"Real liberty is neither found in despotism or the extremes of democracy, but in moderate governments.
Alexander Hamilton

Wednesday, October 28, 2015

Compromise and Collaboration?

Once in a while, DC gets it done, though not everyone is happy with the budget deal struck this week that may be voted on as soon as today. If it passes as expected, there will be no government shutdown and  no default on debt.  In addition, it increases defense spending, extends the solvency of Social Security for the disabled and prevents an expected 52% increase in premiums for roughly 30% of the people enrolled in Medicare Part B, It did however, once again increase the debt ceiling.

John Boehner’s golden parachute will certainly cement his legacy, but it is a slap in the face to conservatives who rose up across the country in 2014 on a promise that we would stop the disastrous runaway spending and debt in Washington,” per  Sen. Ted Cruz (R., Texas). Contrast that with Speaker Boehner's comments: “In a town that isn’t known for a lot of bipartisanship, you’re going to see bricks flying from those that don’t like the fact that there’s a bipartisan agreement. But there is. It’s a solid agreement.”
What happens next? Another year or so of bickering, name calling and gazillions of commercials until the first Tuesday in November 2016. And then it probably starts all over again. Welcome to politics in the age of information overload and extreme partisanship.


Joseph Cormier said...

Partisanship ... not as bad as today ... or is it? Can't wait for "tomorrow! (At least view the last URL).



Fox, not CNN

Terence C. Jatko said...

Congress lards up the national debt and kicks the can down the road on entitlements. This is cause for celebration?

Anonymous said...

Nancy Wright said
The present administration's taken a hard left turn these last 7 years.

Extreme partisanship maybe do to the Socialist/Marxist (spread the wealth) mentality of the present administration.

Presidential Democrat candidate, Bernie Sanders, calls himself a Socialist. To attract supporters he and other Democratic candidates offer more free "stuff." The country's debt is off the charts, yet it's not being addressed. Where will the money come from to pay for all these "free" programs?

Both parties have lost their way. The present administration has made a mockery of our Constitution and rule of law and the Republicans have done nothing to stop it. Until we have a President that can get the country back on track, I'd rather have grid-lock than more left leaning policies.

The Economist said...

As a share of the economy, federal government spending isn’t unbelievably high. Spending was steady at about 33 percent GDP in the mid 2000s and then jumped, in the Great Recession, to 41 percent GDP. But in the subsequent economic recovery total government spending has stead declined as a percent of GDP down to about 34 percent GDP in 2015. Total s pending, (Fed/State/Local) , increased in 2005 from $4.4 trillion to $6 trillion in 2009. Since the end of the recession total government spending has leveled out at $6 trillion per year.
The U.S. isn’t choked by high interest rates, or drowning in inflation, or unable to issue bonds, or devoting huge chunks of the budget to servicing the debt. The fallacy of the "national debt" as a huge chunk our future generations will have to all at once pay for is not real. It is not an economic problem, but a political one.

Anonymous said...

"Government spending isn't unbelievably high?" Mr. Economist what planet are you living on? What's your source, the Obama White House?

My source says, "The Federal Budget is on a dangerous trajectory and immediate corrective action is required. The U.S National Debt is 18.1 trillion. According to the Congressional Budget Office (CBO) if the government remains on its currently planned course, it will spend 7 trillion over the next 10 years than it will receive in taxes, piling on even more debt."

"Rather than taking meaningful steps to address the growing debt the Bipartisan Budget Act (BBA) of 2015 is a colossal step in the opposite direction. This deal does nothing to reduce the size and scope of government over any period of time."

The bottom line is, the National Debt is a HUGE issue. One that's dragging the country down and saddling our kids and grandkids with unprecedented debt.


Anonymous said...

What would it take to pay off our national debt? An article that puts the national debt in perspective. One of the examples, Taylor Swift earned 80 million in 2015 and performed 55 concerts. She would have to perform everyday for 3 years to pay for one day of interest that accrued on our debt.


Anonymous said...

Ah yes, anon at 6:10pm, your source the " Heritage Foundation" a well known conservative think tank. Not exactly fair and balanced.

Anonymous said...

Anonymous, 12:19, are you disputing the Heritage Foundation's facts in this post? If so what specifically.

Joseph Cormier said...

Maybe a discussion on Federal Debt versus Federal Deficit should be had! They are not the same! One is going up, while the other is going down.

" Fiscal deficit describes a government with expenditures that are greater than its revenues during a fiscal year. The federal debt is the total amount of money that the U.S. federal government owes to its creditors."


2014 article, but concept is same

Fed. debt history
"But federal debt has still increased from 60 percent of GDP to over 100 percent of GDP in ten years. "