Remember – There’s Still This Fiasco
While we spin a good tale of the idiocy going on in Wisconsin, keep in mind that we still have the looming Federal Budget battle going on here in DC. Let’s hit a few high points:
1. The GOP charges that President Obama is failing to lead in this issue. The Democrats (minus Sen Joe Manchin (D-WV) who said that the President is failing to lead. Granted he’s probably one of the more conservative Democrats, but he is a Democrat and is breaking file with the democrats here) argue that he is. Well, it’s so critical of an issue (the latest extension gives us until March 18th) that President Obama went and played some golf this weekend and assigned good ol’ Veep Joe Biden to the case. Remember, Joe is heading up the Summer of Recovery, Stimulus tracking, and a variety of other important issues….except that he’s heading to Europe this week. Yep – totally engaged and leading. Check.
2. The Democrats argue that they are putting some real cuts forward in the amount of $51 Billion and compared to the House Republicans $61 Billion, that sounds like they’re pretty close. However, $41 Billion of the cuts the Democrats are counting are from a budget proposal from last year that was never enacted so the funding was never allocated. So the Democrats have only put forth about $10 Billion in cuts. Keep in mind, we’re talking about a $14,000 Billion budget (also known as $14 Trillion, but for comparison sakes, I’ll stick to Billions). Yep – making meaningful cuts. Check.
3. Analysts agree that there’s an elephant (or elephants) in the room that no one is touching (‘Puter, stop touching the elephant!):
The United States faces a dire budget problem, largely the result of the aging of the population and soaring health costs. The president’s National Commission on Fiscal Responsibility and Reform and the Bipartisan Policy Center’s Debt Reduction Task Force both agree that Social Security, Medicare, and Medicaid reforms are necessary, although health costs are the far greater problem. They also recommend restructuring the personal and corporate tax systems.
Unless current policies are reformed, the national debt will continue to grow relative to GDP until a sovereign debt crisis, like those in Ireland and Greece, is inevitable. Although the nation is becoming more concerned about spiraling debt and a presidential fiscal commission and other groups have suggested reforms, the president and congressional leaders have been unwilling to recommend specific policy reforms. Consequently, it is becoming more and more likely that policymakers will not undertake necessary reforms until a financial crisis forces their hand.
Yep, tackling the hard issues head on. Check.
Keep this in mind as we go forward, especially when you hear the retread mantras that the democrats will throw out about the GOP – obstructionists (look who is blocking budget cuts), the party of no ideas, etc.

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