The “supercommittee” admitted defeat; it won’t have a blueprint for reducing the nation’s deficit (stories here, here and here). Is this a bad thing?
Some have argued, no: the first direct result of getting no plan from this committee is that the law which authorized it will now automatically cut $1.2 trillion from defense and non-defense spending over ten years starting in 2013, and that may end up giving us more deficit reduction than we’d have gotten otherwise. No way to know for sure, of course, but it makes sense.
I mean, there’s no reason to believe that the same members of Congress who thought nothing of threatening government default for political gain this past summer were likely to come to any agreement now, not when the party that controls the House (and virtually controls the Senate with the threat of filibuster) is still holding its breath threatening to turn blue rather than be responsible and discuss the best ways to increase revenue as part of the answer (along with spending cuts and overall economic growth) to getting the federal budget on a healthy path. None at all.
To believe otherwise would mean, first of all, believing that the
sheep people lined up behind Speakers Boehner and Limbaugh have any goal more important that the defeat of President Obama. They don’t, unless it is the personal destruction of Obama, and anyone unlike themselves. Second, it means they would have to have the backbone to say no to the no-tax extremists and the campaign contributors.
I read an interesting article making the point that we’re foolish to think that our elected representatives will do anything that makes sense for us, because they’re in place to serve their bosses: namely, the minority of the population who actually vote in the primaries, and the even smaller percentage of the people who pay the bills through campaign contributions both above and below board. (By the way, read Michael Moran’s piece setting the stage for his blog The Reckoning.)
The other thing to watch out for right now, though, is the cowardly Congress finding a way to back out of the deal it made with itself! No Congress can pass a law that would prevent a future Congress from unpassing that law; just because it set itself this deadline and mandated future budget cuts as a penalty for failing to meet that deadline can’t prevent the next Congress from overriding all or some part of the threatened budget reductions, and that’s entirely possible for a group that already can’t say no to anyone (which is a big part of what got our budget in this mess to begin with).
Give some thought to Moran’s suggestion: in times of crisis, what if we take control away from politicians and give it to people who know what they’re doing?
A real super-committee – a real committee not only empowered to take the steps necessary to right the American economy, but competent to do so – would include 12 serious thinkers. They might include policymakers like former Fed Chairmen Paul Volker or (the suitably contrite) Alan Greenspan, economists of left and right like Stanford’s John B. Taylor, Yale’s Robert Schiller, NYU-Stern’s Nouriel Roubini, plus a few representatives of labor, small business and capital – let’s say Robert Reich, Joseph Schneider of Lacrosse Footwear, and Warren Buffett, just for kicks. No investment bank chairman, please, and no one facing reelection.
Can you imagine this group failing to come up with a solution? Can you imagine any of them worrying more about the next election than the future of the world’s largest economy? Certainly, they would clash – perhaps over the same tax v. spending cut issues. The difference: they would understand better than any member of Congress that no solution is far worse than a less-than-perfect solution.