Recent arguments over increasing the debt ceiling and balancing the budget are not accomplishing any outcomes that will benefit the country in the long term. While the majority of the country supports a balanced budget amendment and a cap on federal spending. This purported compromise today between the President and the leadership in the Senate and House of Representatives is a fiscal joke.
The real opponents to reining in big growth government in recent weeks is the Democrat controlled Senate along with President Obama. While President Obama was arguing back in 2006 that raising the debt ceiling was irresponsible and showed a failure in leadership. His leadership position seems to have shifted, his posture on the subject in recent weeks, fear mongering and petty politics. Declaring chaos if a deal he favored wasn’t reached through the absence of social security and military paychecks while vowing to veto responsible sounding bills out of the House before they were even written. Besides, there would be no default, that concept is pure political fear mongering. While it’s true that finding $34 million to help Americans learn to be better shoppers might be hard to come by and new government spending would be severely limited. There is money to pay the current bills and the Treasury is allowed to prioritize.
The only responsible congressmen involved in this whole debate in recent weeks seems to be the so called tea party members elected during this last election cycle. Those on both sides usually accustomed to buying votes are finding out that these new members actually are standing on principle and are scoffing at the usual bribes of campaign dollars or additional state funding. While Joe Biden and the House Democrats liken these new members to terrorists they are the only ones not participating in politics as usual.
A few facts: In the last 4 years the federal budget has increased by nearly 1 Trillion dollars. The CBO states that the budget deficit will be nearly 1.5 Trillion this year. The current debt ceiling is roughly 14 Trillion. A majority of Americans favor a balanced budget amendment capping federal government spending. The debt “deal” reached today will cut roughly 2.1 Trillion over 10 years from the federal deficit.
What does this add up too? Not much. Let look at the country’s debt in 10 years. Assuming the 1.5 Trillion deficit remains constant for the next 10 years (since congress does not have to balance the budget currently) we have a total of 15 Trillion. Now let’s subtract the 2.1 Trillion from today’s debt ceiling agreement. That leaves us with 12.9 Trillion in new debt over ten years. Add that to the current debt and in ten years the country will be roughly 27 Trillion dollars in debt.
Needless to say the debt deal is a drop in the bucket long term. It equates to only 300 Billion in spending cuts each year. While 300 Billion in cuts would be nearly 10% of the current budget. Over time it does not address the spending problem in Washington. As this year alone the deficit will still be 1.2 Trillion.
Historically the federal budget never goes down and the lefts solution of raising taxes could only work for so long (just look at CA). So the answer must be control of spending, reducing federal government control to just the minimal set of tasks it was envisioned to do by our founders. Delegating this nanny state business to the states if they so desire.
At any rate today’s compromise was no great success for the country. This debate should continue, serious reforms need to be enacted. But most importantly our elected leaders need to act more like some of these newly elected tea party members of Congress, putting the long term welfare of the country and its children in front of political aspirations and beltway power. Today’s deal looks a lot more like an epic fail than a great success.
This post was submitted by American_Innovation.