Business

The Budget Battle In Perspective

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I think David Brooks frames the debate pretty effectively…

If the Republican Party were a normal party, it would take advantage of this amazing moment. It is being offered the deal of the century: trillions of dollars in spending cuts in exchange for a few hundred billion dollars of revenue increases.

A normal Republican Party would seize the opportunity to put a long-term limit on the growth of government. It would seize the opportunity to put the country on a sound fiscal footing. It would seize the opportunity to do these things without putting any real crimp in economic growth.

The party is not being asked to raise marginal tax rates in a way that might pervert incentives. On the contrary, Republicans are merely being asked to close loopholes and eliminate tax expenditures that are themselves distortionary.

This, as I say, is the mother of all no-brainers.

Of course Brooks is getting raked over the coals by the right-wing blogosphere today, but does this not make sense? Especially since the administration is even willing to cut scared cows…

Obama administration officials are offering to cut tens of billions of dollars from Medicare and Medicaid in negotiations to reduce the federal budget deficit […]

And David Frum weighs in about consequences…

Republicans in Congress need to understand that there will be a political price to them, not only to the president, if they force the United States into reneging on its contracted obligations. They need to hear that message from inside, from donors and supporters. That’s not a “pro-Obama” message as some hot-heads charge. It’s a pro “full faith and credit” message. The Obama program can (and in large measure should) be repealed. But default is not an acceptable tool of politics.

Brooks’ column is a manifesto for the times, it should be nailed to the Republican equivalent of the church door at Wittenberg.

At this point, I think Republicans will have to blink. There’s no squaring trillions in debt reduction with billions in tax increases. Well, unless they listen solely to the Tea Party. Then they’re exactly what Brooks describes…

The struggles of the next few weeks are about what sort of party the G.O.P. is — a normal conservative party or an odd protest movement that has separated itself from normal governance, the normal rules of evidence and the ancient habits of our nation.

Your thoughts?