Showing posts with label federal budgets. Show all posts
Showing posts with label federal budgets. Show all posts

Wednesday, February 27, 2013

Keep Your Seats, Senators


Our pottymouth speaker speaks
John Boehner, the Republican Speaker of the House, hit a new rhetorical low this week when he told Senators to “get off their ass” and produce legislation to avoid cutting some $85 billion from the remainder of this year’s federal expenditures. We presume the 100 Senators were not sitting on a donkey and also do not have a collective behind. However, let us hope no one awards Boehner an “F” for bad grammar.  He might use it with a few other letters to plummet deeper into the depths of coarse discourse, something he has done before.

Seldom does the geezer find common ground with the Tea Party crowd in Congress, but this time we are the strangest of bedfellows. The conservative Republicans in the House and I both want the Senators to keep their backsides firmly rooted in their chairs and do nothing. Letting “sequestration” take effect on Friday could be managed as a good step forward in what has become a tiresome, interminable budget battle in Washington.

The arch-conservative Representatives have been busily trying to convince us that serious sequestration consequences (they think cutting defense spending would be catastrophic) should be blamed on President Obama. It is true that the Administration conceived the sequestration plan. The Tea Partiers are correct about that. Their problem is that the American people don’t believe them. According to many polls, a majority will blame sequestration problems squarely on the Republicans.

Mr. Obama has been just as busily touring the country and issuing state-by-state assessments proclaiming that cutting up to 13 percent in defense spending and 9 percent in other discretionary spending areas will have horrific consequences. The centerpiece of the presidential arguments is that 750,000 jobs will disappear at a time when the economy is still struggling to right itself. That is a lot of hooey.

The cuts in defense can be achieved by temporarily reducing the number of hours civilian employees work this year. That will be unpleasant for the workers, of course, but their jobs would not be eliminated. Managers would have seven months to make useful economies and return the employees to full-time status.  That should not be difficult considering the bloated condition of defense accounts, which Congress has been inflating almost without question for more than a decade.

Cuts in the other programs would cause some undesirable job losses and reductions in essential services, but Social Security and Medicaid would not be affected at all and only modest cuts would occur in Medicare reimbursements to healthcare providers. In a few cases, states can be expected to cover some of the federal shortfall should sequestration take place.

The President should call Boehner’s bluff. Let the cuts take place, and then have separate pieces of legislation quickly introduced to restore funding to all accounts that truly need it, but do not include defense. Republicans and Democrats in both houses then could let all of us see their true colors as they vote each federal service up or down.

The federal debt and budget deficit are serious matters, all the foggy mutterings of economists about percentages of domestic product and similar theoretical guidelines aside. The simple truth is that far too much of our tax revenue is going to pay interest on a gigantic debt, and the situation is getting worse by the day. That interest money should be used for things that benefit our society, not just investors who find U.S. bonds the safest place in the world to park their excess cash. It is important to get on with spending reductions, appropriate tax increases, and closing tax loopholes to set our financial house in order.

Although Medicare spending is far from sustainable and needs to be dealt with, defense is the biggest money sink in the federal budget right now. In recent years, it has been impossible to rein in defense budgets. That well known “military-industrial complex” simply has too much power with Congress, and until now, has had full support from administrations.  Sequestration is the best opportunity that may come along in many years to take a real whack out of unnecessary defense spending.

Hold firm, Senators. Do what you do best—nothing. Sequestration can be turned into a positive thing for our nation. 

Thursday, July 21, 2011

The right mix for the USA
Dumb and Dumber             

A Cocktail Party
Position

For several years, your Cocktail Party chairman had legislative liaison responsibilities for the U.S. Forest Service in research or management areas that included the State of Utah. There was a standard saying among legislative coordinators, including those who closely observed the Washington scene, regarding long-time Senator Orrin Hatch. It went like this:

“The only political people dumber than Orrin Hatch are his staff members.”

Now the Utah Senator is again proving his mettle by proposing a constitutional amendment to require balanced federal budgets. Rookie legislators in the House have passed a bill requiring balanced budgets; fortunately, it will go no further.

Mandatory balanced budgets work rather well at the state level, but there the stakes are quite different. Imagine a few scenarios should the feds have a strict balanced budget system:

1. Floods sweep over large parts of the Ohio River Basin. Several governors ask the President to declare disaster areas in their states and provide emergency federal funding to deal with the crisis. The President cannot comply; because it is late in the budget year and the government has insufficient funds earmarked for natural disaster relief, has no surplus funds in other accounts, and is not allowed to borrow money to cope with the unforeseen disaster.

2. North Korea without warning launches a massive missile attack on U.S. bases in South Korea and Japan. Military leaders urge immediate retaliation. The Commander in Chief says, “Sorry, boys, but we’re maxed out on the defense spending budget item right now. Your actions will just have to wait until next fiscal year unless we can quickly get three-fourths of the states to change the Constitution. We’ll probably have to eliminate Social Security next year to handle the extra military funding if we can’t get a substantial tax increase passed in a hurry.”

3. The State of California goes bankrupt. The Governor asks Congress for emergency funding to maintain the education, law enforcement, and prison systems while all the legal issues are being resolved. Congress has no funds budgeted for such bailouts, so it decides to respond by cutting 200 billion dollars from the authorization for defense spending.

4. Unprecedented forest and range fires burn huge acreages throughout the western States. The U.S. Forest Service asks Congress for a supplemental appropriation to pay for combating the blazes. To comply with the request, Congress cuts general disaster relief funds earmarked for such things as unforeseen flooding in the Midwest.

And round and round it could go. The federal government is where the buck stops when disasters strike us. That’s why the founding fathers wisely provided our government with the ability to borrow funds and didn’t say a word about balanced budgets.

We do need to reduce the size of the national debt in the near future, but removing the ability to borrow when necessary would be sheer folly. Borrowing is necessary right now, and will be for some time, to keep the good ship USS America from sinking and sucking the rest of the world’s economies down with it.

Senator Hatch is smart enough (just barely) to know that many Americans are dumb enough to think a federal balanced budget requirement would be just peachy-creamy. A balanced budget amendment would be horrible.

The Great American Cocktail Party is absolutely opposed to any requirement that the government of the United States be hamstrung by a balanced budget amendment or similar foolishness. Our representatives have enough trouble functioning rationally without that sort of impediment to effective government at the federal level.


To view the announcement of the founding of the Great American Cocktail Party visit the August 5, 2010 post titled “Coffee, Tea, or . . .” in the archive on the right-hand column of this Blog.