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Showing posts with the label budget

The debate over the Bush tax cuts is over. The tax cuts won.

Today's New York Times : It is a maxim in Congress these days: If high-profile legislation affecting millions of Americans is about to expire, deal with it at the last possible second, preferably with rancor.  But a major exception is in the offing with the Bush-era tax cuts , which are set to lapse on Jan 1. Both parties in the House and the Senate are eager, perhaps even giddy, at the prospect of voting for their respective versions of an extension of the cuts this summer, well before the due date. Now, the piece goes on to say that the Democratic package would drop the cuts for high earners and keep them for the middle class. But with a divided Congress and this president in charge, does anybody expect the Democratic preference will become law? Anybody? (Crickets.) Right. We've already seen this movie before . So maybe it's time to end the debate, make the tax rates permanent rather than dickering with them every two years, and start planning for a budget withi

Even Paul Krugman thinks Max Boot sounds like Paul Krugman

I've poked fun at conservative defense writer Max Boot lately because of Boot's recent assertions that cutting defense spending would end up cutting American jobs in a soft economy. I noted that Boot sounded like liberal columnist Paul Krugman, and suggested that "mainstream conservative Republicans—whatever their fiscal rhetoric—have long favored the soft socialism of big defense spending." Krugman sounds the same theme this morning , not mentioning Boot specifically, but otherwise making the same point. He calls this crowd "weaponized Keynesians," a term borrowed from Barney Frank. First things first: Military spending does create jobs when the economy is depressed. Indeed, much of the evidence that Keynesian economics works comes from tracking the effects of past military buildups. Some liberals dislike this conclusion, but economics isn’t a morality play: spending on things you don’t like is still spending, and more spending would create more jobs.

Does terrorism justify exempting the Defense Department from budget cuts?

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That's what Bentley Rayburn suggests at National Review today: Congress should remember that we are still facing very real threats. Today, we are fighting wars in Iraq and Afghanistan, and fighting al-Qaeda across the globe using intelligence and special-operations forces backed up with Predator drones and other modern technologies. We’re also protecting the nascent democratic movements in Libya and elsewhere, expanding operations to hot spots like Yemen, and rotating home a fighting force worn down by a decade of repeated, extended combat deployments. Terror attacks are on the rise as the threat spreads around the globe — according to the National Counterterrorism Center, there were 2,534 terror attacks worldwide in 2010, nearly triple the 945 recorded five years ago. I found that last paragraph interesting, so I went to the National Counterterrorism Center website. I couldn't verify Rayburn's numbers, but I did find a couple of other very interesting charts in the NT

Max Boot still sounds like Paul Krugman

I noted recently that conservative hawk Max Boot was starting to sound like Paul Krugman.  Today, he again makes the economic case for leaving the military budget untouched: If the Pentagon is forced to slash a trillion dollars during the next decade—which would amount to an 18 percent reduction from the Obama budget projections released earlier this year—the Committee staff projects the total size of the Army and Marine Corps could fall from 771,400 personnel today to just 571,000, a 25 percent reduction that would make it impossible to respond to a range of different contingencies around the world . Some 200,000 soldiers and Marines who signed up to serve their country will be fired—and many of them will be hard put to find work at a time when the national unemployment rate is over 9 percent and the unemployment rate for young Iraq and Afghanistan veterans is believed to be over 20 percent. (For wounded veterans the rate is said to be over 40 percent.) We would not only be breaking

Why civilian agencies can't help counterinsurgency succeed in Iraq

This isn't probably all that widely known, but a key aspect of the counterinsurgency doctrine Gen. David Petraeus helped develop back in his Fort Leavenworth days -- before he became a celebrity superhero in Iraq, and now Afghanistan -- is this little point: The military can't do it alone.  The American government's civilian agencies -- ranging from Treasury to (seriously) the Department of Agriculture -- all have a vital role to play in helping win over a secure the population where the insurgency is taking place. This doesn't happen as well as it should -- at least, that's what military types say with a fair amount of frequency. But part of the reason that may be the case is this: where political types back home in Washington are frequently willing to write blank -- or, at least, very big -- checks to fund military efforts abroad, they're stingier when it comes to those civilian agencies. Here's a story in today's Washington Post: Beginning in Se

Marc Thiessen lies about defense spending "cuts"

This is a theme that gets repeated a lot, but I'll pick on Marc Thiessen for repeating it. Here he is at The Corner today: The New York Times has a front-page story today on the growing momentum on Capitol Hill to cut defense spending. It is not surprising that in an age when the Democrats are showering money on almost every domestic initiative known to man, the one area they would seek spending cuts is the defense budget. But Thiessen is lying. Let's look at the New York Times story for an explaination: Mr. Gates is calling for the Pentagon’s budget to keep growing in the long run at 1 percent a year after inflation, plus the costs of the war. It has averaged an inflation-adjusted growth rate of 7 percent a year over the last decade (nearly 12 percent a year without adjusting for inflation), including the costs of the wars. So far, Mr. Obama has asked Congress for an increase in total spending next year of 2.2 percent, to $708 billion — 6.1 percent higher than the peak u

Eric Cantor's piddly YouCut site proves Republicans aren't serious about cutting the deficit

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Via Twitter , Peter Suderman points out that Republicans plan on campaigning this fall against the federal deficit, but have no plans to actually do anything about it if they take Congress. See Sunday's "Meet The Press" for confirmation . In response to such complaints, National Review's Robert Costa points to Eric Cantor's YouCut website , which he describes: Cantor debuted YouCut [in May]. Its premise is simple: Each week, Americans can vote for their favorite of five potential spending cuts on the web (or via text message to 68398). Cantor works to bring the winner to the House floor. With one click, you can help to shape the House GOP agenda. “It allows us to focus on out-of-control federal spending, the number-one issue for millions of Americans,” Cantor says. “For us, it is an unprecedented online project.” Unprecedented? Whatever. It's also incredibly piddly and lame. Look at the current options YouCut offers for a vote. * Eliminating unnecessary C

For all you Obama-hating deficit hawks out there

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Via Paul Krugman , a graphical representation of how the two Bush tax cuts, the Iraq War and the new health reform law impact the federal budget: Stuff like this is why it's so hard for me not to think of the Tea Partiers as, essentially, sore losers .