Debate Over Automatic Spending Cuts
http://thedianerehmshow.org/shows/2012-08-02/debate-over-automatic-spending-cuts
By most accounts, the U. S. is headed for a fiscal cliff at the end of this year. Congress is at loggerheads over Bush-era tax cuts which are due to expire December 31st. Then there’s sequestration – mandatory across-the-board budget cuts slated for January 2nd -- the result of a bipartisan deal passed last year. The combined effects of these events could be disastrous. Members of both parties worry automatic defense cuts could jeopardize the military. Sequestration might also slash funds for education, infrastructure, head start, and food safety. Diane and her guests discuss the debate over automatic spending cuts.
Guests
Jared Bernstein
senior fellow at the Center on Budget and Policy Priorities, and former chief economist and economic policy adviser for Vice President Joe Biden.
Mackenzie Eaglen
research fellow at the American Enterprise Institute’s Marilyn Ware Center for Security Studies.
David Welna
congressional correspondent for NPR.
Comments
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Oh we've seen this game before, arguments on both sides and at the eleventh hour there will be a repeal of the sequestration and the same old tax and spend politicians will get what they want. Hope your all ready instead of real change that makes the government actually spend tax dollars efficiently, were going to have our pockets picked again so democrats and republicans can spend on pet projects and continue to underwrite people that don't want to work at making their lives better on their own.
I would be in favor of cuts if the politicians were included in it. They should voluntarily take cuts in pay and fringe benefits. And also vote term limitations on themselves.
Ain't gonna happen.
We are very limited in our choices anyway. We can raise taxes, cut spending, or do a combination of both. Of course, there is bankruptcy. And that's it. As for those of us in the lower classes, we might have enough in the way of food, clothing and shelter to survive. Maybe.
When our economic and political system collapses, and civl war breaks out (if we are REALLY unlucky), I wonder who they will blame then?
The T-Party shutdown of the U.S. Government cost taxpayers $1.2 BILLION to date. That does not include the fear and uncertainty the American people feel,and the resulting slowdown of the recovery.
In my eyes these T-Party crazies hate our United States government more than any terrorist.The 4th 9/11 plane was headed for Washington D.C.. The T-Party goal has been to finish the job that plane failed to accomplish,and crash our government.
Any government "Of the People,by the People,for the People", who forgets those words,and as the T-Party demands,is destined to fail. We do not need a military to protect closed plants,closed rec. centers,closed city pools,closed V.A.medical centers,closed food stamps offices,closed health care ctrs.,closed post offices,closed libraries,closed schools,and on and on.
Aren’t the automatic cuts a direct result from the Joint Select Committee on Deficit Reduction's failure to identify a deficit reduction? Wasn’t the sequestration process put on the table as an impetus for a bipartisan effort? Congress has painted itself into a corner with this one. If sequestration is nullified it will be more evidence that Congressional budget policy is just a game—and that the game is in fact rigged.
The U.S. Congress--the best congress money can (and did) buy. LOL
As for the Tea Party, they believe that the best government is no government at all. No government means chaos.
Which is great for those who have masochistic tendencies anyway.
This is appalling. Do Congress people think we are all unintelligent?
This crisis has been created by Congress and for Congress. It allows them to be the white knight riding to the rescue when in fact, if they had done their work all along -- as in compromising and giving in on some things -- we would not be looking at a jump off the cliff.
What's ironic is the final decisions will be left up to a lame duck session in which some members will be bitter about a defeat in November. It will be interesting to see what happens.
They could find a way make these cuts without hurting national security if they wanted too. The people have the government they deserve and voted for. If anything T party politicians are the only ones making any sense these days.
BRING ON THE CUTS, ALL OF THEM AND MUCH MORE!
We can't continue to spend. We can't make cuts. Some agency may suffer. Some business may suffer.
We were warned about the military industrial complex many years ago, and we didn't listen then and we won't listen, once again.
This sequester deadline was passed by both parties to kick the can further down the road and avoid the real work that faces Congress to right the economic ship USA. We should vote out ALL of them, on both sides of the aisle and elect people who will do what it takes.
Diane, Do you, or any of your guests believe that "all men are created equal"? If so, why then is it all right to discriminate when it comes to taxation. I'm tired of hearing the same old side to tax the top percentage. Warren Buffet should pay the same as me (struggling self-employed business owner and Real Estate Broker) and the same as his secretary and the same as the Wal-Mart employee. If we are created equal it's that simple. Shouldn't even be on the table, just like multiple taxation levels. Sequestration is trending in the right direction. A simple stright cut across the board solves this with NO revenue increases very easily. Cut the President's pay and benefits, the Congresss & Senates, the lawn care guy and garbage man at the White House everything and everyone in the Federal Government take a straight across the board cut and this deal is done- and yes it is that simple.
Notice how they handle that callers garbage about "fair share", proposed tax increases on the rich do nothing to solve trillion dollar deficits, a drop in the bucket. Why would any corporation invest in jobs if no one is buying anything.
I am reminded of Naomi Klein's wonderful book The Shock Doctrine, the Rise of Disaster Capitalism and wondering who in the end will actually profit from this whole situation. As a day trader, I can actually buy stocks when they go down with each new prophesy of doom and sell a week, sometimes days later at a healthy profit when there is some announcement of a glimmer of hope. Let's just hope that Elizabeth Warren is elected to the Senate as I truly believe she we endeavor to "follow the money" in order to propose meaning legislation to curb all this schiznet.
Hello,
doesn't the panel think it would be a good idea for Obama to attempt to rally the country around a full blown tax/revenue/debt reduction programme in the form elucidated by Simpson-Bowles - I do not see how the congress die-hards could get around this.
Thankyou
The Department of Labor's Education and Training Administration on Monday (July 30th) issued guidance stating that it would be "inappropriate" for federal contractors to issue federal WARN Act notices to their employees who would be laid off by sequestration cuts. This was a clearly politically motivated move considering that the DOL ETA has previously said it does not give specific guidance on federal WARN notices, and -- most tellingly -- because federal WARN would require those notices to be provided 60 days prior to the January 2nd sequestration cuts -- in other words, notifying federal contract employees they would soon lose their jobs the week before the November election. Despicable use of federal agency power.
" you can only cut so much before government becomes unrecognizable" i have thought all along that is what the GOP goal is, no government for corporations or people and institute a ruling class. Why does the GOP hate America???
It’s no surprise that the nation’s largest recipients of welfare (Boeing, General Dynamics, etc) are angry that their welfare payments may be trimmed slightly. The idea of us making our “defense” spending microscopically less insane is unprecedented.
This reminds me of The Shock Doctrine as well. Scare us all to death and then we'll accept whatever. I see the same economic terrorism going on in Europe. Somebody is definitely profiting from this dismantling of the government/s. and it's not the people.
Even if they fired every federal employee it would only cut a small % of the deficit.
The entire panel on this show is comprised of big government progressives. Absolutely nothing has been learned or accomplished other than repeating democrat party talking points. What a shock!
Diane's editoralization at about the :47 minute mark once again proves that delusion is a wonderful thing. How sad.
Debt forgiveness is the only solution. The United States did this in 1840. Time to do it again.
All Debt.
If you want the economy to come back....it's the only solution.
Beyond that, we're just yakking to hear ourselves yak.
Teece Bowman wrote: "Debt forgiveness is the only solution. The United States did this in 1840. Time to do it again.All Debt."
If this was done the ramifications would be huge, one small part is no one would buy American treasury bonds to support deficit spending. Since 40 cents of every dollar the federal government spends is borrowed it would be an immediate cut in federal spending by 40%, this does not even take into account local government bonds or any other creditors. This proposal would send the world into a deep depression.
Do you have any idea of what your talking about?
I should add that a lot of this will have to happen eventually if federal government spending is not cut back and soon.
"President Obama already has said he will exempt military personnel accounts from a reduction" from http://www.pbs.org/newshour/rundown/2012/08/deputy-secretary-of-defense-...
Maybe the only take-away from this debacle of a hearing. Watch the C-Span footage and you''ll see most of the "armed services" committee head out for lunch as soon as they get done taking pot shots at Mr. Zaintz, who with his F-U money, handled it with great aplomb .
Hey California, do yourselves and us a favor and retire Buck Mckeon. He doesn't respect teachers or education, it took him 29 years to get a bachelors. And I thought we elected corrupt, stupid, tone-deaf and mean people in Maryland, like Dutch Ruppersberger.
We are in a complicated world, but luckily, we are intelligent people. Let's think about what a wise nation would do, and do it.
"No nation could preserve its freedom in the midst of continual warfare." - James Madison
Mackenzie and Diane, sittin' in a tree.
Agreein' to A*G*R*E*E.
Thanks, Mr Mackenzie, for exposing all those Republicans willing to raise taxes, especially taxes on the Rich!!
During the Meltdown, we heard about all the concessions the Republicans were willing to make and when the Seagull droppings hit the fan, it was NO, NO, NO, NO!!!
Followed by, "Ah well, poor Boehner couldn't keep his troops lined up".
The Israelis were masters of the disinformative- 6:00 News, "Chairman Arafat agreed to everything", followed by the Chairman Arafat denying it (feverishly but usually futilely) on the 11:00 News.
Just last week, the Jews got a letter saying that the new Egyptian Government just loves Israel to pieces and pledged their Sacred Honor to defending Israel from Her manifold Enemies.
The Egyptians vigorously denied it.
Yesterday, the Cato Guy and the WaPo Girl (Whose boss is now using its paper distribution network to compete against the PO by delivering Subscription Magazines) were allowed nearly an Hour of blather about every irrelevant subject under the Sun.
While Diane cut the Postal Union Man off, over and over again, which is her usual wont in handling Liberal and Democrat Guests.
Monte Haun mchaun@hotmail.com
The reason we're approaching the cliff is because we spend way too much money. It's nice to have entitlements, but like anyone who has a household budget to worry about, you pay the bills first and then play with whats left over. And in this time of a recession when revenue is down, we just keep spending like there's no tomorrow. Borrow, borrow, borrow.....cause we'll worry about paying it back "someday". Everytime I look in the rear view mirror, I see Greece getting a little closer. One caller mentioned he wouldn't mind paying more taxes to clear our existing debts, if only we would stop creating new ones. Every politician in Washington who proposes spending more money and creating new entitlements, needs to be run out on a rail. I think across the board spending cuts are great. It means the Federal Government will actually shrink, making what's left more efficient. For the upcoming elections, you really only need to know one thing about the candidates and incumbents; do they have a vision for a larger Federal Government, or a smaller one. Vote accordingly.