Don’t kid yourself: President Obama understands the math. He knows federal finances are on an unsustainable long-term trajectory. His Office of Management and Budget produces the same scary debt charts as Paul Ryan’s House Budget Committee (though it doesn’t publicize them with quite the same zeal). But unlike Ryan and House GOPers, Team Obama has never publicly put forward a long-term plan to prevent a future debtmageddon; he has only sketched a path for (more or less) stabilizing debt levels over the coming decade. After that, it’s “Here Be Dragons.”
But we can offer some speculation on what Obamacrats plan to do eventually. The current sequester fight with Republicans hints at his plan: Cut (defense), Tax (the middle class), and Pray (health-care inflation keeps slowing).
1. Cut defense. One assumes the president is naturally a fervent fan of the sequester’s roughly $500 billion in defense cuts. If the sequester combined with the Budget Control Act’s spending caps, defense spending will decline to 2.4 percent of GDP over the next decade, according to the Heritage Foundation. That’s roughly what formerly great military powers spend on 21st-century armed forces — it’s around Britain’s and France’s levels. America will have a European-sized military to go with its soon-to-be European-sized welfare state.
Now, Obama would surely love to use such a “peace dividend” as a future funding source for Obamacare, universal pre-K, high-speed rail, or whatever other spending ideas the White House’s Keynesian cooks whip up. Under the sequester, however, that $500 billion is used for deficit reduction. If the sequester is replaced with tax increases and other deficit-reduction measures that cut defense less, however, down the road Democrats will be free to cannibalize the Pentagon to fund other worthier “public investments,” and they surely will. If Republicans agree to permanent tax hikes to spare the military, the reprieve will only be temporary.
In other words, Obama and the Democrats have proposed a plan that will trash our military preparedness, raise taxes on ordinary folks and pray that everything works out in the end. Even though they know the math, they’d rather resort to prayer than to countenance any reduction in spending on their beloved current programs. In fact, they have plenty of plans to spend even more. They HATE that the days of proposing new government largesse are over.
However, rather than try to find a fix to entitlement programs, rework federal programs to make them more cost effective or bring in some serious efficiency experts to reform a federal government that was designed for a world that existed a hundred years ago, they’d rather play scare the public games in the media:
As long as they have a compliant press, they think that propaganda can triumph over facts:
If the cuts go through and the economy tanks, Obama and the Democrats will do everything in their power to blame the Obama recession on Republicans. It’s ridiculous. However it is the plan:
If recent events, including Dear Leader’s reelection, are indicative of future results, they will get away with it. There is a potential downside though. What happens if they cry wolf and only a rat shows up?
So, the Democrats have a conundrum. Do their jobs competently and handle the cuts like any mid level manager in the private sector without negatively impacting service to the public. Or… Purposely make the cuts as painful as possible. Do the former and that opens the floodgates to more cuts in the future. Do the latter and screw their employer (also known as We the People). I have no doubt they’ll choose to screw us. For Obama and his Democrats politics always trumps everything.