When Republicans made the federal deficit the centerpiece of their November 2010 campaigns, it was a rare convergence of smart policy meeting smart politics.
Now that they have been forced to come in off the sidelines and govern, however, Republicans have quickly ditched the smart policy in favor of smart politics. Instead of attempting to construct a feasible, bipartisan, long-term solution to the deficit, they tried to fool the American people with infinitesimally small deficit reductions. Ditching smart policy in favor of Beltway politics, Republicans voted for huge (and unpaid-for) tax cuts for the wealthy and promised $100 billion in cuts to services, essential to the lives of working families, while refusing to touch defense spending. Meanwhile, they’re taking almost $5 trillion in spending off-budget (e.g., tax provisions, war on terrorism, designated emergencies and health care repeal), while remaining silent on the serious choices our country faces. This disingenuous approach is not what the country requires or the voters want.
The federal deficit is growing at an alarming rate. Without some correction, our deficit will continue to explode. The deficit for the next two years is projected at more than $1 trillion annually, and the overall deficit projection for the next decade is more than $7 trillion. Deficits like this are unsustainable and only lead to a downward cycle of forcing us to take on more debt.
Not only do interest payments on this debt threaten to overwhelm the budget, but if our national debt continues to skyrocket to somewhere between 75 percent and 95 percent of gross domestic product over the next decade (far beyond the 60 percent that most economists consider the highest level of sustainable deficit), it threatens America’s credit rating. A downgrade in the country’s credit rating would create an economic crisis that would make the last two years seem like a dress rehearsal for something devastatingly bigger.
Voters understand this problem. A recent CBS poll found that 56 percent of the country realizes that the deficit needs immediate action. This is where things get tricky because Republicans have long believed that attacking the deficit should coincide with an attack on the social safety net through cuts to federally funded Social Security, Medicare, Medicaid and education.
Unfortunately for Republicans, hardly anyone seems to agree with them. CNN found last month that less than 25 percent of people support cuts from any of those areas in order to reduce the budget deficit. As a result, Republicans have instead pivoted to “deficit reduction” through cuts to nondefense discretionary spending.
In doing so, the GOP Conference leadership avoided identifying specific programs — worried that voters would balk once they knew which programs face cuts — and instead offered across-the-board cuts that avoid the hard choices. They coupled this with budget-busting tax cuts for the wealthiest 2 percent and an effort to repeal a health care law that would reduce the deficit by over $200 billion.
This is not a serious approach to reducing the deficit.
Nondefense discretionary spending makes up less than half of discretionary spending. More meaningful cuts should come from bloated defense spending, for example, a cut supported by 50 percent of the voters.
Rep. Eric Swalwell, D-Calif., walks on Broadway after a Future Forum with young entrepreneurs in the Flatiron District of New York City, April 16, 2015. Reps. Steve Israel, D-N.Y., Seth Moulton, D-Mass., and Grace Meng, D-N.Y., also attended.