Tag: fiscal cliff

What the hell just happened here?

For someone who didn’t just go over the fiscal cliff, I’m pretty disappointed with our House and Senate and president. Not surprised, but disappointed…if I can summarize out loud, to help organize my thoughts:

Our elected leaders were faced with some $600 billion worth of automatic tax hikes and spending cuts that might or might not have any real impact in reducing the government’s debt and deficit, but which arguably might push our struggling-to-recover national economy back into a recession; they set a deadline for themselves to act a year and a half ago; then they did nothing, waiting until after the national election to bother to talk about it among themselves so the nasty details of our national fiscal crisis wouldn’t intrude on an otherwise uplifting discussion of the issues of the day; and the best they could come up with—even after the deadline had passed anyway—was a bill that raises marginal income tax rates for some well-to-do folks but not for most of us and kicks the budget cuts can down the road again?! So it’ll have to be taken up at the same time as another increase to the debt ceiling—what could possibly go wrong?!?!

It’s a plan that a majority of Republicans in the House voted against, even though—since the Bush-era tax cuts had just expired at the end of 2012—they were, technically, voting against lowering the tax rate for the bottom 98% or so of Americans.  Because there weren’t enough spending cuts.  Or in this case, any.

Which Barack Obama were Republicans negotiating with—was it the same one that the Conservative Industrial Complex consistently criticizes for being too soft, too dumb to get a good deal for America?

I try to look on the bright side: at least they finally agreed on something, even if it was only that going over the fiscal cliff would be a bad thing. Hooray…take an honorable discharge out of petty cash. (Thanks, Hawkeye.)

(Heavy sigh.)

The fault is not in our stars

Congress is back in Washington—a warning that reminds me of the comment many years ago by then-mayor Jeff Friedman of Austin, Texas, who, when asked for his thoughts about the fact that the state legislature was coming back to town soon, said “Lock up the kids and dogs.”

The legislative branch and the president are back in town, in theory, to deal with the prospect of more than $600 billion worth of budget cuts and tax increases scheduled to go into effect next week. They’re not making much progress, as you might imagine.

Remember, the “fiscal cliff” is a threat the legislative and executive branches imposed on themselves a year and a half ago. To resolve an impasse over extending the debt ceiling so the government could continue to borrow money and pay its bills, our “leaders” set this time bomb of higher taxes and cuts to federal programs to force themselves to come to agreements on taxes and spending and debt ceilings before the “unthinkable” happened. Well, now we’re on the doorstep of the unthinkable, and look what they’re doing. (By the way, the Treasury department says we’re going to hit the debt ceiling next week!)

Perhaps more annoying than our elected leaders’ inability to govern—for that is what it really comes down to, their inability to do what they were sent there to do—is the realization that the focus on the fiscal cliff isn’t what’s really important anyway. Not to say that higher taxes and program cuts don’t matter, but that the real cause of the government’s economic problems—spending more than we take in—still isn’t being addressed.

The fiscal cliff was a crisis of Congress’ own making, brought on by its inability to address many of the same problems last year. The bigger problem, which lawmakers aren’t addressing, is the lack of sustainable fiscal policy.

We are in this mess in part because for decades leaders from both parties have been reading from the same economic playbook. They haggle over the small change while trying to convince Americans that it will make a profound difference in the country’s finances.

Houston Chronicle business columnist Loren Steffy recently offered another on-target analysis that reminds us the real problem isn’t the fiscal cliff, it’s the historic lack of honesty on the part of the political parties.

The budget battle playing out in Washington is nothing more than a giant national temper tantrum. Since 2001, we have been on a spending jag that has ballooned well beyond the costs of inflation and population growth. We’ve funded wars and prescription drug plans, bailed out banks and automakers and stimulated the economy. These programs have spanned both parties’ control of the White House and Congress.

At the same time, we’ve cut taxes. We now have the lowest average tax rate in about 30 years, yet many still complain taxes are too high and protest any threats to cut or curtail entitlement programs.

For more than a decade, we have demanded more while expecting to pay less. No one wants to admit the party’s over.

But they do want to admit—they’re desperate to admit—that the other party is causing the problem. As for the immediate issue, after the House speaker and the president couldn’t come up with a deal last week John Boehner has insisted that the Senate must come up with a plan and then the House will consider it, while the Democratic leadership in the Senate “stands strong” insisting that the House approve a measure it’s already turned down…or else.  (Or else what?) And just while I’ve been writing this, CNN reported that President Obama is about to make a new offer, until it reported that he won’t.

As disheartening as it is to see our national leadership apparently incapable of acting in the nation’s best interests, the situation becomes damn near depressing when you recognize who is really to blame: it’s us. You; me; them; those guys over there, too—we are responsible for the evolution of a system in which ideological extremists representing the view of a minority of citizens are able to reach positions of national power, and we are responsible for not holding our leaders to account for not putting national interests first, and we are responsible for taking more and more from our government but not being willing to pay for what we take.

The solution to our government’s economic problems won’t come out of Congress this week or next; it won’t come from refusing to reduce spending on government programs (which, frankly, no one is doing), nor from refusing to raise taxes and threatening to hold one’s breath until one turns blue (which, candidly, more than one are doing). It will come, when it comes, with the realization by Americans that America can’t keep putting its everyday expenses on a credit card and only make the minimum payments indefinitely and still expect to remain fiscally healthy.  It doesn’t work like that, and we have the national debt and the federal budget deficit to prove it.

Just shut up and let me do the talking

It’s about damn time that the public reports about the private negotiations on the federal budget had some good news: Speaker Boehner and President Obama have gotten everyone else to leave the room!

Since the election last month there’s been plenty of balloon juice about how to avoid running the federal budget over a “fiscal cliff,” which is just an agreement made last year between Congress and the administration on a set of tax increases and budget cuts that would go into effect at the first of next year unless they took some other action on taxes and spending by that deadline. Remember when they said that Washington had “kicked the can down the road?” Well, this is where that can stopped; it was kicked to here so the issue wouldn’t inconveniently get noticed while America was paying attention during the fall election campaigns.

You’d like to think that there would have been some effort underway all along during the past year and a half to find a compromise on ways to strengthen the economy and reduce the government’s budget deficit, but to all appearances there wasn’t. The people we elected to go to Washington to use their judgment and wisdom in the best interests of our communities and our states and our country couldn’t climb down off their talking points long enough to get anything constructive accomplished. They could, however, make a lot of noise about the virtuousness of their own moral and political philosophies, and by extension if not by direct accusation the seditious intentions of their “friends across the aisle.” Perfect way to prepare the ground for fruitful negotiation over disagreements, right?

You don’t have to be a political scientist to know that any honest effort to come to a compromise on a course of action regarding a disputed issue isn’t aided by (1) having too many negotiators at the table, and (2) conducting the negotiations in public. The more people that are involved, the harder it is to get everyone to agree on anything. And the more the people who are involved do their talking in public and make great political show of what they will and will not accept, the harder they make it on themselves to come to a compromise without seeming to lose face in public or run the risk of being bashed as surrender monkeys or traitors to some cause or other. So it seems to me to be a thoroughly sensible decision that Boehner has asked the Senate leaders and the House Democratic leader to step back, and that “White House aides and the speaker’s staff, by mutual agreement, have largely shut down public communication about the talks” in the hope that some real progress can be made.

Now for the entertainment portion of today’s post: since I’m not one to overlook an opportunity to point out stupidity where it exists, I should highlight this. The Times story notes that as the president reaffirmed his position that the tax rate on incomes above $250,000 must go up…

On Capitol Hill, Senator Mitch McConnell of Kentucky, the Republican leader, moved Thursday to vote on Mr. Obama’s proposal, in his broader deficit package, to permanently diminish Congress’s control over the federal government’s statutory borrowing limit, assuming that Democrats would break ranks and embarrass the president. Instead, Democratic leaders did a count, found they had 51 solid votes, and took Mr. McConnell up on what Senator Harry Reid of Nevada, the Senate majority leader, called “a positive development.”

Mr. McConnell then filibustered his own bill, objecting to a simple-majority vote and saying a change of such magnitude requires the assent of 60 senators.

“I do believe we made history on the Senate floor today,” Mr. [Richard] Durbin said.

History indeed: had to filibuster his own bill to keep it from being passed! I’m thinking that Ashley Judd might be just the thing the U.S. Senate and the people of Kentucky need.

Here’s where your argument falls to the ground

I’m having trouble sorting out the competing arguments on this whole “fiscal cliff” thingy: either we’ve got to prevent going over it, or it’s OK to go over it a little, or it’s not really a cliff at all but more like a slope; and if the far right criticizes Speaker Boehner’s plan and so does the president, does that mean the far right agrees with the president?

You may suffer from the same problem: from time to time and no matter the topic, there are those days when each argument advanced sounds pretty good, but then someone else opens up their piehole and I don’t know what to think anymore except that maybe I am too stupid to live. How, my friends, how are we to sort out the good from the bad, the sound from the unsound, the wheat from the chaff…the flotsam from the jetsam, the Hatfields from the McCoys? How indeed!

With thanks for the tip to the fine folks at Upworthy.com, behold the world’s handiest tool for cutting through the crap: an interactive website which “offers definitions and examples of the most common logical fallacies plaguing our debates today.”

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AND, they’ve got free posters available for download—looks like the perfect stocking stuffer, and such a thoughtful gift at this special time of year.