Monday, February 14, 2011

Bartlett on Proposed GOP Spending Cuts

Conservative blogger and former Reagan budget official Bruce Bartlett comments on federal budget cuts proposed by Republicans in Congress in Fiscal Times.

One of the biggest problems we have in dealing with the budget is the gross level of budgetary ignorance on the part of the public that I detailed last week. But an even bigger problem is that Republicans in Congress appear to be just as ignorant about the actual impact of the grandiose spending cuts they repeatedly claim they are going to enact immediately. In coming weeks, everyone is going to get a very fast and very rough education on the real effects of slashing government spending.

The point is not that there are no government programs worthy of cutting, but rather that this is a really stupid way to do it. The vast bulk of government spending, which goes to mandatory programs such as Social Security and Medicare, is completely exempted. And Republicans have effectively exempted the departments of Defense, Homeland Security and Veterans Affairs from cuts. This leaves only 16 percent of the budget from which they will extract their pound of flesh to satisfy voters who demand huge budget cuts but also oppose cutting just about any program except foreign aid. In coming weeks we could see a dramatic turnaround in public opinion on government spending. Up until now, it has all been theoretical; Republicans could easily pander to the Tea Party crowd with big promises of shrinking government without anyone in that crowd believing that it will affect them in any way.

UPDATE: Liberal columnist Paul Krugman makes similar points in The New York Times.

The key point to understand is that while many voters say that they want lower spending, press the issue a bit further and it turns out that they only want to cut spending on other people. That’s the lesson from a new survey by the Pew Research Center, in which Americans were asked whether they favored higher or lower spending in a variety of areas. It turns out that they want more, not less, spending on most things, including education and Medicare...The moral is clear. Republicans don’t have a mandate to cut spending; they have a mandate to repeal the laws of arithmetic.

How can voters be so ill informed? In their defense, bear in mind that they have jobs, children to raise, parents to take care of. They don’t have the time or the incentive to study the federal budget, let alone state budgets (which are by and large incomprehensible). So they rely on what they hear from seemingly authoritative figures. And what they’ve been hearing ever since Ronald Reagan is that their hard-earned dollars are going to waste, paying for vast armies of useless bureaucrats (payroll is only 5 percent of federal spending) and welfare queens driving Cadillacs. How can we expect voters to appreciate fiscal reality when politicians consistently misrepresent that reality?

--Ballard Burgher

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