I’ll let you in on a dirty little secret: neither party really cares about the deficit.
Republican Representative (and potential presidential candidate) Mike Pence complains about “runaway federal spending on steroids,” while Republican Governor Tim Pawlenty proclaims, “It’s reasonable that government should tighten its belt.”
“It’s time for government to tighten their belts and show the American people that we get it,” says Speaker-to-be John Boehner.
“Government should have to tighten its belt,” agrees President Obama.
“The federal government needs to tighten its belt,” says one of his advisors, Valerie Jarrett.
“Congress must tighten its belt,” adds Steny Hoyer, the Democrat’s second-in-command in the House.
With the obesity epidemic continuing to grow, you think we’d be looking for ways to make that belt feel a little less tight.
Ba-dum-ch.
Despite all this rhetorical grand standing, neither party as a whole can claim the anti-deficit mantle with a straight face. Of course, there are a couple of individual politicians that truly deserve the title of deficit hawk – Republican George Voinovich of Ohio, for instance.
However, they are scarce, becoming scarcer, and hardly have any influence on Capitol Hill. Voinovich is retiring next year.
For most of the post-war era, the Democratic Party was never about reducing the deficit. The Democrats were the party of big government and high taxes to pay for big government. Republicans, on the other hand, opposed big government and supported low taxes.
The problem for both parties was that Americans hate high taxes but love big government. Since the end of the Cold War, we have seen the two parties converge on this position: big government spending and, at the same time, low taxes.
Bill Clinton and Barack Obama made low taxes favorable on the left; Newt Gingrich and George W. Bush made high government spending popular on the right.
Fiscal insanity, in other words, is now bipartisan.
“But wait!” contend readers who voted for Scott Brown. New Republicans and the Tea Party will stop Obama’s profligacy in the next two years and put America back on track to prosperity.
Let’s take a look at the numbers.
The budget of the federal government during fiscal year 2011 is about $3.7 trillion, which results in a $1.2 trillion deficit. The three biggest areas of the federal budget are defense, Social Security, and public health insurance (Medicare, Medicaid, and SCHIP).
The Republican “Pledge to America” promises to cut $100 billion of non-military discretionary spending in the party’s first year in power. That means cuts to everything but defense, Social Security, and public health insurance. Subtracting these three biggest areas leaves roughly 17% of the budget left to cut.
$100 billion in cuts to non-defense discretionary spending would result in 21% across-the-board cuts in everything else in the budget: education, research, veterans’ benefits, administration of justice, and more. “Non-defense discretionary spending cuts” won’t be getting us anywhere.
What about earmarks? Even according to the most generous estimate from a right-wing think tank, earmarks make up only $17 billion. Our deficit this fiscal year, you’ll remember, is $1.2 trillion.
But what about Obamacare? Surely we can save money by cutting that big government monstrosity.
Lost in the partisan screaming is the fact that, according to the non-partisan Congressional Budget Office, health care reform will actually save us $100 billion over the next decade and $1 trillion over the following decade. Taxes on generous health plans, an independent panel to recommend cost-saving measures, and Medicare reform will save us more money than the Republican plans ever would.
In fact, President Obama may be one of the few people in Washington serious about cutting the national debt. He has proposed a three year freeze on non-defense discretionary spending, signed legislation reforming military acquisitions and proposed an end to the Bush tax cuts for the rich.
This brings us back to the Republicans who claim to oppose the deficit. Making the Bush tax cuts for the wealthy permanent, a move the vast majority of Republicans support, is fiscal insanity.
When push comes to shove, new Republican legislators will act like the old Republican legislators, who supported and carried out two wars and a massive expansion of Medicare, but refused to finance them. They refused to raise taxes or cut spending to pay for them, adding to the national debt.
“Our top political priority over the next two years should be to deny President Obama a second term,” said the Republican leader in the Senate, Mitch McConnell.
Like I said, no one actually cares about the deficit.
To be fair, congressional Democrats are no better. Members of both parties voted against the creation of a deficit commission. On top of that, Democrats still support making the Bush tax cuts permanent for those who make under $250,000 a year. This, too, is madness and is not remotely sustainable.
Both parties are going to need to come to their senses to restore fiscal sanity. Right now, if current policy does not change, America will default. Growing health care costs will sink us in a few short decades, if not sooner.
There is only one way to prevent this: reform government health care obligations. There is simply no other way to prevent massive debt accumulation and default.
Long term cuts, not short term cuts, are needed now.
a classmate • Nov 11, 2010 at 8:52 AM
Serious Fact Update Basil! From ABC's Jake Tapper….
CBO: Health Care Bill Will Cost $115 Billion More Than Previously Assessed
May 12, 2010 9:08 AM
The director of the Congressional Budget Office said Tuesday that the health care reform legislation would cost, over the next ten years, $115 billion more than previously thought, bringing the total cost to more than $1 trillion.
The revised figure is due to estimated costs to federal agencies to implement the new health care reform bill – such as administrative expenses for the Internal Revenue Services and the Department of Health and Human Services — and the costs for a "variety of grant and other program spending for which specified funding levels for one or more years are provided in the act."
CBO had originally estimated that the health care reform bill would result in a net reduction in federal deficits of $143 billion from 2010-2019; this revised number would eliminate most of that savings.
In a statement, House Minority Leader John Boehner, R-Ohio, said that the new CBO analysis "provides ample cause for alarm. This comes just weeks after the Obama administration itself released an analysis confirming that the new law actually increases Americans’ health care costs. The American people wanted one thing above all from health care reform: lower costs, which Washington Democrats promised, but they did not deliver. These revelations widen the serious credibility gap President Obama is facing."
hhhhhmmmmmm……
you are right…there has been a gluttony of entitlements in our politicians attempt to bribe their constituents to win reelection….we are ruining drive and incentive in this country by excessive handouts, look at all the foodstamps they are giving, and ENCOURAGING college students to take…WHY???Clinton did fabulous with welfare reform….please watch John Stossel's report…they thought it would create a catastrophe of people starving in the streets, but they moved in with family or got jobs when they were taken off the Dole.
Entitlements make up most of or spending across the board…Soc sec etc
we will need to raise our retirement age to, maybe 69, as it is not sustainable now…
Europe is just now realizing what a huge mistake they have made, Sarkozy had to up the retirement age to 62, it won't be enough.
so, Obamacare is a catastrophe cost wise, but the much larger problem is you will not be able to find a doctor, get the drugs you need, and will not have surgical options…look at ANY Government run Healthcare globally. IT is a simple fact.
That is why everyone comes here
so, your article is MUCH better in an attempt to be more balanced this time. And I always enjoy listening to your perspective. I do believe you are misguided in thinking Obama is serious about cutting the national debt. What he says and does are diametrically opposed. And alot of Americans do not like big government, as seen in NH"s slogan live free or die…and the movement is agrowing…
BASIL….You provide an invaluable service to the students here…you get the conversation going, you educate and enlighten. I may not always, ok, hardly ever , agree with you…but you care enough to stick your neck out, and give your opinion…
in a culture where everyone is so PC, so kudos my friend,…and I hope one day, to read or hear your opinions proudly presented by news organizations that value thoughtful discourse.
and I apologize, you were right.I was wrong to personally attack you. I will stick to the issues…I was just mad last time.I know you don't surround yourself with like minded individuals.
Basil • Nov 11, 2010 at 2:18 PM
$143 billion – $115 billion = $28 billion
Health care reform, then, still is budget positive.
Additionally, the $115 billion in administrative expenses you cite are part of the regular budget. As the Tapper article notes, funding these administrative expenses must be offset by cuts elsewhere in the budget, meaning that health care reform still saves $143 billion over the next 10 years.
More importantly, in the second decade, reform will still save nearly a trillion dollars, even with these extra administrative expenses.
"so, Obamacare is a catastrophe cost wise, but the much larger problem is you will not be able to find a doctor, get the drugs you need, and will not have surgical options…look at ANY Government run Healthcare globally. IT is a simple fact." — It is a simple fact that this is false… What in the legislation would cause this?
And I'm glad you read what I write despite your disagreements with my positions. That doesn't happen enough today, unfortunately. Both sides of the aisle cherry pick who they listen to, creating a lot of incestuous thinking and a refusal to consider new ideas.
student • Nov 13, 2010 at 2:51 AM
What in the legislation would cause this?..nothing….human beings reaction to the legislation does. There must be an incentive, a reward that drives human behavior…government mandates can never replace self determination. Doctors are leaving the medical profession…malpractice insurance is to high, and they will not receive the compensation that they need under the new plan to make it worth their well…Medicare, medicaid patients are being turned away,looked what happened in Tennesee, they lost their doctors…now the govt is not covering certain breast cancer drugs as they are simply to exoensive to be covered under the plan. This is just the start, It is simple economics..they will cut costs, options, and dole out benefits as they see fit. Look into Holdren, and see how he believes the health care should be implemented….so idealistically, it all sounds good on paper, if you don't look at the big picture. Of course my friends and I have lived in other countries and seen the practical side of government medicine, which is marvelous if you are not sick, need surgery , or are going to have a baby….I love the system we had here in the US…Basil I like you because you are provocative…you put forth effort and time into these blogs,I think we both like a good debate and get opinions on the table…
so I look forward to our next joust…
maybe something about the current TSA screening controversy and CAIR wanted to protect the rights of Muslim women? or Wilder's demise in the Netherlands as he is facing imprisonment for his freedom of speech….alot of interesting thought…and thanksgiving travel is coming up….
Basil • Nov 13, 2010 at 12:08 PM
"Doctors are leaving the medical profession…malpractice insurance is to high"
This wasn't caused by the legislation; this problem existed beforehand, and it cannot be blamed on the reform legislation.
"Medicare, medicaid patients are being turned away,looked what happened in Tennesee, they lost their doctors…now the govt is not covering certain breast cancer drugs "
I'm not sure what you're referring to here.
"I love the system we had here in the US"
You might have loved it, but the 50 million people without health insurance sure don't love it. I sure don't love it; skyrocketing costs are bankrupting the federal government.
——
You still have not cited a single piece of the legislation that you find problematic. (Note: I don't agree with every single paragraph of the legislation, see the 1099 tax provision). You're critiques, to me, sound like general criticisms of the US health care system in general – which would make me think that you would support some form of health care reform 😉
student • Nov 15, 2010 at 8:18 AM
touche….yes there is need for reform…I am all for helping those that need health care and can't afford it…
there are a number of people that choose not to purchase health care…
what are the demographics of the 50 million?
I hate to bring up a touchy subject, but didn't we spend about 30 million dollars in Massachusetts providing health insurance for illegal immigrants here in Massachusetts last year? That seems like a very generous, just , compassionate system…there are those that we should help,those that should help themselves, and the government does serve a purpose in deciding. We give away too much to those that don't need it, and too litlle to those that do. You may be surprised that I am very involved with several clinics that provide free health care to the homeless and mentally ill…so it is not that there is need…It is the direction the government is taking the system that I object to…
I will look into those demographics we discussed to further educate myself, and get back to you.
Basil • Nov 15, 2010 at 12:49 PM
30 million isn't exactly a lot of money when you have a $50 billion budget. And considering we have at most 20 million illegal immigrants in the US (probably more like 10 or 15 mil), that still leaves 30 million legal American citizens without health insurance. That is unacceptable.
a student • Nov 13, 2010 at 3:03 AM
and Basil, you are right, people look towards others that validate what they already believe, in a drive to inflate ther own esteem…it is incestuous, and diminishes the intellectual gene pool…
I gravitate to those who can teach me something new, show me a new perspective.., a different lens,( I already know what I think)You and I like ourselves enough that we are not threatened by the questioning of our opinions, nor suffer from the inability to change course in the light of new information…so keeping shining that light…I am listening
Mr. Shugrue • Nov 10, 2010 at 11:32 AM
Less health care is the only way to save money? I notice we do not try to invade China when we disagree with its policies. That is because we need to trade with China and one does not attack a country one trades with. I guess Afghanistan does not have anything we want to buy. Another way to lower our deficit is to increase taxes on the super rich.
political fitness • Nov 10, 2010 at 1:06 AM
Basil Halperin should hold a Rally for Political Sit-Ups so Washington can fit in it's belt. Then Burger King can hold a March to Keep The Whopper Budget Alive.
Basil • Nov 14, 2010 at 1:48 PM
Whoever this is, I salute you sir. You must know my weakness for puns…
This... Is... SPARTA • Nov 9, 2010 at 2:28 PM
Good point about the belts. But in all seriousness, how do you know that secret? I thought it was secret…. well I mean not anymore seeing as you've told everyone…