In a must-read editorial today, The Wall Street Journal writes, "Perhaps you missed it, but then so did the Washington press corps. Late last week the Congressional Budget Office released its preliminary budget tallies for fiscal year 2010, and the news is that the U.S. government had another fabulous year—in spending your money. . . . Spending rolled in for the year that ended September 30 at $3.45 trillion, second only to 2009′s $3.52 trillion in the record books. But don't think this means Washington was relatively less spendthrift. CBO reports that the modest overall spending decline results from three one-time events. The costs of TARP declined by $262 billion from 2009 as banks repaid their bailout cash, payments to Fannie Mae and Freddie Mac were $51 billion lower (though still a $40 billion net loser for the taxpayer), and deposit insurance payments fell by $55 billion year over year. 'Excluding those three programs, spending rose by about 9 percent in 2010, somewhat faster than in recent years,' CBO says."
The WSJ editors continue, "What did Washington spend more money on? Well, despite two wars, defense spending rose by 4.7% to $667 billion, down from an annual average increase of 8% from 2005 to 2009. Once again domestic accounts far and away led the increases. Medicaid rose by 8.7%, and unemployment benefits by an astonishing 34.3%—to $160 billion. The costs of jobless insurance have tripled in two years. CBO adds that if you take out the savings for deposit insurance, funding for all 'other activities' of government—education, transportation, foreign aid, housing, and so on—rose by 13% in 2010."
"As for the deficits," the editorial goes on, "the 2010 total was $1.29 trillion, down slightly from $1.42 trillion. That's a two-year total of $2.7 trillion, or more than the entire amount during the Reagan Administration, when deficits were supposed to be ruinous. Now liberal economists tell us that deficits are the key to restoring prosperity. But all we have to show for spending nearly 25% of GDP for two years running is a growth rate of 1.7% and 9.6% unemployment. Those slow growth numbers have contributed to the deficits by yielding paltry tax revenues."
Recall that it was a week ago that Reuters reported, "President Barack Obama on Monday said the United States was facing an 'untenable fiscal situation' and would have to get serious about tackling its federal deficit." But it's been the policies of President Obama and the Democrat majorities in Congress that have gotten the country into this very fiscal situation. As the WSJ editors put it, "The 21.4% federal spending increase in two years ought to put to rest any debate about the nature of America's fiscal problem. The Pelosi Congress has used the recession as an excuse to send spending to record heights, and its economic policies have contributed to a lousy recovery."
A new Bloomberg National Poll of likely voters today finds that after unemployment, "[t]he budget deficit, which was $1.291 trillion for the fiscal year that ended Sept. 30 and $1.416 trillion for 2009, ranks as the second most pressing issue, cited by 27 percent." Little wonder, then, that the poll's marquee result is, "Hope has turned to doubt and disenchantment for almost half of President Barack Obama's supporters. More than 4 of 10 likely voters who say they once considered themselves Obama backers now are either less supportive or say they no longer support him at all . . . ."
As Senate Republican Leader Mitch McConnell says, "Americans have had it." He pointed out recently, "[W]ith each passing month, and each new jobs report, it becomes increasingly clear that while massive Washington spending is growing the size of government, it's clearly not growing sustainable private-sector jobs. The trillion-dollar stimulus didn't live up to promises made by the Obama administration and Democrats in Congress; the massive growth of the federal government didn't result in a similar growth of jobs; and the maze of new regulations, health care mandates and taxes are having a predictable impact on the economy."
Indeed, and as the WSJ editors conclude, "The solution is to stop the spending and change the policies."
On The Floor
The Senate reconvened for a pro forma session at 10 AM today and is in recess until the next scheduled pro forma session on Friday at 10 AM. The Senate will hold a series of these sessions throughout the recess to prevent President Obama from making recess appointments, on the insistence of Senate Republican Leader Mitch McConnell.
The Senate will next reconvene for legislative business on Monday, November 15th.
The Senate will also hold pro forma sessions on: October 19 at 12:00 PM, October 22 at 1:00 PM, October 26 at 12:00 PM, October 29 at 11:30 AM, November 1 at 9:00 AM, November 4 at 9:00 AM, November 8 at 12:00 PM, November 10 at 9:30 AM, and November 12 at 10:00 AM.
Before leaving, Senate Majority Leader Harry Reid filed cloture on the motions to proceed to 3 bills: a bill to promote natural gas and electric vehicles (S. 3815), a bill Democrats named the "Paycheck Fairness Act" (recall that they named "card check" the "Employee Free Choice Act") (S. 3772), and a food safety bill that expands the FDA's regulatory powers (S. 510).
From the Communications Center
VIDEO: Sen. John Barrasso (R-WY) Delivers Weekly GOP Address On Democrats' Broken Promises
Around the Hill
The Wall Street Journal: The 2010 Spending Record
Bloomberg News: Obama Losing Supporters in Poll as Joblessness Prompts Voters' Discontent
AP: SPIN METER: Foreign money in politics? Not proven
Mark Halperin: Why Obama Is Losing the Political War
Gallup: Americans' Image of "Federal Government" Mostly Negative
Sent from my iPhone
No comments:
Post a Comment