The challenge is that Harry Reid and Mitch McConnell may construct a package that is unacceptable to the GOP House just because it contains no credible reductions or disciplines, and that the GOP House will be obliged either to vote for the unacceptable or else reject it logically and stand accused and derided by the campaigning White House as "rejectionists." Mitch McConnell immediately rejects Harry Reid's first construction that pushes the next decision date past November 2012 -- the prime aim for the White House because it does not want debt to be part of the POTUS campaign questioning. In sum, the game of the debt limit is now a contest between the crusading GOP and the electioneering POTUS. The lone correction in the Senate is that Harry Reid is trying to protect 23 vulnerable senators up for re-election next year, and that the Tea Party will awaken in the Red States against any Democratic senator who ignores the problem of unsustainable debt and the ratings downgrade. Meanwhile, John Boehner and Eric Cantor cannot discipline their 240 votes the more and must hope for a bill that is credible. Unlikely at this point, but after several failures, after Harry Reid provokes the House into rejecting his package, there may be a construction that no one in either House or Party likes that can get the POTUS signature by Tuesday. The Democrats are playing this for default brinksmanship in order to blame the GOP for the economy. After the Friday GDP report for Q2, the blame game for the economy is futile. The surprise disappointment of 1.3% for Q2 was matched with a shocking revision of the Q1 down from 1.9% to 0.4%. Stunner. This indicates that the Q2 will be revised downward, as well, once the inventory is accounted for (there is a lag); and the full extent of the slowdown in government spending (stimulus, contracts, transfers) is computed. My report during the week was that the Q2 could be 0.0%. Not yet. But John Taylor, Hoover, told Larry Kudlow and me on Tuesday that even a 1.5% was the same as 0.0. A year from now, it may be that we will learn we slipped into recession in Q2 of 2011 -- and that the fiddling we are watching in Washington will stand as a marker for the despair. Devin Nunes, CA-19, says we've never left recession since 2009. The depths of that hole are now measured not at 4.1% negative, but at a stunning 5.1% negative. We were so far down into a crater, there is reason to believe that we have never climbed out. The debt games in DC will end, and yet the GDP cloud will continue. Capitol Economics from Toronto gives the best estimate for 2012 at 2.0% GDP. This means no recovery for the jobless and a dreadfully vulnerable nation that cannot handle macro-squalls such as another tsunami off of an industrial state, or another series of wars in the oil states, or any failure of governance in Europe -- and all these are just as likely as not. POTUS must run in 2012 as the president who did not cause and yet could not solve the Great Recession. When is this equation baked into the election cycle? For the Independents, POTUS is regarded as handsome, amiable, ambitious, cool, smart, capable, but just not up to the task at hand and pretty much out of fresh ideas. The choice comes to: do you want a caretaker who is pleasant, or do you want to try the other crowd's chump?


Tea Party Should Listen to George Will
Peter Wehner
07.29.2011
George Will — after having recapitulated to Laura Ingraham his conservative credentials, which are impressive –said he supports the legislation being pushed by Speaker Boehner and explains why:
I happened to adore the Tea Party. I have no substantive difference with them on any important matter. But it’s important to understand how much they’ve won already. Harry Reid has proposed what the president denounces as an unbalanced idea. That is … all cuts and no new revenues. They’ve moved, in other words, the Senate Majority Leader, far in their direction. They should remember it seems to me that Barack Obama got into terrible trouble by overreaching with the stimulus, and then overreaching with the health care plan and the country recoiled from it. And our Tea Party friends don’t want to seem to the country to be similarly overreaching.
Will, a student of Burke, went on to say, “It really is fanciful to believe that the regulatory welfare state that has been built over 80 years can be substantially
deconstructed in August over a debt ceiling vote. It’s going to take a little longer than that.”
“We ought to pocket these gains and prepare for the next fight – and to understand, nothing fundamentally will be changed until we change the president who is determined to veto fundamental change,” Will added.
George Will has been right far more often than he has been wrong, and the Tea Party would be wise to listen to his counsel. He is, after all, among the finest minds (and finest writers) the conservative movement has ever produced.
http://www.commentarymagazine.com/2011/07/29/tea-party-should-listen-to-george-will/
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Passing thru the FNC program airing at 2 PM MDT, I heard Gregg Jarrett note that polling shows voters, esp. indpendents (faux ex-Democrats who think they're kidding everyone with that pose that they are too high-minded to pick sides in the most important fight since slavery), give the most props to Obama and the Damacrats for willingness to compromise and serious-mindedness about the debt/deficit/unfunded liabilities issues.
To mix military metaphors, Boehner is Horatio at the bridge trying to prevent the 87 from driving Republicans into the valley of electoral death. If this keeps up, Obama will be the first president re-elected with a devastating economic record and no plan to fix it except debt oblivion because the Loyal Opposition was too stupid or too indifferent to its own fortunes to retreat from their laudible principles.
The differences between the two houses is too big to hammer out in conference committee or by amending each others' bills. This is something that must be mediated either by a joint committee, or, absent that, the POTUS. Unfortunately, POTUS insists on being a partisan cheerleader - as a moderator, he's AWOL.
I'm going to break with my usual policy here and give Harry Reid some credit - he's done what he has to do - even a bit beyond, although I think the reason he's stepping outside the box is that he's embarrassed by Obama's lack of leadership and wants to cover for him. Same with Boehner - since when does the Speaker of the House have to be the one to get the other two branches to agree? Yet he's done his "level best". No, the problem is that Boehner's above average competence, and Reid's (grrr) above average competence (as a Majority Leader, not as a freedom-loving American) are simply insufficient to make up for Barack Obama's lack of ability to lead.
Anyone who's been reading my posts for a while knows that I have given Obama the benefit of the doubt when it comes to his efficacy, but the writing's on the wall now, IMO.
The goal isn't to win a popularity contest. The goal is to save the country.
Agree more or less with Will; don't agree with Jarrett.
Boehner is just one man, albeit a powerful one. There's no doubt in my mind that he's done his very best; and his best has been pretty good IMO. If history adjudges him as having failed here, then the people writing the history books have an unrealistically high expectation of what Boehner could accomplish.
And sooner or later, we're going to run out of money for discretionary spending. Might as well happen now then later. I definitely want us to pay our national debt, timely, but I don't think missing the 8/2 deadline means we're going to default. I don't trust them, for one thing.
Al "Did your parents have any children who lived?" Franken is on the floor at the moment ...
Now THAN later.... yikes. Drop and give me 40, Filliger.
"I'm going to break with my usual policy here and give Harry Reid some credit - he's done what he has to do - even a bit beyond, although I think the reason he's stepping outside the box is that he's embarrassed by Obama's lack of leadership and wants to cover for him. Same with Boehner - since when does the Speaker of the House have to be the one to get the other two branches to agree? Yet he's done his "level best". No, the problem is that Boehner's above average competence, and Reid's (grrr) above average competence (as a Majority Leader, not as a freedom-loving American) are simply insufficient to make up for Barack Obama's lack of ability to lead.
Anyone who's been reading my posts for a while knows that I have given Obama the benefit of the doubt when it comes to his efficacy, but the writing's on the wall now, IMO."
I agree with you about all three people. Both Reid and Boehner are praised as deal-makers, and that's what we need right now. The TP aims for this fight and this legislation are in the crapper right now, and the deal ain't getting any better. They should take it and run.
In that same FNC update I mentioned above, the Hill reporter Jarrett was interviewing noted that John Harwood, one of two CNBC reporters who would volunteer to be the last to die defending Obama, called Obama a by-stander in these discussions. If that thought strikes him, you'd think the voters paying attention to all this would get it. No so, according to the polls.
"don't agree with Jarrett."
I'm not trying to start a fight, but how can you agree or disagree with him? He's only reporting what the polls record. Maybe I misled you that my comments re: the dubious truthfulness of independents and the significance of the polls were Jarrett's?
Once this is all over somebody should (and I'm sure will) write a book about the wheeling and dealing going on on the inside. Hopefully it will be a more or less objective person to write it (hint: NOT John Avlon)..... This book could be 1,000 pages and I'd still wish it were longer. There are so many aspects to this.
Yeah, sorry, I meant I disagree with those polls and Jarrett's summary of them. You're right, my comment didn't make any sense.
I'll believe this when I see it.
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DEMS WILL WIN DEBT DEBATE; REPUBS WILL WIN ELECTION
By DICK MORRIS & EILEEN MCGANN
Published on DickMorris.com on July 30, 2011
In the parlance of Washington, the Democrats are going to get the upper hand in the final round of the debt debate. Republicans will succeed in making a vast cut in federal spending, unimaginable before the 2010 election and will block any tax increases. Democrats will get an extension of the debt limit until after the election so as to avoid dragging Obama through this process again.
But the damage this debate has inflicted on the Obama Presidency is so deep and profound that it will have played a large part in dooming his re-election chances. The injury to his popularity from the debt debate is far greater than the addition to his popularity he realized after killing bin Laden.
Here's what will unfold in Washington:
Step One: Reid and McConnell will craft a deal calling for larger so-called budget cuts (they'll count the fictitious spending cuts achieved by avoiding foreign wars not now contemplated) and they will extend the debt limit until after the election. McConnell will exact some language whereby Obama has to ask for the additional borrowing authority but it will require a two-thirds vote to deny it to him. There will be a bi-partisan committee to craft further savings, but nobody will pay much attention to its results, certainly not Obama.
Step Two: The Reid-McConnell compromise will pass the Senate with five or six defections by Democrats up for re-election and a dozen or two additions from non-tea party Republicans.
Step Three: House Republicans will raise hell and refuse to pass the Senate bill. Boehner will make a show of persuading them and then, finally, confronted by the "deadline" artificially ginned up by the president, he will permit it to pass with strong Democratic support. A majority -- or close to it -- of his own party will vote no.
Outcome: Obama will get credit for raising the debt limit. Republican conservatives will be able to say they voted no. Boehner will keep his credibility because he got a pure debt limit bill passed only with GOP votes before he crossed the aisle for final passage.
But the real outcome will be to have brought Obama's job approval down from its bin Laden high of 55% to a new Gallup low of 40%. That is ground he won't be able to make up. And, put through the rigors of tension and uncertainly, the economy will sink further into a double dip recession. A recession brought on, in large part, by Obama's crying wolf over the debt limit and creating an environment of financial and economic terror around its passage.
Republicans proved they can govern by passing their one-house debt limit increase. Their fiscal conservative credentials are intact. And Obama looks, once more, like a weak and easily cowed incompetent to his backers and a big spending and borrowing liberal to the rest of us.
Game to Obama. Set and Match to the GOP.
http://www.dickmorris.com/subscribe.php?utm_source=dmreports&utm_medium=email&utm_content=link&utm_campaign=Dickmorris%2BReports%2BSignup
"This book could be 1,000 pages and I'd still wish it were longer. There are so many aspects to this."
So were you the other one who read Richard Ben Cramer's What It Takes: The Way to the White House, clodking in at 1072 pp.?
Interesting post, thanks.
Morris' assessment of the compromise (if there is one), and how the votes will go, is roughly accurate, I think. However, the devil is in the details. In order for it to come true that Boehner can get 40 or 50 Republicans to join with the Democrats for passage of a compromise, it's going to have to be a VERY big move to the right from the present Senate bill.
No, but I did read Les Miserables from cover to cover.
WSJ editorial staff starting to jump ship to the center/center left in order to curry favor with the ruling class for when the Murdoch stuff starts coming over to this side of the Atlantic.
DREAMS OF MY FATHERLAND
Is it possible that Barry's plan all along has not been to turn us into European socialist country, but to turn us into a Third World country?
Whatever happened to Peter K? It seems his worst fears may be coming true.
The argument seems to be this:
IF JOB GROWTH IS # 1 ON YOUR AGENDA, WHY DID YOU DO OBAMACARE FIRST?
IT'S A JOBS KILLER.
Peter died at the end of May. He is greatly missed here.
http://johnbatchelorshow.com/jb/2011/06/soft-patch-2/
"Is it possible that Barry's plan all along has not been to turn us into European socialist country, but to turn us into a Third World country?"
I wish it were all his fault. You have to start back in the 30s to round up the entire cast of characters and policies, Democrats mostly, but a lot of soft-headed Republicans who thought the only way to stay alive electorally was to be Democrats-lite. Reagan was a revelation with his "Let 'em (Democrats) pay for their own damn programs" in order to stop the reflexive accommodationist taxing policies Republicans became attached to as a way of dealing with the inevitable debt problem resulting from Democrats/progressives who think government's purpose is to take care of the people who can't take care of themselves. That's what charity is for. But when the public get addicted to thinking of government as their caregiver, they lose interest in taking care of themselves.
His worst fears came true, all right!
Orren Hatch is claiming now that the August 2nd line in the sand was last updated by the Treasury Department in May. Sen. Hatch says that he's asked Treasury for an updated estimate of how much money the government expects to have, and was told that "they are working on it."
It's reassuring to me, in a twisted way, that prominent Senators are as much in the dark about that question as I am.
It's really troubling that the whole "crisis" is based on an estimate that's almost 3 months old, and can't be corroborated with any new data.
THIS IS IMPORTANT!!!
We trust a government that revises growth reports, after the fact, from 1.9% to 0.4%, to tell us to within one day, almost three months in advance, when it will run out of money?
The GOP needs maintain cohesion and place bills the Dems will surely vote NO on. Cuts in welfare and social programs especially.
If Dems keep voting NO, they will be labeled the bad guys. A veto will be nice too. The GOP needs to realize the DEMS don't care what happens to USA, they are interested in political advantage.
I used to collect junk which some would generously label collectibles. Now all this junk just sits in my attic collecting dust. I don't have the energy to unpack or, even, the space to put things if I do. However, I was saddened to learn about Peter's passing and wanted to collect my thoughts, so I opened a box of six old irons. In thinking about Peter I thought for a second about who might have used these heavy pieces of junk that, with tremendous effort, used to make a very wrinkled shirt nice enough to wear. I have no idea. I have no idea who owned any of the stuff I now own. I wonder who'll own them in the future, but really don't care. I let my shirts dry on a hanger over the bath tub. If they stay wrinkled I wear them anyway.
A cousin once told me that we don't own any of our possessions. We are merely caretakers for them. I believe this is true.
Not all of us own our own thoughts. But Peter did. And he was nice enough to share them with us.
Liberals Hold Breath While GOP Sees Progress - @StevenTDennis reports: bit.ly/raBWh2
The Senate vote on Reid's debt plan has been postponed until 1 p.m. Sunday.
"If Dems keep voting NO, they will be labeled the bad guys. A veto will be nice too. The GOP needs to realize the DEMS don't care what happens to USA, they are interested in political advantage."
I hope you and Morris are right, but I don't see how that happens with such large #s holding Republicans responsible for not producing negotiable positions. You know I'd like to see the lot of Dems hanged by their thumbs - electorally speaking, of course.
Karen Tumulty on the All-Star panel Friday quoted some presidential scholars as saying that the ideological divide between the two parties is greater now than it has been since Garfield's day.
___________________________________________________________________________
Why the GOP is more a two-part "coalition" than a party
Washington (CNN) -- Hardly a day goes by without dismissive and arrogant invective from the White House about the House Republican Conference and its alleged fear of, or fealty to, "the tea party." Too many Fourth Estaters have lazily bought the line and played along with President Obama's spaghetti western construct. That's not the right explanation for this drama.
Instead, we should look east, across the pond, for an explanation. The House of Representatives post-2010 is built more like a European parliament. I know the irony is too delicious for all you apologizing Europhiles on the left, but hang with me for a few more paragraphs.
The 240-seat Republican Conference delivered by the American public last November is functioning more like a two-part governing coalition than a political party. But it's not two parties -- that would imply the tea party is an actual organization, which it's not, any more than the anti-war netroots movement of the last decade was. In fact, there's hardly a hair's breadth of ideological division within the whole group. The differences lie instead in their tactical approaches and their self-identification.
Somewhere between 100 and 150 Republican members -- a majority of the conference on a given day -- self-identify as both outsiders and conservatives. They won in 2010 by saying "Washington's broken and both parties are to blame" just as often as they said "Obama and Pelosi are too liberal." This was not just campaign strategy; it was conviction. They believe both statements earnestly and equally, and in 2010, the voters did, too -- a fact conveniently ignored by too many in this town.
As a result, it's going to be darned difficult to get unanimity among House Republicans, even behind conservative legislation. It takes 218 votes to pass anything in the House. Plenty of Republicans are wary of being in any group of 218, no matter which 218 it is -- solely for fear of what being herded might say about them.
Conversely, the House Democrats now have both ideological and tactical hegemony, as minorities often do. What little dissonance ever existed in the Democratic Caucus was extinguished almost entirely by the voters in the last election, with an assist from a tone-deaf former House speaker, Nancy Pelosi. If you don't believe it, just ask ex-Blue Dog Reps. Gene Taylor and Travis Childers, and hosts of others who faced the music and lost their races last November.
Don't look for a solution to this debt issue -- or any issue -- that unites half the Democrats and half the Republicans. The ideological chasm is just too great for that at this point in our history. If you want to know what can pass, look at what can unite the GOP coalition -- something that is conservative and rebukes Washington's modus operandi at the same time. There's probably no other path in this Congress, and even getting that will not be easy.
The GOP leadership will always face a high hurdle to win the support of the "outsider" half of its membership. If this frustrates you as a political observer, don't blame the new congressmen; blame the pesky voters who sent them. It is a representative body, after all.
The opinions expressed in this commentary are solely those of Brad Todd.
Find this article at:
http://www.cnn.com/2011/OPINION/07/30/todd.debt.debate
Clarification to JB's post: 1PM ET (debate starts at Noon Eastern)
Also, Reid said that if the first cloture vote fails, they'll keep on debating the bill until it passes. But he also pointed out that negotiations were continuing and that he had hopes that a compromise could be reached. In other words, more Kabuke while the real deal gets done.
I think Kay Bailey Hutchinson's speech tonight was excellent.
The scariest thing I heard today was Tom Harkin's "reasoning" as to why Obama should use the 14th amendment to unilaterally raise the debt ceiling. No mention from this respected Constitutional scholar of why Section 5 of the 14th amendment doesn't apply.
To quote Dylan, "The town has no need to be nervous." For one thing, Carney already said that it would be unconstitutional. Bang: bridge burned and blown up. Second, and perhaps more important, it would be subject to legislative and constitutional challenges, and throw everything into an uproar, and only prolong the uncertainty. Even Obama isn't stupid enough to make that bad of a move. I can't believe that Harkin could be stupid enough to think that Obama should, either.
Thus: (SIGH): MORE Kabuke.
When Robert Frost said "We dance around in a ring and suppose, while the secret sits in the middle, and knows", he must have been talking about the Senate.
I think there is no point in making a new decision to raise the limit before the election.
The election will be a referendum on spending. Let it loom. Let voters decide who they want making the call. The country doesn't need a continuous crisis on this issue. We have a continuing crisis already. Keep our eyes on the goal and make the case. Build trust. Warn, track, report, plan, make alternatives. Respond to objections (salesmanship) win the argument and win the election- then fix it. A victory has been won already as has been noted. The debate is changed. Consolidate. Blocking and tackling of fundamental politics. Talking calmly and gently to people who don't agree with you yet.
I keep thinking of Grant in Virginia. He advanced. Lee blocked. Grant moved left and advanced again. And again and again. Bloody and painful but it worked.
Cloture vote failed 50-49. According to my count - 3 members of the Dem caucus to jump ship: Reid of Nevada (so he could bring it up again), Sanders (cause it's too conservative), and a big surprise (to me): Manchin. Remember all the talk of Manchin here on the JB website? He ran based on an ad where he dressed in a hunter's outfit and fired a shotgun at a target hung on a tree, with the target being big Washington spending. He kept his word. However, it was another show vote, but it still counts for something.
"Remember all the talk of Manchin here on the JB website?"
Manchin announced Fri. that he would vote 'no' on both the Reid and Boehner bills. Remember that a vote "for" cloture is a procedural vote that equates to a 'yea' vote on the substantive bill behind the cloture. So if they were debating cloture on the Reid bill, then a vote for cloture would be the same as a vote for the Reid bill.
Not if you know that the cloture vote is going to fail.
I had missed Manchin's announcement on Friday - interesting.
For those with 15 minutes to kill, check out Senate Session 4918 (C-span Video Library), minutes 45-60 (approximately) - a colloquy between John McCain and Dick Durbin earlier today - very entertaining, all the economic debate of the last 30 years rolled into a good-natured, intelligent repartee. Kind of like a scaled down, non-musical version of "Keynes Versus Hayek, Second Round".
Curious to me that they sent the House home for the day. Means if a deal comes it will be much later in the day, I guess. Maybe they all wanted to go home to listen to the JB Sunday Night show (excellent choice!)
"Not if you know that the cloture vote is going to fail."
Right you are, if one voting 'no' was the bill's floor leader. That's so they can bring it up again.
Corlyss:
Thanks for the Brad Todd piece. I agree with his basic thrust; however, I don't think it's especially insightful to note that the current-day GOP is a loose coalition liable to internecine quarreling. What American political party has NOT been such a coalition? This is our natural condition, a natural consequence of our two-party system, which is itself an outgrowth of the founding American political debate over whether or not to approve the Philadelphia Constitution in which only one of two answers was a possible outcome -- "yes" or "no." Different groups arrived at one or the other of these two simple and clear answers for their own different reasons, and thus were the Federalist and Democratic-Republican Parties born, as well as their various partisan progeny.
My point is that what's truly remarkable in America today is how radically the Democratic Party is diverging from that historical coalition model. The Obama party is rapidly and completely morphing into a European-style "social movement" party, perhaps even a Leninist "vanguard," which aims to crush all dissenting opinion internally and externally. The Obamanistas haven't fully succeeded as yet, but they haven't given up either.
In any case, the Establishment GOP vs. the Tea Party/Conservative Base infighting is as American as apple pie, and has usually yielded positive results for our free republic. Which makes all the more unfortunate the mocking, dismissive characterization of the Tea Party as "hobbits" by Senator Saruman -- oops! I mean Senator McCain -- when the entire GOP base needs to be reassured that each and every allegedly tactical compromise proposed by the GOP leadership is not just another unprincipled sell-out, especially when tactical flexibility may be most needed to ensure The Bamster's defeat in 2012. A case in point -- getting the current debt-ceiling pseudo-crisis off the table to allow full concentration on the disastrous nature and effects of Obama's economic policies. Which is to say, to compromise to some degree on dealing with the symptom of Obamaism -- which is the debt-crisis -- to focus laser-like on its real effects, namely, soaring unemployment, over-regulation, ObamaCare, and the lunatic over-spending to support all these economy destroying gifts from The Anointed One.
"Thanks for the Brad Todd piece. I agree with his basic thrust; however, I don't think it's especially insightful to note that the current-day GOP is a loose coalition liable to internecine quarreling. What American political party has NOT been such a coalition?"
Absoultely spot on, Tom. Even the modern Boomer version of the Dems is a coalition of many interests. As the rethinking of our government system, begun at least under Reagan if not in the immediate post-war era, continues, it has become clear that the organizing principle for them is big and intrusive government controling unpleasant risks of loss. The organizing principle for Republicans, who have undergone a similar re-alignment of constitutencies at the same time, is cheaper, smaller, more efficient government.
Peter Morici put it very well today on CNN: We have to decide how much government we are willing to pay for and get rid of that which we are not willing to pay for. Right now, that is by no means clear to the majority of voters. Virtually all of the electorate is willing to eliminate defense and waste, fraud, and abuse. I.e., the electorate lives in a never-never land where somehow none of our enemies notices we're not spending on defense and nobody gets hurt with crippling cuts in services. People are going to be hurt, if temporarily, and there's no way around it. There's not enough money in the defense budget to make a dent in the entitlements problem. I spoke yesterday with a very well informed friend who follows the debt/deficit debates closely and understands how much history stretches out behind this crisis. What was she willing to sacrifice? The foreign aid budget. I thought everyone understood decades ago that while foreign aid is a sore point with many, there's no there there. At less than 0.001% of GDP, it's not going to contribute a dime's worth to the reduction of the treat from fiscal calamity.
How about Social programs with no effective benefit. Head Start, special education, DARE drug education, Agriculture subsidies, university research, community outreach centers, the list goes on and on.
I'm game, but so far there hasn't been the political will to do any of that.
Head Start is notoriously ineffective. There have been zero studies by people who are NOT affiliated with or receiving benefits from the program that have found any measureable educational success against the program's stated goals. It's basically day care for the poor. But whenever the Republicans have tried to cut it, the Democrats drag out the "you're mean" and "you're dooming generations of poor" arguments, and the Republicans, who are not mean and not dooming generations by cutting one ineffective program, grow faint and spineless before the image.
Ag programs are universally protected. Not just in the US. The mythic image of the sturdy rustic feeding the nations is so dear to societies that once an ag subsidy is voted in, it rarely goes away.
Everyone's in their pitching for their share of the budget, meanwhile something like 50% of workers pay no income tax at all. You can't have 50% of working population not paying taxes and hope for a responsible electorate. Ain't happening.
For your reading pleasure
http://en.wikipedia.org/wiki/File:U.S._Federal_Spending_-_FY_2007.png
"For FY 2010, Department of Defense spending amounts to 4.7% of GDP.[27] Because the U.S. GDP has risen over time, the military budget can rise in absolute terms while shrinking as a percentage of the GDP."
http://en.wikipedia.org/wiki/Military_budget_of_the_United_States
REVIEW & OUTLOOKJULY 31, 2011, 11:13 P.M. ET.
A Tea Party Triumph
The debt deal is a rare bipartisan victory for the forces of smaller government..
If a good political compromise is one that has something for everyone to hate, then last night's bipartisan debt-ceiling deal is a triumph. The bargain is nonetheless better than what seemed achievable in recent days, especially given the revolt of some GOP conservatives that gave the White House and Democrats more political leverage.
***
The big picture is that the deal is a victory for the cause of smaller government, arguably the biggest since welfare reform in 1996. Most bipartisan budget deals trade tax increases that are immediate for spending cuts that turn out to be fictional. This one includes no immediate tax increases, despite President Obama's demand as recently as last Monday. The immediate spending cuts are real, if smaller than we'd prefer, and the longer-term cuts could be real if Republicans hold Congress and continue to enforce the deal's spending caps.
The framework (we haven't seen all the details) calls for an initial step of some $900 billion in domestic discretionary cuts over 10 years from the Congressional Budget Office (CBO) baseline puffed up by recent spending. If the cuts hold, this would go some way to erasing the fiscal damage from the Obama-Nancy Pelosi stimulus. This is no small achievement considering that Republicans control neither the Senate nor the White House, and it underscores how much the GOP victory in November has reshaped the U.S. fiscal debate.
No wonder liberals are howling. They have come to believe in the upward spending ratchet, under which all spending increases are permanent. Not any more.
The second phase of the deal is less clear cut, though it also could turn out to shrink Leviathan. Party leaders in both houses of Congress will each appoint three Members to a special committee that will recommend another round of deficit reduction of between $1.2 trillion and $1.5 trillion, also over 10 years. Their mandate is broad, and we're told very little is off the table, but at least seven of the 12 Members would have to agree on a package to force an up-or-down vote in Congress.
If the committee can't agree on enough deficit reduction, then automatic spending cuts would ensue to make up the difference to reach the $1.2 trillion minimum deficit-reduction target. One key point is that the committee's failure to agree would not automatically "trigger" (in Beltway parlance) revenue increases, as the White House was insisting on as recently as this weekend. That would have guaranteed that Democrats would never agree to enough cuts, and Republicans were right to resist.
Instead the automatic cuts would be divided equally between defense and nondefense. So, for example, if the committee agrees to deficit reduction of only $600 billion, then another $300 billion would be cut automatically from defense and domestic accounts (excluding Medicare beneficiaries) to reach at least $1.2 trillion.
This trigger is intended to be an incentive for committee Members of both parties to agree on more cuts, but defense cuts of this magnitude would do far more harm to national security than they would to domestic accounts that have been fattened by stimulus. This is the worst part of the deal, and Mr. Obama's political goal will be to press Republicans to choose between tax increases and destructive defense cuts. The GOP will have to fight back and make the choice between domestic cuts and harm to our troops fighting multiple wars.
While the "trigger" includes no revenue increases, the committee itself could agree to raise taxes to meet the $1.2 trillion deficit reduction target. This means GOP leaders Mitch McConnell and John Boehner have to be especially careful in their choice of appointees. No one from the Senate Gang of Six, who proposed tax increases, need apply. The GOP choices should start with Arizona Senator Jon Kyl and House Budget Chairman Paul Ryan, adding four others who will follow their lead.
One reason to think tax increases are unlikely, however, is that the 12-Member committee will operate from CBO's baseline that assumes that the Bush tax rates expire in 2013. CBO assumes that taxes will rise by $3.5 trillion over the next decade, including huge increases for middle-class earners. Since any elimination of those tax increases would increase the deficit under CBO's math, the strong incentive for the Members will be to avoid the tax issue. This increases the political incentive for deficit reduction to come from spending cuts.
Mr. Obama's biggest gain in the deal is that he gets his highest priority of not having to repeat this debt-limit fight again before the 2012 election. The deal stipulates that the debt ceiling will rise automatically by $900 billion this year, and at least $1.2 trillion next year, unless two-thirds of Congress disapproves it. Congress will not do so.
Given how much the current debate has damaged the public perception of Mr. Obama's leadership, this will be a relief at the White House. This is part of the negotiating price that Mr. Boehner had to pay because of the back-bench revolt that showed he couldn't guarantee a debt-limit increase with only GOP votes. This gave Democrats more leverage.
***
The same supposedly conservative Republicans and their talk radio minders may denounce this deal as a sellout, but we'll be charitable and assume they've climbed so far out on the political ledge they don't know how to climb back without admitting they were wrong. They're right that this deal doesn't "solve" our fiscal crisis, but no such deal is possible as long as liberals run the Senate and White House.
The debt ceiling is a political hostage the GOP could never afford to shoot, and this deal is about the best Republicans could have hoped for given that the limit had to be raised. The Jim DeMint-Michele Bachmann-Sean Hannity alternative of refusing to raise the debt limit without a balanced-budget amendment and betting that Mr. Obama would get all the blame vanishes upon contact with any thought. Sooner or later the GOP had to give up the hostage.
The tea partiers pride themselves on adhering to the Constitution, which was intended to make political change difficult. Yet in this deal they've forced both parties to make the biggest spending cuts in 15 years, with more cuts likely next year. The U.S. is engaged in an epic debate over the size and scope of government that will play out over several years, and the most important battle comes in the election of 2012.
Tea partiers will do more for their cause by applauding this victory and working toward the next, rather than diminishing what they've accomplished because it didn't solve every fiscal problem in one impossible swoop.
Copyright 2011 Dow Jones & Company, Inc. All Rights Reserved
I wonder what this new committee's relationship will be with the existing Budget and Ways and Means Committees. I would hate to see Jeff Sessions get cut out of the loop.
Let's see who the Senate Dems will send:
Baucus
Menendez
Udall (CO)
Schumer
Conrad
??
Senate Repubs:
Sessions
McCain
Barrasso
Coburn
Lee
??
On the House side, Boehner should name Bachmann, Gohmert, and Cheffetz to the committee. Man, that'd stick in the Dems' craw like too many dry crackers in one swallow.
Rounding out Filliger's nominations for the committee (before the damned bill is even passed) -
House Dems:
Jesse Jackson, Jr.
Sheila Jackson Lee
Colleen Hanabusa
Celebrity deathmatch with claymation figures!!! Must-see TV.
My GOP Sen (fantasy) picks for the Committee: Demint, Rand Paul, Mike Lee.
Fantasy GOP Reps: Jeff Flake, Paul Ryan, a TP freshman like Tim Scott or Raul Labrador.
NO GOP Senator who has ever been part of a "Gang." Nor any House appropriator type. All it takes is one weak GOP Establishment squish or self-imagined hero to become a tax increase enabler (like the usually wise Coburn would have become). Yes, tax/revenue increases can happen, despite the current flawed, incomplete MSM reporting.
Who Boehner and McConnell appoint will determine the Committee endgame, notwithstanding the initial reports we hear now (remember Mr. Batchelor's admonition that the "first 3 reports are wrong" -- it applies in the fog of war or sausage making).
The only framework in which "loopholes," "tax expenditures" or "revenues" should enter is an integrated, comprehensive tax REFORM framework in which tax RATES are being lowered as part of the package. To do otherwise is not Reagan-esque or smart, not even when people like Ben Stein and Jim MacTeague pine for such measures.
What did Coburn do to shake your faith in him?
And I think you bring in OASDI and HI into the tax reform framework, because even though the urban myth holds that the employee contributions under those plans earn entitlement to benefits, the fact is that benefit eligibility is not directly tied to contributions (both plans being purely defined benefit in nature), and perhaps more importantly, the contributions are not held in reserve for payment of benefits of the employees who contributed them.
We have got to bust the myth, sooner or later, that these taxes are inherently different from income taxes. They be carefully disguised, and misrepresented, but taxes be they still. Like a pirate I be talking.
Arrrrrrrr.....
ARRRRRrrrrrrrrrr. Then Hobbit sounds.... (e.g., eating cookies).
Used to love/worship Coburn. Then.....even before the ObamaCare atrocity, when he had reams of evidence to the contrary, Coburn made a wholly gratuitous compliment about Pelosi being a nice person, effectively reprimanding GOPers implying otherwise. Poor judgment, poor timing, undercutting people who were right about her nefarious record, nature and wiring. More recently, Coburn and the generally OK Saxby Chambliss joined the recent Gang of Six, thereby giving surface, bi-partisan legitimacy to a detestable package (which BHO LOVED and expressly endorsed) containing tax hikes, flawed tax reform and paltry, backloaded spending cuts from baseline budget idiocy. The Gang of Six madness, plus Mitch McConnell's boneheaded, convoluted, concurrent, process-monkeys' proposal, undercut and doomed the GOP focus that should have remained longer on Cut, Cap and Balance. Thanks for the legacy, Senators C & C & McC.
I can't quite decide whether I want to see this deal pass or fail. I think the Dems' cries of anguish are sincere, but are they pathetic enough?