Party Gridlock in Washington Feeds Fear of a Debt Crisis

After decades of warnings that budgetary profligacy, escalating health care costs and an aging population would lead to a day of fiscal reckoning, economists and the nation’s foreign creditors say that moment is approaching faster than expected, hastened by a deep recession that cost trillions of dollars in lost tax revenues and higher spending for safety-net programs.

Yet rarely has the political system seemed more polarized and less able to solve big problems that involve trust, tough choices and little short-term gain. The main urgency for both parties seems to be about pinning blame on the other, before November’s elections, for deficits now averaging $1 trillion a year, the largest since World War II relative to the size of the economy.

Mr. Bayh, the centrist Democrat from Indiana, lodged his complaint about excessive partisanship and Congressional gridlock on Monday by way of explaining his decision not to seek re-election. But he is hardly alone in sounding an alarm about the long-term budgetary outlook, which has Medicare, Medicaid and Social Security costs growing at unsustainable rates and an inefficient tax system that cannot keep up.

“I used to think it would take a global financial crisis to get both parties to the table, but we just had one,” said G. William Hoagland, who was a fiscal policy adviser to Senate Republican leaders and a witness to past bipartisan budget summits. “These days I wonder if this country is even governable.”

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Posted in * Economics, Politics, Budget, Economy, House of Representatives, Office of the President, Politics in General, President Barack Obama, Senate, The Credit Freeze Crisis of Fall 2008/The Recession of 2007--, The National Deficit, The U.S. Government

6 comments on “Party Gridlock in Washington Feeds Fear of a Debt Crisis

  1. Clueless says:

    The democrats have both the presidency and the Congress. Unfortunately it is democratic policies that need to be curbed not taxes that need to be increased. That includes the massive regulation (mostly democrat inspired) on all segments of government, together with the entitlement spending.

    Social security needs to be means tested, and should begin when people become actively disabled. It is inappropriate that folks spend their retirement on the golf course while young people work 3 jobs to pay for seniors. People should be given payments to rat on folks abusing the disability system. If you are photographed mowing your lawn, or golfing, you are not disabled and do not qualify for either Social security or for disability. You get kicked off the rolls, and your photographer gets a monitary reward.

    Most things should be deregulated.

    In Medicine, let all noncontrolled substances be over the counter and let patients figure out how to manage their blood pressure and parkinson’s disease. Most folks would do okay with minimal advice from a doctor, nurse, friend, other.

    Have a college leaving examination that is proctored, and let anybody take it. If they can pass the college leaving examination that let us say, ensures they know math through algebra/trig, Spanish to the satisfaction of the 1st level forein service exam, Physics, Biology, English, world and US history, etc. etc. such persons should be permitted to sit for the MCATs, or GMATS or LSATS or simply go out in the world with “I have a college degree” on their CVs.

    Let anybody set up a university or business as long as they are truthful. If you don’t have a pHD, but you are really god’s gift to the world of math geeks, and love teaching, let your students decide if you’re worth it. Buyer beware.

    Let all businesses that bring in less than 30,000/year in revenue be free of regulation. Let folks raise and sell chickens, onions, potatoes etc. in their back yards. Let them advertise their services as maids, cooks, chaufeurs etc. No minimum wage, no workers compensation, no need to file a tax return or pay SS taxes.

    Anybody who brings a lawsuit and loses, needs to pay the legal fees. If a lawyer brings a lawsuit on contingency and loses he needs to pay the legal fees.

    It is possible to govern this country. It is possible to pay off the debt we have already incurred.

    It is not possible to do either if you are a democrat trying to hang on to big spending programs and government bureacracy, using other people’s money.

  2. Br. Michael says:

    Amen!!!

  3. Sick & Tired of Nuance says:

    Cluless for President!!!

  4. Sick & Tired of Nuance says:

    I much rather have Clueless than Incompetent or Corrupt.

  5. SteveCox says:

    I think “Clueless” should change his moniker to “Crazy Eddie”.

  6. Clueless says:

    “Clueless” should change his moniker to “Crazy Eddie”.

    My plan sucks, but it does beat Weimar style hyperinflation or a deep Depression without the ability to work at ANYTHING out of your backyard and to live with family (which has been destroyed).

    Those blessings got us through the last depression but are missing now.

    Thus, the alternatives are:
    1. A deep depression far worse than what we went through in the 1930s
    2. Hyperinflation (which killed the Roman empire, the French Monarchy and Weimar Germany)
    3. Sucking it up and taking it on the chin as in “Crazy Eddie’s Cure for Capitalism” detailed above.

    Me, if all options suck I go with the one that leave my kids free and clear and my country intact.