture, and chastise, both to justify the expanding government regulatory work force and to achieve a fuzzy sort of social justice. There are, of course, large plants and businesses here, but hardly enough to absorb the thousands entering the work force.

    The result is about one in five adults is not working in the traditional and formal sense. A morning drive through these valley towns confirms anecdotally what statistics suggest: hundreds, no, thousands, are not employed. Construction is almost nonexistent. Agriculture is recovering, but environmentally driven water cut-offs on the West Side (250,000 acres), increasing mechanization, and past poor prices have combined to reduce by tens of thousands once plentiful farm jobs.
    My dad moved to Fresno in the mid-70s and I graduated from Fresno State in 1992. If you ever want to get the feel of what it must have been like during the Great Depression, take some country drives around the Central Valley --- in towns even more remote than Selma --- and you'll be taken back into your own Grapes of Wrath experience. The Democrats make this bad enough, but it's a statist anti-entrepreneurial regulatory stranglehold that's killing employment and the quality of life for large segments of society. I'm noticing it even in parts of the O.C., where unemployment was less than 2 percent in 2000. Hope for the best, I guess, but prepare for the worst.

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How Long Will it Take for Jobs to Come Back?


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Change! More Americans Dependent on Federal Welfare Payments Than Ever Before

    Federal social welfare benefits now make up a record share of the nation's personal income. At USA Today, "Americans depend more on federal aid than ever":

    Social Security

    Americans depended more on government assistance in 2010 than at any other time in the nation's history, a USA TODAY analysis of federal data finds. The trend shows few signs of easing, even though the economic recovery is nearly 2 years old.

    A record 18.3% of the nation's total personal income was a payment from the government for Social Security, Medicare, food stamps, unemployment benefits and other programs in 2010. Wages accounted for the lowest share of income — 51.0% — since the government began keeping track in 1929.

    The income data show how fragile and government-dependent the recovery is after a recession that officially ended in June 2009.

    The wage decline has continued this year. Wages slipped to another historic low of 50.5% of personal income in February. Another government effort — the Social Security payroll tax cut — has lifted income in 2011. The temporary tax cut puts more money in workers' pockets and counts as an income boost, even when wages stay the same.
    More at the link.

    Earned income is still 51 percent of total income, so the progressives haven't won the battle over personal industry quite yet.

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Change! More Americans Dependent on Federal Welfare Payments Than Ever Before


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Change! Share of Americans Working Near 30-Year Low

    At USA Today, "More Americans Leaving Workforce":
    The share of the population that is working fell to its lowest level last year since women started entering the workforce in large numbers three decades ago, a USA TODAY analysis finds.

    Only 45.4% of Americans had jobs in 2010, the lowest rate since 1983 and down from a peak of 49.3% in 2000. Last year, just 66.8% of men had jobs, the lowest on record.

    The bad economy, an aging population and a plateau in women working are contributing to changes that pose serious challenges for financing the nation’s social programs.
    More at the link above.

    This administration has no clue.

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Change! Share of Americans Working Near 30-Year Low


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Go Ahead, Make a Voluntary Donation to Reduce the National Debt

    I like this one, a lot:

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Go Ahead, Make a Voluntary Donation to Reduce the National Debt


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'The Biggest Annual Spending Cut in History'? — President Obama on Budget Compromise

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'The Biggest Annual Spending Cut in History'? — President Obama on Budget Compromise


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Susannah Breslin on Blog Marketing and Hustle

    At Forbes (via Instapundit):
    These days, it’s not enough to be a good writer online. You have to be a smart marketer, your own content factory, your own publicist. If you can do it all, you are golden. If you cannot, you are screwed.
    Breslin's using her own experience moving from True/Slant to Forbes as a case study, but the quote cited is applicable to anyone who's writing online nowadays. When I was away at the Horowitz West Coast Retreat last weekend I didn't bother with my blog. I think I put up just one post on Saturday, and maybe three on Sunday. And of course there was no promotion, through cross-posting, Facebook, Twitter, etc. My traffic numbers were already down for March but I think I had just over 1300 hits last Saturday, which is way down. I've been writing less frequently all around, in any case. Partly because of burnout, but not entirely. I've been reading, spending time with my wife and sons, going to the movies and bookstores, and out to eat! And then of course there's my work, which has been pretty interesting of late, especially with the panel on Egypt the other day, which had me preparing in advance for most of the week.

    Anyway, this reminds me that Doug Ross had my blog ranked 100 out of the top 150 conservative websites --- which was surprising, since I don't do that well on the Alexa rankings. And besides that, my Wikio numbers have been eroding over the last year. I thought I was going to be bumped from the top 100 at Wikio but I've dropped down to 93 for the March rankings. I'd by lying if I said I didn't care. When you blog full-time --- as a second but very low-paying job --- the rankings provide a little recognition. That's why William Jacobson's always joking about how he doesn't pay attention to his top blog ranking for both legal and political blogs, precisely while he's writing another post on his top blog rankings for both legal and political blogs! William cites Technorati's rankings, and checking over there my blog is currently #65 for political blogs and #61 for U.S. political blogs --- so I guess that's not too bad. I'm surprised it's that good, since as noted I've been worrying a lot less about promotion. It's time consuming and takes a helluva lot of work. But I keep plugging away -- at blogging, promotion, and original reporting --- since this seems to be what gives me the most intellectual enrichment right now, and that's to say nothing of my addiction!

    More later ...

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Susannah Breslin on Blog Marketing and Hustle


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Rep. Michele Bachmann: 'This is the “small ball” battle that House leadership has chosen to engage'

    Representative Bachmann, at Red State, "Not a Big Enough Fight."

    She's a little upset that House Republicans aren't staying focused on the big picture, especially the priority of ObamaCare repeal:

    Don’t get me wrong, cuts in spending are a move in the right direction. House Republicans have brought about a change from the spending binge of the last two years. But it’s time to face the facts. This is the “small ball” battle that House leadership has chosen to engage. The current battle has devolved to an agenda that is almost too limited to warrant the kind of fighting that we’re now seeing in Washington.

    Democrats only want to cut $33 billion of spending, while some reports say Republicans might settle for $40 billion. Either way, it’s not enough. We should be playing “big ball.” We should be fighting over trillions, not billions. We should be defunding ObamaCare, but we’re not.

    I made a commitment to vote “no” on any Continuing Resolution that does not defund ObamaCare. That pledge to the American people remains unchanged. I believe that’s a battle we cannot walk away from. But, it’s not been an option in the recent government funding bills that House leaders have put up for a vote.

    I am ready for a big fight, the kind that will change the arc of history. And, I’m hoping that when it comes to issues like the debt ceiling, ObamaCare, and the 2012 budget, House Republicans will take the lead, draw a line in the sand and not back down from the fight.

    And here's Bachmann last night on Greta's:

    I'll update on this. Social conservatives are loving the firm stand against Planned Parenthood, so there's special significance to this "small ball" battle after all.

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Rep. Michele Bachmann: 'This is the “small ball” battle that House leadership has chosen to engage'


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GOP Threatens Shutdown Over Planned Parenthood

    And I'm glad.

    The New York Times is spinning the debate as a "non-budget" issue, but $75 million or $75 billion, it's public funding and more power to the Republicans calling out Dems on government-sponsored death to the unborn. And quoted there is former welfare recipient Patty Murray:

    “I am really stunned, and I am angry as a woman,” said Senator Patty Murray, Democrat of Washington, “that we have come to this after weeks of negotiating on numbers, where we have in principle an agreement on numbers, that there are those in the Republican Party in the House who are willing to shut down the government, take people’s paychecks away from them, because they want to deny women access to health care in this country.”
    "Health care."

    That's a nice rhetorical trick. Planned Parenthood is a death mill. Ground zero for the enormity of progressive pro-abortion evil. And leftists are manning (or womanning) the barricades on this one, since they know that abortion is to social policy as unions are to economics: Lose there and the Democrat-socialist-anti-life-coalition takes a knockout blow, with repercussions all the way up the electoral ladder (think President Barack "Infanticide" Obama).

    Also, at Wall Street Journal, "Abortion Returns to Center Stage."

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GOP Threatens Shutdown Over Planned Parenthood


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