11.13.2009

When Political Fears Result in Results

So often in the political arena, tough talk is not followed up by equally substantive action. Whether it is promises on wars, or jobs creation, or spending, outcomes hardly ever match the fiery rhetoric that eminates from Capitol Hill leading up to decisions. However, as Politico reports, political concerns could lead Democrats to back up budget cut talk with action in 2010.

The current deficit hole was dug during the Bush Administration in large part by tremendous increases in military spending to fund dual wars. Compounded by lower recessionary tax revenues, additional stimulus spending and government bailouts, the numbers have only become worse. If one factors in the spending that will be necessary to meet President Obama's healthcare and green policy goals, the numbers become almost too daunting to comprehend.

However, in addition to the practical matter that money needs to be printed just to meet payroll, there are political reasons for this spending trend to stop. The recent elections and polls have seen a dramatic shift towards Republicans by independent voters. Though moving to the opposition frequently occurs when one party dominates the legislative and executive branches, it is particularly worrying to Democrats with a big election cycle peaking next year. Therefore, it will be difficult for the Administration to ask party members, particularly moderates and those in battleground areas, to vote for increased spending if doing so means losing the independent vote. On the other hand it is perhaps equally as difficult to ask legislators to return to their constituencies empty-handed when spending is cut.

However, this is perhaps one of those times where the big national issues trump local ones, and when people are more concerned with what is happening in America than in Texas, Minnesota, or Oregon. If that is the case, expect tough decisions to accompany tough talk when it comes to future plans for spending.

1 comment:

  1. However, until tough decisions are made...

    http://www.bloomberg.com/apps/news?pid=20601074&sid=aWXDnpFProiY

    ReplyDelete