Category Archives: Debt and deficits

No Labels says “Enough”

Debt and deficits, Politics

There’s a bipartisan group called “No Labels” that has been making the argument that it’s time for Republicans and Democrats to stop playing partisan games. Among its leaders is Dave Walker, the former comptroller general under Presidents Clinton and Bush who was featured in the movie “I.O.U.S.A.”

The group is going on the air with the ad, “Enough,” shown above.

Here is the No Labels website.

And if you have never seen the movie, “I.O.U.S.A.,” here is the link. It called attention to the national debt problem way back in 2007, when the debt was $8.7 trillion. It’s now $14.3 trillion.

What if Uncle Sam became a deadbeat dad?

Debt and deficits, Politics

Of course, President Obama, the House and the Senate are going to find some way to merge their competing plans and raise the debt ceiling before August 2.

But what if they don’t?

Two things would happen.

First, the global economy, already shaky, would become even more so. The world’s safest investment, the United States government, would become a lot less safe. Don’t believe it? Consider how the world has reacted to little Greece’s troubles.

Second, the debt would grow, not shrink, despite what some congressmen are telling us. American taxpayers currently pay a very low interest rate on the debt because the government is seen as such a safe investment. What happens if the government is no longer seen as a safe borrower? The same thing that happens if you or I are seen as unsafe borrowers – investors demand higher interest rates in exchange for their capital. Who will pay those higher interest rates? Taxpayers.

Here’s more in this week’s Arkansas News Bureau column.

McConnell, McCain abdicating responsibility, trying to score points

Debt and deficits, Politics


Did you catch the quotes by Senate Majority Leader Mitch McConnell and Sen. John McCain in Thursday’s Arkansas Democrat-Gazette story headlined, “Still no give in debt impasse”?

The quotes are referring to a plan McConnell has offered where President Obama would be responsible for raising the debt ceiling and making spending reductions on his own with Congress able to stop it only with a two-thirds vote.

Those are decisions that Congress should make under the Constitution, but that’s not a concern when there are political points to be won. McConnell wants Obama to be responsible for raising the debt ceiling – which McConnell knows has to be done – so Republicans can run ads against him next year for raising the ceiling. It’s political gamesmanship at its ugliest when our country needs statesmanship and leadership most.

Here are the quotes.

McConnell: “I refuse to help Barack Obama get re-elected by marching Republicans into a position where we have co-ownership of a bad economy.”

McCain, in a statement, which means he had time to think about it, said McConnell’s proposal was “a smart, forward-looking plan to make clear to all Americans that should we get to August 2nd without an agreement, it is President Obama alone – and not Republicans in Congress – who decides whether to raise the debt limit, and owns the economic consequences of any default.”

This is abdication of responsibility at its worst, and it’s particularly shocking coming from an American hero like McCain.

This site is called “Independent Arkansas” for a reason, and when I think Democrats are wrong, I’ll say it. President Obama’s warnings that seniors might not get their Social Security checks was particularly silly and not believable.

But Wednesday, these two Republicans were about as wrong as elected officials can be. Sen. McConnell, you have been in the Senate for 27 years. Sen. McCain, you have been in the Senate for 25 years and in Congress since 1982. You own this economy and this debt just as President Obama does. Time and again, you have voted for tax and spending policies that have weighed this terrible burden on our children and grandchildren’s shoulders.

Fix it.

Arkansas’ congressmen vote against debt ceiling hike

Debt and deficits, U.S. Congress

Arkansas’ four congressmen today voted against H.R. 1954, the bill that would raise the country’s debt ceiling past its current $14.3 trillion limit. The bill failed with not a single Republican voting for it.

This does not mean the debt ceiling won’t be raised. There is still plenty of time before the country runs up against the time limit and begins to fail to make good on its obligations. The press releases I have received – from Reps. Ross, Griffin and Womack – indicate that the congressmen voted against the bill because it included no structural spending reforms.

I’m fine with that. For a long time, deficits in Washington have been all-too-business as usual. Ultimately, Congress will have to vote to raise the ceiling – and it will, despite all the saber-rattling. Let’s hope the congressmen get what they want and that the bill includes spending reforms.

Here are the statements released by the three congressmen, in the order that I received them. I have not yet heard from Rep. Rick Crawford from the First District.

ROSS – “I voted against raising the nation’s debt ceiling today because we’ve got to send a strong message that it’s past time to stop the out-of-control spending in Washington. Before I can support any increase in the debt ceiling, it must include meaningful spending cuts that will actually reduce our deficits without punishing America’s working families and seniors.

“The debt ceiling isn’t about new spending; it’s about meeting the debts and obligations we’ve already committed. It has been increased 36 times over the last 30 years, with President Reagan signing 17 debt limit increases into law and President Obama signing three so far. The debt ceiling problem isn’t new, but it’s reached a level that is unsustainable. Congress needs to stop the partisan bickering and start working together to draft a commonsense compromise that preserves America’s standing in the global economy, cuts spending and reduces our deficit.

“Instead of playing games with the debt limit, we should instead focus on how to get our nation’s fiscal house back in order. That’s why I have worked hard as co-chair of the fiscally conservative Democratic Blue Dog Coalition to pass components of our Blueprint for Fiscal Reform, cosponsoring 15 deficit or debt reducing bills, many of which have become law. This Congress, I’ve also voted to cut $38 billion from the 2011 budget and am working hard to build support for the Blue Dog Benchmarks for Fiscal Reform, which aims to cut the deficit by $4 trillion over the next decade. Reducing our deficit is and will continue to be my focus in Congress as a fiscal conservative and as a Representative from Arkansas.”

GRIFFIN – “Tonight, I voted ‘No’ to raising the national debt limit and will remain opposed to raising it without serious structural spending reform. Neither the President nor Senator Reid has a plan to deal with the federal government’s out-of-control spending, but the House does. They should adopt the House’s reforms to save Medicare, reduce spending and encourage private-sector job creation. I understand the gravity of what is at stake and addressing the root cause of the debt—out-of-control spending—is the only way forward.”

WOMACK – “I have said all along that the fiscal situation facing our nation is among our highest priorities in Congress. It is unconscionable to consider an increase in the debt ceiling without significant and guaranteed limits on federal spending.

“We cannot continue to add to the burden of future generations by ignoring our obligation to control spending.”