With a soaring national debt and a record federal budget deficit, it makes one think back to the mid 1990's, when an effort was made to pass a balanced budget ammendment to the Constitution. The ammendment, a part of the "Contract With America" authored by House Republicans, passed the House but lost in he Senate by a mere 1 vote. It was then in 1994 that House Republicans made an unprecedented move. They decided that they were going to work with the Clinton administration to balance the federal budget even with thier failure to pass an ammendment to the Constitution. They were going to do what was right for the country even if it brought major conflict with bureaucracies and interest groups.
The failed ammendment had proposed that the budget be balalnced in seven years. Not at all out of the realm of possibility, but a challenge none the less. A challenge that they took on and a challenge that would turn out to be harder than originally thought. Some of the details of the proposal caused pushback from the Clinton administration. The House stood firm, as did the White House, and a government shutdown ensued for several days. Although no essential services were shut down, the media and public focused thier attention on the tourists who were upset that they could not visit any national monuments.
Yet what wasn't focused on was the fact that the balanced budget bill agreed upon by House Republicans and President Clinton which ensued after the shut down, paid off $405 billion in federal debt and the budget was balanced for 4 consecutive years for the first time since the '20's.
What we should have learned from the balanced budget of the mid 90's and what we should recognize today is simple.
Cutting taxes spurs economic growth and increases revenue. When Americans have more, they spend more. When they spend more, businesses make more which leads to expansion of business and job growth. That circles back around to putting more money into the pockets of more people.
Cut spending in non-essential areas completley while slightly raising it in key areas. Historically spending cuts were proposed across the board causing resentment from those impacted who were in key areas and making the cuts unsustainable as problems arose from the essential programs lack of funding. If it is not essential to the lives of Americans and the constitutional running of the government, it gets cut. This would include pork barrel spending and many non-essential government agencies.
But the most important aspect of a balanced budget committment is that it disciplines politicians. If there is a limited amount of money then, as the rest of us do, politicians have to learn to say no. They have to learn to be disciplined and frugal with the money that belongs to the taxpayer.
I'm sure we will hear the flood of disapproval from both sides. I'm sure we will hear the left wing rhetoric that cutting taxes doesn't spur growth and revenue. I'm sure we will hear the flood of disdain for shutting down government agencies and programs from both sides. I'm sure we will hear from both sides that pork barrel spending is a small part of the actual budget. I'm sure there will be many reasons given as to why we can't achieve what has been outlined above.
What cannot be argued however are the facts. The fact that a balanced budget has and did happen. And as both sides line up to argue the current state of economic affairs and which side is to blame, the fact remains that the balanced budget of the mid 90's was a joint venture. Whether you give credit to the GOP congress or you give credit to the Democrat President, the fact remains that instead of working against each other 100% of the time, they came together for the common good of the country and achieved a balanced budget.
A balanced budget can happen again. Maybe not at the speed that we saw in the 90's, but it can happen. That is if both sides can find a little discipline.
|
|
| |
|
|
No what i am saying is what I said........"although balanced budgets are certainly realistic, current policies make them an impossibility"......what will be sad is people not changing current policies.
posted by kempite on 06/05/2009 @ 1:33
AM
--------------------------------------------
--------Very true Kempite and everyone should remember this when going to the ballot box. Hopefully starting in NJ!
...but according to Friday this is not true. In fact, the surplus that was created by the Clinton/Republican Congress of the 1990's is a facade. Friday said so!
I see. And would agree.
No what i am saying is what I said........"although balanced budgets are certainly realistic, current policies make them an impossibility"......what will be sad is people not changing current policies.
I'm out for now. Good night everyone.
So what you are saying is that the most realistic thing is the most impossible? That is a very sad thing indeed.
I just found out today that my grandmother in Florida was one of the organizers for her local tea party (the political ones) how cool is that.
There are many points made in Smashey's appropriate blog but the three most important are 1.- It can be done. 2.- Both sides must be willing to work towards the same goal and 3.- Cutting taxes spurs economic growth and increases revenue. Unfortunately, under current Washington thinking the third point is not beleved and in addition to that, this administration and Congress believes that government spending is the solution to all our woes. With those two opinons intact, although balanced budgets are certainly realistic, current policies make them an impossibility.
Unfortunately many here and even more in the national party only learned one thing. Make your opponent seem s horrible tht yo appear to be better for the office. they worry less about real issues and more about wedge issues. they learned nothing.
but of course I take the view that debt comes 1st. Then as that goes down along with spending at the same time tax reduction kicks in.
F&G okay if you take in 1,000,000 and you want to hand out a 500,000 to the people then you have 500,000 to spend thus if you do all your budegting with in that 500,000 you still have your balanced budget.
Under my administration I will neither cut nor raise taxes, but will seek to balance the budget. It can only be done through spending cuts, a healthy economy, and patience. Once we've balanced the budget through prudent measures, we can reward ourselves and our children with pro-growth tax cuts.
U can balance the budget and cut taxes. But you need to remember to reduce spending to keep in line with the revenue u will not have.
Cutting taxes is a wonderful idea, but only after the budget is balanced.
Yea up to a point. They failed to enact some parts of the Contract with America but I think they had some good ideas. It is to bad the lack of follow through.
the GOP of the early 90's were conservatives athat believed in small government and moral standards. something these current crop of congressmen need to go back to or get out.
Did you hear how the nearly $800 billion stimulus isnt enough and Obama and his goons want another nearly $18 million for "road repair" what was the stimulus for??? road repair it said ... Obama and his goons don't want a balanced anything they want to increase inflation and taxes so that we are aslaves to the government ... keep so busy with work they can keep passing these bills and take over our every last freedom
I agree Smashey from about 94 till 98 or even 99 the GOP worked to pass balanced budgets reduce pork spending etc. We need to get back to that.
I'm sure both sides will argue the particulars of who was actually responsible for the balanced budget during the Clinton administration but the bottom line is a balanced budget is achieveable. It took both sides in 1994-95 and it will take both sides again. The borrow and spend politicians need to take a walk. We need frugal, responsible and disciplined people on the left and right to make it work. 1994 is proof it can.
Amen Smashey! I totally agree with the Balanced Budget Amendment. I have in fact proposed it here on u4prez in the past. And you right after the shut down the Clinton White House and the GOP passed balanced budgets.
|
<< Home