To employ the phrasing of Gov. Chris Christie, America hit the debt ceiling and didn’t vaporize. New borrowing has put the U.S. Treasury right up against its $14.3 trillion borrowing limit, but financial markets aren’t crashing over fear that this will lead to default.
Good stuff on means testing from Charles Blahous over at e21:
As it happens, the two largest and fastest-growing areas of federal spending, Social Security and Medicare, are both ones for which the wealthiest Americans are fully eligible for rising benefits. Both programs are, to be sure, of extreme political sensitivity. But the financial imbalances in these two programs require correction by elected officials in any event. To the extent that spending on the wealthy is constrained within these programs, it will reduce the financial pressure for even more politically-sensitive changes to them.
Democrats want to raise taxes on oil companies. They want to slap fees on high-frequency trading firms. And they want to raise taxes by$2 trillion over the next 10 years, including a 3 percent surcharge of millionaires. All of which will solve nothing since we either need to radically restructure entitlements (such as through the Paul Ryan approach) or hit the middle class with broad new taxes (the true “progressive” approach which they will not fess up to.) For now, though, liberals are focusing on the easy targets for higher taxes: Big Oil, Wall Street and The Rich. But that is not where they will stop …
What’s the true opposite of Rep. Paul Ryan’s “Path to Prosperity” budget plan? Well, there’s the Obama “Framework,” but that is little more than a speech and a bunch of bullet points. For a more serious and comprehensive liberal response, take a look at the “People’s Budget” produced by the Congressional Progressive Caucus.
The Misery Index (inflation plus unemployment) through March was 11.48 percent (2.68 percent, 8.8 percent). By comparison, it was 10.52 percent in 1992 when Bill Clinton handily beat George Bush. (It was nearly 21 percent in 1980 when Ronald Reagan crushed Jimmy Carter.) In fact, it has not been double digits for an entire year since Bush I’s first term. This goes along way in explaining why trust in Obama’s handling of the economy has collapsed. And a new Gallup Poll finds that Americans prefer the GOP budget approach to that of Democrats by 48 percent to 36 percent.
It’s not just Bill Kristol, gang. There’s desire at the highest ranks of the Republican Party, according to my reporting and sources, to see House Budget Chairman Paul Ryan seek the 2012 presidential nomination. Here’s why:
Let me start off by saying I have no doubt that Sen. Tom Coburn wants smaller government — much smaller government. But is giving more money to government — and hoping against precedent that Washington just doesn’t spend the new cash – the best way of doing it? Here is a bit from his Meet the Press interview yesterday: