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Pas de trois, denouement, house lights up

Pat Ryan 3 Comments

With fewer than 12 hours to spare (a lifetime, apparently, in the ways of Washington) the president has signed into law the combination debt ceiling increase/spending-and-deficit reduction compromise approved by both houses of Congress.  There, now don’t you feel much better about everything?  I mean, it only took a few months of bluster and pontificating, and a little threat to keep the nation from paying its bills on time, to get our government to pass a simple debt ceiling increase and take a small step in the direction of fiscal responsibility.

The last act of this tired drama was predictable: the loudest of the antagonists made a great flowery show of establishing their innate human goodness while talking past one another directly to those in the wings who were already persuaded of the rightness of their case…they executed the thrust and parry of choreographed stage fights which held no real threat of damage since the outcomes were predetermined…when time wound down minor characters took center stage to deliver the resolution then ceded the spotlight once again to the stars, who declaimed the lessons of the play and bid us all a good night.

Now the treasury has cash to pay the bills, and Congress is faced with continuing negotiations to find ways to cut spending and/or increase revenue (I’m hoping for the “and”) to get the government closer to living within its means.  They got there by compromising, which means no one is happy with the product:

Some in both houses are unhappy that there were no tax increases to spread the pain; some are unhappy there weren’t even more cuts to get closer to a final solution in one fell swoop; Democrats are unhappy that GOP priorities suffered few hits (but pleased that the cuts are not as severe as in earlier proposal by Rep. Paul Ryan); Republicans are unhappy about potential cuts to the Pentagon budget if future negotiations are not successful; and Tea Partiers are unhappy because there are no significant spending cuts right now and promised future cuts are contingent on the approval of future Congresses.

The proponents of restraint in government spending should see this as a great victory for their cause: it’s not everything they wanted all at once, but they got the president and Congressional Democrats to give more than would have been considered realistic just a few months ago.  That many of them do not—that they feel any compromise was an unforgiveable moral failure—is cause for concern, and the proponents of responsible behavior by grown adults in elected positions of responsibility should see this as a nightmarish premonition of things to come, if not in the budget talks later this year than the next time a debt ceiling needs to be increased.

Now, for those who have the stomach for it, we face the prospect of watching a new select committee of members from both houses and both parties work to find ways to reduce the deficit, and watching both houses debate and vote on a balanced budget amendment—all by end of the year!

How will cuts in federal government spending impact an economy still struggling to recover from recession and build new jobs?  Can we do something about overhauling tax code and/or entitlements, the real answers to a healthier federal budget?  I’m much less concerned right now with who won or lost the latest political fight than I am with a more pertinent matter: how does this deal help the country?

Gang of Six comes to the table with a plan, and some hope

Pat Ryan 2 Comments

A plan, a plan!  We have a plan, we just aren’t telling you what it is, not just yet.

And just because you and I don’t know what’s in it doesn’t mean that this budget plan from the Group of Six might not be a solid foundation for building a way to get the nation’s budget out of the ditch, and maybe get support for a debt ceiling increase before the government defaults on its loans in two weeks.

Today, a bipartisan group (or Gang) of six senators that has been meeting privately for months looking for a way out of the federal budget quicksand briefed Senate colleagues on a plan to cut about $4 trillion dollars from the budget deficit over the next 10 years.  The plan is said to be similar to the one presented by the president’s deficit study commission, and calls for spending cuts and tax increases (yeah, I said it—tax increases).  A number of Republicans and Democrats came out of the meeting with positive things to say about this effort.

President Obama praised the plan, noting that it’s “consistent” with the approach he’s been pushing in recent negotiations.  Now, that may be all it takes to doom the plan in the eyes of Obama-haters, but there’s still hope.  This plan will be there waiting for both houses to pick up after the GOP’s “Cut, Cap and Balance” plan fails to win approval; it wouldn’t be ready to be implemented right away, but could show enough good faith for enough Republicans to do what has to be done right away—raise the debt ceiling by August 2 to prevent government default and all the consequences that will bring to the economy, and to you and me.

Just for good measure, on that proposal for a balanced budget amendment: Dahlia Lithwick and Doug Kendall make an interesting case that amending the Constitution to require a balanced budget, in the way that Tea Party members are proposing to do, would actually “crash headlong into the very constitutional principles the Tea Party purports to cherish” and that if successful could hamstring the nation’s ability to defend itself.  Here’s hoping they’re still capable of seeing the irony of this situation.

T-minus three weeks and counting…

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There’s just the faintest whiff of default in the air in Washington, D.C., so the frequency of budget meetings is on the rise.  Late last week President Obama and Speaker Boehner sounded confident they could make a deal  that would reduceBoehner government spending by $4 trillion over ten years, but Boehner has backed off from what The New York Times characterizes as “a transformative proposal, with the potential to improve the ugly deficit picture by shrinking the size of government, overhauling the tax code and instituting consensus changes to shore up Medicare and even Social Security. It was a once-in-a-decade opening.” 

Why?  According to the Times’ analysis Boehner faced the realities of preserving his own power as speaker versus trying to get his own party to accept compromise on taxes; he also may be passing on a rare chance to get Democrats to compromise on major entitlements.

Kathleen Parker is another conservative voice making the case that Congressional Republicans may be pushing their advantage too far, turning their noses up at serious concessions from Democrats while making no progress on solving the immediate issue of the debt limit:

Few honest brokers think that we can prevent a financial catastrophe without both cuts and revenue increases, but there are surely ways to get there from here without necessarily punishing the poor or the wealthy.

(snip)

Meanwhile, not raising the debt ceiling is fraught with peril. Even prolonging raising the ceiling is potentially hazardous before a default happens, as investors take preventive actions that could distort the money markets.

Republicans have made enormous advances toward government reforms that were viewed as unachievable a year ago. Voting no may have become the aphrodisiac of small-government conservatives, but it is not necessarily an act of bravery or wisdom.

Sometimes it’s just stubborn.

If Parker’s suggestion of possible pig-headedness by Republicans is too harsh, Obamaconsider the perspective offered today by David Gergen: with Obama’s indication today that he won’t accept any short-term agreement, all of the players have now painted themselves into their separate corners, and we all will pay the price if they don’t find their ways out:

Republican and Democratic leaders on Capitol Hill, fortunately, agree that it is essential to avoid a default on the debt. They are right. But to get there, each side is going to have to give a little.  It is impossible to imagine either side doing what it would take to reach a $4 trillion deal; the GOP won’t ever agree to tax increases of as much as $800 billion to $1 trillion, nor will Democrats agree to major entitlement cuts. They especially won’t do it in the rush of last-minute negotiations over the next few days.

But in the name of fiscal sanity, they may be willing to agree to a much more modest set of compromises—something that prevents default, allows dust to settle, gives them a chance to build up support back home and keeps negotiating over a longer period of time.

Props to the GOP for getting Democrats to agree to so much of what Republicans want; please don’t get carried away and push for “too much” and not get the debt ceiling resolution that’s needed right away.

Tick…tick…tick…

Beware of those peddling politics for dummies

Pat Ryan 6 Comments

The chattering classes say Republicans are in trouble because of House Budget Committee Chairman Paul Ryan’s proposed changes to Medicare.  They say that because, across the land, there has not been a rousing call for its adoption by acclamation, and therefore we can ascertain that the proposers are on the outs with the American people.  In fact some people do object, and for a number of reasons, but I don’t know how much trouble the whole GOP is in over this issue, since I try not to make the sweeping generalization my first conclusion or give myself credit for being able to see the future or into the minds of others.

But I think that what’s happening right now on this subject is a good thing.  We need to talk about details if we’re going to find a way out of our federal budget mess.  No one has wanted to talk specifics because, well, talking about paying more and spending less is not fun.  But beyond that, few in power dare to address specifics for fear that the short attention span American voter and the heat-before-light American news media will fixate only on the fact that someone proposed something and rain down ridicule and ignominy upon them until the end of days (no, not until October 21, for much longer than that).  Any open discussion or real give and take on a serious issue becomes more and more unlikely as it becomes more and more clear that the discussion will be intentionally twisted into a negative campaign ad.

We have to talk specifics on this, but that doesn’t mean that we have to do everything that is proposed, or that every unadopted proposal is a failure.  Ryan’s plan may never become law, but it already served the purpose of getting us talking about details.  Now we need to keep talking, not recoil from the negative reaction to the first serious plan and never say anything ever again.

The budget crunches in this country are real and can’t be solved just with accounting tricks; it’s going to mean painful cuts in programs that people need as well as ones they want.  For example: here in Texas our state law requires a balanced budget and there’s only so much money available this time around—tens of billions of dollars less than the current budget.  Absent a multi-billion dollar windfall of biblical proportions, the only way out means someone’s ox gets gored…or likely in this case, everyone’s oxen.  As Patricia Kilday Hart made the point in a recent column, the discussion is about what gets defined as an “essential” government program.  In order not to reach into the state’s savings account this time, there are budget plans that make some changes:

It cuts state Child Protective Services “intake” offices so severely that officials predict 85,000 calls about abused children will not be answered.

It shortchanges school districts for the 80,000 new students expected to show up at the front doors of public schools next year.

It cuts Medicaid reimbursement rates to nursing homes so drastically that the industry predicts 75 percent of the nursing homes in Texas will shut their doors, leaving 60,000 elderly Texans without care and 47,000 employees without jobs.

The polls have been showing for a while that people want the budget fixed, they just don’t want the fix to hurt them.  Well, “they” are going to have to get over that or “we” will get nowhere…except closer to the edge as the wind picks up a little bit.

News on the march

Pat Ryan 3 Comments

Tidying up the files and hoping no one has noticed the “funny” little comments at the top of the page while I find out where they’re coming from:

I am still annoyed at the decision announced last month by the Obama Administration not to try Khalid Sheikh Mohammed and four other alleged September 11 attack plotters in civilian court…actually, “shameful” is the word that first came to mind.  It caved in to bullying and fear-mongering from those who don’t really trust the justice system and want a guarantee of a conviction, which they believe they get from a military tribunal instead of a dozen New Yorkers off the street (I refer you to a prior discussion to the issue last year).   On the other hand, Osama bin Laden didn’t get a public trial, either…

Good news and bad from our Texas Legislature.  The state senator who took heat for her plan to railroad accused sex offenders by changing the rules of evidence in their trials had the temerity to defend her position in the paper by claiming her plan actually protects the rights of the accused!  On the other hand, the bogus statistical machination that the state education agency has been using to falsely pump up the annual student assessment test results is on its way out.

In another development on the fungible facts front, the Arizona senator who intentionally misspoke on the Senate floor about the use of funds by Planned Parenthood, and who had his press secretary try to explain it all away by assuring reporters that those words were “not intended to be a factual statement,” has had the Congressional Record edited so that he’s not lying misspeaking anymore.  Because members of Congress have granted themselves the “privilege” to do things like that.

Some days you think you have a pretty good handle on things and the world is spinning in greased grooves…and then you’ve got to figure out how to reconcile that world with one in which an Iranian government power struggle in the 21st century has led to arrests on charges of sorcery, and where the Chinese have outlawed time travel in works of fiction.  If they’re against mythical stories, why do they keep calling their country a republic?