03/10/2011
Is ‘Shutting Down Government’ A Threat Or A Promise?
by Bill Flax
Forbes
“It’s like déjà vu all over again.” – Yogi Berra
Another year and the White House unleashed yet another insult to the very concept of a budget. Last year, with Democrats in full control, our minders couldn’t even get a budget passed. Now President Barack Obama, seeing government as both a means and an end, proposes to elevate spending by $8.7 trillion over the next ten years. Substantially all of his “cuts” come after his re-election and most arrive so far into the horizon that only a fool would give them credence.
Obama’s budget preserves the prolific discretionary spending of his first two years, only this budget adds 20%. He similarly ignores the unfolding entitlement disaster that now dominates federal spending. His budget, even assuming robust growth, invokes average annual deficits exceeding $1 trillion over the coming decade.
On the other hand, Republicans rode to power preening about major spending cuts. House Speaker John Boehner vowed, “Read my lips, we’re going to cut spending.” Then he impotently trims but $100 billion off the existing $3.82 trillion pace. Republicans offer immediate cuts of $61 billion from “discretionary non-security” programs in 2011, but that represents less than 2% of total outlays.
Politicians order the most fattening dish on the menu then congratulate themselves for the frugality of the diet soda used to wash it down. Why would we freeze spending anywhere near current obscene levels? Why is there any discretionary spending? Given our monstrous deficits, discretion demands that this must cease.
House Republicans essentially left the Democrats’ largesse intact by virtue of lowering Obama’s massive deficits by what amounts to little more than a rounding error. Not surprisingly, the president threatened to veto the House’s Continuing Resolution bill, Nancy Pelosi and other Democrats then played the “government shut-down” card, and Republicans have recoiled from the threats. These may be shrewd political stratagems, but reflect politicians’ complete contempt for those paying their way.
The projected fiscal 2011 deficit of $1.65 trillion equals the entirety of federal spending in 1998. If memory serves, those weren’t the Dark Ages. In 2001, total outlays were less than half of today’s level. What has this profligacy accomplished?
There are powerful forces working feverishly to prevent fiscal sanity. The sorry spectacle in Wisconsin highlights the difficulty of actually reducing spending. If Democrats can’t get their way they take their ball and go home. Public unions hold states hostage. Our Community-Organizer-In-Chief shamelessly encouraged this outrage. Why not, his fiscal stewardship has been pitiful so he reverted to the devil he knows: agitation.
America fast approaches several tipping points. Taxes have grown steadily more progressive across successive presidencies including numerous redistributionist credits ensconced in the tax code. Per the Heritage Foundation, “the country may be rapidly approaching a point where one-half of ‘taxpayers’ do not pay taxes, while receiving generous federal benefits.” These folks have no real interest in fiscal discipline.
Welfare, social security, food stamps and other entitlement measures have surpassed one-sixth of personal income. Entitlements of $2 trillion grow annually and promise to explode as Baby Boomers retire. Social Security has already crossed its tipping point and will henceforth remain forever in the red.
At all levels, governments now employ approximately twenty-two million workers. There are millions more dependent on government contracting for their livelihood. An unhealthy portion of us rely on government for sustenance. As the state’s reach smothers America, many millions are now nestled up to the public breast. Too many voters exhibit a keen interest in sustaining the unsustainable.
Frederic Bastiat observed, “The state is the great fictitious entity by which everyone seeks to live at the expense of everyone else.” Everyone portrays their own government largesse as essential and that wasted by others as frivolous. We’re all thrilled to cut others’ pork, but too few of us have the integrity and moral courage to let prudence restrain our own intemperance. We prove ourselves unworthy recipients of the freedoms bestowed by our forbearers.
In the early republic, Alexander Hamilton implemented “attachment” policies. This strategy attached states and other interests to the fledgling federal apparatus to ensure they maintained a stake in its continuance.
Over the last century, politicians have followed the same path, deviously attaching constituencies and bribing voters with public money. “Caring” politicians primarily focused on re-election have no qualms feeding our handout addiction. While the government takes care of us, who will take care of government? Ah, those dastardly rich people!
The economy is global. When will John Galt take his ball and go abroad?
Everyday more people ride in the back leaving fewer workers pulling the wagon. Previous columns have discussed the sting of the tax whip lashing mercilessly at the backs of those still pulling and the obstacles the regulatory state litters in our path.
America bought the very heroin they’ve sold us under the guise of social safety nets and public freebies. We the people demand something for nothing. As the old saw goes, you can vote yourself into socialism, but you can’t vote yourself back out.
America’s addiction grows and withdrawal will be painful. The weaning must begin. We can’t perpetually delay withdrawal by increasing the dosage as Obama schemes. Nor can we keep injecting the same dose as Republicans, now elected, seem content.
As the state grows faster than the private economy, we will eventually overdose. Collapse would have already come except for the amazing regenerative powers of the market. A market opportunistic politicians belittle and abuse at every turn even as it pays their bills and saves their hides.
If only the current piddling over cuts of $61 billion by Republicans against $41 billion proposed by Democrats really would shut down government. Here’s hoping for an impasse. Perhaps gridlock can accomplish what reason can’t. Let’s cut our addiction cold turkey and start fresh.
Politicians have played chicken far too long, racing to the cliff’s edge on the public dime. Please, Mr. President do use your veto. Democrats, fulfill your promise to shut government down.
Americans would then realize the irrelevance of so much of what Washington now does.
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