AIP column: The hogwash of Pay-Go

Yesterday, I noted Steny Hoyer’s poor civics lesson to the students of the University of Virginia in blaming budget deficits on the executive branch.  In today’s AIP column, I look at Hoyer’s pay-go argument and his blameshifting for spending on the elimination of the 1990′s “rule”.  I call it, “Stop Me Before I Spend Again!”

But perhaps the most risible argument Hoyer advanced was that the hoary “pay-go” policy of the Democrats would solve the problem of fiscal irresponsibility in the Beltway. Democrats have made this argument a number of times, blaming the GOP for suspending the “pay-go” policies in place during the Clinton administration. Hoyer and others say that the lifting of “pay-go” is what led to deficits.

That’s simply hogwash. It’s akin to people blaming fast-food restaurants for their obesity. It’s a plea to have someone else take responsibility for their own actions. Pay-go essentially bars Congress from spending money they don’t have. Certainly there’s nothing wrong with that, but let’s not forget that it’s just a rule Congress imposes on itself. Congress can choose to waive that rule whenever they want. In fact, Congress began creating oddball mechanisms to break pay-go spending limits in 1998 through emergency appropriations, “advance appropriations”, and other questionable practices. The 9/11 attack and especially Medicare Part D put a stake through the heart of pay-go, but it had been at best on life support, covered only by a boost in revenues in the late 1990s from the dot-com bubble.

However, Congress doesn’t need pay-go, or the oft-suggested alternative of a constitutional amendment requiring a balanced budget, in order to actually produce a budget without deficit spending. Congress can simply resolve not to spend more money than it receives.

That would take leadership, of course, something lacking in both political parties over the last decade of deficits.  But Hoyer and the Democrats have a special need for pay-go as political cover.  Read the rest of my column to see what I call the Flip Wilson strategy before it gets played.

While you’re at AIP, check out the commentary from the fine stable of bloggers.  Alexa Shrugged points out a $25,000 earmark for a private club in Seattle, Grace Boatright says that private health care is in trouble, and Justin Higgins says that capitalism is human nature.

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