The Concord Square

Civil dialogue on policy, politics, budget, deficit, jobs & the economy

Twelve official members of the new joint congressional committee charged with reducing the Federal budget deficits by $1.5 trillion over the next 10 years have been named. What remains to be seen is whether an unofficial, but crucial, 13th member will be included in the committee’s deliberation – the American public.

Most of the deficit reduction negotiations this year have taken place behind closed doors and none of it has gone beyond Washington horse-trading to engage the public in any meaningful way. Exchanging shop-worn, poll-tested talking points on cable TV is not “public engagement.”

We watched the debt ceiling debate with horror as politicians played “Chicken” with our nation’s creditworthiness. Business leaders warned that the possibility of default, in one form or another, would create a ripple effect through the economy with lasting negative consequences. To top it off, even with the deal that was eventually reached, Standard & Poor’s dropped the U.S. from its list of AAA sovereign nations over concerns that political intransigence in Washington would stand in the way of meaningful solutions.

The new committee has an opportunity to change all that. It can transcend politics as usual and forge a sustainable fiscal plan based on shared values and acceptable to a majority of Americans.

The issues at stake -- from social insurance to national security, domestic investments and tax reform -- have profound consequences for our nation’s future. Setting priorities and allocating resources are not a simple matter of “winning” a partisan debate. Compromise will be necessary, and the American people must be brought into that process.

If the committee locks itself away in a congressional cloister, the public will find it hard to understood and accept the politically difficult choices that the committee must make to reach its deficit reduction goal. In this environment, a simple “trust us” by a congressional committee won’t cut it.

A good first step would be for committee members to get out of their respective echo chambers. They should join together on a “two-by-two” road show in which members present agreed-upon facts engage with each others’ constituents about policy options. Senators Mark Warner (D-VA) and Saxby Chambliss (R-GA) provided a good example of this by holding joint events in Virginia and Georgia.

The Concord Coalition has used this model for years on our “Fiscal Wake-Up” and “Fiscal Solutions” tours. Audiences across the country have been very receptive.

Speakers at these events have different opinions on the appropriate size of spending, taxes and debt, but emphasize key areas in which we have found consensus, such as:

  • The overall dimensions of the problem
  • The nature of the  trade-offs in weighing real solutions
  • The adverse and inequitable consequences for our children and future generations if we fail to make serious changes sooner rather than later.

Current policy is unsustainable, so changes will come with or without public engagement. Those changes, however, will be far more reasonable, equitable and politically acceptable if they arise from a national dialogue in which all sides bring their values and visions to bear than if they result from a crisis caused by unrelenting partisanship. How the new committee goes about its business will do much to determine which path is taken.

 

Budget expert Joe Antos' response:

 

The American People Deserve Action

The American people certainly want their views heard by the new “gang of 12” committee spawned in the budget deal signed into law last week.  But they deserve more than that.  They deserve a Congress and a president willing to face up to fiscal reality and take action before it is too late.

Bob Bixby’s proposal is a good first step.  He would send out the committee members in pairs, in a kind of reverse-Noah’s ark process meant to test the political waters.  Unfortunately, they are likely to dip their toes only in the shallow end—where seniors reflexively demand that their benefits not be cut, where interest groups tout the jobs that could be created if only the government would pump more billions into their coffers, and where no one wants to pay taxes.  If the committee heeds that advice we will make no progress on the deficit or the debt, and the economy will continue its lackluster performance as consumer and business confidence in the future remain justifiably low.

That’s why the committee—and the Congress and the president—must rise above their natural inclination to take actions that may help with the next election but are disastrous for the country’s longer-term interests.  Politicians of all stripes find it easy to spend money by overdrawing the national credit card, and they should look to themselves rather than continuing to blame the other side for our problems.

Here’s what they must do.  First, as Bob suggests, go out and engage the public in a serious discussion of the policy options that we really have.  That does not include leaving untouched Social Security, Medicare, Medicaid, and the new entitlement created in the Affordable Care Act.  If we have any hope of getting back on solid fiscal ground, the entitlements must be reformed—and that means spending less money.  Second, the Congress and the president must accept the responsibility that they have tried to shove off on the new committee.  That means passing a plan that puts Uncle Sam on a diet and sticking with it.  Waiting until after the next election puts off the actions necessary to restore the American economy to health.

Views: 328

Tags: congress, debt, deficit, super

Comment by Joe Antos on August 16, 2011 at 10:10am

The American People Deserve Action

The American people certainly want their views heard by the new “gang of 12” committee spawned in the budget deal signed into law last week.  But they deserve more than that.  They deserve a Congress and a president willing to face up to fiscal reality and take action before it is too late.

 Bob Bixby’s proposal is a good first step.  He would send out the committee members in pairs, in a kind of reverse-Noah’s ark process meant to test the political waters.  Unfortunately, they are likely to dip their toes only in the shallow end—where seniors reflexively demand that their benefits not be cut, where interest groups tout the jobs that could be created if only the government would pump more billions into their coffers, and where no one wants to pay taxes.  If the committee heeds that advice we will make no progress on the deficit or the debt, and the economy will continue its lackluster performance as consumer and business confidence in the future remain justifiably low.

That’s why the committee—and the Congress and the president—must rise above their natural inclination to take actions that may help with the next election but are disastrous for the country’s longer-term interests.  Politicians of all stripes find it easy to spend money by overdrawing the national credit card, and they should look to themselves rather than continuing to blame the other side for our problems.

Here’s what they must do.  First, as Bob suggests, go out and engage the public in a serious discussion of the policy options that we really have.  That does not include leaving untouched Social Security, Medicare, Medicaid, and the new entitlement created in the Affordable Care Act.  If we have any hope of getting back on solid fiscal ground, the entitlements must be reformed—and that means spending less money.  Second, the Congress and the president must accept the responsibility that they have tried to shove off on the new committee.  That means passing a plan that puts Uncle Sam on a diet and sticking with it.  Waiting until after the next election puts off the actions necessary to restore the American economy to health.

Comment by JOHN HORKULIC on August 16, 2011 at 12:35pm
Are you kidding me?  The american people no longer have a voice in our government or the healthcare debate would of ended with the public option.  The two wars would have ended.  The mortgage crisis would of addressed the most affected which were the people.  The stimulus would of went to the people and not more tax cuts for the wealthy.  The debt ceiling debacle would of eneded with a ratio of spending cuts to tax hikes in  the order of at least 1 to 1.  Unless we get a third party or the democrats grow a spine we will continue to be sold out to Wall Street and big corporations.  The democrats are afraid to do a bold jobs program because they do not want to fight and are being told by the same corporations not to do anything.  Many progressives see the democratic leadership as wimps and their policies as limp.  They try and use small changes that can pass and put forth policies like "Free Trade" that is unfair and drives jobs overseas towards cheap labor and higher profits.  For now we are stuck unless the people stand up and demonstrate, march, and scream their demands be heard.  You cannot do it the screened townhalls but it must be done.  Both sides do not fear the people and they take our support for granted.  I fear it will take a total collaspe of our economy and higher unemployment for people to finally get fed up with all of them.
Comment by Julie Stroeve on August 16, 2011 at 1:21pm
Poll after poll after poll indicate that We, The People want to protect Social Security (which we pay into), Medicare (which we pay into), and Medicaid (block grants to states?).  We understand the importance of the federal safety nets that have been created because they are so absolutely necessary!  If all jobs were livable wage jobs and no American was unemployed or disabled or old, we wouldn't need these safety nets.  That they aren't tweaked on a regular basis to reflect real-time, on the ground landscapes isn't the problem of We, The People.  It is Congress's JOB to do these things when they are ELECTED by We, The People to do them.  Meanwhile, and this is my main point, Congress does NOT listen to We, The People who want shared sacrifice, necessary tweaks, revenue increases from the very wealthy, and end to unnecessary wars of occupation.  Nor do they respond to the polls that indicate that We, The People want things done.  Notice that We, The People are not on the Great Gang of 12 that is bound for motionless on the things We, The People overwhelmingly think are imperatives.
Comment by jerry ann barber on August 16, 2011 at 1:27pm
Yes! For Heaven's sake, turn off the bubble machines. ( No offense to the memory of Lawrence Welk) I am reminded of the poem "The People, Yes." Given a chance, the people do get most things right.  Give the people that chance. Actually, the chance shouldn't have to be "given." It is a right.
Comment by jenah danen on August 16, 2011 at 1:46pm
I couldn't agree with you more, John H. As long as people have a few good crumbs to chew on we won't use our power to effect changes that are in public's interest. The other problem is our corporate media that serves to keep the public divide allowing the elite to conquer. We need to bring back the fairness doctrine that was done away with during Regan's reign so that people are constantly educated on both sides of issues.  And for goodness' sake, I wish these "experts" stop calling social security and medicare "entitlements"--I paid for them!
Comment by aplaceforpossibilities on August 16, 2011 at 2:44pm

I fear the politicians are merely a reflection of we the people. I wrote a piece about this issue last week.

http://www.examiner.com/independent-in-manchester/economic-turmoil-...

Comment by Perry Lundon on August 16, 2011 at 3:12pm
This will be a very interesting exercise in showing the power of corporate lobbying. If the 12 members of the committee are unable or unwilling to agree, my guess is that the spineless Democrats will cave, on something even approaching shared sacrifice the automatic triggers kick in and defense will be cut significantly. This is where the corporate lobbyists (Boeing, General Dynamics, Lockheed Martin) come in because cuts in defense will impact their bottom line, who the hell cares if grandma gets her Social Security cut or has to pay more for Medicare health care, because they want this gravy train to continue. You know where cost overruns are simply added to the final cost and profit is guaranteed so that upper level management bonuses are all but routine and shareholders get their expected rate of return. The lobbying that will be done in the next few months by the defense industry will be amazing as they wine and dine any interest that has a connection to the 12 committee members to develop something that results in the continuation of a grossly bloated defense department. Should remember that these same corporations want low taxes so most of the pressure will be exerted on the Democratic members of the committee something the Republican members have already bought into. The money spent during the next few months on these lobbying efforts would likely fund a good portion of the domestic discretionary program that will be cut to protect the corporate interests. The corrupting influence of money will continue to dictate public policy and we will simply be along for the ride to watch an advanced class in corporate lobbying.
Comment by Jan Karol on August 16, 2011 at 4:04pm

 

 

If it works, this is a site where you can put your 2 cents in on where the 1 trillion & change COULD be found in a better world....   http://www.wix.com/ubiorbi/supracongress  

Comment by William W Haywood on August 16, 2011 at 5:58pm

"The new committee has an opportunity to change all that. It can transcend politics as usual and forge a sustainable fiscal plan based on shared values and acceptable to a majority of Americans".

Yes, they have the opportunity to create a sustainable fiscal plan based on shared values and acceptable to a majority of Americans, but that outcome is about as far from their minds as the Land of Oz is from the world we live in. Talking like this about how our political representatives should act is not going to make them act that way! If you look seriously at the shenanigans both political parties are up to, and getting away with, like paying attention to lobbyists instead of their constituents, chumming up to the banksters and the corporations, refusing to tax the wealthy, committing our nation to useless, unneeded wars, and their almost total disregard for the safety nets necessary for citizens to survive when things go wrong!

Gravity is no more capable than these political monsters in congress of stopping what is is doing. We are talking serious crimes against the citizens of this country that need to be seen for what they are and dealt with by the law of the land. Oh, yea...I almost forgot that the law of the land has been redefined by the supreme court as the protection of the wealthy and powerful even when they commit horrendous crimes against the country and its citizens. They are capable of ignoring the voice of the people, and they have done this for many, many, years. This is politics as usual, but our new congress seems to think that the only actions that transcend politics as usual are the politics of fascism and political terrorism. That's all we get from our elected officials and it would be stupid, especially the way things are going right now, to expect them to do anything different even if they form super-super-super committees! It just isn't going to happen and there are no real talking horses either! The truth is that I would believe a talking horse before I would even listen to a politician.

Comment by Bill Todd on August 17, 2011 at 4:55am

I think the tenor of the comments from all save the alleged budget 'experts' above gives a pretty accurate picture of what the reality is.  The idea of a "road show in which members present agreed-upon facts" is particularly ludicrous, given just how high a percentage of 'agreed-upon facts' happen to be utterly false:

1. There is no debt crisis, only a long-term increasing problem which should be addressed gradually and responsibly rather than in any 'crisis', short-term atmosphere.

2. There is no significant problem with Social Security save that its FICA cap has been allowed to drop far below its intended (and traditional) level of 90% of total national income:  restore it to that level (plus temporarily somewhat more to make up for the shortfall resulting from having let it fall below it) and most (quite possibly all) of the shortfall over the next 75 years will disappear.

3.  Medicare (especially in those areas where it's not financed from dedicate revenues like Social Security is) and Medicaid do need work, but mostly because the overall costs of health-care (not just those supported by government) in this country are out of control.  Scrapping the private insurance industry, expanding Medicare to cover everyone, and allowing Medicare to negotiate lower prescription drug prices are the most immediate (and effective) things we could do, after which we would better understand what additional cost-control measures might be necessary to consider.

4. The Bush tax cuts were a disaster in the first place and should have been allowed to expire already - all of them if agreement could not have been reached to retain some at the middle-class-and-below level.  Raising top-bracket rates to at least 50% would do nothing to impede whatever recovery we can manage to create, because as long as so much production capacity is sitting idle there's no need whatsoever to 'encourage' the wealthy to invest more (i.e., we need to create a great deal more demand before we even start thinking about problems in supply).

5.  We spend at least twice as much on national 'defense' as is remotely necessary - even neglecting what we're spending on several wars that we in no way should be engaged in.  The only reason not to slash this amount immediately (rather than merely quickly) is to keep resulting economic (and personal) dislocations within acceptable bounds.

6.  We need serious stimulus for job-creation, which means serious government spending (and commensurate increases in debt minus whatever revenue can be raised by increasing taxes).  This means increases, not cuts, in welfare for our neediest members (who also happen to be those who will, of necessity, immediately turn around and spend those additional funds, thus multiplying their economic effect for recovery), increases in spending to repair our crumbling infrastructure (which not only creates badly-needed jobs but lets us obtain the repairs at bargain rates), etc.

7.  Thus the entire debt-reduction rationale behind this 'joint Congressional committee' is fatally flawed and the best thing we could do is scrap it and start over.  Not that this will happen, of course, but we can at least stop pretending that this newest side-show is worth taking seriously.

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