Fiscal DisciplineDDI 2008 SSFadi
A. Uniqueness-- Bush and the Blue Dogs are holding the line on fiscal disc
The largest source of Bush’s veto threat had centered around a proposed provision in the Senate that would add $3.9billion in Community Development Block Grant funding to allow local governments to purchase foreclosed andabandoned real estate for use as affordable housing
. The House version of the package contains no such provision, and so-called
“Blue Dog” Democrats — a name given to a group of conservative Democrats in the House — have been stronglyopposed to the measure, as well
B. Link-- Congressional attempts at alternative energy are inevitablyearmarked
, former speaker of the U.S. House of Representatives and author of "Winning the Future",
the Boxer-Warner-Lieberman bill
is definitely of the old school. The Wall Street Journal calls it"the most extensive government reorganization of the American economy since the 1930s." The bill
aims to reduce carbonemissions into the atmosphere by 66% in 2050
. To do this, it would have government set a limit on overall carbon emissionsand issue "allowances" to businesses that specify how much carbon they produce.
Like Pork Barrel Politics? Wait Until YouSee Energy Pork Barrel Politics
And here's where we get into the Washington-style pork barrel politics. Half of these"allowances" will be auctioned off to businesses - a massive, up front tax that is expected to cost $3.32 trillion. Businesses will be forced to pass these indirect taxes along to consumers, of course, while Washington politicians decide which specialinterests will get a piece of the new $3.32 trillion revenue out of the politicians' gigantic new Green Piggybank.
Boxer-Warner-Lieberman is riddled with earmarks, both to redistribute new tax revenues to politically favored groups (forexample, there is $136 billion earmarked for energy efficiency block grants to local governments) and for buying off industries that might otherwise put their armies of lobbyists to work to defeat the bill. Bottom line: If you liked thepork and political-favor-ridden Farm Bill and Transportation bills, you're going to love the Boxer-Warner-Liebermangreen pork bill.
C. Internal Link--Lack of Fiscal Discipline leads to Economic Collapse
, Professor; Thomas R. Brown Chair in Economic Education @ Eller College, America the Broke,
, pg. 13,BB
Because foreign investors view the dollar as nothing more than another asset they buy in hopes of making a return,increasing economic turmoil in the United States would probably provoke them to sell some, if not all, of their dollarassets, causing the currency’s value to drop farther. As this vicious cycle gathered speed, foreign investors might quitbuying Treasury securities altogether. They might even start cashing in the bonds they already held. That would forcethe government to print the money it couldn’t borrow—a surefire trigger for inflation and another blow to the value of the dollar.
What would happen then? We can only guess, because such a debacle has never occurred in modern times. At thevery least
, the United States—and because of our wide-ranging influence the rest of the world, too—would be plungedinto economic chaos, all because of our unwillingness to reign in our reckless spending.