As a follow up to my rant on the Tea Party I wanted to be clear in where I do stand. I am an extreme moderate, fiscally speaking. I do blame the fraction of Republicans who stand in defiance of their party’s willingness to compromise. However, I also blame a similar fraction of Democrats who think changing entitlements is taboo.
A recent note indicated that a debt ceiling package that ends up to be too high could signal markets of a measured slowdown or stall in the economy. It also noted that a debt ceiling package that ends up too conservative could jeopardize US credit standings. Both of these assertions make good sense to me. This is why I fight my tourettes off each time I read the news about one side balking against the other.
We need a measured and thoughtful response this week. Probably somewhere between 2-3 trillion in cuts. As I understand it the first one trillion is a gimme as we begin withdrawing troops from the Middle East. For as large as $14 trillion sounds, people forget that we owe Americans another $28 trillion in anticipated social security and medicare benefits. These are not included in the debt ceiling.
We need our leadership to come together to do what is in the best interest of their constituents. Regardless of the side they are on, all of their constituents rely of the full faith and credit worthiness of our government. They also also rely on an economic recovery, however modest it may be.
So we have a shared purpose, and we have two sides who have everything to lose without a grand compromise.
Americans need to understand that part of our current debt problem was created to recover their life savings. Another part was created to keep them safe from enemies domestic and abroad, regardless of our ideological view of how we went about it. Without Tarp or the QE series, we’d be reliving the Great Depression. Without the wars in Afghanistan or Iraq, well who really knows that? But we did get Osama.
Nuf said. We got to give some shit up to pay for the shit we got. Those who have more to give should, and those who don’t should be willing to take a little less. Those from above average means got there because they or their ancestors were able to thrive in our capitalistic democracy. The rest of us generally don’t have a problem giving a little to help a stranger out.
Republicans and Democrats are making this painfully transparent that the perception on Capitol Hill is that the White House is up for grabs in 2012.
However as I see it if only one side wins the debt ceiling debate America will surely lose.