On Saturday, June 26, 2010, a group called "America Speaks" held a nationwide conference, with a few dozen cities linked by video and internet links. Portsmouth, NH was one of the sites. The conference was sponsored by one very conservative thinktank (the Peter G. Peterson Foundation) and two moderately conservative ones: the main topic was the need to "do something" about entitlements and the deficit. I was going to skip it, but Olivia Zink of the New Hampshire Citizens Alliance convinced me to go. More to the point, she convinced me to write the following op-ed piece, which ran in the June 26 Foster's Daily Democrat as well as on BlueHampshire.com.
Original URL (subject to link rot over time):
"The conversation we should be having"
Today (June 26), Americans will gather across the country to
discuss the choices we face with regard to spending and the federal
budget.
Dozens of town hall forums, sponsored by a
non-partisan organization called "America Speaks," will
offer participants an opportunity to discuss our nation's needs and
priorities. UNH's Carsey Institute will co-sponsor one such forum
locally, at the Portsmouth Public Library, from 11 a.m. to 6:30 p.m.
[oops! actually the event
was the Portsmouth High School] Many Americans will
use these forums to express concern about the federal budget
deficit.
In the long run, our government's budget deficits
are unsustainable and must be addressed. In the short run, however,
there are other issues which we should be talking about during our
national conversation.
Let's start by acknowledging a painful
reality: Our economy has lost eight million jobs. Fifteen million
people are officially unemployed while another 11 million are
involuntarily working part-time or have dropped out of the labor
force. Millions of people have been out of work for more than a
year.
We don't just face a budget deficit: we face a jobs
deficit.? The two are intrinsically linked.
The Office of
Management and Budget estimates a federal budget deficit of $1.1
trillion for fiscal year 2010 (i.e., October 2009 through September
2010.) Although many would have us believe otherwise, this deficit
is not caused by domestic discretionary spending by the federal
government. Such spending has been essentially "level-funded"
in recent budgets: in other words, it neither increased or
decreased.
Rather, the federal deficit finds its roots in
four areas:
First, the 2001 and 2003 tax cuts, targeted
primarily toward the wealthiest Americans, added about $1.7 trillion
to deficits as of 2008. They have added even more since.
Second,
the combined cost of the wars in Afghanistan and Iraq since our
country invaded Afghanistan in late 2001 is just over $1 trillion.
These wars were fought off-budget during the Bush
administration, and they were not paid for by new taxes (or any
other revenue enhancements.)
Third, rising health care costs
in both the private and public sectors, including entitlement
programs such as Medicare and Medicaid, have added trillions of
dollars to our deficits over a long period of time. Health care
reform will rein these costs in but an aging population will
guarantee that providing quality, affordable health care for all
will remain an ongoing challenge.
Fourth, the current
economic crisis has deprived governments at all levels of needed
revenue. When people work, they pay taxes, and they do not require
unemployment benefits, COBRA or other forms of public assistance.
Remove eight million people from the workforce and you have just
eliminated eight million taxpayers. It is fashionable to say that
government can't create jobs. Here in New Hampshire, the Republican
Party has taken to referring to any and all taxes as "job-killing"
taxes on the theory that nothing government does is of any benefit
to the rest of the economy. But in fact, government spending can
create jobs. The dollar bills in Uncle Sam's pocket are just as
green as anyone else's. Government jobs are good jobs, and so are
the millions of jobs created by the hundreds of thousands of large
and small enterprises nationwide which rely on government contracts.
Although I am not a fan of big government, I might also add
that government does a lot of things which are actually
useful.
Happily, we have the ability to simultaneously
address the deficit and take on what should be our nation's most
compelling and urgent priority: putting people back to work.
We
can allow the Bush tax cuts for the wealthiest Americans to expire.
We can cut corporate tax loopholes enjoyed by companies like
BP. We can continue plans to eventually withdraw from Iraq and
Afghanistan and, while we're at it, cut Pentagon waste. Pentagon
cost overruns alone are taxing Americans to the tune of $300 billion
to $400 billion.
We can immediate stimulate the economy by
passing a robust jobs bill and making sure our unemployed workers
have the safety net they need in the form of unemployment and COBRA
benefits. (This might add to domestic discretionary spending in the
short run, but in the long run we will see a healthy return on our
investment in the form of deficit> reduction.)
As we
Americans discuss spending and the deficit, it's important that we
not lose sight of how we got where we are and let's remember what
our needs, hopes and dreams are for our country's future.
State
Rep. Timothy Horrigan
D-Strafford
District 7
(I snuck out shortly after lunch to go home and watch the USA-Ghana soccer game, which the USA lost. The conference was too long, but it was interesting: the citizens were very hostile to the assumptions of the organizers. Basically, the sentiment in Portsmouth was "deficits be damned.")
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