The Associated Press claims that Americans are as concerned about the deficit now as they were in 1992 when Ross Perot put in one of history's most entertaining third party presidential bids. In another of a series of recent articles discussing the deficit, it is once again noted that continuing down the current red ink-streaked path may just not be politically viable for the Democrats, even in the face of tough elections in the coming year.
The latest word from Capitol Hill is that agencies are being told that freezes and cuts are on the way. However, so often the biggest impact of such warnings is a rise in government spending due to all of the exemption paperwork that is filed as a result. Additionally, Congress is asking for an increase in the debt ceiling for next year, indicating that the debt could get worse before it gets better. In other words, if the government had its way, increased tax revenues rather than spending cuts would be the only way to balance the budget. This is not a Democrat or a Republican problem, as the Bush Administration started this downward spiral and the current has only compounded the issue.
As noted on this page previously, however, when debt becomes a nationally discussed issue, and when many Americans are already unhappy with their representatives over contentious votes on healthcare and stimulus, many in Congress may be unwilling to vote on increase debt ceilings and additional spending plans. Though representatives like to point to pet projects in their constituencies, particularly during election years, the economy might just have reached a tipping point where voters are more impressed with responsible government than 'bridges to nowhere.' Let us hope so, because the current state of the national debt, and its implications for the dollar as the international reserve currency, are even scarier than the giant sucking sound Perot used to make during his ultimately doomed campaign.
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