The Richmond Register

Viewpoints

November 21, 2012

About that fiscal cliff

Give Me A Break

Yikes, we’re headed toward a fiscal cliff! It will crush the economy! Or so the media and politicians tell us.

The “cliff” is a series of tax increases and budget cuts that automatically go into effect Jan. 1 unless Congress acts.

Will Congress act?

It will! I see the future: The politicians will meet and fret and hold press conferences and predict disaster. Then they’ll reach a deal.

It will just postpone the reckoning, but they’ll congratulate themselves, and the media will move on.

America, however, continues to go broke.

“They’re not going to admit that we’re bankrupt, and they won’t admit that we’re on the verge of a major, major change in our society,” says Rep. Ron Paul, R-Texas. “So they’ll keep putting it aside, but then we’ll eventually probably destroy the dollar.”

The across-the-board cut, or “sequestration,” was designed to be so distasteful that Congress would be moved to cut more deliberately. If it doesn’t act, $110 billion in projected spending will be automatically cut – half from domestic spending, half from the Pentagon.

“They assume that they made it so bad that they wouldn’t accept it, but I don’t think they did,” said Paul. “They’re not even ... talking about real cuts. They’re talking about cuts in baseline budgeting.”

Right, the old baseline budgeting trick.

“If they propose, let’s say, a $10 billion increase for next year and cut it down to $9 billion, they say they’re cutting 10 percent. But they’re not cutting anything, they’re only increasing it $9 billion instead of $10 billion. It’s done on purpose so that people get confused.”

Republican House Speaker John Boehner calls the fiscal cliff a “nightmare.”

But why? Trillion-dollar deficits are more terrible.

Cuts of $110 billion would even be good for us because it would keep money in private hands, away from the bloated and freedom-killing bureaucracy.

“When government spending is about $3.8 trillion, you’re going to cut $100 billion? That’s a deck chair on the Titanic,” said Russ Roberts of the Hoover Institution. “If they’re actual cuts, I think that would be great. I’d cut 10, 20 percent across the board if I had my druthers. But across the board scares people because they think, ‘Let’s save the things that are really important and cut the things that are not so important.’ (But) that never works.”

It doesn’t work because every cent in the budget is absolutely crucial to someone.

Lately the media are focused on the $400 billion in tax increases that make up four-fifths of the fiscal cliff. We’re told that if the Bush-era tax rate cuts expire and the spending reductions kick in, catastrophe will follow.

“The tax increases sound scarier. But we have a trillion-dollar deficit!” Roberts pointed out. “So to me, the idea of raising taxes is probably a good idea. It says this spending that we’ve been doing is not a free lunch.”

I’m not convinced that giving politicians more money is ever a good idea.

And won’t the wealthy high-earners find a way around the higher rates? When rich people do that, much of their money goes to lawyers instead of consumer satisfaction.

The other thing that scares Washington are the automatic cuts to Pentagon spending. “These draconian cuts represent a threat to our national security,” say Republican Sens. John McCain of Arizona and Lindsey Graham of South Carolina.

“The Pentagon is hysterical about it,” notes Ben Friedman of the Cato Institute. “But it’s about 10 percent, which would bring us roughly back to where we were in defense spending in 2006 ... adjusted for inflation, not exactly a crisis year in the Pentagon. They’ve gotten very spoiled at the Pentagon. They had years of luxury.”

Automatic cuts might even be good, said Friedman.

“We need probably bigger cuts in the defense budget because we do too much. This will force us to make some choices. We try to be everything in the world ... pretending that every unstable country is a threat to us.”

I won’t lose sleep over automatic spending cuts. The “fiscal cliff” frightens me less than the bankruptcy cliff.

John Stossel is host of “Stossel” on the Fox Business Network. He’s the author of “No They Can’t: Why Government Fails, but Individuals Succeed.” To find out more about John Stossel, visit his site at www.johnstossel.com. To read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate Web page at www.creators.com.

© 2012 BY JFS PRODUCTIONS INC.

DISTRIBUTED BY CREATORS.COM

1
Text Only
Viewpoints
  • 06.29 CrystalFarewell.jpg Starting over at Head Start

    All I ever wanted to be was a journalist. Having worked on my high school and college newspapers, I knew it was the career for me.
    I love talking to people, listening to their stories, being creative every day and experiencing new things. But as you know, news happens outside the hours of 9 to 5, and my job here at the Register rarely stayed within that time frame.

    June 29, 2014 2 Photos

  • Ike Adams They don’t make strawberries as they did back in the old days

    I’m not inclined to go through my archives at the moment, but it almost feels like the column I’m about to write has almost become an annual thing over the years.
    At least I know for sure that that this is not the first time that memories of picking strawberries there on Blair Branch on hot days in June has triggered this keyboard about this time of year.
    I grew up on a little subsistence, hillside farm deep in the mountains of eastern Kentucky, among the coalfields near the Virginia line.

    June 26, 2014 1 Photo

  • Ike Adams Baby boomers have let technology rob their grandchildren of the joys of youth

    When I was growing up, it was not uncommon to see fathers and sons along creek banks fishing together or in the woods hunting squirrels or pitching horse shoes or even shooting marbles late in the afternoon in the cool hours before dark.
    Dads were teaching kids to play the games they grew up with. Little girls, learned from mothers,how to skip rope, play with jacks or play hopscotch.

    June 12, 2014 1 Photo

  • Ronnie-Ellis.jpg No Lincoln or Douglas in this debate

    Remember the famous slap-down in the 1988 vice presidential debate when Republican Dan Quayle compared his youth and limited government experience to those of John Kennedy’s when Kennedy ran for president?
    His Democratic opponent, Texas Sen. Lloyd Bentsen, acidly replied: “I knew Jack Kennedy. Jack Kennedy was a friend of mine. Senator, you’re no Jack Kennedy.”

    June 7, 2014 1 Photo

  • Ronnie-Ellis.jpg Senate campaign already in full bloom

    Any hope for a respite in the U.S. Senate campaign following Tuesday’s primary disappeared immediately.
    Mitch McConnell and Alison Lundergan Grimes came out swinging in victory speeches which sounded like campaign kickoffs.
    McConnell commended Matt Bevin on “a tough (primary) race” and appealed to Bevin supporters to unite behind his re-election bid. That will be hard for Bevin and those who backed him.

    May 24, 2014 1 Photo

  • Jim Waters.JPG ‘Taxpayer-eaters’ meet ‘self-serving politician-eaters’

    What some candidates could gain in this year’s election – beyond just winning office – is a stark reminder of how wrong political leaders were when declaring last year they had adequately addressed Kentucky’s public-pension crisis.
    Instead, legislators with serious courage deficiencies failed to agree on reforms beyond what they believe are “politically feasible.”

    May 16, 2014 1 Photo

  • Ike Adams Step Out, Step up for Diabetes Association

    Six weeks ago when I wrote here announcing the 2014 Edition of Team TKO’s American Diabetes Association, Step Out Walk Team, several dozen of you readers sent generous donations to sponsor grandson Tyler Kane Ochs (TKO) and me in the walk that takes place, rain or shine, in the mud or not, at Keeneland on the morning of May 31.
    Another several dozen of you either called, emailed or dropped a card in regular mail and asked that I remind you again “after the holidays” (Easter and Mother’s Day).

    May 16, 2014 1 Photo

  • Ronnie-Ellis.jpg Hitting the campaign trail

    The most watched race in the country ? the battle for the U.S. Senate seat now held by Republican Mitch McConnell ? has so far produced a bevy of charges and not much substance.
    We haven’t seen that much of McConnell or his likely Democratic opponent Alison Lundergan Grimes out on the campaign trail.
    McConnell’s primary opponent Matt Bevin has been much more active and visible, but his performance hasn’t enhanced his chances.

    May 11, 2014 1 Photo

  • The case of the scary black cat

    If Margie didn’t believe that black cats were the harbinger of bad luck, she certainly believed it when a black cat brushed against her leg while she was leaning over a large trash can burning garbage one late afternoon.
    Startled by the sudden appearance of the feline, Margie opened her mouth wide and let out a blood-curdling scream that could have awakened Count Dracula himself.

    May 10, 2014

  • Ike Adams Basking in the spring sunshine

    If you had asked me, as recently as two weeks ago, to make a list of things I expected to see on the first Monday in May of 2014, two of the things that I actually did see would not have been on the list, even if you’d required that it contain at least 500 items.
    I’d have been a bit skeptical about Ralph’s purple asparagus and his gorgeous snowball bush, both of which came through most admirably. And I would have had my doubts about the poppies that have been in our back yard for several generations and the bearded German Iris that Jeanette Todd gave us more than two decades ago. It faithfully stuns us there at the corner of the front porch every spring, but there they were, basking in absolute glory as the sun set Monday afternoon.

    May 8, 2014 1 Photo

AP Video
Raw: Japanese Soldiers Storm Beach in Exercises Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA Two Women Narrowly Avoid Being Hit by Train In Virginia, the Rise of a New Space Coast New Sanctions on Key Sectors of Russian Economy Crayola Announces Family Attraction in Orlando US Ready to Slap New Sanctions on Russia Kerry: Not Worried About Israeli Criticism Boater Rescued From Edge of Kentucky Dam Girl Struck by Plane on Florida Beach Dies Rodents Rampant in Gardens Around Louvre House to Vote on Slimmed-down Bill for Border Looming Demand Could Undercut Flight Safety Raw: 2 Shells Hit Fuel Tank at Gaza Power Plant Raw: Massive Explosions From Airstrikes in Gaza Giant Ketchup Bottle Water Tower Up for Sale Easier Nuclear Construction Promises Fall Short Kerry: Humanitarian Cease-fire Efforts Continue
Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Poll

Should Madison County’s three local governing bodies ban smoking in indoor public places?

Yes
No
     View Results