The Supercommittee Isn't Making Super Cuts
Budget: Given all the hoopla, you'd think the deficit Supercommittee was hacking away at the size of government without mercy. In fact, even the $1.2 trillion in hoped-for cuts will do nothing to attack our long-term deficits.
Sometimes it's worse to pretend to be doing something about a serious problem than it is to do nothing at all. That's where we are in our talks about our out-of-control spending.
Just as the European Union did, we're going through two months of talks about what to do about long-term fiscal imbalances. Under the deal that kept the government from shutting down last summer, the so-called supercommittee was supposed to take politics out of the equation by making talks truly "bipartisan."
Unfortunately, the goal behind the talks - a mere $1.2 trillion in deficit cuts over 10 years - is nothing compared to the tidal wave of red ink that's about to hit.
The Democrats' latest proposal - $1 trillion in new taxes in exchange for $3 trillion in total deficit reduction - shows just how unserious they are.
Not only would the economy be saddled with new taxes in the middle of the worst slump since the Depression. The massive level of spending that has taken place under President Obama and his Democratic allies in Congress wouldn't begin to be addressed.
A recent analysis by the General Accountability Office underscores this. Its "alternative" analysis of future trends - those most likely to happen - shows deficits totaling more than $8.5 trillion by 2021. Wall Street analysts are less optimistic, expecting $10 trillion or larger.
In short, the $1.2 trillion is, fiscally speaking, nothing.
Yet, two months into talks, and we can't even get a deal on this tiny amount. Democrats have dug in their heels. They want defense slashed, taxes raised on the wealthy and $300 billion more in stimulus spending - which they bizarrely claim will "save" money.
The Donkey Party has refused to pass a budget for 2 1/2 years, a violation of U.S. law. They've rejected every serious spending cut so far. Even so, we're supposed to believe they're serious about cutting the deficit?
Maybe they know that if they wait until Nov. 23, the deadline for the talks to end, the cuts will automatically be made. And half of them will come from defense.
If so, it's one of the most cynical political performances ever - and a fitting capstone to the past four years of uncontrolled spending and soaring debt.
Since 2007, federal spending has soared 40%. So when Democrats talk about "deep cuts" and "austerity," they're being profoundly dishonest.
Based on Congressional Budget Office estimates, we'll spend $46 trillion over the next 10 years - a jump of 69% from the previous 10 years. If we cut that spending gain to, say, 40% instead, the budget is balanced.
The federal government now spends 25% of our nation's economy - one of every four dollars. The supercommittee's talks aren't serious until they address cutting that back at least below 20% - the government's average for most of the post-World War II era.
