Archive for the 'federal shutdown' Category

Not raising the debt limit = balancing the budget

Posted by on Oct 16 2013 | congress, Constitutional Law, debt, federal shutdown, Government Largess, Government Largess, Growth of Government, Spending Clause

Not raising the debt limit is simply running a balanced budget.

Yes, that’s right: The President and Congress may have to balance the federal budget in the next few days! Horrors!

Let’s get some clarity here. When the federal government hits the debt limit it does NOT mean that it can’t borrow or that it can’t pay existing debts. It just means it cannot continue to run a deficit. Spending becomes limited by revenue, and existing debt may be replaced by new debt. The government just can’t add MORE debt.

That means the government has to prioritize. The obvious priorities are:

* First, pay principal and interest on existing debts to avoid default. (There is plenty of tax revenue for this.)

* Pay the military and spend what is necessary for defense. (There is plenty of tax revenue for this, also.)

* Pay for other programs authorized by the Constitution. (Ditto)

* If money is left over, pay debts previously incurred for programs not authorized by the Constitution. (There will not be enough for this, so they will have to be closed down and paid off over time.)

This is the basic situation that Washington, D.C., its hangers-on, and the mainstream media think is so terrible.

Granted, suddenly balancing the budget may not be pretty. The states will have to take up some of the services the feds have been running on borrowed money. But they can do it better and more efficiently, anyway. (Colorado already is responding by keeping Rocky Mountain National Park open during the partial federal shutdown.)

Even if it’s not pretty, the history of other indebted nations during the last few decades—including our neighbor Canada—shows that shock treatment may be the best way for a country to get its fiscal health in order.

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Shut ‘Er Down!

Posted by on Sep 29 2013 | defunding Obamacare, federal shutdown, House Republicans, Natelson Rob', obama, obamacare, Rob Natelson, shutdown

Two stories in today’s Denver Post show how cynically the mainstream media are playing the story about what they misleadingly call a “government shutdown.”

Of course, it’s really not a shutdown, just a slowdown—more on that below. And in our constitutional system the states, not the feds, are the primary line of government. The states will still be around to help us through.

And neither story comes to grips with the truth: If we have to endure the full force of Obamacare, it will be a far greater, and far longer lasting, disaster than any temporary federal slowdown.

One of the two stories is “House Pushes Closer to Federal Shutdown.” The e-version is “Budget Fight: GOP Refuses to Drop Assault on Health Law.” It originated at the Washington Post. As both titles suggest, it is written to blame everything on House Republicans. No mention of President Obama’s unprecedented refusal to negotiate. Prior Congresses and Presidents have always been willing to give a little to come to a deal. The Obama position has been “My way or the highway.”

Actually, the House Republicans have been quite moderate about this whole affair. They have repeatedly passed appropriation bills. They have asked only to de-fund one program and have not asked for any other significant budget cuts. (With a $17 trillion deficit, you have to ask “Why not?”) Very moderate, in the overall scheme of things.

A second story, originating at the Los Angeles Times, is entitled “Federal Shutdown Would be Monumental,” but its on-line version is “Federal Officials Warn of Shutdown’s Effects.” Again, both headlines reveal the co-authors’ goal: To panic people—just like they tried to scare us about the sequester.

Would a federal slowdown really be so bad? Social security and other entitlements will continue to flow. Truly vital services will continue. The military and other federal workers will get their back pay. (Anyway, House Republicans stand willing to pass a military appropriations bill at any time.)

Yes, some unconstitutional federal programs will pause. There might be a delay, for example, in grants to promote political correctness or to study the mating habits of apes. But that’s a good thing. Yes, The national parks will close, but for most of them the season’s pretty much over anyway.

Is anyone really horrified at the prospect of, say, not being about to reach an IRS bureaucrat on the telephone?

Will the slowdown hurt the economy? I’m not so sure. If the slowdown reduces the deficit or keeps money in the private economy, it might help. If it forces federal regulators to take a holiday, on balance that might help, too. After all, we’ll still have state regulators available to deal with egregious situations.

For this constitutionalist and fiscal conservative, the stakes are “Obamacare or temporary slowdown?” Given that choice, I’ll take the slowdown any day.

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