July 29, 2011 Leave a comment
Speaker John Boehner wasn’t able to push through his debt ceiling plan in the House last night. This of course means he has no control over his caucus. As a Tea Party supporter, I tend to think that’s probably a good thing. The Weeping Speaker isn’t all that conservative and his debt ceiling plan, like all of them, is ridiculous. None of the plans out there force the Federal government to live within its means. Even those that include a Balanced Budget Amendment won’t force the government to live within its means. I can easily name 14 states that won’t pass an amendment, thus killing it.
Let’s talk about the Boehner plan for a moment. His plan is to increase the debt ceiling by $1 trillion in exchange for a little more than $1 trillion in budget cuts. Here’s where things get absurd. The debt ceiling would increase immediately by $1 trillion. But the budget cuts are spread out over 10 years. In other words, on average the budget would be cut only $100 billion per year. But of course it won’t cut $100 billion this year. It will only cut the budget by a few billion this year while the rest of the cuts are years down the road and can be reversed by a future Congress. In other words, the Boehner deal is a scam.
The real kicker though is that the $1 trillion in cuts isn’t even a real cut. It’s only a cut in future growth. If Congress passed a budget today that was equal to last years budget, the CBO would declare it to be a $9.5 trillion cut over 10 years. Why? Because holding the line means that government doesn’t grow at the rate of inflation and thanks to the wizards at the CBO, this is considered a cut. As you can see, Boehner’s $1 trillion in cuts over 10 years is nowhere near holding the line. His proposal increases the size of government as it allows for government to spend more than the rate of inflation. There are no government cuts, there are government increases under the Boehner plan.
The fact that the Boehner plan increases the size of government hasn’t stopped Democrats from hysterically opposing it. Nancy Pelosi has declared that the Democrats opposing the Boehner plan are trying to “save life on this planet as we know it today.” It’s almost funny until you realize she wants even more spending. Pelosi and Obama not only want more spending, they want massive tax increases. In fact, tax increases will result in more spending as more Americans lose their jobs and end up on welfare. One wonders if this isn’t their goal. After all, government dependence has been the Democrat base since FDR.
The facts here are clear. The Boehner plan doesn’t cut the size or scope of the Federal government. It barely cuts government at all, with most of the cuts coming down the road when a future Congress can reverse them. The Harry Reid deal is no better, his calls for $2.7 trillion in cuts and an increase in the debt limit of the same amount. Again, all of the cuts are down the road and the debt ceiling increase is immediate.
If the Boehner plan passes, we’ll have a debt ceiling fight again next year when the national debt is $15.2 trillion. If Reid’s plan passes, we’ll fight over the debt ceiling in late 2012 when the national debt is nearly $17 trillion. Default and massive cuts are on the way whether they begin next week or a few years from now. Our national debt is unsustainable, especially so as both parties seem uninterested in balancing the budget and cutting spending.