Archive

Posts Tagged ‘spending cuts’
February 22nd, 2013 at 11:09 am
Sequester Kabuki
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There’s no question that the forthcoming federal spending cuts under the sequester aren’t ideal, particularly given the indiscriminate way in which they’ll be applied. Republicans in Congress, however, have rightly determined that indelicate cuts are a better option than a compromise that does little or nothing to arrest the trajectory of our debt crisis (even if they haven’t quite worked out the messaging yet).

Standing firm on that principle means accepting some pretty large cuts to defense, but as Byron York notes in a must-read column for the Washington Examiner, the Pentagon is going out of its way to make the situation seem much worse than it really is:

Over many decades of defense budget battles, the Pentagon has often used a tactic known as a “gold watch.” It means to answer a budget cut proposal by selecting for elimination a program so important and valued — a gold watch — that Pentagon chiefs know political leaders will restore funding rather than go through with the cut.

So now, with sequestration approaching, the Pentagon has announced that the possibility of budget cuts has forced the Navy to delay deployment of the carrier USS Harry S. Truman to the Persian Gulf. With tensions with Iran as high as they’ve ever been, that would leave the U.S. with just one carrier, instead of the preferred two, in that deeply troubled region.

“Already, the threat of these cuts has forced the Navy to delay an aircraft carrier that was supposed to deploy to the Persian Gulf,” Obama said at a White House appearance on Tuesday, in case anyone missed the news.

Some military analysts were immediately suspicious. “A total gold watch,” said one retired general officer who asked not to be named. Military commentator and retired Army Lt. Col. Ralph Peters called the Navy’s move “ostentatious,” comparing it to “Donald Trump claiming he can’t afford a cab.”

… Meanwhile, with a budget higher than it was even at the peak of the Iraq and Afghanistan wars, the Pentagon is resisting attempts to force it to audit its own finances. Congress passed a law back in 1990 requiring such an audit, to no avail. Last year, Sens. Tom Coburn, R-Okla., and Joe Manchin, D-W.Va., introduced the Audit the Pentagon Act, which would try again to force a look inside the maze of Pentagon spending.

Now, with the Defense Department sounding the alarm about sequestration, some budget hawks on Capitol Hill are doubtful. “It’s difficult to take these doomsday scenarios seriously when the Pentagon can’t even audit its own books,” says a spokesman for Coburn. “We would argue that the Defense Department has the authority to reprioritize funding toward vital needs and away from less vital spending. As Sen. Coburn has detailed, the department spends nearly $70 billion each year on ‘nondefense’ defense spending that has nothing to do with our national security.”

Yes, the Pentagon does represent some of the most vital spending that takes place in Washington. But conservatives especially should remember that it remains, on many levels, a conventional bureaucracy, prone to defend well-established power centers and jealous of every dollar that comes its way.

The goals of cutting spending and preserving national security are not mutually exclusive.

July 19th, 2011 at 1:19 am
How to Destroy the Most Powerful Economy in the World — in Three Paragraphs
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Michael Barone is one of those rare Washington pundits who thinks facts are more important than feelings. That means that when he makes sweeping claims, he’ll always have the data to back them up. And he’ll do so in the dispassionate fashion of a doctor reading an X-ray. That’s part of what makes his new column on the debt ceiling so chilling. In it, he writes:

The bedrock issue is whether we should have a larger and more expensive federal government. Over many years, federal spending has averaged about 20 percent of gross domestic product.

The Obama Democrats have raised that to 24 or 25 percent. And the president’s budget projects that that percentage will stay the same or increase far into the future.

In the process, the national debt as a percentage of gross domestic product has increased from a manageable 40 percent in 2008 to 62 percent this year and an estimated 72 percent in 2012. And it’s headed to the 90 percent level that economists Kenneth Rogoff and Carmen Reinhart have identified as the danger point, when governments face fiscal collapse.

Barone’s words are a bracing reminder of the stakes in this fight. Virtually all Democrats — and even many Republicans — would have us believe that this is a moment defined by pure political philosophy; that it’s simply a question of whether you balance the books through tax increases, spending cuts, or some combination thereof. But it’s more than just principles that hang in the balance. It’s the fate of a nation.

April 7th, 2011 at 10:01 am
Ramirez Cartoon – Obama: Time to Start Acting Like Adults…Or We’re Going to Shut the Government Down
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Two-time Pulitzer Prize-winning cartoonist Michael Ramirez illustrates Obama’s posturing on the ongoing congressional budget negotiations and the pending government shutdown.

View more of Michael Ramirez’s cartoons on CFIF’s website here.

March 31st, 2011 at 5:41 pm
Tea Party’s Lesson from Budget Fight: Go Bigger Next Time

Bloomberg reports that the rumored $33 billion in cuts being negotiated by House Speaker John Boehner (R-OH) and Senate Majority Leader Harry Reid (D-NV) is looking like the key number both sides are working towards.  For perspective, that’s $28 billion less than the House of Representatives passed a few weeks ago, and $67 billion less than Republicans promised during last year’s mid-term elections.

When the $61 billion cut was passed, Tea Party-backed legislators accepted the reduction under the assumption that half a loaf is better than nothing at all.  Now, the loaf is down to a third, and activists are having none of it.

Whatever sum gets approved, it’s a sure bet the Tea Party and the members of Congress friendly to it won’t forget the importance of starting the cut threshold even higher next time.  At this rate, don’t be surprised if the 2012 battle cry is, “$500 Billion in Cuts or Fight!”

March 29th, 2011 at 10:39 pm
Marco Rubio Throws Down the Gauntlet on the Debt Ceiling
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Republicans in Congress are currently split on whether to accept incremental budget cuts in the name of political pragmatism or to hold a hard line — and face the possibility of a government shutdown or a freeze in the debt ceiling — in the name of principle. Freshman Florida Senator Marco Rubio takes to the editorial pages of the Wednesday edition of the Wall Street Journal with a message that leaves no doubt where he stands:

“Raising America’s debt limit is a sign of leadership failure.” So said then-Sen. Obama in 2006, when he voted against raising the debt ceiling by less than $800 billion to a new limit of $8.965 trillion. As America’s debt now approaches its current $14.29 trillion limit, we are witnessing leadership failure of epic proportions.

I will vote to defeat an increase in the debt limit unless it is the last one we ever authorize and is accompanied by a plan for fundamental tax reform, an overhaul of our regulatory structure, a cut to discretionary spending, a balanced-budget amendment, and reforms to save Social Security, Medicare and Medicaid.

For months now, we’ve heard “sober” politicians tell us that it’s time to have “an adult conversation” about the size and cost of government in which “everything is on the table”. It looks like Marco Rubio is calling their bluff.

March 15th, 2011 at 5:52 pm
Shared Sacrifice? When Budget Cutting, Equality is the Wrong Principle.
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Sanity in the debate over slashing the federal budget is coming from some odd places lately. Today, it’s courtesy of Politico’s Michael Kinsley, a liberal’s liberal if ever there was one. Writing in a terrific piece in the Los Angeles Times, Kinsley offers up some conservative wisdom in words better than any on the right have come up with:

Comparisons [of domestic spending programs proposed to be cut] with Pentagon spending are especially inappropriate, because defense spending is different. The payoffs from most types of government spending are incremental. You can decide how much you want the government to spend on, say, subsidizing symphony orchestras. There is no exact right answer: The more you spend, the more you get. More symphony orchestras are a good thing, but there are other good things you want the government to do, or of course you might want the government to stay out of it and lower your taxes instead.

But in the case of defense spending, notions like how much we can afford, or what it would be nice to have, are inappropriate. The value is not gradual or incremental. It is absolutely essential to spend whatever is necessary to keep our nation safe, and a total waste to spend a nickel more.

Another worthy use of federal money: having the passage above carved into the walls in the Democratic cloakrooms on Capitol Hill.

February 8th, 2011 at 2:01 pm
A Reason for Pride in the Republican Congress
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If you need any proof that the new generation of Republicans in Congress are breaking from the spendthrift ways of their forebears, look no further than this terrific idea, as reported by our friends at the Daily Caller:

With the 112th Congress in full swing, some members of the House’s conservative Republican Study Committee are making a renewed effort to establish a committee whose only purpose is to find programs to cut from the federal budget.

The idea is a throwback to the now-defunct “Joint Committee on Reduction of Non-essential Federal Expenditures,” started by former Virginia Sen. Harry Byrd in 1941. The bi-cameral committee slashed an (inflation-adjusted) $38 billion from the federal budget in its first four years. The committee cut and eliminated programs enacted under President Franklin Roosevelt’s “New Deal,” but was dismantled in 1974.

This proposal has two salutary effects. First, it has the potential to move conservatives from the abstract to the specific when it comes to spending cuts. Second, it puts skin in the game for Democrats — if they oppose the proposal it will give the lie to all of the vague pieties about deficit reduction that they’ve harnessed over the last year. This is a fight the conservatives in Congress should relish.

December 16th, 2010 at 10:15 pm
Re: Trimming the Fat in the Federal Budget
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On Tuesday, we told you about the potent case for cutting federal spending being made by Nick Gillespie and Veronique De Rugy over at Reason. Because, as the new omnibus spending bill makes clear, Democrats are congenitally incapable of entertaining the idea of reigning in expenditures, the plan has become the target of criticism for The New Republic’s Jonathan Chait. His response is worth reading, as is Gillespie’s comprehensive rejoinder, but one of his central arguments stands out for its unseriousness:

Another way of putting this [the budget situation] is that, to maintain the current level of services in the federal budget, we would need to spend $5.5 trillion. Gillespie and de Rugy would propose instead to spend $4.2 trillion in 2020. That’s their prerogative. I’m sure they could find at least $1.3 trillion in spending that they don’t like. But the point is that you would have to eliminate a lot of functions of the federal government, and/or reduce a lot of social benefits.

The definition of modern liberalism may be to believe that it would be a hardship for the federal government to get by on over $4 trillion a year. And if budget cuts are a non-starter under this rationale, it’s hard to see when they would be palatable to liberals (how much do you want to bet that national defense is the exception?)

Are we to believe that Mr. Chait is convinced that such bracing austerity would rip the national safety net asunder? And that every activity currently undertaken by the federal government is too sacrosanct to be pruned? There’s a mathematical equation for such worship of the state … and its product is Nancy Pelosi’s approval rating.