The Cato Institute: Dan Mitchell & Chris Edwards- 'Cut, Cap and Balance, the Debt Ceiling and Federal Spending'

 

Source:The Cato Institute- fellow Dan Mitchell.

"Cato Institute Scholars Dan Mitchell and Chris Edwards evaluate the plans offered by Republicans for lowering federal spending using a so-called "Cut, Cap and Balance" proposal that would make small cuts to federal spending in the short run, cap federal spending at a higher share of GDP than the last years of the Clinton Administration, and balance the federal budget using a tax-limited balanced budget amendment to the Constitution.

Video produced by Caleb O. Brown and Austin Bragg. 

Visit Downsizing Government for more information on how to cut unconstitutional and irresponsible federal spending." 

From The Cato Institute

"Cut Cap and Balance" what does this mean: from what I've seen which isn't much. Under the House Tea Party plan is that they would bring the Federal Government down in size and revenue to around 20% within ten years. Basically what it was in 2008, the problem with that plan, whether you agree with that goal or not, is that the end of 2008 we had a one-trillion dollar deficit with the U.S. Government spending 22% of GDP and running huge deficits every year.

And actually I don't have a problem with the House Tea Party goal, but they don't lay out how to accomplish it. It's a piece of paper that says reduce the Federal Government by 20%, put a committee together and let them figure it out how to accomplish it. It's the ultimate punt Formation (excuse the football analogy, if that offends you) but it's getting to be that time of year again finally. Except they are punting on 3rd down and not even trying to finish the drive off. Its look this is what we want to do and you figure out how to accomplish it. 

If this plan had details in it, like this is where we believe the cuts should be made, here are some things that don't work very well. Here are some things we shouldn't be spending money on in the first place. And they go over the entire Federal budget and examine what should be cut and if anything where we should spend more money on and how to pay for it. To go along with the goal of getting the Federal Budget down to 20% of GDP within 5-10 years whatever the goal is. If this is what they were doing, then this plan would have some credibility instead of looking like a plan that was written by a small group of people. And then later they present it to a broader audience and tell them take it or leave it. 

Which is actually what the Democratic Senate is going to tell the Republican House: "We are leaving it and throwing it in the garbage where it belongs." And telling the House to go back to the drawing board and don't come back until you come up with something real that we'll consider. Which is exactly what Senate Leader Reid has already told House Speaker Boehner and the House hasn't even officially voted on "Cut Cap and Balance" yet.

The House Tea Party Caucus has once again proven why they don't belong in leadership and is another reason why John Boehner is the Speaker and they aren't. Because Speaker Boehner who I'm not a fan of but he is an adult in the room. Who if they let just do his job, will reach and agreement with Leader Reid and President Obama. And the Federal Government will be able to avoid defaulting as well as paying down its massive debt.