Showing posts with label Government. Show all posts
Showing posts with label Government. Show all posts

Sunday, April 03, 2011

What would you pay for?

In the current debate over the deficit and budgets, Republics want to take any tax increase off the table. Their current framing is, we don't have a revenue problem, we have a spending problem. That is, cut spending; do not raise taxes.


It is clear that Republics and Democrats have a different philosophy about the purpose of government and how to pay it. In general, Republics believe that less government is always better (at least that is what they say, if not always what they do). Government is the problem, not the solution. Republics want to decide how much they are willing to spend on government (which is always less than what we spend today) and then determine how to distribute that money. Preference is always given to the generators of wealth.


In general, Democrats believe that government is about creating a civil society. Democrats would rather first decide what is important to do and then decide how to pay for it (sometimes). Preference is given to the less fortunate. The Democratic position is obviously harder to sell.


While Democrats have certainly authorized new spending without determining how the additional expenditures would be paid for, they managed to live under the PAYGO rules of the 1990's. Had these rules been extended, the budget busting 2003 tax cut, the Medicare prescription program and the wars in Iraq and Afghanistan might have had to have been paid for instead of just adding to the debt.


The two Bush era tax cuts added significantly to our debt. Let me state again, tax cuts when you are already running a deficit without the same dollar cuts in spending add to the long term debt! Republics constantly berate Democrats about spending more than we have revenue to pay far and passing that debt on to future generations. Fair enough. But cutting taxes without cutting spending has the same affect and is just as destructive. The math is simple. Revenue minus expenses equals surplus or debt. When you are already running a deficit, increasing spending without increasing revenue will increase the debt. Likewise, decreasing revenue without decreasing spending will increase the debt.


Contrary to popular belief, the Republics have actually been winning the deficit/debt debate. "Starve the Beast" has been Republic dogma since Ronald Reagan. This is the policy of always cutting taxes without concomitant cuts in spending in the belief that the eventual fiscal crisis will force drastic decreases in the size of government.


Republics have succeeded. The public believes we have a fiscal crisis generated by too much spending not a problem generated by a weak economy, tax cuts and spending. The discussion is how do we cut taxes, expenditures and the size of the government. Why aren't we also discussing what functions of government are worth paying taxes to support and how do we generate the revenue to pay for them?


Sunday, January 24, 2010

Advice For President Obama

Peggy Noonan, a columnist for the Wall Street Journal and a speech writer for President Reagan, was on Meet The Press this morning. She believes that the reason Scott Brown won last week was the distrust voters have of all institutions, especially government.

That is certainly a symptom of the problem. But why are people so upset with government?

I think there are several reasons.

It is easier to destroy than to build. It is easier criticize than create. It is easier to divide people than to unite them. In the current political environment it is easier and safer to oppose than to compromise. And it is politically safer and more effective to offer specious criticism than to propose alternatives.

People don't get mad and motivated by something they are satisfied with, unless someone threatens to take it away. So the best political strategy is to get voters mad and motivated. Republicans are historically better at this than Democrats.

In general, people have short memories. What have you done for me today?

People crave simplicity.

People want government to leave them alone until they need something. Then they want government to fix it now.

For all these reasons, it is politically expedient to blame the government for all problems.

Thomas O'Neill, Sr., famously said "All politics is local." Today it is "All politics is personal." People are apprehensive about the economy and deficit spending and will punish politicians who do not vigorously share their concerns and their solutions. Except for the people who think abortion is the most important issue. Except for the people who think guns are the most important issue. Except for the people who think Iraq, Afghanistan, health care, terrorism or (fill in the blank) is the most important issue. And more importantly, what good is government if it can't fix it now.

The primary goal of most politicians is to get re-elected or, better yet, get elected to a more powerful position. So politicians, like Ben Nelson of Nebraska, believe it is in their interests to use the power of their offices to buy the support of voters and/or donors. Such abuse of the political system properly disgusts voters. Instead of venting their anger on the offending politician, it is often redirected to a political party, Congress in general, the president or all of the above.

Polls show that people think we are still going in the wrong direction and they blame Democrats and President Obama for not fixing it. Fair enough, they are in office, but it took years to generate the problems that confronted President Obama last year. Why do we expect him to fix them all in a year?

I have some suggestions for President Obama. Learn a lesson from your predecessor. Decide what you think is important and go for it. To hell with what voters think. Show that you have ideas and principles that you will fight for.

Pick a few issues. Pare the concepts down to bumper stickers and work to implement them. No foreign oil. Pre-existing shouldn't mean uninsured. The American economy should make jobs for many not billions for a few. A job for everyone who is willing to work (twenty years ago that would have probably gotten you labelled as a communist, but it may work now).

Global warming and true health care reform are too complicated for voters. Do what you can to move the country forward. Make it better than what you found, but take your own advice and don't make the perfect the enemy of the possible. Only when health care and climate change are true disasters will people really understand and you'll probably be out of office by then.

If that is too cynical, try this. Work to make government more responsive, competent and effective by doing a few important things well and soon. Stay away from any issue that might force voters to think. Restore trust in government. Win in 2012 and use that mandate to do a few big things in your next four years.