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The Morning Whip-Up
Posted By Brian Patrick :: October 26, 2009

Good morning folks,

Monday morning clarity brings three realities: First, Democrats continue to play footsie with the public option behind closed doors, shutting out the American people from engaging in the conversation and influencing any decisions. Second, Democrats are now simply ignoring what President Obama explicitly said was the entire reason for a health care overhaul – controlling costs. And third, as the stimulus continues to fail Democrats and the Administration are distancing themselves from the unpopular program.

Now on to the news …
 

HEALTH CARE: As Democrats Continue Their “Go It Alone, Behind Closed Doors Approach”, Republicans Stand Ready To Work On True Reform.

Republican Leaders Push For Transparency.“Those continued negotiations are occurring behind closed doors,” Cantor said, referring to internal Democratic talks about various approaches to government-funded health insurance. “They are occurring just on one side of the aisle and in and around issues of health care that affect every American.” … Republican aides said the GOP will continue to harp on the lack of transparency in Congress and hopes by doing so to draw attention to the allegation that President Barack Obama broke his promise to have the health care reform debate out in the open. Roll Call

Cantor: It's Time For A Bipartisan Health Bill. Congress should also calm public angst by making three simple guarantees. First, the government will not assume decision-making authority on choices that should be left to doctors and patients. Second, there will be no forced government rationing of care and no discrimination of any type. Third, the cost of health care reform must not break the bank. CNN

HEALTH CARE (2): Democrats Fail On Cost Containment

Samuelson: The Promise Of The Public Plan Is A Mirage. Its political brilliance is to use free-market rhetoric (more "choice" and "competition") to expand government power. But why would a plan tied to Medicare control health spending, when Medicare hasn't? From 1970 to 2007, Medicare spending per beneficiary rose 9.2 percent annually compared to the 10.4 percent of private insurers -- and the small difference partly reflects cost shifting. Congress periodically improves Medicare benefits, and there's a limit to how much squeezing reimbursement rates can check costs. Doctors and hospitals already complain that low payments limit services or discourage physicians from taking Medicare patients. The Washington Post

Millions To Go Without Health Care Due To Cost. The high cost of health insurance premiums would continue to put coverage out of reach for millions even if Congress approves legislation President Obama says is intended to ensure "that every American has affordable health care." USA Today

Questions On Cost Leave House Bill Far From Settled. There is no easy fix, since about 60 liberals have vowed to oppose a public plan with negotiated rates. … That could cause her heartburn given that 36 moderate House Democrats threatened last week to bring down the bill unless the Congressional Budget Office says the measure would bring down health costs and reduce the long-term deficit. One Democratic aide warned that they would not be able to pass a bill that did not have the CBO’s blessing, which has not yet been forthcoming. Roll Call

Meanwhile Dems Model Health Care Overhaul On a Bankrupt Medicare Program Riddled By Fraud As 60 Minutes Reports. Part 1 Part 2


ECONOMY: Democrats Continue To Spend As More Signs Point To A Failed First Round Of Stimulus

No Recession In Washington, Democrats Spending At Increasingly Alarming Rates. House Republicans on the Budget Committee added up the 2009 appropriations, the stimulus funding and 2010 budgets and found that federal agencies will, on average, receive a 57% increase in appropriated funds from 2008-2010. By contrast, real family incomes fell by 3.6% last year. There's no recession in Washington. More broadly, the White House and the 111th Congress have already enacted or proposed $3.4 trillion of new spending through 2019 for things like the health-care plan, cap and tax, and the children's health bill passed earlier this year. Very little of this has been financed with offsetting spending cuts elsewhere in the budget. … this Congress spending is now growing six times faster than inflation. The Wall Street Journal

As Industries Begin To Rebound, Many Wonder Where Are The Jobs? Many of Massachusetts’ key industries have begun to rebound along with the broader economy, increasing sales and production, but hiring only cautiously - if at all. That caution is contributing to what is almost certain to be another jobless recovery in Massachusetts and elsewhere, a pattern that has marked economic turnarounds since the early 1990s. Even though the economy is expanding, it is not growing fast enough to generate jobs and reduce unemployment in the state, already at its highest level since the 1970s. The Boston Globe

Stimulus Falls Short In New Hampshire. New Hampshire has assigned at least half of its economic stimulus money to various projects or programs, but job totals remain at just 19 percent of initial White House projections. ... it remains unclear whether New Hampshire will reach the 16,000-job benchmark touted by the White House. ... “I know that it has created some jobs, but clearly not what we were anticipating,” U.S. Rep Carol Shea-Porter, a Democrat who voted for the stimulus package, said last week in an interview with WMUR-TV. Nashua Telegraph

FRAUD ALERT: $30 Million In Stimulus Money Given To Firms Already Under Investigation. The Department of Defense has awarded nearly $30 million in stimulus contracts to six companies while they were under federal criminal investigation on suspicion of fraud. The companies claimed to be small, minority-owned businesses, giving them preference in bidding for government contracts, Air Force documents allege. But government investigators found they were part of a larger minority-owned firm and not eligible for small-business contracts. Pro Publica


AFGHANISTAN: War Game Assumes “Going Small” Strategy Won’t Allow For U.S. Forces To Topple Shadow Insurgent Governments. One of the exercise's key assumptions is that an increase of 10,000 to 15,000 troops would not in the near future give U.S. commanders the forces they need to take back havens from the Taliban commanders in southern and western Afghanistan, where shadow insurgent governors collect taxes and run court systems based on Islamic sharia law. The Washington Post


2010: Republicans Lay Ground Work For 2010

Republicans Plot Course For 2010. “We are going to lead to an economic narrative for ’10 that will ... prove to the people that we deserve to lead,” said Minority Whip Eric Cantor of Virginia. CQ

Poll Finds Independents Are Becoming Increasingly In Line With Conservative Views: "Changes among political independents appear to be the main reason the percentage of conservatives has increased nationally over the past year: the 35% of independents describing their views as conservative in 2009 is up from 29% in 2008." Gallup


IN OTHER NEWS
Nevins: It's Time To Make A Decision On Afghanistan
NYT: U.S. Considers Reining In ‘Too Big To Fail’ Institutions
WSJ: The Countrywide Files
Bloomberg: Back-Door Taxes Hit Americans With Public Financing In The Dark
Politico: Chamber: W.H. Attacks Are Backfiring

THE SCHEDULE
• The House will meet at 12:30 p.m. for morning hour and 2:00 p.m. for legislative business. Votes will be postponed until 6:30 p.m. At 12:30 p.m. Rep. Darrell Issa will speak at the National Press Club regarding oversight and the Obama Administration.
• The Senate will convene at 2:00 p.m. and begin a period of morning business