StanCollender'sCapitalGainsandGames Washington, Wall Street and Everything in Between

deficit politics

Posted by Stan Collender

Imagine how all those self-professed, anti-new entitlement fiscal conservatives in Washington and around the country are going to feel when they realize that, with their full support, enthusiasm, and (in some cases) votes, Cash for Clunkers is the equivalent of a new entitlement program.

Here's what I said about this in my Roll Call column today.

Posted by Stan Collender

The White House yesterday did something that should truly warm the hearts of deficit hawks everywhere: it threated to veto the 2010 military authorization bill over two big spending issues -- the F22 and the alternate engine for the F35.

A little background.  Although both of these programs were questioned for years by the Bush White House, Congress kept insisting that the Pentagon spend the money anyway and the president always went along.  This year, the F22 was a target of Secretary of Defense Robert Gates when he held a press conference in April on his budget priorities.  Several weeks later, President Obama specifically used both programs as examples of government waste and then requested no funds for them in his budget.  In between those two events, Citizens Against Government Waste declared both to be prime examples of pork and listed them prominently in its Pig Book.

Posted by Stan Collender

Matt Miller is a very smart guy, a friend, and someone whose wisdom on the budget I almost always find worthwhile.  But not this time.

In his most recent post from The Daily Beast, Matt suggests that the White House consider what he admits are largely symbolic proposals so that it can improve its polls on the deficit and put itself in a better position to deal with it when the appropriate time comes.

My suggestion is that Matt and everyone else, especially the White House, just chill.  The president has already done a number of symbolic things on the deficit, including holding a fiscal responsibility summit several days before its budget was released last February and proposing a new pay-as-you-go proposal.  It has that angle covered and then some.

Posted by Stan Collender

Here's my column from today's Roll Call.

It’s Time to Start Talking About the Budget Deficit

Note that the headline says “talking” rather than “doing” something about the federal budget deficit.

This is a critical difference. It’s still not time to take any actions that will reduce this year’s deficit. In the current economic environment, doing that when private-sector economic activity has not fully recovered would be a Herbert Hoover-like move that would be as incorrect a fiscal policy now as it was back then.

That’s not to say that there haven’t been some positive economic signs in recent weeks. Some things, like consumer sentiment and the Dow Jones Industrial Average, have been moving upward. Other statistics, like unemployment and mortgage defaults, continue to lag behind. And, while it looks good, it’s not at all clear whether the recent uptick in the Dow is real or a bear market rally.

Posted by Stan Collender

Here's my "Fiscal Fitness" column from today's Roll Call.

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