Why Democrats And Republicans Are Full Of It On The National Debt
I'm part of the way through a smart Matt Welch cover story in the June print edition of reason on Rand Paul. He opens the piece with this speech by Paul, which clearly illustrates what bullshitters members of both parties are on doing something about the debt:
"On the Democrat side, we have a proposal to cut about $5 billion to $6 billion for the rest of the year. To put that in perspective, we borrow $4 billion a day. So the other side is offering up cuts equal to one day's borrowing....Now, on our side of the aisle, I think we have done more, the cuts are more significant, but they also pale in comparison to the problem. If we were to adopt the president's approach, we would have a $1.65 trillion deficit in one year. If we were to adopt our approach, we're going to have a $1.55 trillion deficit in one year. I think both approaches do not significantly alter or delay the crisis that's coming....I recently proposed $500 billion in cuts, and when I went home and spoke to the people of my state, spoke to those from the Tea Party, they said $500 billion is not enough. And they're right. $500 billion is a third of one year's problem. Up here that's way too bold, but it's not even enough." --Sen. Rand Paul (R-Ky.) on the Senate floor, March 9, 2011
A bit more from Matt's piece:
Even while being sworn in, Paul gave notice that the most radical of the budget-cutting notions being floated by the new GOP hotheads in the House of Representatives--totaling $61 billion, maybe even $100 billion this fiscal year--were utterly inadequate to the gravity of America's crisis. "In January alone I will introduce a one-year, $500 billion spending cut, along with a balanced-budget amendment," he promised. He delivered on that promise three weeks later, with a bill that proposed ending the Departments of Education, Energy, and Housing and Urban Development, slashing the Departments of Agriculture, Commerce, and Transportation, and eliminating all foreign aid, including aid to Israel.Having outflanked the most radical of the incoming Tea Party freshmen in the less temperate House, Paul then--by deed, not word --made a mockery of the much-ballyhooed "roadmap" of Rep. Paul Ryan (R-Wis.) to tackle entitlements and balance the federal budget by 2063. Paul instead wants to balance the budget in five years. In March he unveiled a plan to reduce government spending by $4 trillion relative to President Barack Obama's long-term budget proposal by ratcheting back spending to fiscal year 2008 levels, eliminating the Department of Commerce (in addition to the ones above), capping and block-granting Medicaid payments to the states, and enacting bold reforms on entitlement spending.
"Entitlements will consume the entire budget within a few decades," Paul writes in his sprightly new book The Tea Party Goes to Washington. "Entitlements plus interest will consume the entire budget in a little over a decade. Is it any wonder that [Joint Chiefs of Staff Chairman] Admiral [Mike] Mullen, [Defense] Secretary [Robert] Gates and others have said that the biggest threat to our national security is our debt?" What about Rep. Ryan's plan? Paul is blunt: "We don't have six decades to fix entitlements."
Unlike any other national politician of recent vintage, Rand Paul has the cheerful confidence that confronting entitlements is a political winner. "I don't think we lost many votes because of my willingness to discuss entitlement reform," he writes.







Thus why I think the ship of state will crash into the rocks: not because it is too late, but because there is insufficient will to change course.
Of course, democracies can not last. Once people realize that they can vote themselves other's money and resources, the jig is up. Because they'll do so.
I R A Darth Aggie at June 13, 2011 9:22 AM
Ha ha ha. Go over to the Tax Foundation's website, and look up how much Kentucky gets back from the federal government for every tax dollar it sends to DC. It is about $1.50--or about $5,000 per capita per Kentuckian.
Ran Paul? Sure, let's see what happens to Kentucky's economy when we balance the federal budget. Better yet, let's require that each state gets back equal to what it sends to DC.
Rural America, and dufus states like Kentucky, would just blow away.
BOTU at June 13, 2011 9:28 AM
everyone has a sacred cow they won't give up, but what cannot go on forever, will not.
this makes sense when you say it, but on the individual level, this sort of thing means that many people who have jobs the in any way serve the fed, like the subway shop lady in the dept. of commerce bldg., let's say... she loses her job if they close.
Multiply that by the thousands and thousands, perhaps millions, and we have a domino effect. Like a jenga tower it eventually cascades.
Does that mean it shouldn't be done? I don't think there's a choice, but this will hurt SIGNIFICANTLY MORE than anyone thinks, and the other effects will be more pronounced.
That is why everyone is terrified, especially politicians.
SwissArmyD at June 13, 2011 9:44 AM
It was always absurd to think that everyone could quit working, regardless of their own level of personal savings, for the last 25 years of their lives. No one used to think this.
It was always absurd to think that there was $1.5 million of other people's money to blow on your surgeries at the age of 75, to keep you going for six more months, regardless of your own contributions to society or the care you took of your own health. No one used to think this.
It was always absurd to think you were doing everyone else in the world a favor by popping out offspring like Pez, regardless of your own ability to provide for your offspring.
It was always absurd to think you were doing everyone else in the world a favor by virtue of the fact that you existed, took up space, and used up breathable air.
The world around you does not exist solely for your own benefit.
We should end the wars.
We should let the banks fail.
And we'll either learn these lessons or we won't.
Pirate Jo at June 13, 2011 10:21 AM
As has been pointed out elsewhere, Congress is a body that can't even get rid of a lightbulb ban that everyone agrees is absurd. If they can't do something that trivial, how are they do so something actually complicated?
Joe at June 13, 2011 10:39 AM
Joe, it's because they are too busy defending or comdemning Weiners wiener pics to actually do anything productive.
Sabrina at June 13, 2011 10:56 AM
Yes, and weiner's weiner won't go away...now it's weiner's weiner was viewed by teenagers...and weiner's weiner is so conveniently important right when the economic reports came out showing unemployment rising again. Talk about a weiner of a diversion.
kg at June 13, 2011 11:10 AM
Regarding Pirate Jo's pithy summary of the problem, I have often wondered what would be the effect of not having the tranquilizing effect of government? Government hides the current income transfer schemes by making the benefiaries unknown to the people paying the bills.
Imagine over the course of a month you had people showing up and your door, for their share of your monthly income. Every two weeks, on payday, the following visitors show up:
First comes one young gal and her two kids in tow, asking for a small part of you income for schools, shoes, food, medical care. Hmmm. Well, okay, I mean, those kids are here, so we might as well get them started right, rather that not. You see no father in sight. The two kids look nothing like each other, you notice.
Next comes, a 65 year old retiree, with a comfortable pension and a modest second home in Florida, along with the home he kept back in Ohio. He and his wife (shee never worked) love to golf, and when not traveling, they are golfing. They are here to pick up some social security money from you along with dropping off some medical bills for you to pay. You need to hurry, because they have a tee time to make. That kind of frosts your ass, because you could use the money for your kids' braces, but whatever. Taxes are taxes. They were polite people, but didn't seem to care much about your interest in your kids' braces.
Next comes a wounded 33 year old vet from Iraq. He needs medical care and some necessities. Check written, no questions asked. From now on, you tell him you will mail it to him--no need to come around for it, unless he wants to have company. You are a bit gripped at the heartbreak of it, and vow to send more money, if you can afford it.
Next an 89 year old widow shows up, seeking some rent and food money, which is fine, but also some money for rather extensive surgery plans. Wow. She needs a bigger check this month than the injured vet will need all year, and that is just for one surgery. She might be back next month, asking for even more money, even if this surgery goes well. You cannot help but notice that her most serious illness is, eventually, terminal, and that the surgery is for a secondary issue, not the primary one. It is only a matter of when, not if, she dies from the primary illness. The doctors are clearly prescribing a pretty aggressive treatment for the secondary illness in the meantime, though. So much for the kids' braces, and that trip you wanted to take to see your aging mom. "Ah well, I can live without that, I suppose...", you say, a little uneasy about the decisions being made here.
Next up is an 35 year old artist, looking for NEA money to support his proposed mural. His ortho-perfect teeth and well-tailored clothing tells you he comes from an upper-middle class background. When you ask him what the mural is about, he delivers some odd speech about contemporary materialism and privilege. You turn over the check, which is pretty small, so you are only slightly annoyed by it all.
The next three or four visitors come in a group. They are employees of the federal government. They are not particularly expensive a group, at least compared to the old folks who showed up earlier looking for social security checks and medical care money. But the federal employees do frisk you first (right as you open your door, and without asking), talk down to you the whole time in a commanding voice, and then leave abruptly because their day ends at 3:30 pm. If you complain, they put you on a list. They will not tell you what the list is, or how to get off it. Later, you find out some of the money you paid the employess goes to the Democratic National Committee. The most disturbing part was the one dressed up in SWAT gear, glaring at you. (What was up with that?)
Next comes a Marine corporal. Nice young man. He needed a big check, again. He mentioned Iraq and Afghanistan, along with a new submarine. You keep meaning to find out from him when that whole war thing is going to end, because you could use that money back next month. You might also like to see a few less submarines stationed in Japan, Korea and Europe from here on out.
A new guy is at the door this month, explaining how you need to buy this health insurance policy. You have no choice. Um, okay. Behind him, a bunch of people are smiling as you do. You find out those people get the same policy as you, but their premium is paid by you, as part of your premium. Next month, that bill will go up.
The Chinese dude showed up again. He wanted interest for some debt the government owes him. The check keeps getting bigger every month. He seem less pleasant than before, and that has been the trend. You mean to find out about that debt thingee the feds owe.
Etc.
I would think our government would last no more than one or two cycles of the citizens' paychecks in that world.
Spartee at June 13, 2011 11:10 AM
Bravo, Spartee!!! Priceless.
Pirate Jo at June 13, 2011 2:30 PM
Oh good. BOTU's here with his canned anti-rural screed again.
Then why have federal taxes? Or even a federal government?
Oh yeah, 'cause not having one didn't work the last time we tried it.
When the urbanized states start looking around for food or coal or ethanol or other resources or manufactured goods, the price will have gone up enough to cover any expenses or needs the dufus states have.
Conan the Grammarian at June 13, 2011 5:41 PM
Good question.
Conversely, I wonder if the young gal and her progeny would be able to effectively verbalize an explanation of their need if they didn't have the cover of the government doing it for them.
If you were able to question those receiving your largesse directly and determine to what extent you were willing to help them, would they be able to explain their sexual profligacy, their chronic unemployment, their refusal to work toward gaining employable skills to a degree that would satisfy you?
Would the government workers be able to explain to you the benefits you receive down to the penny of the price they're asking from you? Would they be able to mollify your objections to paying the pension of a 55-year-old retiree...and you will be working until you're 75 to do so?
Conan the Grammarian at June 13, 2011 5:50 PM
I don't know much about American past or present governments as I never have the opportunity to live in America and therefore never feel any positive or negative effect from any positive or negative government policies of USA. But I do know that in many parts of other world such as asia, endless governments unfair draconian policies not only demotivated motivated able worker people like myself but also caused too much hardship, insecurity and poverty and not to mention the loss of independence to independent minded people like myself.
I still think that most of the West is still more capable and provide more fair opportunities for able workers to survive independently and most West have better quality of life, no matter how rich some parts of Asia had become.
The world need less substandard government interference and more high quality private enterprise that provide more decent work opportunities for its own people or pioneers instead of providing unneccessarily to legal or illegal aliens who were not entitled to any preferential benefits.
WLIL at June 13, 2011 7:09 PM
As an on/off topic comment. I just heard of Gary Johnson today.
He was saying that he favors slashing and burning the budget to get close to a balance in year one if he were president.
Jim P. at June 13, 2011 7:39 PM
As long as he's at it, how about shutting down the Bureau Of Indian Affairs? Give them their land, give them their money, stop treating them like children who need a federal nanny. That's what, two and a half billion a year?
kenmce at June 13, 2011 7:39 PM
Spartee, nice writeup. Gives everyone something to think about.
The really, seriously scary thing about the debt? As bad as it is... it's only half the story. The other half is how in the hell we are going to generate sufficient economic activity to ever pay *any* of it back, even if defense and entitlements are both cut to the bone. You can name that tune in one word: regulation. Not only does it contribute directly to the debt by creating government bloat, it prevents any debt from being repaid by killing economic activity.
While Rand is working on slashing the budget, he needs to be working on slashing the criminal code and the regulatory books too. Set a goal that every regulatory agency must eliminate, say, 30% of its regulation on a word-count basis. Set a goal of eliminating 10% of the U.S. Code on the same basis. It's a blunt instrument, but the time when minor surgery would have been effective has passed.
Cousin Dave at June 13, 2011 9:02 PM
Set a goal that every regulatory agency must eliminate, say, 30% of its regulation on a word-count basis.
I say it should be more along the lines:
Set a goal that the regulatory agency must eliminated, based on its percentage of pages in the federal register. The higher the more it needs to be eliminated.
Jim P. at June 14, 2011 7:59 PM
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