Sunday, July 24, 2011

The History of Debt Proposals

To review:

...The Republican House passed a budget–a very good one, too–within the deadlines prescribed by the Congressional Budget Act. The Senate Democrats ignored the law and refused either to agree with the House’s proposal, or adopt a budget of their own.

...the Republican House passed cut, cap and balance, which would have resolved the debt ceiling issue. Harry Reid refused to allow the Senate to vote on the proposal, and once again refused to come up with a plan of his own. President Obama, likewise, has refused to submit a plan other than his official FY 2012 budget, which was a joke. Obama has abandoned that proposal, but refuses to replace it with a new one...

Now, Harry Reid says the House should jump, and the House is jumping. Republicans will come up with yet another plan to resolve the debt ceiling issue

The one which will emerge, according to York (see the link) will have short-term AND long-term components.

It remains to be seen whether either of them actually reduces spending, of course. unlike the last "deal" which Denninger eviscerated: (HT Vox)

NO domestic spending cuts whatsoever.

NO material changes to entitlement spending ($25 billion/year on Medicare is pointless.)

NO other mandatory spending cuts. Anywhere.

One simple cut would be to de-fund Dept of Education. Now. Zero it out.

HT: PowerLine

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