Freedom Line Blog

Stuart Rothenberg perfectly articulates the difficult post-election position of fiscal conservatives:

Republicans may well be correct that the nation’s biggest problem is that “the government spends too much, not that it taxes too little,” but at some point political realities rather than ideological beliefs or past party dogma ought to guide both party leaders and members of its rank and file.

The Roll Call columnist also shows just how much Beltway logic drives his analysis.  If Republicans are right that “the government spends too much, not that it taxes too little,” then Republicans are justified in pushing for reduced spending and resisting tax increases.  And, if Republicans are right, then President Barack Obama and his fellow liberals are wrong to demand the opposite.

That’s not ideology, just math and common sense.  Political calculations may end up trumping both eventually, but that doesn’t mean that fiscal conservatives within the Republican Party are wrong as a matter of logic from defending their position.

Byron York breaks down a CNN poll showing that Republican voters 65 and older (i.e. eligible to receive Social Security) favor Texas Governor Rick Perry for president more than any other GOP candidate.

This flies in the face of the current criticism of Perry’s widely discussed comment at last week’s debate that Social Security is a “Ponzi scheme.”  As far as I can tell, no one has yet shown that Perry is incorrect since in both Social Security and a Ponzi scheme the money from later investors (or taxpayers) goes to benefit earlier investors (or taxpayers).

If anything, Perry should be applauded for speaking the kind of tax-and-spend truths necessary to get a handle on the nation’s fiscal problems so we can begin to fix them.

Admittedly, there is one noticeable difference between the programs that Cato’s Michael Tanner explains perfectly:

Of course, Social Security and Ponzi schemes are not perfectly analogous. Ponzi, after all, had to rely on what people were willing to voluntarily invest with him. Once he couldn’t convince enough new investors to join his scheme, it collapsed. Social Security, on the other hand, can rely on the power of the government to tax. As the shrinking number of workers paying into the system makes it harder to continue to sustain benefits, the government can just force young people to pay even more into the system.

In fact, Social Security taxes have been raised some 40 times since the program began. The initial Social Security tax was 2 percent (split between the employer and employee), capped at $3,000 of earnings. That made for a maximum tax of $60. Today, the tax is 12.4 percent, capped at $106,800, for a maximum tax of $13,234. Even adjusting for inflation, that represents more than an 800 percent increase.

In addition, at least until the final collapse of his scheme, Ponzi was more or less obligated to pay his early investors what he promised them. With Social Security, on the other hand, Congress is always able to change or cut those benefits in order to keep the scheme going.

The liberal obituaries for the mostly-dead Huntsman for President campaign get an interesting addition from Michael Tomasky at the Daily Beast:

The Huntsman strategy here is obvious: position himself as the moderate and reasonable guy on the off chance Republicans decide to be moderate and reasonable. We must assume he is aware that his odds on this are rather long, so what he’s really hoping for is to be the consensus candidate of 2016. Maybe the party just has to go through this purge, this Reign of Terror; so just let it do that, and once it does and nominates an extremist who can’t beat a weak incumbent during a time of 9 percent unemployment rates, and the heads are piled high enough in the tumbrels and enough people finally have returned to their senses, he will ride the Thermidorian wave to victory after Obama leaves town.

So, the Tea Party in particular and the conservative movement in general is creating a “Reign of Terror” that is depriving liberals of the most progressive member of the GOP presidential pack from facing Obama next year?

There’s a frightful reality fast-approaching, but it isn’t a 2012 match-up seeing who’s less conservative.  It’s the fiscal and cultural time-bomb that is ticking ever closer to exploding if Barack Obama or Jon Huntsman’s views are put into practice.

H/T: Political Wire