Congress Does Deals At Last (Grab Your Wallets)

Congress SpendingTo much praise from various observers, Congressional leaders have accomplished a budget deal. As the deal dumps the sequester spending cuts in favor of a spending increase, we can see why the deal is receiving praise as a return to compromise. The Left wants to spend; the new budget, if it embodies the ‘deal’ will spend, more than has been spent. The source of this new money as well as of the prior deficits’ money, is somehow missing.

A deal is not a budget nor does a budget really control spending, but budgets do inform as to what Congress intends or at least, what it wants us to believe it intends. One of the four annual bills that does control spending, the “National Defense Authorization Act 2014′” has also reached agreement status and includes a raise for the troops, which may reinforce the story we’re getting about the budget. Perhaps the idea of spending reductions from a Congress headed into elections was never realistic.

This would be ‘business as usual’ in spendthrift Washington, except that any business run so would have long gone into bankruptcy. Congress can proceed against economic reality–for a while–as a result of its ability to print up (via the Fed) any money it needs when it can’t borrow at the expense of future taxpayers.

The salient feature of this week’s events so far is the clear evidence of duplicity from the GOP-run House where the denizens like to deplore overspending their income while still passing overspending bills like the current National Defense Authorization Act. A Diogenes in Washington would long have run out of oil for his lamp…

Meanwhile, the other three hundred some million of us sit, watching the Damoclean financial sword hanging over us as its supporting thread frays before our eyes.

November, 2014 is looming larger…

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About Jack Curtis

Suspicious of government, doubtful of economics, fond of figure skating (but the off-ice part, not so much)
This entry was posted in Budget, Congress, Debt, Deficits and tagged , , , , . Bookmark the permalink.

2 Responses to Congress Does Deals At Last (Grab Your Wallets)

  1. Pete says:

    Your ending about November 2014 looming leaves me scratching my head, on this one I do not see what we can do to change things. Both sides of the isle have their hands out looking to get what they can and protect their financial backers… so what can we do in 2014?

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