Rush Holt; The Debt Ceiling Downer

For the moment we have put the debt crisis behind us. That is small comfort as the economy at large, the job situation, the housing market, and the financial markets continue to suffer. The Tea Party in Congress and its enablers should never have been allowed to threaten America’s good name in order to advance their view of a diminished government and trickle-down economics. They should never have been allowed to force a closed-door, hurried revision of our entire economy. And they certainly should never have been able to get away with a deal that increases inequities in our society and our economy. You, like most Americans, may have watched in dismay—or even in disgust—as Washington fumbled the self-imposed crisis.

Putting aside the distasteful process and the worrisome prospect that government by hostage-taking will continue, this week I had to face the immediate questions: Was the resulting deal going to help the economy? Would it create jobs? Would it reduce the crippling inequities in our economy and society? Would it bring down the deficit, as was the ostensible goal? On all counts my answer was “No,” and I voted against the resolution on the House floor.

I am pleased that we as a country are paying our debts, but I lament the damage done to the institutions of government and the good name of the United States as the most reliable, most creditworthy entity in the entire financial world. I lament especially the damage done to our view of ourselves. The negotiations were based on Tea Party premises: that our deficit is the principal concern facing us, that America is a pitiful debtor nation, that we must lower our sights, that we must end the quest to free our people from want and inequalities, that we cannot afford any longer to be the nation conceived in liberty and dedicated to the proposition that all are created equal. Are we no longer the America of the 1940’s that paid for millions of GI’s to go to college and buy homes, while rebuilding ourselves and Europe, when we were faced with a national debt much greater than today?

The deal this week may have the beneficial effect of showing that in the long run the United States intends to bring expenditures more in line with revenues. In the short term, though, the deal is a downer. It not only avoids dealing with today’s principal needs—job creation and economic growth—it actually will cost jobs and preclude any economic stimulation. At a time when clearly the economy is shaky, it is a mistake to declare, as the deal effectively does, that the federal government will have no direct hand in getting the economy moving. To meet next year’s target of spending reductions will require cuts equivalent to the budgets of all the following government operations combined: the EPA, the National Park Service, the Small Business Administration, FEMA emergency and firefighter grants, and the Women-Infants-and-Children food grants. In subsequent years, the cuts would be even ten times larger. Why should we rally to the cry, “No, We Can’t?” Have we forgotten that barely a decade ago we paid down the deficit with strong economic growth, job creation, and budgetary discipline without resorting to gimmicks, triggers, or Balanced Budget Amendments?

I would have liked to vote on a plan that protected the major functions granted to Congress under the Constitution rather than turning them over to an undemocratic, isolated committee of twelve. I would have liked to vote on a plan that would have accelerated withdrawal from Iraq and Afghanistan, saving lives and dollars, and that would have produced savings in our healthcare costs and dealt with the looming loss of 30 percent of doctors’ reimbursement under Medicare. Instead, the plan that was presented was negotiated on the turf of the Tea Party, which seems to think that it is anti-capitalist to ask those individuals and companies doing well in this economy to bear some of the load, even though the one or two percent of people with the highest income have seen their income grow by about 25 percent while everyone else has seen an effective decline and America’s largest corporations have reaped immense profits by using loopholes and offshore tax havens to avoid paying taxes.

Nevertheless, I am making it my job to beat back the pessimistic view in Washington that gave rise to this deal. We must not let this deal be the chart of our country’s future course. It is based on false premises that fail to recognize the inherent fairness that is characteristic of our people, the ingenuity and entrepreneurial energy that have sparked our economy for generations, and the unshakable American meliorism that says we can and must make life better for each succeeding generation. I think that now, more than ever, we must have a realistic view of our situation so that we can strongly defend equality and build a community that reinforces the opportunities for each individual.

Sincerely,

RUSH HOLT
Member of Congress

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Filed under Afghanistan, Congress, Congressman Rush Holt, debt ceiling, economy, EPA, Iraq, Medicare, National Park Service, Tea Party

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