Langevin challenger Riley’s proposal gets love from Ezra Klein
September 24th, 2012 at 5:00 am by Ted Nesi under Nesi's Notes, On the Main Site
Veteran Democratic Congressman Jim Langevin is getting a more energetic challenge than usual from Republican Michael Riley, a self-funding candidate who says he’s ready to pour a significant amount of money into the 2nd District race.
While he hasn’t gotten nearly as much attention locally as his fellow Republican Brendan Doherty, Riley made a splash Friday on Ezra Klein’s influential blog for The Washington Post. Out of hundreds of congressional hopefuls running nationwide, Riley was one of the few to make a list of the year’s 13 most intriguing policy proposals:
Stop paying banks to hold cash
… Riley sets himself apart from most Republican candidates’ anti-Fed statements with a condemnation of the Fed’s “bizarre practice of paying banks to sit on money.” This is a reference to the Fed’s policy of paying 0.25 percent on excess reserves held by banks. Some advocates of more aggressive Fed action have called for the interest rate to be either lowered to zero or made negative, which produced favorable results when tried in Sweden.
Voters probably won’t ask about it much out on the campaign trail, but monetary policy appears to be a key differentiator with Langevin and Riley – the incumbent largely supports Bernanke’s Fed stewardship, while Riley told me recently he favors linking the value of the U.S. dollar to “an index of commodities or a single commodity (such as gold).” Riley’s email signature quotes Hayek, too – no word on whether Langevin’s features Keynes.
Tags: 2nd Congressional District, democrats, ezra klein, michael riley
Nesi's Notes covers politics and the economy in and around Rhode Island for WPRI.com. (Twitter: 
[...] Langevin challenger Riley's proposal gets love from Ezra KleinWPRI-TV 12 (blog)Veteran Democratic Congressman Jim Langevin is getting a more energetic challenge than usual from Republican Michael Riley, a self-funding candidate who says he's ready to pour a significant amount of money into the 2nd District race. While he hasn't … [...]
[...] Ted Nesi points out that Mike Riley, the Ayn Rand acolyte running against Congressman Jim Langevin got mentioned on a national blog, Politfact points out that his message to Rhode Islanders, as evidenced by his radio ads, has [...]
Ezra Klein. Wonder how many Rhode Islanders are familiar with that blog ? Lets start with none.
How To Show Your Ignorance 101:
“Lets start with none.” – Levon
Its not surprising to see the Progressives and net roots nation rally around Jim Langevin. But they will have to either speak for Jim or educate him about economic policy. Jim has never studied economics. If he went to public high school in Rhode Island he would be in the one state in the United States that does not have economics in its core curricula.That is a sad comment on the progressive status in Rhode Island. Jim has never held a job outside of government and knows little or nothing about the private sector. My campaign is about results and this state is 50th in nearly every category. No one can be happy with that. I will focus on the economy and do it without cliches like “i will leave no stone un-turned” or slogans like “21st century jobs program”. I will help grow Rhode Island because that is what we need right now. 35 of years of business and financial experience will repair in 6 years what Mr Langevins and the states progressive policies of the last 30 years have done to cripple Rhode Island. The choice is clear . A path toward collectivism like europe., like greece or capitalism, free enterprise and individual responsibility.
http://www.youtube.com/watch?v=BhJpMs8Zeu4&feature=relmfu
It is a good idea but Mr Riley has indicated he would actually do almost everything the opposite of what Sweden did, and those policies were arguably more important. On the fine point of the Fed no longer paying banks .25 per percent on excess reserves held by banks, it is a good observation. Sweden’s aggressive measures were simply not matched in this country and frankly, the gold standard audit the fed crowd are part of the reason. Likewise, the Democrats undermined their own efforts with gimmicky clunker programs and crony capitalism that made some people winners but left the real crisis, foreclosures and the downward spiral it caused unmitigated. When Mr. Riley rises above Ayn Rand, coin biting, know nothings and confederates who have infiltrated the GOP, he can put on the good dark navy blue of a Lincoln Republican and his metro intellectual capabilities can place Rhode Island Republicans in the forefront of serious government in the 21st century.
Mr Gardiner is unfortunately confused and bitter . I had hoped for better.Mr Gardiners expertise on Sweden and interest on reserves are new to me. I wish he had divulged his knowledge during the campaign as these are highly quantitative and important issues.
Riley made a bunch of noise in Narragansett about their pension system, but after making a lot of charges and demands walked away. I suppose we could expect the same of him if his deep pocketed friends actually get him elected. His only interest is himself and his cronies, not working class Rhode Islanders. If he was so hellbent of fixing Narragansett, how come he never ran for office there? Something tells me the only votes he would get would be his family and a couple of elitist neighbors on Ocean Rd. with the mansions and McMansions.
You simply don’t get it. I pray you investigate these issues rather than snipe from left field . Its not hard to reach me. mgr@rileycongress.com My efforts in Narragansett predated the reforms of 2010 by 5 years. Government and citizens didn’t even admit the problems. Apparently I have made enough noise after proving the town was violating state law and proving the town was not funding either its pension plan and Health care obligations as you point out. The current council is aware of this very difficult problem that is not going away. Working class Rhode Islanders will be taxed or will lose benefits as a result of the “head in the sand” approach. I am glad you heard my “noise” and suggest you pitch in to find real answers.
Sir. It obviously is very easy to reach you! Looks like an exposed nerve about your failure to follow through on your crusade. Lots of noise, little substance.
Mr. Riley, let’s not pretend you are reacting to bitterness and confusion. You are reacting to someone who has the ability ask the next question and you have little patience for questions.
I give credit where it is due. I support your point about the Fed not paying banks to sit on reserves. But using the article on Sweden ( link provided by Ted Nesi) as a reference point, what other measures that the article credits as underpinning the Swedish recovery would you support, or have you advocated? Your quick resort to the “ad hominem” attack, or “against the man” is an avoidance of the issue and a missed opportunity to elaborate. You may try and diminish me or ridicule my remarks or any other question you find “ridiculous” or tiresome, and dismiss me by portraying me as “bitter and confused” but it makes no difference. Lets accept for argument’s sake that I am as you say “unfortunately confused and bitter.” This world is full of bitter people. This world is full of confused people. This world and Rhode Island is filled with unfortunate people. The losses they have suffered are terrible and the outlook is still uncertain. They have a right to vote and to know what they are voting for.
Such people might be glad to think that your idea might help to get bankers lending, and the economy going and raising rates for savers as well as hedgers but, they want to know if a Tea Party Republican in congress would help Main street, help ordinary people, or shrink the government’s role based on some level of commitment to Ayn Rand, or the Ryan plan or some other model. It’s a critical issue. Because it is quite different from what the article on Sweden suggests contributed to a rapid recovery. And as to getting our fiscal house in order Democrats will argue it was Republicans who over spent prior to the current crisis in contrast to Sweden’s reported position.
Here is what your web site says on jobs and he economy:
Monetary reform: We must rein in our unelected, unaccountable, failing, flailing Federal Reserve. We need a strong, stable dollar, normal interest rates for savers, and an end to the Federal Reserve’s bizarre practice of paying banks to sit on money.
Tax reform: We need tax rates that encourage work, savings, and investment.
Entitlement Fix: We need to explore revenue ideas that are NOT TAXES designed to shore up our safety net and at the same time create real jobs. Riley Plan Press Release.
Regulatory reform: We must rein in those agencies and other regulatory bodies that are exceeding their lawful mandates, and impeding economic growth and job creation.
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Acknowledging your contribution to the monetary discussion, Ben Bernanke says the Fed itself can only do so much. Congress must take some actions too. What would you do? Strong dollar might help one Rhode Islander and hurt another by raising the cost of our goods overseas. You need to elaborate a lot. Is that going to be a Paul Volker re-play or what would it look like, just talk like the last two administrations that claimed strong dollar policies or something “more stringent” and painful?
What about tax rates? Do you think there is a tax rate change that will suddenly lift the economy? or that will help people who aren’t making any money? What is it? Why hasn’t that worked? because we didn’t just let it all fall hard enough?
Entitlement reform: we got that, you say we’ll make the oil companies supplement the SS trust fund with profits form Federal lands.
Which agencies are exceeding their lawful mandate, other than the NLRB? Will that translate to recovery in the short term?
How is your jobs and economic program like the element credited with contributing to the Swedish recovery?
Other than the Swedish end of paying interest on reserves, do you take any other inspiration from the Swedish recovery?
I think the Swedish recovery model as reported in the article is very different from what the Tea Party or followers of Ayn Rand would have advocated or allowed. Do you agree?
Mr. Riley, I may be in left field, but not one of the players unlike yourself. You did NOTHING to resolve the problem after you pointed it out. Several of my friends were forced to retire to keep from losing benefits which the current Council has taken to cutting benefits employees paid for while not funding their share even after you pointed it out. There has been no plan to remedy that other than beat up the people who paid for the benefit. Did you seek local office to fix the problem? NO. After starting your unsuccessful campaign for state office, you dropped Narragansett entirely leaving the “working class” to fend for themselves. I suspect you would do no better if elected. Just another carpetbagger looking for a quick buck on the working class. I am pitching in and adding to the “gansett truth” you walked away from since it wasn’t going to benefit you.