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“Why a U.S. government shutdown is worth it”

James Pethokoukis, Reuters:

Republicans, who control the House, want to cut $61 billion a year from discretionary programs, excluding defense and other security items, which depending on each politician’s chosen definition total $500 billion or somewhat more of the $3.5 trillion federal budget for 2010. Cost cuts on that scale, though, could lead to an impasse with the Democrat-controlled Senate next month. Meanwhile, President Barack Obama has called for a five-year freeze at current spending levels, saving an average of $40 billion a year over 10 years.

Neither approach would put the nation’s finances on a sound footing. Even hacking at defense spending would only help for a while. What’s needed is a real effort to tackle future spending on Social Security and government healthcare programs. And anyway, even if an aggressive plan like that put forward by House Budget Committee Chairman Paul Ryan came to pass, spending on these so-called entitlements would still most likely rise before it started falling.

But this key: Controlling discretionary spending therefore still has a role to play, and the reductions being proposed by the House GOP could be the start of a sustained effort. Cuts in this area could be faster off the mark, as evidenced by both Republicans and Obama showing willingness to consider them. Moreover, an initial taste of austerity, even if it looks modest, would compound into big future gains.

Suppose non-defense discretionary spending was cut, frozen for 10 years, then increases at the 2.7 percent annual rate normally assumed by the Congressional Budget Office. Compare that to the case where there’s no cut and no freeze and the cost just goes up every year. The present value of those savings over 80 years isn’t too far off the estimated $8 trillion present-value shortfall in Social Security funding, according to calculations from the e21 think tank.

That suggests that cuts in discretionary spending could ultimately be almost as important as Social Security reform. The coming fight, if not quickly resolved, could leave the government forced to close its offices for a while. But if those are the stakes, it could be worth a brief involuntary holiday for bureaucrats.

Okay. Agreed.

Question, though: does Reuters know this guy is writing for them?

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27 Replies to ““Why a U.S. government shutdown is worth it””

  1. JHoward says:

    How does nearly an entire press swallow the notion that bankruptcy is wise? Benevolent? Just? Progressive?

    How does a nation abide such assholes? To the point of madness?

    Is there a sociologist in the house?

  2. LBascom says:

    “House Majority Leader Eric Cantor (R-VA) says his party wants to send the Senate not one but two pieces of legislation to consider in an effort to keep the government operating.

    A government shutdown is not an acceptable action,” said Cantor. “We hope the Senate will finally join us and not play chicken with a government shutdown.”

  3. Jeff G. says:

    They aren’t shutting it down. The Dems would be.

  4. Ernst Schreiber says:

    The sociologists all work for the other side.

  5. McGehee says:

    They aren’t shutting it down. The Dems would be.

    Indeed, as some weirdo posted on his own blog last September:

    All President Fido has to do, to prevent a government shutdown, is NOT VETO THE SPENDING BILLS.

    He doesn’t even have to sign them — they can become law without his signature. Vetoing requires effort, while not vetoing does not.

    So, who’s going to shut down the government? Hmm?

  6. serr8d says:

    I’ll wager Squid® brand pitchforks would help remove that ‘impasse’.

  7. McGehee says:

    Of course, in the present case the Senate can, by inaction, cause the shutdown without Obama even becoming involved.

    It’s too bad the Republicans didn’t manage to win a few more seats last November. It would be fun watching Reid and his caucus fleeing to Canada to avoid voting on a budget.

  8. serr8d says:

    Better this way, McGehee, so as to spread the blame.

  9. geoffb says:

    For quite awhile it has been noticeable that the US government takes in in taxes in a certain year what it expended as a budget a couple years previously. The easiest fix has always been to freeze expenditures till revenue catches up and then one more year to start generating a surplus to pay down the debt. Adding cuts simply makes it get fixed faster. Like a diet, it’s just a matter of willpower.

  10. Ernst Schreiber says:

    SquidCo pitchforks are beneficial to empowering the will as well.

    Squid® brand or SquidCo? which is genuine and which is the (probably foreign and cheap) knockoff?

  11. Squid says:

    Squid® brand pitchforks and torches are made by SquidCo, a subsidiary of Red Mantis Enterprises, Inc. Believe me, nothing pointy or hot has a cephalopod on it unless it comes from me. (As luck would have it, the same tools that are so useful for political expression also come in real handy when it comes to trademark enforcement.)

  12. geoffb says:

    Question, though: does Reuters know this guy is writing for them?

    The AP knows what is newsworthy.

  13. geoffb says:

    Knows” knows.

  14. Squid says:

    Okay. Let’s ignore the union thugs beating up women across the country, and ignore the state Democrats fleeing their states in an effort to thwart the will of the electorate, and instead focus on one crazy old coot in Oglethorpe County, Georgia.

    I’m perfectly willing to accept that the old coot said what he’s reported as saying. I’m just amused that the MBM is being so transparent with their “LOOK! BUNNIES!” gambit.

  15. Jeff G. says:

    How do we know the guy wasn’t a plant? It usually is.

  16. Jeff G. says:

    Oh. He was questioned and isn’t considered a threat. I see.

    Has Capuano been questioned yet?

  17. Squid says:

    Has Capuano been questioned yet?

    Don’t be silly, Jeff. The old coot made a crack about Teh Won, which warrants an interview with the Secret Service. Capuano merely advocates violence against anyone who doesn’t agree to his terms. That’s perfectly fine!

    It’s worth noting that Capuano advocates for other people to get bloody in his little war. Push comes to shove, he’s heading for the state line with all his vermin brethren.

  18. Swen says:

    Here’s a thought: They’re threatening to shut down “non-essential services”. Considering the fiscal mess we’re in, if these services are truly non-essential shouldn’t we be able to get along without them? Shouldn’t we shut down these non-essential services and leave them shut down?

    This game is for high stakes, so see the Democrats’ temporary shutdown threat and raise them a permanent shutdown of all non-essential services. I’m guessing they’d fold like a cheap lawn chair.

  19. Swen says:

    Seriously. BATF? Shut it down. Department of Education? Shut down. HUD? Shut down. FCC and Public broadcasting? Pull the plug. Make your own list, it’s fun!

  20. geoffb says:

    Another view.

    How Wisconsin Could Save The Democratic Party.
    […]
    But longer term, losing this battle could be a boon to the Democratic Party and their goal for an activist government.

    Public employee unions have become the kudzu of government — growing fast and choking off everything else in its path.

    That liberal vision of high-speed rail, renewable energy, health care for all, more money for universities? Sorry, that money is going to government workers and retirees.

  21. Carin says:

    OMG, what would we do if the DoE was shut down?

    I bet time would stop.

  22. McGehee says:

    20. geoffb posted on 2/25 @ 5:49 pm

    Only trouble is, the unions are like the scorpion that hitched a ride across the river. Killing the host, and thus themselves, is their nature.

  23. Joe says:

    Even Newt “Dede Scozzafava is a good Republican” Gingrich said on NPR, in hindsight, he has no regrets on what he did on holding the budget line and helping to force a government shut down during the Clinton administration. As far as “getting blames for it” he points out the GOP majority held its majority in the next election cycle.

    Now overspending is not theoretical. Now it is real.

  24. Joe says:

    Oh cripey! They might defund NPR!

  25. TmjUtah says:

    61 Billion Dollars!

    Pfft.

    Rounding error.

    We. Are. In. A. Lot. Of. Trouble.

  26. Joe says:

    Get over $500 billion and we might be able to say, “It’s a start.”

  27. Swen says:

    25. TmjUtah posted on 2/25 @ 9:18 pm
    61 Billion Dollars!

    Pfft.

    Rounding error.

    We. Are. In. A. Lot. Of. Trouble.

    But, but, BUT!! It’s not how much they cut, it’s the principle of the thing. $61 billion is more than they’ve ever cut from the budget before!

    Can you believe that the Stupid Party has actually made that argument with a straight face? Yes, we’ll still go broke, but we should get a warm fuzzy for the Republicans ’cause they’re taking a stand on their principles.

    [Sigh] Yep, Deep Shit and we’re in it.

Comments are closed.