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Train Wreck

February 21, 2005

There can be no greater evidence that the GOP controlled Congress and White House have created a perfect situation for a national fiscal train wreck than when Howard Dean, the incoming chairman of the Democrat National Committee, can actually run to the right of us Republicans on restoring fiscal sanity to the federal government.    The train is coming right at us on the issue of fiscal responsibility.  This Congress and, unfortunately, my President, are busily wasting what precious wisp is left of a Party that once stood for limited government.  We don't stand for this principle anymore, and actually, we don't even talk about it anymore.  We haven't reformed a thing in government, eliminated a duplicate or ineffective program, or challenged the status quo in any department other than for Homeland security.  When an enterprising moderate Democrat figures this out, you can turn out the lights for the GOP.  We will be finished.

The train wreck begins with the federal budget, which has, even without the considerations of war, grown at a faster pace under GWB than under any other Republican President.  "Earmarks", or special appropriations for members of Congress, are numbering in the tens of thousands now.  We used to call that "pork - barreling" when Rostenkowski was leading the Democrat spending machine in the early 1990's.  Our pork barreling is now three times what the Democrats were spending in 1990.  While the present budget does attempt to deal with runaway discretionary spending, his budget still provides for a 5.4% increase next year and very large deficit spending.

With Medicare spiraling to bankruptcy, we passed an unnecessary drug benefit for seniors, adding trillions to the cost of this already obsolete way of funding healthcare.  There might not be any worse bureaucracy in the federal government than the Health Care Financing Administration and now we are allowing it to grow without substantive reform.  We know the program is unnecessary because hardly any seniors are signing up for it in this voluntary stage.  Soon the benefit will be "free" for all seniors.  Indeed, many Republicans were intimidated into voting for the plan, even though drug companies have hundreds of programs for low income seniors which essentially provide them free drugs.  Now that we paying for Warren Buffet and Ross Perot's Viagra, we have no way of knowing what this beast is going to cost or how we are going to pay for it.

The President deserves high marks for taking on the issue of Social Security, but his solutions are way too complex and the "trillions" of "transition" costs are not at all necessary.  We can save Social Security with 5-6 changes in the current system (see http://www.fresnolincolnclub.org/mikes_archive.htm)  and the only aspect of this that will actually "cost" money is a new mandate preventing Congress from stealing the Social Security trust fund assets, and finally paying off what previous Congresses have already stolen.  Clearly, the system needs to be fixed, but I haven't seen one idea that really empowers people to put more away for themselves.  This argument will be lost because we've made it too complex and don't propose entrepreneurial solutions.

State and local governments have nothing to show for massive increases in the federal budget.  Infrastructure is crumbling, the interstate highway system is a mess, and there are no plans to expand transportation capacity despite intolerable traffic and steady population growth.  Despite record increases in federal spending on education the local districts are pleading poverty and most aren't delivering a better product due to poor parental involvement and fiscal mismanagement and outright malfeasance in dealing with their own budget issues.  Local governments, including Fresno's, are now looking for tax increases as a way to boost revenue, ignoring all evidence to negative effects on the local economy.  It's a battle we will fight.

The most maddening aspect of this train wreck is that we could be actually solving problems.  Every member of the House of Representatives is in a safe seat now.  The political risk of reforming the federal government is minimal.  Incumbents will win, even if they support strident reforms in how we spend money and manage federal finances.  Instead, we are sliding to where the Democrats were in the early 1990's and behaving just as badly.  By the end of this decade, if not saved by population migration to the South or an outright implosion of the Democrat Party, the GOP will be out of the majority in either the House or Senate, and we will have no one to blame but ourselves.  For lack of courage, lack of leadership, and the failure to seize a historic opportunity to change Washington, unless there are major changes in the way the House and Senate direct the budget process, all will be lost, sadly, for the GOP.

Michael Der Manouel, Jr.


Lincoln Club of Fresno County, 4618 N. First St. PMB #311, Fresno, CA 93726. FPPC# 1251995. Lee Brand, Treasurer

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