Debt Limit Pox: Enough to go Around

The Federal Debt Limit increase is pressing down on all the politicians in Washington this week. It is an ugly sight of finger pointing, competing unbending philosophies, and lost opportunities. I am feeling a bit snarky and sarcastic today so I will spare no one.

None of three principal players in the drama-President Obama, House Republicans and Senate Democrats have distinguished themselves. Let’s examine the President first. Mr. Obama went on television last night to again berate the Republicans. He has become the most partisan President since Richard Nixon. It is never his fault. His actions never match his rhetoric. His sole intention is to blame others and do whatever it takes, say whatever it takes to preserve his political programs and promote his re-election. I doing so, he has become almost irreverent to the process now. He should have foreseen this situation after the fight on the 2011 Continuing Resolution last spring.

The Liberal establishment continues to criticize House Speaker John Boehner (R-OH) for “walking out on the debt negotiations.” However, I believe the flip side is the Speaker had a epiphany and finally realized that this time, Mr. Obama had no real intention to do anything but get his way for the debt increase extension and demagogue on tax issues. He was indeed ready to take his Presidency down as he himself stated. There may have been an opportunity to make a real deal at some earlier point but it was lost.

As for the House Republicans, they have squandered an opportunity to significantly change –even a little bit- the direction of Government largess. They have doggedly clung to an irresponsible position of absolutely no tax increases and some illusion of a Constitutional balanced budget amendment. The freshmen Members of the House have shown a lack of sophistication on how to legislate. They have identified the enemy and intend to march into battle with shields up and swords drawn.

The Senate Democrats have just been horrible. Senator Reid not only lacks any substantive plan but has been just plain nasty. He insults his colleagues in the House and goes out of his way to have votes which he believes will put Republicans in a bad political position but accomplish little. There is no comity whatsoever.

Enough pox on everyone’s house. I am not going to review detail of the outlines of the House and Senate plans. I will grade them later. However, a few comments can be noted:

Neither plan makes any significant headway on actual spending reduction. It appears both sides agree on a little more than a trillion dollars in domestic spending cuts over the next 10 years. Big deal and yawn. The CBO projects a cumulative budget deficit of another $ 13 trillion in the same period, or a doubling the current debt.

Both plans kick the can down the road (it is actually a barrel) to some ill-defined “Legislative Commission” of 12 (not the Gang of 12, I pray) to make a set of recommendations to be voted on. This is like appointing 4 sets of the “Three Stooges” to make the decisions for the county. In addition, the question must be asked, why do they have all these Standing Committees in Congress if they do not do anything? Plus, what have all these guys been doing for the last year or so?

The Senate plan is nothing more than an illusion, counting spending cuts in defense for future reductions in the three wars the country is involved in. This will happen one way or the other or maybe it will not. Who can project the next conflict or attack? Mange the military but do not count on it for savings.

The Senate plan counts savings on future interest payments. I mean what is this? Prediction of future interest rates years from now is folly and a hoax. It is similar to the episode of I Love Lucy where Lucy goes on a spending spree but tells Ricky she saved so much buying on sale that the savings will end up paying for all the purchases. This is Milo Minderbinder logic from Catch 22 at its best.

The insistence by the House on compelling a vote on a Balance Budget Amendment is idiotic. It is not only bad policy but also political naiveté.

There are no changes in the precious Democrat entitlement programs, the only place that real spending reductions can occur.

There are no revenue increases. Even that awful ethanol subsidy survives. Republicans win this tussle in the short run but will be pounded by it later. If indeed the Democrats want to increase taxes, it should be in their proposal. They are not serious people.

There we have it for now. Lost in all this mess, is the fact that the Government is still funded, other than the entitlement programs, by annual appropriations. Raising the debt limit does nothing to solve those coming conflicts.

Comments

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Terrifc piece! It's all about politics, and unfortunately not about what's really the best thing -- and the right thing -- for this country. We all deserve better.

Posted by: taxpayer | 07/26/2011 at 04:37 PM