The good news is that President Donald and the Republican and Democratic leaders have reached a deal, expected to be voted on and signed by the end of the week, which will avert a governmental default and the economic cataclysm that would surely follow. The bad news is that deal adds another couple trillion dollars to a national debt that sooner or later will be just as catastrophic.
For now, though, no one seems to care. The Democrats remain the party of big government, and realize that for the two years of the budget deal they are unlikely to get the big tax increases they want to address the deficit, and the agreement gives them a few hundred billion dollars more to spread around to their voters. The Republicans are no longer the party of fiscal responsibility but rather the party of Trump, the self-proclaimed “king of debt,” who told reporters on Monday that “We are, I think, doing very well on debt, if you look at debt limit, however you want to define that, but we’re doing very well on that and I think we’re doing well on a budget.”
We’ll leave it to Trump’s die-hard supporters to explain exactly what the heck that means, as they seem to speak his language better than we do, but the gist of it seems to be that he’s quite comfortable about another couple of years of trillion dollar deficits, and maybe four more after that if he gets reelected. He and his die-hard supporters will probably revert to the old-fashioned Republican outrage about fiscal irresponsibility as soon as another Democrat occupies the White House, but for now they’ll talk about the great deal he got.
The Democrats agreed to another big hike in defense spending, and Trump told reporters “Very important we take care of our military, our military was depleted and in the past two-and-a-half years we’ve undepleted it, okay, to put it mildly,” adding another Trump neologism to the language at no cost to the taxpayer. There’s no money for the big beautiful border wall that Trump the Mexicans pay for, but neither is there anything to prevent Trump from diverting funds from the military budget to build a mile or two. The Democratic leaders also gave oral assurances they wouldn’t complicate future budget negotiations with with any “riders” regarding abortion or other controversial issues, although it’s not clear how Trump will hold them to that.
The deal does allow a few hundred billion dollars more of discretionary spending, but for at least two years and maybe six that Democrats won’t have much say in how it’s spent, so a lot of Democratic congress members are publicly fuming, especially those newcomers that Trump has lately been urging to back where they came from.
The last of the old-school Republicans who really believed all that talk about limited government and fiscal responsibility and the looming were also disgruntled, with the president of the Committee for a Responsible Budget saying “It may end up being the worst budget agreement in our nation’s history.”
Despite all the grumbling on both sides of the aisle we expect the deal will be sealed by week’s end, when Congress takes it annual summer vacation. House Speaker Nancy Pelosi and Senate minority leader Chuck Schumer retain a fairly tight rein on their caucus, hardly anyone in the Republican party dales challenge Trump on anything, the entire political class seems to realize that few of us still care about about the looming debt catastrophe, and absolutely no believes that anyone in Washington, D.C., can come up with solution before vacation time.
The deal at least kicks the can of crisis a bit further down the road, and no one’s likely to have to run for reelection a year from next November explaining what they did the the global economic Armageddon happened, and they can all hope they’ll be dead or retired with a sufficient stash of gold and guns and canned food when the reckoning does come.
Addressing America’s debt will require tough talk and harsh medicine for the American people. The Democrats will have to acknowledge that their utopian dreams are for now too expensive, the Republicans will probably have to forgo another round of their beloved tax cuts, and both parties will have make unpopular changes in such popular programs as Social Security and Medicare and even our recently undepleted military. That kind of political courage is scarce these days in either party, though, and far scarcer than the deficit dollars the Fed will keep printing.
— Bud Norman