National Review Online
Monday, October 28, 2019
It does not take great leadership — or great skill at
deal-making — to do things that already are popular. There is nothing easier
than giving people what they want when it does not cost you anything. That is
one of the basic problems of American politics.
The news that the budget deficit has returned to a point
just a hair shy of the trillion-dollar mark is dispiriting. The Trump
administration is rightly proud of its economic record of modest but steady
growth accompanied by strong employment and very good growth in wages. But if
we cannot get government spending under control during the good times, what
hope do we have for the more challenging times? And there will be more
challenging times.
Congressional Republicans did make some real progress on
spending controls during the Obama years, but it is very difficult to resist
revenue-hungry special interests — especially when those interest groups
represent big blocs of voters.
And budget reform without presidential leadership is more
difficult still. The major drivers of federal spending are Social Security,
Medicare, Medicaid (along with other health-care subsidies), and national
security. President Trump has ruled out pursuing Social Security and Medicare
reform out-of-hand. These are very popular entitlements, and particularly
popular among some sensitive Republican constituencies. Likewise, military
spending is very popular among Republicans, and some conservatives argue, not
without reason, that we are not spending enough on the armed services.
We are all for negotiating an extra nickel off every case
of pencils the federal bureaucracies order, but the U.S. government is not
going to be able to put its fiscal situation on solid footing without
addressing the major drivers of spending — meaning entitlement reform. Even if
Republicans were willing to countenance the radical tax increases put forward
by some leading Democrats, these almost certainly would prove insufficient to
cover spending if it continues on its current trajectory. We would need to
roughly double federal taxes to make that happen.
Some cynics say that there isn’t any political juice in
all this green-eyeshades business, that nobody really cares about the deficit.
That is not true, but even if it were true, nobody cared about subprime
mortgages, either — until they had to. Washington’s spendthrift ways are
setting the U.S. government up for an eventual fiscal crisis, at which point
the options for reform will be fewer — and much more painful — than the ones
currently before us.
In 2007, the federal deficit was 1.1 percent of GDP. In
fiscal year 2019, it was more than four times that. In GDP terms, the deficit
has grown larger every year of the Trump administration — and given Republican
control of Congress for the first two years of that administration, this is not
something that can be blamed exclusively on the Democrats.
While presidential leadership does matter, this
ultimately is a congressional issue — it is Congress that authorizes spending
and Congress that writes the tax code. And Congress is going to have to act on
these and other related issue at some point. The Kyiv circus will pack away its
tents, someday — and what will Congress be able to say it has done for the good
of the country?
It is time for Washington to sober up and buckle down. Do
it before the next $1 trillion in new debt has gone out the door.
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