It has been said that healing is a matter of time, but it is sometimes also a matter of opportunity.
Some are already complaining about the prospect of another fight over a cap set by Congress on the amount of debt the federal government can legally borrow.
While dining with Congressional leaders last month, President Obama warned that he would not tolerate a replay of the bitter debt ceiling confrontation of last summer. Just days ago, Treasury Secretary Timothy Geithner suggested that Congress should avoid another debate because of “drama and the pain and the damage that they caused the country.”
But the controversy is approaching nevertheless. And that is a good thing, because opportunity is often found amid struggle.
There is nothing novel about the debt ceiling debate. The first ceiling was established in 1917 and set at $11.5 billion. Since 1962, irresponsible politicians from both parties have voted to raise it dozens of times, according to the Congressional Research Service. Ten of those times have occurred since 2001.
The last time Congress voted to raise the ceiling was in August of 2011. Despite strong rhetoric to the contrary, Republicans stared across the political aisle and blinked. In exchange for having it increased, conservatives were promised only $2.5 trillion in spending cuts over a ten year period, with a newly created government super-committee charged with the responsibility of outlining approximately $1.5 trillion of those cuts.
The debt, which stood at a staggering $14.5 trillion just a few months ago, was then effectively increased to $16.4 trillion – an amount that will be reached by the end of this year, according to analysts.
Congress, seeking political cover from public anger, assembled its proposed 12-member super-committee comprised of 6 Republicans and 6 Democrats. But the committee was predictably unable to reach an agreement.
A monument to the dysfunctional nature of beltway politics, had the inaptly-named group somehow managed to overcome its gridlock, the government would have still run a vast yearly budget deficit. The only reductions that potentially would have been realized were merely those affecting the rate of spending increases.
It was an implausible gimmick fabricated to establish another layer of unaccountable government and concentrate additional power over the nation’s checkbook in the hands of the Washington elite. Not only was its goal to cut an additional $1.5 trillion in spending wholly inadequate, it violated constitutionally-based legislative practice by denying our elected representatives the opportunity for participation in the crucial areas of tax and entitlement reform.
It seemed destined to fail; perhaps it was designed to fail. But, I digress.
Some contend that a new conflict regarding the debt will cause pain and perhaps difficulty; but further delay would be devastating. The debate should take place immediately, for at least three reasons.
First, market outcomes during the 2011 altercation suggest that the debt-limit disagreement may actually have strengthened the economy.
Second, last year’s discussion did deliver budget cuts, although insufficient to eliminate the budgetary imbalance.
And lastly, ignoring the problem is not sensible.
Politicians claim they wish to rid our republic of its unprecedented debt, but they are reluctant to make healing a high priority. It will be necessary to face our pain in order to deal with it, recognizing that avoidance is not the answer. We have an addiction to spending, and only an immediate restoration of pride, personal responsibility and liberty can repair the harm that has been incurred.
Another debt ceiling fight is fast approaching – the more contentious, the better.
Politicians see the upcoming clash as a problem; statesmen should see it as a golden opportunity.
***** State Senator Chris McDaniel
Magnolia Tribune
