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Jewish World Review
March 30, 2009
/ 5 Nissan 5769
Warning: Congress is about to perform a cover-up on the most serious threat to America's economic future
By
David Broder
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http://www.JewishWorldReview.com |
With a bit of bookkeeping legerdemain borrowed from the Bush administration, the Democratic Congress is about to perform a cover-up on the most serious threat to America's economic future.
That threat is not the severe recession, tough as that is for the families and businesses struggling to make ends meet. In time, the recession will end, and last week's stock market performance hinted that we may not have to wait years for the recovery to begin.
The real threat is the monstrous debt resulting from the slump in revenue and the staggering sums being committed by Washington to rescuing embattled banks and homeowners and the absence of any serious strategy for paying it all back.
The Congressional Budget Office sketched the dimensions of the problem on March 20, and Congress reacted with shock. The CBO said that over the next 10 years, current policies would add a staggering $9.3 trillion to the national debt one-third more than President Obama had estimated by using much more optimistic assumptions about future economic growth.
As far as the eye could see, the CBO said, the debt would continue to grow by about $1 trillion a year because of a structural deficit between the spending rate, averaging 23 percent of gross domestic product, and federal revenue at 19 percent.
The ever-growing national debt will require ever-larger annual interest payments, with much of that money going overseas to China, Japan and other countries that have been buying our bonds.
Reacting to this scary prospect, the House and Senate budget committees took the paring knife to some of Obama's spending proposals and tax cuts last week. But many of the proposed savings look more like bookkeeping gimmicks than realistic cutbacks. The budget resolutions assume, for example, that no more money will be needed this year to bail out foundering businesses or pump up consumer demand, even though estimates of those needs start at $250 billion and go up by giant steps.
Republicans on the budget committees offered cuts that were larger and, in some but not all instances, more realistic.
But the main device the Democratic budgeteers employed was simply to shrink the budget "window" from 10 years to five. Instantly, $5 trillion in debt disappeared from view, along with the worry that long after the recession is past, the structural deficit would continue to blight the future of young working families.
The Democrats did not invent this gimmick. But Obama had promised a more honest budget and said that this meant looking at the long-term consequences of today's tax and spending decisions.
There are plenty of people in Congress for whom the CBO report was no surprise, and some of them have proposed a solution that would confront this reality. Kent Conrad, the chairman of the Senate Budget Committee, and Judd Gregg, its ranking Republican, have offered a bill to create a bipartisan commission to examine every aspect of the budget taxes, defense and domestic spending, and, especially, Medicare, Medicaid and Social Security. Congress would be required to vote promptly, up or down, on its recommendations, or come up with an alternative that would achieve at least as much in savings.
In the House, Democrat Jim Cooper of Tennessee and Republican Frank Wolf of Virginia have been pressing a similar proposal but have been regularly thwarted.
The roadblock in chief is Nancy Pelosi, the speaker of the House. She has made it clear that her main goal is to protect Social Security and Medicare from any significant reforms. Pelosi has not forgotten how Democrats benefited from the 2005-06 fight against Bush's effort to change Social Security. Her party, which had lost elections in 2000, 2002 and 2004, found its voice and its rallying cry to "Save Social Security," and Pelosi is not about to allow any bipartisan commission to take that issue away from her control.
The price for her obduracy is being paid in the rigging of the budget process. The larger price will be paid by your children and grandchildren, who will inherit a future-blighting mountain of debt.
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Previously:
03/23/09: Mr. Cool's March Madness
03/16/09: End of the honeymoon
03/08/09: Education's Chance of a Lifetime: Reforming Education With Sufficient Resources
03/05/09: Running on empty
03/01/09: Illinois' Mr. Clean
02/26/09: Obama rolls the dice
02/22/09: New Eyes On Bigger Prizes
02/19/09: Betting on bipartisanship
02/16/09: Just the Start
02/12/09: Biden in the House
02/09/09: The GOP Faces the Blue Wall
02/06/09: A cabinet loss and gain
02/02/09: The votes Obama truly needs
02/02/09: It's no joke to Illinois
01/26/09: Dynasties in decline
01/22/09: Born to build bridges
01/19/09: The call that Bush didn't make
01/15/09: Diplomacy that heals
01/12/09: An early drubbing for Obama
01/09/09: Tales From Longworth
01/05/09: Missing A Few Sages
01/02/09: Illinois Outdoes Itself
12/29/08: The GOP Goes South
12/15/08: Health Reform's Moment
12/11/08: Long Path to a Fall in Illinois
12/08/08: Rescuing a college education
12/04/08: The danger of holdovers
11/31/08: Addressing the States' Dire Straits
11/28/08: Good time for a brainy president
11/24/08: Rising Hope For Fixing Health Care
11/19/08: A Force for Good but Not at State
11/17/08: GOP has work to do
11/13/08: Obama's good start
11/10/08: Governors Know Best
11/06/08: The Task Ahead
11/03/08: The Amazing Race: I thought 1960 was the best campaign I'd ever cover. But 2008 has that election beat
10/30/08: What We've Learned About McCain
10/27/08: A New England Brawl
10/23/08: Blue Sparks in Red Ohio
10/17/08: Obama's Assurance Policy
10/14/08: Live from the Pennsylvania frontlines
10/12/08: The proposals that could bind Obama
10/09/08: What do we really know about them?
10/06/08: The uplifting debate
10/02/08: Economics Exam in Michigan
09/28/08: McCain out-pointed Obama
09/26/08: Credibility Test for Congress
09/22/08: A debate's high stakes
09/22/08: Down days for McCain
09/15/08: The Next President's Due Bill
09/11/08: GOP celebration and Dem gloom are premature
09/08/08: Can we count on change?
09/03/08: Palin's Learning Curve
09/02/08: How Palin could help
09/02/08: What Happened to the Obama of 2004?
08/26/08: The Women Hit Their Mark
08/25/08: The Joe I know … and what it means for McCain
08/21/08: In N.H., a Deal to Close
08/18/08: Obama's Well-Oiled Machine
08/14/08: Pros and Conventions: Useful Ideas From the Stevensons and Friends
08/11/08: Rivals in Search of Trust
08/07/08: A Way Back to the High Road?
08/04/08: A Slate To Revive The Senate
07/31/08: When Congress Works
07/29/08: Management 101 for Senators
07/24/08: Obama's success abroad was pure luck
07/21/08: Obama's success abroad was pure luck
07/17/08: Governors offer real world wisdom. Obama and McCain would be wise to listen
07/14/08: Foes and allies strive to peg a shifty Obama
07/10/08: Fixing How We Go to War
07/07/08: Decider on the High Court
07/03/08: One Nation No More? Civics Needs a Boost, but Our Identity Endures
06/30/08: Dumbing Down the Presidency
06/26/08: Voting's Neglected Scandal
06/23/08: Why don't we know what makes Obama tick?
06/19/08: Foreign Policy's Best Hope
06/16/08: Perot, Back On the Charts
06/16/08: The Many Gifts of Tim Russert
06/12/08: Why Hillary played the womyn card
06/08/08: Eclipsed by the Adventures of Hillary
06/02/08: Obama in retreat
06/02/08: Reality vs. the Mythmakers
05/29/08: Hamilton Jordan's Message to Obama
05/27/08: Let the Veepstakes Begin
05/19/08: The mental exercise of placing Obama in the Oval Office requires more imagination than did moving Reagan from the silver screen to Pennsylvania Ave.
05/15/08: For Obama, a Lost Moment
05/12/08: The price of delay
05/08/08: Phoniness and inevitability
05/05/08: Winning by destruction: An insider reveals the Hillary game plan
05/01/08: Candidates' high-mindedness is rooted in religiosity; but Hillary and McCain don't have hater as inspiration
© 2008, by WPWG
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