The Effects of a Government Shutdown and What Could Prevent It

The Effects of a Government Shutdown and What Could Prevent It

Tensions are high as the deadline looms for Congress to reach a budget agreement with the possibility of a government shutdown. What an interruption in government services would mean politically and economically and the prospects for a deal.

Washington's battle over the budget has intensified as the March 4th deadline for an agreement nears. Democrats over the weekend signaled a willingness to accept a stop-gap measure offered by Republicans. If approved, it would keep the government operating until mid-March. But the underlying conflict would remain. Republicans want $61 billion in spending cuts, which Democrats believe are too severe and would hurt economic recovery efforts. Complicating prospects for a longer-term solution are tea party lawmakers. They say even the Republican plan does not go far enough. The budget showdown.

Guests

Norman Ornstein

resident scholar at the American Enterprise Institute and coauthor of "The Broken Branch: How Congress Is Failing America and How to Get It Back on Track."

Naftali Bendavid

national correspondent, The Wall Street Journal.

Daniel Glickman

senior fellow, Bipartisan Policy Center; former secretary of agriculture under President Bill Clinton; former Democratic congressman, representing Kansas.

Matt Kibbe

president and CEO of FreedomWorks and co-author with former House Majority Leader Dick Armey of the book, "Give Us Liberty: A Tea Party Manifesto."

Comments

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A caller said no problem about the deficit at this tough time because there is history of America running one even larger, after WWII. Not mentioned was that the larger deficit paid for the war, after which America was the only man left standing, was the world's biggest creditor (not the world's biggest debtor), and China had not been invented.

February 28, 2011 - 11:39 pm

Matt Kibbe parrots the corporate right think-tank message: "The government is too big."

Government is NOT too big. Given the problems with the de-regulated banks, the challenges of our public schools, and de-regulation of corporations regarding pollution control and the subsequent collapsing of our environment, and the governments great capacity to create jobs, the government needs to grow.

Matt Kibbe is no more than an ad-man for the corporation. The Tea Party was created by a large PR firm working for the health insurance industry. Read "Deadly Spin" by Wendell Potter, former higher-up PR man for SIGNA.

The Republican Party and its corporation-representing partner the Tea Party have nothing to offer Americans. Their message is a) government is too big, b) cut taxes for the rich, and c) de-regulated industry. They want to get rid of social security, medicare and medicade, the Environmental Protection Agency, and public schooling.

The top 20% Americans have 86% of the wealth and they send their lobbyists to Washington and pay think tanks and media and guys like Matt Kibbe. These people do not represent us.

March 1, 2011 - 1:26 am

Diane, ultimately, this program was a failure. This panel was spread between the far right (Matt Kibbe from the Tea Party, and Norman Ornstein of the American Enterprise, and the reporter for the Wall Street Journal) and the conservative Clinton adviser.

Nothing mentioned how the Republican policy created the deficit, that tax cuts for the wealthy alone comes to well over a trillion dollars, that extended-invasions into Iraq and Afghanistan comes to more than three trillion dollars. Nothing about Keynesian approaches to the economy that worked in the Great Depression and throughout modern American history.

Diane, Matt Kibbe works for the likes of Haliburton, CIGNA, Exxon, and Morgan Stanley. Why not bring on Paul Krugman or Noam Chomsky instead of corporate PR men? The poor are dying, the working class has no jobs, and the middle class has evaporated. And in response to all this, Republicans threatened to close down government if Obama and Democrats did not give tax cuts to the rich. Stunning.

Diane, we need more information in these dark times, not advertisements from people with vested interests.

Please.

March 1, 2011 - 2:06 am

have finished reading all the comments now. one wonders... public radio depends on donations and contributions from "listeners." has diane begun taking contributions from the likes of the scaife foundations or olin foundation or maybe the koch brothers? has she totally sold out? do a bit of research on the funding of the openly conservative american enterprise institute, for example. then listen to her lob her softball questions. used to, as i recall, diane would challenge her guests. what happened? i'm no longer just disappointed or disgusted: i'm incensed!

March 1, 2011 - 2:04 am

I continue to be disgusted with the talking point "unless we cut. cut, cut programs like crazy the children of the future will be punished".

Nobody is publically focusing, even in talking point phrases, on the children of the present!!!! Especially if the major cuts are in programs that sustain their reasonable quality of life - like health and education.

In this cut, cut, cut environment it's my guess that the children of the wealthy will not suffer a damaging quality of left.

LUActivist

March 1, 2011 - 5:05 am

John Doe:

The top 1% pay 38% of the tax bill. 10% pay 90% of the the total tax bill. Doesn't sound to bad for the bottom 80% . We have a good percentage of the poor getting a earned income(welfare Check) who never paid into the system.

I though the Tea Party was made up of middle class individuals who are tired of the waste in Washington. We had a very large part of the population vote in this past November election that elected 63 new Republican members to Congress and we demand change.
Don't think that the Democratic/Liberals don't have their lobbyists funded by Soros, NEA, and other unions.

Like I stated in another post. I would have more money if I would have the option to put in SS or a regular money market account earning less than 1% interest.

March 1, 2011 - 8:53 am

LUActivist:

If your so interested in "The Children" why are you not supporting a voucher system that allows these children to go to private or Christian schools. Many of these kids come from one parent homes who have no positive male figure in their life.
Today's news, stated that African-Americans kids are more likely to be kicked out of regular public schools for their behavior. Behavior is learned.
You mention children of the wealthy, do you realize that 85% of Hispanic lawmakers have had or have their children go to private schools. I sure it is the same with Black lawmakers. In Washington DC, there was a Federally funded voucher program for high risk to go to private schools and when Obama came into office, he put a halt to it. I guess it was a favor to the NEA union.

March 1, 2011 - 9:06 am

meangreen (well-chosen name)--are you one of those paid trolls or are you a voluntary lackey of the rich class warfare mongers?

March 1, 2011 - 10:36 am

I am a devoted listener but yesterday's program was very upsetting. If I wanted to hear the tea party manifesto put forth without the views of an informed critic who disagrees with it, I can just tune into Fox News. I really do expect better of your program in this regard.

March 1, 2011 - 11:55 am

Neither pzykr:

I am a middle class individual making $50,000 a year. I bought some oil and gas stock for the first time back in 2004 being that SS will not be around when retirement comes in 16 yrs. I am glad I did.
So you know, "meangreen" is the mascot name for the state university I went too.

How about yourself pzykr?

March 1, 2011 - 11:56 am

I was very angry listening to this program. Where was the Liberal position in this issue? AEI, Freedom Works/Tea Party, Wall Street Journal and Clinton's Administration/DNCC = the right wing of the GOP - the far-right-wing of the GOP, the mouth-piece for Corporate America and the Wall Street position.
How on earth is this a balance conversation on the condition of our economy or politics? If I wanted this type of pure spin I'd listen to CNBC.
Diane you can and usually do better than this. I'd rather you bring on the program unbiased economists, historians and political scientists to educate me not political hacks to repeat the party talking-points.

March 1, 2011 - 1:05 pm

meangreen: thx for your moderate reply. i am a middle class professional with a graduate degree who never made close to what you make (helping others doesn't pay well), currently drawing social security disability as i have terminal cancer.

i cannot understand how middle class folks can vote against their own interests supporting the republican class warriors in support of the obscenely rich... your posts sound as if you are a tea partier (maybe you aren't): i absolutely don't understand middle class americans supporting the tea party (funded by the super-rich), as i said, in opposition to their own self-interests. in my field, psychology, one would suspect a kind of identification, or maybe even a kind of stockholm syndrome...

anyway, i'm glad social security isn't all i have to depend on for my well-being: i'm also an honorably discharged veteran with service-connected disabilities so i do get pretty good health care. unlike medicare, the veteran's administration is allowed by law to negotiate for cheaper drug prices...

when i look at what's happened in this country since the cynically sainted ronald reagan was president i become so angry! i am so glad i do not watch television! the pernicious influence of media manipulation is criminal and immoral.

i don't expect to change your mind--you in turn should not expect to change mine. so it goes, and we are a house divided against itself...

March 1, 2011 - 1:23 pm

pzykr. First let me offer you my concerns with your battle with cancer. It is a painful illness and also I want to thank you for serving our country.
One of the reasons we view certain things the way we do and your psychology background proves this has to do with the family we were raised in. My dad came from Mexico in 1922 when that country was in chaos during their civil war. Because his dad was fighting he had to bring food to the table and new what hunger was all about. When he entered this country at age 13 yrs there was no safety nets. The only hope was that life here would be better.
I was an only child whose Dad was in Civil Service and bought some real estate property. We lived in a very simple house being that my parents went through the depression and new how to penny pinch.
The biggest problems with this current system of dependency is very similar to what I grew up in. When I graduated from college in 81, my dad told me I would not have to work another day in my life because of these investments. There was no incentive to really find a job because I would have that safety net. Same thing we are seeing with this present administration and going back to the Johnson years. A birth to death being taken care of. Now the last 16 yrs of my life were blue collar jobs before this present one. Did not like it but I did it to support a family. People have become spoiled in taking any job. Now yes, I do support the Tea Party and am sorry that I was not with the 10 thousands people last April in front of Alamo Plaza.
As for rich people I have seen them contribute to the less fortunate. Even Bill Gates is giving half or all his wealth for the betterment of mankind.
The way you feel about Reagan is the way I feel about Obama. A person that has never had a real job in the private sector. I see him more as an "egghead" whose has never had any experience outside academia.

March 1, 2011 - 2:29 pm

meangreen: my parents, too, went through the great depression: poor, working class folks. i was the only member of my immediate family even to finish high school, much less go to college. i've experienced this country from the underside...

you think a few stocks will ensure your future against old age? super-rich people have hedge funds that take a million dollars just to buy into. these funds often have more capital than many countries. they make deals with banks to screw people like you out of your investments, making money when your portfolio loses money. they deliberately run your stock values down to make their fat profit.

conservatives have hated social security since it was enacted in the 1930s. large, well-funded foundations (wikipedia|aei for some of them) are all spending money trying to destroy social security; the koch brothers are funding the tea party movement (which is NOT a grassroots movement but is rather an "astroturf" movement--a front group for these super-rich class warriors) all have an agenda of destroying social security and reducing the government to something that can never interfere with big business again. these people are predators and middle-class tea partiers are their pawns.

in today's society, the way to enslave a person is to give him or her credit. these big corporations are competing to give people credit, creating large groups of bonded servants who no longer have the freedom to do anything but be consumers, for which they need to use more credit, burying themselves deeper into servitude. that's why i use the term "stockholm syndrome." they identify with their captors after a while... it's an odd kind of dynamic.

you seem like a decent sort of person, meangreen. do a bit of research. think for yourself! shed your bonds! and by ALL means, TURN OFF FOX NEWS!!! in fact, turn off television entirely. read!

and go in peace...

March 1, 2011 - 5:10 pm

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March 6, 2011 - 10:03 pm

"BristolRI wrote: What is the Tea Party's evidence that "every dollar the government spends is a dollar the private sector doesn't spend?" Many, many economists would disagree."

Tea Party macroeconomics assumes that every government check is cashed on a distant planet.

March 7, 2011 - 12:44 pm

how stupid can our government be? leagalize cannabis and everything is solved. its the leading cash crop in the world and its still illegal. they could be making so much money off of it. alcohol is leagal but cannabis isnt? more and more people are doing it now then ever befor, so if the government would open their eyes and get their heads out of their ass's everything would be solved.

April 6, 2011 - 12:44 pm

The Diane Rehm Show is produced by member-supported WAMU 88.5 in Washington DC.