Debt Central’s latest deal on the federal budget

By Richard Olivastro
Posted 8/1/11

Let’s put government on a diet. But, first, let’s increase the debt ceiling by $2.1 trillion. Does that make any sense?

Apparently, it does to most Washington D.C., “Debt Central” incumbents as well as those politicized Americans who …

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Debt Central’s latest deal on the federal budget

Posted

Let’s put government on a diet. But, first, let’s increase the debt ceiling by $2.1 trillion. Does that make any sense?

Apparently, it does to most Washington D.C., “Debt Central” incumbents as well as those politicized Americans who continue to buy into it.

Before discussing this latest political deal, consider this :

You go to the doctor’s office for your annual checkup. The doctor tells you the score, adding: “You’re obese, you must lose weight.”

Perhaps anticipating the doctor’s diagnosis, you decide to step on the scale at home to save time, the co-pay and the gasoline. 

Regardless of the location of the weigh-in, your next thought is likely, “I guess I should lose a few pounds.” Your second thought may be, “Do I really want to cut back?”

Then, decisively, you think: “I’ll start to cut back, after Friday’s all-you-can-eat Chinese Buffet!

Is that what leading federal incumbents at Debt Central have chosen … to continue the government spending buffet provided by the Chinese?

While only time will tell, here’s what we know so far about this latest deal:

•It appears the proverbial can has been kicked down the calendar road into 2013, which is what Barack Obama wanted most.

•Only $10 billion in spending cuts are required during fiscal 2012 and 2013, respectively $7 billion and $3 billion below current levels. That is what congressional Democrats wanted most.

•“It’s all spending cuts.” That is what House Republicans wanted.

Potentially much more important is what House Speaker John Boehner also said: “There is nothing in this framework that violates our principles.”

Obviously, he is referring to: “It’s all spending cuts.”

If that proves true as we learn more details and through subsequent dealings, that will be significant. Here’s why:

The actual spending cuts during this current fiscal year as well as cuts during the each succeeding fiscal year’s spending — without any tax increases — are the better critical measures of incumbent Republican performance. 

On that score, John Boehner’s statement suggests he understands that reality. He said, “The (Obama) White House bid to raise taxes has been shut down. And as I vowed back in May, when everyone thought I was crazy for saying it, every dollar of debt limit increase will be matched by more than a dollar of spending cuts.”

In other words, Republicans may actually bend the spending curve downward. That would be significant for all Americans.

It would also be significant for Republicans. And, it would be significant for John Boehner of Ohio.

To date, Boehner has not enjoyed consistent support from conservatives. That could and should change if Boehner achieves what he has stated.

If House Republicans hold to their position, they will have stuck to stated principles. If Senate Republicans adopt the same consistent principles, a solid line is formed.

If presidential candidates unequivocally do the same, Republicans everywhere win. Yes, those are big political “ifs” in a Washington that epitomizes “Debt Central.”

Here’s another: If — John Boehner can lead Republicans to do the right thing?

Richard Olivastro is president of Olivastro Communications and founder of Citizens for Change. A professional member of the National Speakers Association, he is available pro bono for charitable fundraisers and public forums and can be reached via e-mail at RichOlivastro@gmail.com or by phone at 1-877-RichSpeaks.