Saturday, June 11, 2011
The Spend Now, Save Later Trap
According to remarks by David Vitter on Larry Kudlow’s talk radio show, the “deficit reduction” group with VP Joe Biden, and House and Senate members are using the 10-year window for spending cuts. For Republicans this is the Spend Now, Cut Later Trap. Because the current Congress cannot lock future Congresses into spending targets spending cuts are always pushed to future budgets and spending in the current budget is usually increased. This is the way Congress has operated for several decades, and that is why despite all the lip service given to spending cuts, they never materialize. Cuts made by this Congress must be made in the current budget year, if raising the Debt Ceiling is to have any real meaning. While the real cuts in the 2010 budget only translated into $350M at least they were real cuts. We need more in 2011. The House Leadership must not fall into the “Spend Now, Save Later” trap.