Category Archive 'Federal Deficit'
01 Aug 2011

Krauthammer: The Tea Party Has Won

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Charles Krauthammer, reflecting on the debt ceiling compromise, tells Fox News that the Tea Party Movement has done what it set out to do. It has changed the topic of America’s political debate.

Not so very long ago, at the time of his State of the Union address in January, Barack Obama was talking about more stimulus, “investment” in non-existent and uneconomic technologies, and the United States was firmly on the path to becoming another European-style welfare state. Looking back, Obama seems to be living in a different era. We are now in the period in which Americans recognize that government expansion and spending has gone too far, entitlements need to be rolled back, and the purposes and abilities of government re-evaluated. Obama has become a relic of the past, a fossil, and the Tea Party has been responsible.

Krauthammer, I think perfectly correctly views the still-pending-enactment debt bargain as a limited victory, but also as a turning point.

See the non-embeddable 2:01 video at Right Scoop.

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The same Charles Krauthammer had warned last Thursday:

I have every sympathy with the conservative counterrevolutionaries. Their containment of the Obama experiment has been remarkable. But reversal — rollback, in Cold War parlance — is simply not achievable until conservatives receive a mandate to govern from the White House.

Lincoln is reputed to have said: I hope to have God on my side, but I must have Kentucky. I don’t know whether conservatives have God on their side (I keep getting sent to His voice mail), but I do know that they don’t have Kentucky — they don’t have the Senate, they don’t have the White House. And under our constitutional system, you cannot govern from one house alone. Today’s resurgent conservatism, with its fidelity to constitutionalism, should be particularly attuned to this constraint, imposed as it is by a system of deliberately separated — and mutually limiting — powers.

Given this reality, trying to force the issue — turn a blocking minority into a governing authority — is not just counter-constitutional in spirit but self-destructive in practice. …

November 2012 constitutes the new conservatism’s one chance to restructure government and change the ideological course of the country. Why risk forfeiting that outcome by offering to share ownership of Obama’s wreckage?

31 Jul 2011

Exactly Who’s Driving Here?

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30 Jul 2011

The President’s Approach to the Debt Ceiling Negotiations

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Michael Walsh explains the president’s game plan in the current negotiations over debt increases. The democrats are simply trying to blame Republicans for risking default, and doing everything possible to get a debt ceiling increase running past next year’s election in order to try to minimize their own vulerabilities on the issues of excessive spending and the deficit.

I liked his metaphorical comparison to the double dealing and intrigue in the Coen Brothers’ gangster movie Miller’s Crossing (1990). I guess the contrived and systematic insincerity must make Obama Bernie Birnbaum.

By now, the Obama “leadership” style should be blindingly apparent: Do nothing, lie in wait, and then counter-attack. Never present a plan if you can possibly help it, but deal exclusively in bromides and platitudes as you stake out the moral “high ground” and get ready to ambush the other guy. …

Meanwhile, have your media allies, talking parrots, and court lickspittles prepare the ground with standard-issue talking points — “The Tea Party Republicans are terrorists,” for example. …

Adamantly refuse to be pinned down about the specifics of anything, and have your platoon of Baghdad Bobs continue to insist (as good liberals always do) that up is down, black is white, and wishes are really horses, if not actual unicorns.

So the later Boehner walks into the trap, the quicker Harry Reid trumps him, and the sooner Obama can can declare for the umpteenth time that the time for talk is over, emerge as a hero — and get the debt-ceiling debate safely past the shoals of the next election, which is all he really cares about. Because, in case you hadn’t noticed, running for office is the only thing the Punahou Kid knows how to do.

29 Jul 2011

Conservative Civil War!

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As the deadline approaches and the complete annihilation of the entire world financial system as we’ve known it looms, or not, we spectators sitting on the sidelines far from the action are growing tired of the whole thing. Hearing second-hand reports of loud crashes and animal noises coming out of closed rooms gets boring after awhile.

Doubtless Armageddon-on-the-Potomac is great fun if you are yourself a player, but the rest of us recognized a good while back that we have the House, they have the Senate and the White House, and they hate us and vice versa, so no major substantive reform of the entitlement state, no permanent long-term resolution of excess federal spending can be expected to be possible until, and unless, the American public gives us a decisive mandate in 2012 (which I think they will).

In the meantime, Republicans should resist raising taxes, avoid selling out to democrats, but also avoid letting conservatives and Republicans getting saddled with the blame for all this.

Jim Garaughty, in his emailed Morning Jolt today, was marvelling, and poking fun, at the way conservatives are presently quarreling among ourselves about how all this should be handled.

I think a lot of the discussion among conservatives on Thursday can be summarized in one Twitter exchange:

    Guy Benson: It would be awesome if people on our side would stop angrily questioning each other’s motives.
    John Tabin: WHO’S PAYING YOU TO SAY THAT?

    (John’s kidding.)

This isn’t the Civil War of Conservatism in the context of the Union vs. the Confederacy. No, that conflict looks simple and clear in its divisions: North vs. South, slaveholders vs. abolitionists, secessionists vs. unionists, etc.

No, this is messy, with lots of longtime allies and friends surprised to find themselves in opposition. This is the conservative version of the Marvel Civil War, a comic-book storyline in which all of the publisher’s most prominent heroes took sides on the institution of a “Super Hero Registration Act,” in which any person in the United States with superhuman abilities had to register with the federal government as a “human weapon of mass destruction,” reveal his true identity to the authorities, and undergo proper training. Those who signed also had the option of working for a government agency, earning a salary and benefits such as those earned by other American civil servants.

(Perhaps young, super-powered Americans have been listening to Derb’s “get a government job” lectures!)

Iron Man and Mr. Fantastic of the Fantastic Four supported the act. Captain America and Daredevil opposed it. And the storyline tossed away the familiar story of heroes’ fighting villains to the surprising, unpredictable, and incongruous sight of popular, noble heroes’ fighting other popular, noble heroes — each convinced that his view is the right one and the best way to protect his values.

Not as outlandish a metaphor as it seemed two paragraphs ago, huh?

Now we have Rush Limbaugh vs. Thomas Sowell!

29 Jul 2011

Ramirez on the Debt Ceiling Negotiations

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Hat tip to Theo.

22 Jul 2011

Democrats Are Doomed!

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Lack of money may not be the only reason they’re doomed.

Richard Miniter, in Forbes, notes that we have no choice, we are going to have to stop increasing the beast’s rations. But that is a real problem for democrats, whose entire raison d’etre is the delivery of more federal money in return for support.

The Democratic Party, as we have known it for the past 70 years, is now in its last days.

Yes, the House Republicans may raise the debt ceiling for a mix of spending cuts and revenue raisers. Yes, Barack Obama may win the 2012 presidential contest. Yes, bureaucrats and judges will continue to impose new and costly regulations on the economy.

But it doesn’t matter. The long-term trends are almost all bad news for the left wing of the party.

This week’s fight over raising the federal debt limit exposes a key weakness in the warfare-welfare state that has bestowed power onto the Democratic Party: Without an ever-growing share of the economy, it dies. Every vital element of the Democrats’ coalition — unions, government workers, government contractors, “entitlement” consumers — requires constant increases in payments, grants and consulting contracts. Without those payments, they don’t sign checks to re-elect Democrats.

Read the whole thing.

Hat tip to Scott Drum.

22 Jul 2011

“Spenditol”

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A parody commercial from Concerned Women for America Legislative Action Committee (CWALAC).

22 Jul 2011

The Federal Deficit and the Purposes of Government

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Daniel Greenfield has an excellent, must-read editorial on the real meaning of the raising-the-debt-ceiling debate and “social justice” as a form of addiction.

The debt ceiling debate is less about spending than it is about the purpose of government. Under the impact of an economic recession, the train of the Great Society is approaching the edge of the New Frontier. Both sides are still trying to work out a New Deal, but another cuts and spending formula is not the solution. What we need is a serious and earnest discussion about why we are compulsively spending money.

A cocaine addict who runs out of money doesn’t have a spending problem, he has a drug problem. Telling him to cut back on how much money he spends on cocaine, or to shop around for cheaper cocaine isn’t the solution. It’s not about how much he’s spending, but about why. The problem isn’t in the math, it’s in the mindset.

Our cocaine is social justice. Like most junkies who are willing to sell anything and everything to keep the supply coming, Obama’s position in the budget debate is take everything– especially the military, but leave the social justice and the big government that administers it on the table. And also like most junkies, he has an endless supply of self-righteous speeches denouncing the people who just want him to stop.

In the rush of words, he postures, conflates compromise with confrontation, threatens and urges everyone to work together. There is no consistent message, only egotistical aggression and defensive need. Strip away the verbiage and you come away with a chorus of, “Mine, My Way, Mine”.

With all addictions, it is important to look for the root cause. The psychological weakness that allows the chemical rush to take over and become the defining principle of life. In this case it is a basic split over the purpose of government.

Be sure to read the whole thing.

Hat tip to the Barrister.

20 Jul 2011

How Do You Get From $6.31 Trillion to $9.65 Trillion in Debt in 27 Months?

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All you need to do is elect Barack Obama.

From Paul Ryan’s House Budget Committee, A Brief History of President Obama’s Fiscal Record:

January 20, 2009
President Obama sworn into office

President tells the American people in his Inaugural Address: “Those of us who manage the public’s dollars will be held to account, to spend wisely, reform bad habits, and do our business in the light of day, because only then can we restore the vital trust between a people and their government.”

Debt Held By Public = $6.31 trillion

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February 17, 2009
President Signs into Law the Spending Stimulus

The stimulus adds $821 billion in new spending according to the Congressional Budget Office (CBO).

The White House promises this infusion of spending and borrowing would keep unemployment rate below 8%. As millions of Americans are painfully aware, that promise was broken.

Debt Held by Public = $6.48 trillion

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February 26, 2009
President Issues FY2010 Budget

The President’s budget adds $2.7 trillion in new debt in FY2010 and imposes $1.4 trillion in new taxes.

Debt Held by Public = $6.58 trillion

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March 11, 2009
President Signs FY2009 Omnibus Appropriations Act

The massive spending bill includes 8,696 earmarks at a cost of $11 billion.

The spending bill adds $19 billion in new spending above the baseline – an 8.6% spending increase.

Debt Held by Public = $6.66 trillion

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April 29, 2009
Congressional Democrats Pass FY2010 Budget

The Congressional Democrats’ budget calls for a $2 trillion debt increase in 2010, and another 8.9% increase in non-defense discretionary spending.

The reconciliation process is abused to later pave the way for health care overhaul to be jammed into law.

Of note: this is the last time Congressional Democrats will bother budgeting.

Debt Held by Public = $6.85 trillion

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February 2, 2010
President Issues FY2011 Budget

The President’s budget more than doubles the debt; pushes the FY2011 deficit to a new record of $1.6 trillion; drives spending to a new record of $3.8 trillion in fiscal year 2011; and raises taxes by more than $2 trillion through 2020, under the administration’s own estimates.

Debt Held by Public = $7.85 trillion

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March 23, 2010
President Signs Health-Care Overhaul Into Law

The massive new law adds $1.4 trillion in new spending over the next decade, and over $2.5 trillion once the law is fully implemented.

Despite sluggish economic growth and high unemployment, the law imposes over $500 billion in new tax hikes. CBO Director Elmendorf would later testify that the law would reduce employment by roughly half a percent – a reduction of approximately 800,000 jobs.

Debt Held by Public = $8.18 trillion

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April 15, 2010
Congressional Democrats Decide Not to Do a Budget for FY2011

The 1974 Budget Act requires Congress to pass a budget each year by April 15.

In an unprecedented budget failure, House Democrats not only failed to pass a budget – they opted to not even propose a budget.

Debt Held by Public = $8.39 trillion

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July 21, 2010
President Signs Financial Regulatory Overhaul Into Law

In addition to heightened regulatory uncertainty, the massive new law adds $10.2 billion in new spending.

Debt Held by Public = $8.69 trillion

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February 14, 2011
President Issues FY2012 Budget

The President’s budget yet again calls for the doubling of the debt in five years, and tripling the debt in ten years.

The President’s budget spends $47 trillion over the next decade, imposes over $1 trillion in new tax hikes, and fails to address the drivers of the debt.

Debt Held by Public = $9.45 trillion

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April 13, 2011
President Delivers Speech on Deficit Reduction

The President appears to abandon his own budget by offering a ‘framework’ that calls for additional tax increases, defense spending cuts, and Medicare price controls – yet lacks sufficient detail to back-up claims of deficit reduction.

Debt Held by Public = $9.65 trillion

19 Jul 2011

Government As Writer of Checks

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Michael A. Walsh, in the New York Post, identifies the key issue in the current political crisis, something at stake even more important than economic prosperity: the choice for America of freedom versus dependency.

When did it become the primary function of the federal government to send millions of Americans checks?

For this, in essence, is what the debt-ceiling fight is all about — the inexorable and ultimately fatal growth of the welfare state. If you don’t believe it, just look at President Obama’s veiled threat to withhold Grandma’s Social Security benefits if Congress doesn’t let him borrow another $2 trillion or so to get himself safely past the 2012 election.

The feds now borrow 43 cents of every dollar they spend. Under Obama, outlays have soared to nearly a quarter of GDP (the historical average is just under 20 percent) — and once ObamaCare starts to fully kick in around 2014, it will only rise.

Medicare, Medicaid, Social Security and debt interest consume — at the moment — nearly half of our $3.8 trillion budget. …

The debt-ceiling cage match is the culmination of the Democrats’ 75-year-long fight to establish a voting bloc of dependents under the false flags of “compassion” and “social justice.” It’s sapped our strength, created a welfare mentality and, if unchecked, will reduce us to a nation of aging, resentful beggars with eyes cast permanently toward Washington.

The preamble to the Constitution talks about promoting the general welfare, not the welfare state. For the welfare state is incompatible with the rest of the preamble, which concludes: “and secure the blessings of liberty to ourselves and our posterity.” By definition, dependents are not free.

Via Jim Geraghty.

16 Jul 2011

National Debts Compared

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Hat tip to Theo.

14 Jul 2011

Obama Blows His Cool

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Politico quotes Rep. Eric Cantor (R- VA) on the presidential temper tantrum that concluded the latest round of budget negotiations between the White House and Republicans.

Cantor said the two sides were too far apart to get a deal that could pass the House by the Treasury Department’s Aug. 2 deadline — and that he would consider moving a short-term debt-limit increase alongside smaller spending cuts — Obama began to lecture him.

“Eric, don’t call my bluff,” the president said, warning Cantor that he would take his case “to the American people.” He told Cantor that no other president — not Ronald Reagan, the president said — would sit through such negotiations.

Democratic sources dispute Cantor’s version of Obama’s walk out, but all sides agree that the two had a blow up. The sources described Obama as “impassioned” but said he didn’t exactly storm out of the room.

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Reuters adds a hilarious quotation from Mr. Obama.

U.S. President Barack Obama told Republicans at the conclusion of a stormy budget meeting on Wednesday that he would not yield further even if it puts his presidency at risk, a Republican aide said.

“I have reached the point where I say enough,” Obama said, according to the aide. “Would Ronald Reagan be sitting here? I’ve reached my limit. This may bring my presidency down, but I will not yield on this.”

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Bringing to mind a skit broadcast a few months back by Jay Leno:

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