Gordon L. Weil
This person has painful feet, which only get worse. They have three ways to reduce their aching
feet.
They could get a new pair of shoes, uncomfortable until broken
in, but with a good fit afterwards. Or
they can hop on one foot, leaving only one foot in pain. Or they can jump off a cliff and have no pain
until they land, whenever that will happen.
The name of this person is America. And the painful problem arises, not from
shoes, but from the U.S. government always spending more money than it takes in. Its hurtful budget habit is a symptom of a
national illness that has infected the entire political system. America’s government could get new shoes any
day, but it doesn’t, because its paralyzed.
The annual deficit is about six percent of the entire value
of the national economy. Deficits in
annual spending accumulate into the national debt that now equals the production
of the entire economy. Obviously, this
cannot go on endlessly.
The new pair of shoes would take the form of a balanced
budget, financed by debt to pay for long-term purchases and taxes, including
increases when necessary, to pay for current operations. Increasing taxes might be uncomfortable for a
while, but it would reduce the pain before the debt kills the economy or cripples
future generations.
Hopping on one foot happens when the government relies only
on debt, while trying to cut spending and hoping to cut taxes. But hoping and hopping get harder as the costs
of new promises mount. America gets a
bit wobbly on its feet.
Or America can neither cut costs nor raise taxes. It simply jumps off the cliff, spending and
borrowing with its eyes closed, not thinking about the hard landing.
The budget bill passed just in time to avoid a government
shutdown is a clear case of jumping off the cliff. It kept the government running by extending
an earlier budget, some of it wasteful and poorly aligned with current needs. Seemingly do-good items like emergency aid
and farm funding were tacked on.
By preventing a government shutdown, the bill has been celebrated
as a bipartisan legislative success. It passed mainly because neither party
wanted the blame for closing the government.
In reality, it is a policy failure, because the two sides could not
reach any agreement on a normal budget, the most basic function of Congress.
The entire process revealed that most in Congress did not
get the message of the election. People
don’t respect Congress, because it ignores their concerns in favor of playing
its usual political games. More House Democrats than Republicans were needed to
support the GOP Speaker’s budget deal, revealing how badly Washington is working.
The original bill and the final version were Christmas trees,
decorated with goodies for both parties.
Instead of understanding that voters prefer a practical government over one
that uses debt without discipline, Congress continues to believe that the best solution
is to throw money at any problem. No wonder
it’s not popular.
In effect, many voters have decided that the federal
government has moved on from New Deal-style government to at least a partial return
to more traditional American conservatism. The business-as-usual of the past nine decades
should be updated. But its handling of
the budget bill shows that Congress won’t change.
The Democrats, as busy as the Republicans in adding tinsel
to the tree, missed a great opportunity.
They could have promptly agreed with President-elect Trump (and Elon Musk,
apparently his prime minister) on a bare extension of spending with no add-ons. Where would that have left the House GOP? Any added spending would have been passed in a
new bill.
Instead, the Democrats blocked Trump’s demand to raise the
debt limit, believing a higher cap would permit him to extend and even increase
current tax cuts. They wanted the GOP to
accept full responsibility for piling on more debt. The debt cap was not in the final bill.
In reality, many Democrats, Trump and some Republicans agree
that the debt ceiling is nothing more than an attention-grabbing tool to be
used in budget negotiations. Only hardline
Republicans seem willing to push the U.S. into default, if that’s what it takes
to reduce spending.
The debt ceiling could be a clear violation of the Fourteenth
Amendment requiring the federal government to make good on the borrowing arising
from its spending commitments. This
would have been the moment to kill this troublesome financial gimmick.
Trump’s grandstanding and hostile behavior, the unrealistic Democratic
hopes of restoring the old ways and the mindless Republican warfare against compromise
come at a price. They lead Washington to
ignore popular demands for a well-functioning government that produces practical
results.
The federal budget fiasco just proved that.