Spending cuts versus cutting entitlements
My concern right now is that the way Republicans are handling the debt ceiling—and every short-term crisis—may end up being a distraction from achieving what should be their long-term goal of putting the country on a sustainable path. Here is why: Ultimately, the government will need to raise the debt ceiling. In fact, if we don’t reform entitlement spending growth we will need to raise it again many times. There is no other option. Without changes, spending as a share of GDP is projected to almost double over the next 30 years (from 23 percent today to 40 percent in 2045). The gap between revenue and spending will grow considerably, causing the public debt to grow from 70 percent of GDP today to about 250 percent by 2045. So in a sense this fight over raising the debt ceiling is merely symbolic if Republicans’ greatest demand is nickel-and-dime discretionary spending cuts. Don’t get me wrong, I am all in favor of fighting for any spending cuts. But the real fight is about addressing our long-term problems, which will require significant reform to the drivers of both our spending and debt: Medicare, Social Security, Medicaid, and the new health-care entitlement.
Unfortunately, unless I am missing something, I do not see lawmakers fighting that long-term battle at the same time as they are expending lots of energy trying to avoid sequestration cuts.









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Long-term battles don’t win votes.
OldEnglish on January 18, 2013 at 6:43 PM
The GOP should just walk away from trying to make any deal on sequestration and use that as a platform to say that entitlements are crowding out defense spending.
theperfecteconomist on January 18, 2013 at 6:55 PM
In order to pay for all of Obama’s spending we would need to double income tax rates on everyone.
That is the price of Progressive policies.
MHatch on January 18, 2013 at 7:35 PM
You never will see them fighting that battle. The communists, socialist, regressives and illiberals have won. They have enough people dependent on government handouts from future generations labor that it is politically impossible to address these issues.
The only way to end the madness is bankruptcy followed by a war between the generations where I hope the more agile defeat the more aged. So far the old people won the generational war, they OWN your work, you are their slaves.
astonerii on January 18, 2013 at 7:44 PM