The unnamed woman is one of countless Iranians who say their savings have been wiped out by the collapse of fraudulent businesses and unlicensed credit institutions in recent years. Economists are now pointing to the abrupt closure of these poorly regulated institutions as laying the foundation for the unrest that struck Iran starting in late December.
.. “Banks are shutting down without any kind of notice, and it’s creating a huge political and economic backlash at a local level,” said Suzanne Maloney, senior fellow on Middle East policy at the Brookings Institution.
.. it seems to have tapped into a deep sense of alienation and frustration, that people aren’t just demonstrating for better working conditions or pay, but insisting on wholesale rejection of the system itself.”
.. the average budget of Iranian households declined by 15 percent from 2007 — when the U.N. Security Council adopted some of its toughest sanctions on Iran — to 2016.
.. Iranian President Hassan Rouhani, a relative moderate who was reelected to a second term in May, has carried out a program of fiscal austerity. It has brought down inflation but hurt job growth
.. Rouhani has also imposed what Salehi-Isfahani called “regressive policies,” such as raising energy prices while shrinking cash transfers that the poor use to pay for essential items.
.. Other new policies have favored businesses and the middle class, whose members predominantly reside in the capital, Tehran
.. Iran has seen a “divergence in living standards (measured by per capita expenditures) between Tehran on one side and the rest of the country on the other
.. The budget envisioned steep cuts for cash subsidies to the poor, while increasing fees for things like vehicle registration and traveling abroad.
.. Rouhani’s budget was also notable because it was the first time the government made public the funds allocated to Iran’s wealthy religious foundations — as well as its powerful military and paramilitary forces.
.. The disclosure of an $8 billion budget for the Revolutionary Guard Corps, Iran’s most influential security body, prompted sharp criticism from protesters who objected to government spending on Iranian involvement in regional wars, including in Iraq and Syria.
.. Religious foundations, many of which are tax exempt, also got a boost in the new budget, including, for example, a 20 percent increase for representatives of the supreme leader, Ayatollah Ali Khamenei, posted at Iran’s universities.
.. Rouhani sold the nuclear deal to Iranians as crucial for reviving the ailing economy. Iranians have been disappointed that growth has not been faster, including 74 percent who said in July that there had been no economic improvement as a result of the deal
The Republican Waterloo
Conservatives once warned that Obamacare would produce the Democratic Waterloo. Their inability to accept the principle of universal coverage has, instead, led to their own defeat.
.. At precisely the moment we were urging the GOP to march in one direction, the great mass of conservatives and Republicans had turned on the double in the other, toward an ever more wild and even paranoid extremism. Those were the days of Glenn Beck’s 5 o’clock Fox News conspiracy rants, of Sarah Palin’s “death panels,” of Orly Taitz and her fellow Birthers, of Tea Party rallies at which men openly brandished assault rifles.
.. AEI would provide a home for the emerging “reform conservative” tendency. Its president, Arthur Brooks, would speak eloquently of the need for conservatives to show concern for the poor and the hard-pressed working class.
.. The mood then was that supporters and opponents of the Obama administration were engaged in a furious battle over whether the United States would remain a capitalist economy at all.
.. it was precisely because I appreciated its unwelcomeness where I worked that I had launched an independent blog in the first place... I fruitlessly argued through 2009 and 2010 that Republicans should do business with President Obama on health-care reform... It seemed to me that Obama’s adoption of ideas developed at the Heritage Foundation in the early 1990s—and then enacted into state law in Massachusetts by Governor Mitt Romney—offered the best near-term hope to control the federal health-care spending that would otherwise devour the defense budget and force taxes upward... I suggested that universal coverage was a worthy goal, and one that would hugely relieve the anxieties of working-class and middle-class Americans who had suffered so much in the Great Recession... They had the votes this time to pass something. They surely would do so—and so the practical question facing Republicans was whether it would not be better to negotiate to shape that “something” in ways that would be less expensive, less regulatory, and less redistributive... Increasingly isolated and frustrated, I watched with dismay as people I’d known for years and decades incited each other to jump together over the same cliff... There were leaders who knew better, who would have liked to deal. But they were trapped. Conservative talkers on Fox and talk radio had whipped the Republican voting base into such a frenzy that deal-making was rendered impossible. How do you negotiate with somebody who wants to murder your grandmother? Or—more exactly—with somebody whom your voters have been persuaded to believe wants to murder their grandmother?I’ve been on a soapbox for months now about the harm that our overheated talk is doing to us. Yes it mobilizes supporters—but by mobilizing them with hysterical accusations and pseudo-information, overheated talk has made it impossible for representatives to represent and elected leaders to lead. The real leaders are on TV and radio, and they have very different imperatives from people in government. Talk radio thrives on confrontation and recrimination. When Rush Limbaugh said that he wanted President Obama to fail, he was intelligently explaining his own interests. What he omitted to say—but what is equally true—is that he also wants Republicans to fail. If Republicans succeed—if they govern successfully in office and negotiate attractive compromises out of office—Rush’s listeners get less angry. And if they are less angry, they listen to the radio less, and hear fewer ads for Sleepnumber beds.
So today’s defeat for free-market economics and Republican values is a huge win for the conservative entertainment industry. Their listeners and viewers will now be even more enraged, even more frustrated, even more disappointed in everybody except the responsibility-free talkers on television and radio. For them, it’s mission accomplished. For the cause they purport to represent, it’s Waterloo all right: ours.
.. Over the next seven years, Republicans would vote again and again to repeal the Affordable Care Act. Total and permanent opposition to the law would become the absolute touchstone of Republican loyalty. Even Donald Trump, who dissented from so much of the old orthodoxy, retained this piece of the doxology.
.. Some of the conservatives who voted “no” to the House leadership’s version of repeal may yet imagine that they will have some other opportunity to void the law. They are again deluding themselves.
.. Too many people benefit from the law—and the Republican alternatives thus far offer too little to compensate for the loss of those benefits.
.. America committed itself for the first time to the principle of universal (or near universal) health-care coverage. That principle has had seven years to work its way into American life and into the public sense of right and wrong. It’s not yet unanimously accepted. But it’s accepted by enough voters—and especially by enough Republican voters—to render impossible the seven-year Republican vision of removing that coverage from those who have gained it under the Affordable Care Act.
.. Paul Ryan still upholds the right of Americans to “choose” to go uninsured if they cannot afford to pay the cost of their insurance on their own. His country no longer agrees.
.. Health care may not be a human right, but the lack of universal health coverage in a wealthy democracy is a severe, unjustifiable, and unnecessary human wrong.
.. As Americans lift this worry from their fellow citizens, they’ll discover that they have addressed some other important problems too. They’ll find that they have removed one of the most important barriers to entrepreneurship, because people with bright ideas will fear less to quit the jobs through which they get their health care.
.. They’ll find they have improved the troubled lives of the white working class succumbing at earlier ages from preventable deaths of despair.
.. What I would urge is that those conservatives and Republicans who were wrong about the evolution of this debate please consider why they were wrong: Consider the destructive effect of ideological conformity, of ignorance of the experience of comparable countries, and of a conservative political culture that incentivizes
- intransigence,
- radicalism, and
- anger over
- prudence,
- moderation, and
- compassion.
You Cannot Be Too Cynical About the Republican Tax Bill
The rush to enact the tax bill was designed to mask — as a break for the middle class — what is in fact a $1.4 trillion package of benefits for key donors and lobbyists, the richest members of Congress, President Trump, his family and other families like his.
.. The speed from introduction to passage — seven weeks, with no substantive hearings — effectively precluded expert examination of the legislation’s regressive core, its special interest provisions and the long-term penalties it imposes on the working poor and middle class through the use of an alternative measure of inflation — the “chained CPI.”
.. The primary authors of the report — Ari Glogower, David Kamin, Rebecca Kysar, and Darien Shanske — describe the legislation as “a substantial blow to the basic integrity of the income tax” that will “advantage the well-advised in ways that are both deliberate and inadvertent.”
.. The most serious structural problems with the bill are unavoidable outcomes of Congress’s choice to preference certain taxpayers and activities while disfavoring others — and for no discernible policy rationale.
These haphazard lines are fundamentally unfair and inefficient, and invite tax planning by sophisticated taxpayers to get within the preferred categories.
.. The game is clear: Don’t be an employee, instead be an independent contractor or partner in a firm.” The ability to make this shift is available primarily to the well-paid.
.. It means that old property can still get the benefit of expensing, but only if it is sold to another party. If the original owner holds it, they have to depreciate according to the old rules; if they sell it to another party, then suddenly the full cost is eligible for expensing
.. It appears that the buyer of the asset could even lease it back to the existing owner, so that the property doesn’t even have to go anywhere.
.. create new incentives to shift tangible assets (and jobs) abroad. Given President Trump’s relentless message about U.S. jobs, it is incomprehensible to me that we are about to pass something that has this effect without any kind of meaningful discussion of the issue.
.. lower and middle-income families, who are especially dependent upon inflation-indexed deductions, credits, and bracket thresholds, will feel the impact increasingly as time goes on.
.. In the long term, Hemel argued,
this is a very subtle way to increase taxes on the lower and middle classes and then use those revenues to pay for a massive tax cut for corporations.
.. the shift to chained CPI — a less generous, slower-growing measure of inflation than the one currently in use — would not only result in a tax increase over time, it would set a precedent for Republicans who would like to use the same method to pare back so-called entitlement programs like Social Security and Medicare. It is, in effect, a backdoor method of reducing benefits for the elderly and the disadvantaged without public scrutiny or debate.
.. offers little redress to workers who have grown to believe that the country’s tax law thicket advantages those with power, political connections and lawyers on retainer.
.. (2) Carried interest provision. When Trump was careening around in his populist candidate mode, he promised to end it. Here is one campaign promise that he “somehow” failed to redeem when the clear and available chance presented itself.
(3) Restriction on state and C local tax deduction — consciously vindictive imposition of double taxation on citizens of certain Democratic states
.. (4) Expanding the standard deduction but financing the cost of so doing by repealing the personal exemptions is a bit of a bait and switch maneuver. Some people might be worse off.
(5) In a bill in which 100s of billions of dollars were sloshing around to provide steep tax cuts for already wealthy and highly prosperous corporations and pass through businesses, the Republicans could only find the will to raise the refundable portion of the child care tax credit from $1000 to $1400. Rubio wanted it to be raised to $2000 and his Republican brethren refused to even meet him halfway. Pitiful.
.. (6) Deduction for extraordinary medical expenses — retention of this deduction did not even get the five-year sunset window applied to all the other individual tax provisions, two years only. Vicious.
.. How well does this procedure stand up to the requirements Senator Ben Sasse specified in his maiden Senate speech on Nov. 3, 2015? In it, Sasse argued that the Senate was failing in its responsibility to fully air and debate the important issues before the county, calling for what he called “a cultural recovery inside the Senate”:
.. Good teachers don’t shut down debate; they try to model Socratic seriousness by putting the best possible construction on arguments, even — and especially — if one doesn’t hold those positions.
.. How could nearly every Republican representative — and all 52 Republican senators — support the tax bill? The best answer may be the most cynical: because it benefits key leaders, their friends, their heirs and their donors.
.. it is difficult to conclude that the motivations of its sponsors are either benevolent or somehow in the best interests of the country. More likely it is hypocrisy and venality mixed up into one awful bill.
God’s Plan for Mike Pence
Will the vice president—and the religious right—be rewarded for their embrace of Donald Trump?
Casting himself as the heir to the popular outgoing governor, Mitch Daniels, he avoided social issues and ran on a pragmatic, business-friendly platform. He used Ronald Reagan as a political style guru and told his ad makers that he wanted his campaign commercials to have “that ‘Morning in America’ feel.” He meticulously fine-tuned early cuts of the ads, asking his consultants to edit this or reframe that or zoom in here instead of there.
.. set about cutting taxes and taking on local unions—burnishing a résumé that would impress Republican donors and Iowa caucus-goers. The governor’s stock began to rise in Washington
.. In recent years, the religious right had been abruptly forced to pivot from offense to defense in the culture wars—abandoning the “family values” crusades and talk of “remoralizing America,” and focusing its energies on self-preservation.
..“Many evangelicals were experiencing the sense of an almost existential threat,” Russell Moore, a leader of the Southern Baptist Convention, told me.
It was only a matter of time, he said, before cultural elites’ scornful attitudes would help drive Christians into the arms of a strongman like Trump. “I think there needs to be a deep reflection on the left about how they helped make this happen.”
.. Coming into the game, Trump had formed an opinion of the Indiana governor as prudish, stiff, and embarrassingly poor, according to one longtime associate.
.. Pence asked what his job description would be if they wound up in the White House together. Trump gave him the same answer he’d been dangling in front of other prospective running mates for weeks: He wanted “the most consequential vice president ever.” Pence was sold.
.. “I knew they would enjoy each other’s company,” Conway told me, adding, “Mike Pence is someone whose faith allows him to subvert his ego to the greater good.”
.. Pence spent much of their time on the course kissing Trump’s ring. You’re going to be the next president of the United States, he said. It would be the honor of a lifetime to serve you.
Afterward, he made a point of gushing to the press about Trump’s golf game. “He beat me like a drum,” Pence confessed, to Trump’s delight.
.. Trump released a list of potential Supreme Court nominees with unimpeachably pro-life records and assembled an evangelical advisory board composed of high-profile faith leaders.
.. One of the men asked to join the board was Richard Land, of the Southern Evangelical Seminary. When the campaign approached him with the offer, Land says, he was perplexed. “You do know that Trump was my last choice, right?” he said. But he ultimately accepted, and when a campaign aide asked what his first piece of advice was, he didn’t hesitate: “Pick Mike Pence.”
.. Then, on July 12, a miracle: During a short campaign swing through Indiana, Trump got word that his plane had broken down on the runway, and that he would need to spend the night in Indianapolis. With nowhere else to go, Trump accepted an invitation to dine with the Pences.
.. In fact, according to two former Trump aides, there was no problem with the plane. Paul Manafort, who was then serving as the campaign’s chairman, had made up the story to keep the candidate in town an extra day and allow him to be wooed by Pence.
.. Pence spoke of Trump in a tone that bordered on worshipful. One of his rhetorical tics was to praise the breadth of his running mate’s shoulders. Trump was, Pence proclaimed, a “broad-shouldered leader,” in possession of “broad shoulders and a big heart,” who had “the kind of broad shoulders” that enabled him to endure criticism while he worked to return “broad-shouldered American strength to the world stage.”
.. Campaign operatives discovered that anytime Trump did something outrageous or embarrassing, they could count on Pence to clean it up. “He was our top surrogate by far,”
.. “He was this mild-mannered, uber-Christian guy with a Midwestern accent telling voters, ‘Trump is a good man; I know what’s in his heart.’ It was very convincing—you wanted to trust him.
.. Even some of Trump’s most devoted loyalists marveled at what Pence was willing to say. There was no talking point too preposterous, no fixed reality too plain to deny
.. When, during the vice-presidential debate, in early October, he was confronted with a barrage of damning quotes and questionable positions held by his running mate, Pence responded with unnerving message discipline, dismissing documented facts as “nonsense” and smears.
.. It was the kind of performance—a blur of half-truths and “whatabout”s and lies—that could make a good Christian queasy.
.. Marc Short, a longtime adviser to Pence and a fellow Christian, told me that the vice president believes strongly in a scriptural concept evangelicals call “servant leadership.” The idea is rooted in the Gospels, where Jesus models humility by washing his disciples’ feet and teaches, “Whoever wants to become great among you must be your servant, and whoever wants to be first must be your slave.”
.. when he accepted the vice-presidential nomination, he believed he was committing to humbly submit to the will of Donald Trump. “Servant leadership is biblical,” Short told me. “That’s at the heart of it for Mike, and it comes across in his relationship with the president.”
.. “His faith teaches that you’re under authority at all times.
- Christ is under God’s authority,
- man is under Christ’s authority,
- children are under the parents’ authority,
- employees are under the employer’s authority.”
.. “Mike,” he added, “always knows who’s in charge.”
.. On friday, october 7, 2016, The Washington Post published the Access Hollywood tape
.. Most alarming to the aides and operatives inside Trump Tower, Mike Pence suddenly seemed at risk of going rogue.
.. Republican donors and party leaders began buzzing about making Pence the nominee and drafting Condoleezza Rice as his running mate.
.. The furtive plotting, several sources told me, was not just an act of political opportunism for Pence. He was genuinely shocked by the Access Hollywood tape. In the short time they’d known each other, Trump had made an effort to convince Pence that—beneath all the made-for-TV bluster and bravado—he was a good-hearted man with faith in God. On the night of the vice-presidential debate, for example, Trump had left a voicemail letting Pence know that he’d just said a prayer for him. The couple was appalled by the video, however. Karen in particular was “disgusted,” says a former campaign aide. “She finds him reprehensible—just totally vile.”
.. Pence turns to a favorite passage in Jeremiah: “For I know the plans I have for you, declares the Lord, plans to prosper you and not to harm you, plans to give you hope and a future.”
.. “They thought they were going to be able to get him to drop out before the second debate,” said a former campaign aide. “Little did they know, he has no shame.”
.. Trump showed up in St. Louis for the debate with a group of Bill Clinton accusers in tow, ranting about how Hillary’s husband had done things to women that were far worse than his own “locker-room talk.”
.. In political circles, there had been a widespread, bipartisan recognition that Pence was a decent man with a genuine devotion to his faith. But after watching him in 2016, many told me, they believed Pence had sold out.
.. watching Pence vouch for Trump made him sad. “Ah, Mike,” he sighed. “Ambition got the best of him.” It’s an impression that even some of Pence’s oldest friends and allies privately share.
.. “The number of compromises he made to get this job, when you think about it, is pretty staggering.”
.. Pastor Ralph Drollinger, for example, caught Trump’s attention in December 2015, when he said in a radio interview, “America’s in such desperate straits—especially economically—that if we don’t have almost a benevolent dictator to turn things around, I just don’t think it’s gonna happen through our governance system.” Now Drollinger runs a weekly Bible study in the West Wing.
.. On one side, there are those who argue that good Christians are obligated to support any leader, no matter how personally wicked he may be, who stands up for religious freedom and fights sinful practices such as abortion. Richard Land told me that those who withhold their support from Trump because they’re uncomfortable with his moral failings will “become morally accountable for letting the greater evil prevail.”
.. On the other side of the debate is a smaller group that believes the Christians allying themselves with Trump are putting the entire evangelical movement at risk. Russell Moore, of the Southern Baptist Convention, has made this case forcefully.
.. only 30 percent of white evangelicals believed “an elected official who commits an immoral act in their personal life can still behave ethically and fulfill their duties in their public and professional life.”
.. One pastor compared Pence to Mordechai, who ascended to the right hand of a Persian king known for throwing lavish parties and discarding his wife after she refused to appear naked in front of his friends.
.. Pastor Mark Burns—a South Carolina televangelist who was among the first to sign on as a faith adviser to Trump—told me Pence’s role in the administration is like that of Jesus, who once miraculously calmed a storm that was threatening to sink the boat
.. Of the 15 Cabinet secretaries Trump picked at the start of his presidency, eight were evangelicals. It was, gushed Ted Cruz, “the most conservative Cabinet in decades.”
.. Pence understood the price of his influence. To keep Trump’s ear required frequent public performances of loyalty and submission—and Pence made certain his inner circle knew that enduring such indignities was part of the job.
.. “Look, I’m in a difficult position here,” Pence said, according to someone familiar with the meeting. “I’m going to have to 100 percent defend everything the president says. Is that something you’re going to be able to do if you’re on my staff?”
.. Trump does not always reciprocate this respect. Around the White House, he has been known to make fun of Pence for his religiosity.
.. During a conversation with a legal scholar about gay rights, Trump gestured toward his vice president and joked, “Don’t ask that guy—he wants to hang them all!”
.. “They have moved to an ends-justifies-the means style of politics that would have been unimaginable before this last campaign.”
.. he thought it was so low class,” says the adviser. “He thinks the Pences are yokels.”
.. Social conservatives had been lobbying the president to issue a sweeping executive order aimed at carving out protections for religious organizations and individuals opposed to same-sex marriage, premarital sex, abortion, and transgender rights. The proposed order was fairly radical, but proponents argued that it would strike a crucial blow against the militant secularists trying to drive the faithful out of the public square.
.. “Bannon wanted to fight for it,” says the Trump associate, “and he was really unimpressed that Pence wouldn’t do anything.”
.. But perhaps Pence was playing the long game—weighing the risks of taking on Trump’s kids, and deciding to stand down in the interest of preserving his relationship with the president.
.. What would a Pence presidency look like? To a conservative evangelical, it could mean a glorious return to the Christian values upon which America was founded. To a secular liberal, it might look more like a descent into the dystopia of The Handmaid’s Tale.
.. What critics should worry about is not that Pence believes in God, but that he seems so certain God believes in him. What happens when manifest destiny replaces humility, and the line between faith and hubris blurs? What unseemly compromises get made? What means become tolerable in pursuit of an end?
.. Trump’s order merely made it easier for pastors to voice political opinions from the pulpit—a conspicuously self-serving take on religious freedom.
.. The faith leaders pulled out their smartphones and snapped selfies, intoxicated by the VIP treatment. “Mr. President,” Robert Jeffress, the pastor of the First Baptist Church in Dallas, said at one point, “we’re going to be your most loyal friends. We’re going to be your enthusiastic supporters. And we thank God every day that you’re the president of the United States.”
.. “I’ve been with [Trump] alone in the room when the decisions are made. He and I have prayed together,” Pence said. “This is somebody who shares our views, shares our values, shares our beliefs.” Pence didn’t waste time touting his own credentials. With this crowd, he didn’t need to. Instead, as always, he lavished praise on the president.