In his State of the Union address, Obama calls on Congress to reject manufactured crises as a way of doing its budgetary business. But with fiscal flash points looming, the temptations are powerful.
“Let’s set party interests aside and work to pass a budget that replaces reckless cuts with smart savings and wise investments in our future,” Mr. Obama said. “And let’s do it without the brinkmanship that stresses consumers and scares off investors. The greatest nation on Earth cannot keep conducting its business by drifting from one manufactured crisis to the next.”
The problem? Everyone in Washington – Republican and Democrat – agrees that the 11th-hour, shrouded-in-secrecy fashion in which Washington handles its financial matters is profoundly insane. Yet none are willing to give up their own points of fiscal leverage to allow the rational, top-to-bottom review of the nation’s taxing and spending policies that everyone says the town needs.
First, a quick review of impending fiscal flash points. Some $85 billion in spending reductions (known in D.C. as the “sequester”) that will hit nearly every function of government outside federal health-care programs, Social Security, and military personnel, land on March 1.
At the end of that month, funding runs out for the federal government’s general operations (via a “continuing resolution” in D.C. speak). And the nation must raise its borrowing authority (aka the “debt limit”) sometime during the summer.
But the first installment, the sequester, is a good example of Washington making lots of noise about rationality while a given fiscal fuse burns.
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