Sunday, April 29, 2012

The Big Fail: Three Years With No Budget: What, Me Worry?

If Budgets are Moral Documents, what are we to make of the lack of one… for over three years?

Today Marks Three Years Since The Senate Passed A Budget; For A President Who Refuses To Lead, That's Not A Big Deal

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THE DEMOCRAT-CONTROLLED SENATE LAST PASSED A BUDGET THREE YEARS AGO TODAY AND IS ACTIVELY FIGHTING AGAINST PASSING ANOTHER

The Senate Last Passed A Budget Three Years, 1,097 Days Ago. (S. Con. Res. 13, Roll Call 173; D 53-3, R 0-40, I 2-0, 4/29/09)

"In A Stunning Backtrack," Sen. Kent Conrad (D-ND) Canceled A Scheduled Vote On A FY2013 Budget Bill. "In a stunning backtrack that virtually guarantees Congress for the third year will be unable to produce a budget, Senate Democrats' top budget writer Tuesday canceled this week's expected votes on a 2013 fiscal blueprint." (Stephen Dinan, "Democrats Punt On Senate Budget Bill For 3rd Year," The Washington Times, 4/17/12)

  • Conrad "Bowed To Pressure From Fellow Democrats" And Postponed Considering A Budget Until After The Election. "Senate Budget Committee Chairman Kent Conrad (D-N.D.) bowed to pressure from fellow Democrats on Tuesday and postponed a committee vote on a 2013 budget resolution, most likely until after the November elections." (Erik Wasson, "Sen. Conrad Backs Off Plan to Vote On Budget," The Hill, 4/17/12)
  • It Was A "Surprise" To Democrat Leaders That He Wanted To Pass A Budget At All . "So it was a surprise to Democratic leaders when Conrad indicated in a Fox News interview April 8 that he wanted to mark up a 10-year plan to guide the lame-duck session after the elections when major decisions such as expiring taxes will need to be addressed." (Humberto Sanchez, "Conrad Budget Plan Puzzling," Roll Call, 4/16/12)

THE WHITE HOUSE HAS "NO OPINION" ON WHETHER DEMS SHOULD PASS A BUDGET AND NO PLANS TO PROPOSE A BUDGET THAT CONTROLS OUR DEBT

White House Press Secretary Jay Carney Says The White House Has "No Opinion" On Whether The Senate Should Pass A Budget. ABC NEWS' JAKE TAPPER: "The White House has no opinion about whether or not the Senate should pass a budget? The president's going to introduce one. The Fed chair says not having one is bad for growth. But the White House has no opinion about whether - " JAY CARNEY: " I have no opinion - the White House has no opinion on Chairman Bernanke's assessment of how the Senate ought to do its business." (White House Press Briefing, 2/8/12)

President Obama "Has Been All-Too-Willing To Avoid Making Tough Decisions." "One of President Obama's political weaknesses in his first term has been that he's all-too-willing to avoid making tough decisions, hesitant to expend political capital for potential long-term gain. Throughout his first term in office, he's had a cautious governing style, and has avoided taking on some of his party's core constituencies." (Josh Kraushaar, "Obama Trying To Have It Both Ways," National Journal, 11/30/11)

  • Treasury Secretary Tim Geithner Admitted That The Administration Doesn't Have A Plan, But "We Don't Like Yours." GEITHNER: "What our budget does is get our deficits down to a sustainable path over the budget window. Why do they take off again? Why do they do that?" REP. PAUL RYAN: "Because we got 10,000 people retiring every day, and healthcare costs going up…" GEITHNER:"That's right. We have millions of Americans retiring every day, and that will drive substantially the rate of growth of healthcare costs. You are right to say we're not coming before you today to say we have a definitive solution to that long-term problem.What we do know is, we don't like yours." ( Committee On The Budget, U.S. House Of Representatives, 2/16/12)

According To CBO, The Massive Deficits Produced By Obama's FY2013 Budget Will Reduce Economic Output. "The nonpartisan Congressional Budget Office said Friday that President Obama's 2013 budget will hurt the economy in the long term, arguing the larger deficits it would produce would reduce the amount of capital available to businesses. After five years, the CBO says, the Obama proposals would reduce economic output by between 0.5 percent and 2.2 percent." (Erik Wasson, "CBO Estimates Obama 2013 Budget Will Hit Economic Growth," The Hill's "On The Money," 4/20/12)

Obama's FY2013 Budget Increases The Deficit More Than His FY2012 Budget And Will "Have A More Negative Long-Run Effect." "The effects of the 2013 budget differ from those of the preceding budget in four main ways. In particular, the proposals for 2013 would do the following: Increase deficits by a greater amount, largely because of a greater increase in spending compared with that in CBO's baseline. Those larger deficits would provide a bigger short-run boost to output but then have a more negative long-run effect." ("The Economic Impact Of The President's 2013 Budget," Congressional Budget Office, 4/20/12)

"Larger Deficits Caused By The Budget Would Cause The Government To Issue More Bonds, Sucking Up Private Capital To Finance Its Debts And Thereby Reducing The Funds Businesses Could Use To Expand And Hire, The CBO Said." "Larger deficits caused by the budget would cause the government to issue more bonds, sucking up private capital to finance its debts and thereby reducing the funds businesses could use to expand and hire, the CBO said. An increased tax on capital gains included in the president's plan would also tend to reduce private capital, it says." (Erik Wasson, "CBO Estimates Obama 2013 Budget Will Hit Economic Growth," The Hill's "On The Money," 4/20/12)

  • "Slower Economic Growth Tends To Increase Deficits By Reducing Tax Collection And Increasing Spending On Items Like Unemployment Insurance." (Erik Wasson, "CBO Estimates Obama 2013 Budget Will Hit Economic Growth," The Hill's "On The Money," 4/20/12)

The Big Fail: Three Years With No Budget: What, Me Worry?

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