
To combat the stench, San Francisco has spent $14 million on bleach...from Halliburton! Cheney wins again!
We have heard everyone - from Obama's own debt commission to the chairman of the Joint Chiefs of Staff - call the looming debt a mortal threat to the nation. We have watched Greece self-immolate. We can see the future. The only question has been: When will the country finally rouse itself?When Krauthammer writes about "famously progressive Wisconsin" I can't help but think back to super-liberal Massachusetts replacing Ted Kennedy with Scott Brown. There's been a tipping point somewhere where Americans realize the status quo of public policies erected 50+ years ago cannot stand anymore.
Amazingly, the answer is: now. Led by famously progressive Wisconsin - Scott Walker at the state level and Budget Committee Chairman Paul Ryan at the congressional level - a new generation of Republicans has looked at the debt and is crossing the Rubicon. Recklessly principled, they are putting the question to the nation: Are we a serious people?
The gap between the red and blue lines is the budget deficit. A deficit of 3% of GDP will hold debt constant relative to the economy. Under the President’s policies the deficit would dip in 2018 to 2.9%, and would otherwise forever be at or above 3%. Our government debt burden will increase forever.
In a crisis our economy can handle an enormous temporary budget deficit. Our deficit problem is that future deficits are large, sustained, and projected to grow forever. Our little yellow double-headed deficit arrow will grow into a monster and keep growing.
The coming budget cuts have nothing to do with merit. They have to do with the inexorable logic of mathematics. Over the past decades, spending in nearly every section of the federal budget has exploded to unsustainable levels. Each year, your family’s share of the national debt increases by about $12,000. By 2015, according to Douglas Holtz-Eakin, the former director of the Congressional Budget Office, Moody’s will downgrade U.S. debt.In other words, because nobody wants to cut Grandma's check, we have to make cuts elsewhere – "elsewhere" being shorthand for everything that Americans call "the government." But even with these "draconian" cuts, we're barely making a dent in the deficit:
The greatest pressure comes from entitlements. Spending on Medicare, Medicaid, Social Security and interest on the debt has now risen to 47 percent of the budget. In nine years, entitlements are estimated to consume 64 percent of the budget, according to the invaluable folks at the Committee for a Responsible Federal Budget. By 2030, they are projected consume 70 percent of the budget.
It’s not only about debt; it’s about freedom. It’s about whether we get to make budget choices or whether we have our lives dictated by the inexorable growth of programs beyond our control.Exactly.
The cuts are relatively small, however, in the larger scheme of things. In total, the $775 million in detailed cuts fall far short of demands by congressional Republicans and will do little toward tackling the deficit, which is estimated to be $1.5 trillion this year by the Congressional Budget Office. The cuts are in addition to a five-year spending freeze which the administration says will save $400 billion over the next decade.Yes, given this administration's dedication to cutting the deficit, I'm sure those spending-freeze savings will materialize. Good gravy. The American public's backlash against raising the debt ceiling is a cri de coeur to please stop spending.