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Saturday, February 2, 2013

Just Asking

Here is an interesting question:  What is the most important domestic issue that needs to be addressed in the next three months:

a)  gun control;
b)  immigration law changes;
c)  gay marriage;
d)  growing the economy and jobs; or
e)  reforming the electoral college?

If you are either president Obama or one of the Democrats in Washington, your answer is simple:  America needs to focus on a, b and c.  On the other hand, if you are just an average citizen out there in the country somewhere besides DC, Manhattan, Cambridge and Hollywood, the answer is clearly choice d.

Think about it.  When was the last time that you heard Obama address the issue of the economy?  We know that the GDP actually shrank last quarter, the first time that has happened since Obama's first year in office.  So much for the recovery.  Even before the Republicans agreed to raise the debt ceiling a few weeks ago, think about the way Obama addressed this issue.  Obama did not discuss the effect of the rising federal debt on economic growth.  Obama did not offer a plan to reduce federal debt.  Obama just told the country that he would not negotiate on increasing the debt limit.  It was as if the economic problems we face did not exist. 

For months, even years, Obama has gotten away with not having a plan for growing the economy.  Oh, he has his talking points about education and green energy, but neither of those will do much of anything in the present.  Obama has no plan for the present  Instead of presenting a plan, Obama has spent time on the one hand criticizing the plans presented by Republicans and then, on the other hand, criticizing Republicans for having no plans.  (Logic does not seem to be his strong suit.)

Soon, however, that is all going to change.  For the first time in a while, the Republicans are actually playing things in a smart way.  I am referring, of course, to the upcoming sequestration which is due to start on March 1.  Sequestration is the automatic spending cut which was passed in the summer of 2011 as a debt reduction measure.  It is probably safe to say that there are few in Washington who want to see these cuts go into effect.  Some lament the defense cuts as draconian.  If you recall, Obama himself told the country in the presidential debates that the defense cuts would not go into effect so that there was no need to worry about them.  Others lament the cuts to discretionery spending.  The point, however, is that unless Congress passes something to modify these cuts, they are going to kick in automatically on March first.

What is truly interesting about the upcoming "sequestration cliff" is that no one is really talking about it.  Obama and the Democrats are treating it as if it just does not exist.  For once, however, the Republicans are also remaining mostly silent.  Speaker of the House, John Boehner, announced in December that the GOP would no longer engage in secret negotiations on the eve of some deadline so that a "compromise" would be presented for a vote a few hours before the deadline passed.  Instead, Boehner said that the House would proceed with the normal budgetary methods.  That means passing a budget, holding committee hearings on appropriations and passing individual appropriations bills.  It is the exact opposite of secret crisis negotiations.  It is a process that all happens in public.  It is a method that makes clear just who is proposing what.

The great thing is that for once, we are at a point where if nothing is done, the result will be one that will still be good for the economy.  Cutting federal spending will have some very short term disruptions in the economy, but it will quickly change into something quite beneficial for improving economic growth.  One hundred billion dollars not sucked out of the private sector will be one hundred million dollars available for private investments that will encourage economic growth in a way that government expenditures do not.

Another big positive is that the GOP can just keep asking Obama and the Obamacrats where their plan is.  Most likely, Obama and his minions won't even get around to addressing the issues here until the week before sequestration is to kick in -- if then.

Of course, there is always the possibility that some in the GOP will feel compelled to negotiate on plans, but I doubt that the leadership will do so.  For once, the issue is squarely in Obama's lap.  He will actually have to come up with a proposed solution.  It should be fun to watch.



 

 

 

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