Debt Ceiling Politics
Tuesday, July 12th, 2011Obviously I’ve been closely following the ongoing battle over the debt ceiling, being that both me and Hana are gainfully employed by Uncle Sam, the prospect of a loss of a paycheck due to a government shutdown is something that we both pay great attention to. I have to admit it has become a little tiring though, both while working at the office and when teleworking, I have C-SPAN going on in the background listening to the floor debates in both houses.
My overall take on the whole mess is that we need to have a serious conversation about the future of the federal budget in terms of the big ticket spending items the biggest which are entitlements and military engagements, right now the discussion has gotten so polarized on partisan lines that it is impossible to even have a meaningful conversation as to what we policies and programs we want as a nation, what is the realistic cost of those things. I’ve spoken with folks from both party affiliations, and it seems like all they can do is blindly spout the party line, often in rapid succession. I wanted to ask them point blank if they even understood the position that they were advocating.
As fiercely independent minded as I am, I have to say that I am leaning slightly towards the position of spending cuts making the larger proportion of the deficit solution as opposed to revenue building. This is despite the fact being that particular party spent the last 10 years piling on to the deficit like money was going out of style. I still think in this situation spending cuts is the way to go over revenue building. I liken it to how an average family might deal with the prospect of hitting their limit of their credit card or general line of credit. The most logical thing to do is to decrease spending relative to the proximity to the credit limit, if it is a few months expenses away, then maybe you spread the cuts over several months, but if you’re right up on it, then immediate cuts in spending are in order.
In contrast, the building revenue side for the typical family would be amounting to the family to just make more money. It is important to note that longer term revenue sources would be most helpful, not merely selling some household items, or by simply working longer hours, both of which are either one-time, or temporary increases in income. A more basic definition of revenue increases to what governments think of in terms of raising taxes when it comes to the average family is to go across the street and rob the house of the richer, more affluent neighbors. Even if this was a widely accepted solution, it would be temporary, because eventually the rich neighbor might move out of the neighborhood.
Someone I recently spoke with seemed totally uninterested in the prospect of an actual default, or credible threat of default. Their perspective was that congress would pass something at the last minute possibly, and it would be back to business as usual. I find it hard to tell if people who hold that opinion are either wiser than me to the nature of DC politics, or just have their head in the sand. It seems like a lot of crazy shit is going on right now not only at home, but around the world to be that oblivious. To me, at the very least it would be helpful to take a moment to look around and get somewhat ready in case the shit really does hit the fan.