Legislative Update
October 27, 2011
Upcoming Event
November 7, 7:45-9:00 a.m., Policy Makers, Movers and Shakers breakfast installment featuring U.S. Senator Tom Carper. To register, please click the following link: http://www.ncccc.com/cwt/External/WCPages/WCEvents/EventDetail.aspx?EventID=1080
or contact Heather Fisher at fisherh@ncccc.com or (302) 294-2055.
A Do Nothing government?
The aim of every political constitution is, or ought to be, first to obtain for rulers men who possess most wisdom to discern, and most virtue to pursue, the common good of the society; and in the next place, to take the most effectual precautions for keeping them virtuous whilst they continue to hold their public trust. (Federalist No. 57, James Madison)
President Harry Truman used the 80th Congress as a foil in his 1948 race against Thomas Dewey, forever branding them “the Do Nothing Congress”. Our 44th President and his supporters are making a similar argument with respect to the Republican-controlled House of Representatives in the 112th Congress as we approach 2012.
The debt ceiling increase required months of wrangling amid apocalyptic predictions before a deal was reached and passed. Prospects for the president’s jobs plan, the American Jobs Act, are, to be kind, bleak. Disagreement continues as to whether any tax increases are possible or appropriate in this economy and our Americans are expressing profound dissatisfaction with the federal government.
Supporters of the president are calling the GOP obstructionist. Critics of his policies point out that the math doesn’t add up for many of the proposals and insufficient effort has been made in order to arrive at compromise with the opposition. Both arguments have merit.
Partisan disagreement does not excuse poor leadership. Divided government can, and often does, produce good results. Many look on the Reagan years with particular fondness. There was a Democratic majority in the House of Representatives during his entire presidency and a Democratic majority in the Senate during the last two years of his administration. His administration hastened victory in the Cold War, created a framework for strategic nuclear weapons reductions, significant tax reform and a regulatory environment friendly to economic growth. Agree or disagree with his ideology, we were better off as a country in 1984 than we were in 1980. Those more inclined to pine for the Clinton years should recall that there was a Republican majority in both houses for the last six years of his presidency. The Clinton years brought us welfare reform and balanced budgets. As in 1984, our country was significantly better off in 1996 than we were in 1992.
Our budget deficit for FY 2011 was $1.5 trillion. Additionally, no FY 2012 budget has been passed and the federal government continues to operate under a continuing resolution. The overall national debt stands at $14.84 trillion, while our GDP is approximately $14.98 trillion. Approximately $10 trillion of this debt is publicly held; though that distinction between publicly held and intra-governmental debt begins to blur when one considers that intra-governmental debt is debt held in government accounts such as the Social Security Trust Fund, hence the obligation is no less real.
So why is it that we do not see similar results in these dire times when we need both sides to work together more than at any time since World War II? One reason is that lawmakers on both sides of the aisle are waiting for the results of deliberations by the “Super Committee” that resulted from this past summer’s debt ceiling negotiations. Another is that there is genuine disagreement as to the direction our country should take.
Considered in light of our deficit and the fact that the federal debt is nearly 100 percent of our gross domestic product and that our chief economic competitor is also our chief creditor (China), the fact that many in the center and on the right are questioning the wisdom of increased spending, such as that required by the American Jobs Act, is understandable. The Act is projected to cost $447 billion. The administration’s plan to pay that cost involved a number of tax increases that the GOP considered deal-breakers at the start.
The Obama Administration and many Democrats favor a Keynesian approach to promote short-term economic growth. Whether or not you agree that stimulus spending is necessary now or that the focus should be on deficit reduction depends on how serious a problem you view our national debt to be and the degree to which you believe that such spending will in fact stimulate the economy. There are serious-minded Americans on both sides of this argument, as well as many in the middle who favor a mixed approach of short term stimulus spending and long-term deficit reduction.
Hopefully, the Super Committee will meet its deadline of November 23 to release its recommendation to Congress. We must also hope that the recommendations form a body of coherent proposals for consideration and passage in the House and Senate. Should the committee miss its deadline for recommending a minimum of $1.2 trillion in deficit reduction measures, or should the Congress fail to act on its recommendations, automatic spending cuts will occur in 2013 – barring Congressional interference to reverse them – in both defense and domestic spending.
During good times, gridlock is not necessarily a bad thing. As the oft-misattributed axiom goes: “That government is best which governs least.” However, during times of national and international crisis, Robert Hutchin’s alternative is more apt: “That government is best which governs best.”
As global financial markets continue to roil in the wake of the European financial difficulties, protestors take to the streets in major cities, unemployment remains at historically high levels and the political landscape of the Middle East changes more rapidly than at any time since the fall of the Ottoman Empire, it is time for leadership and governance – the governance that can only be brought about by people of good will in leadership on both sides of the partisan divide cooperating for the good of our nation and the future of our country.
Chamber Government Affairs Survey: the results are in
The results of the most recent Chamber Government Affairs Survey are in. Members were sent an electronic survey and asked to offer their opinions on some major issues.
The survey results indicate considerable dissatisfaction with the performance of the U.S. Congress, with 44.3 percent strongly disapproving of Congress’ performance and 41.6 percent disapproving. 1.3 percent strongly approved; 3 percent approved and 9.6 percent were not sure. An 85.9% combined disapproval rating speaks for itself. We take this as an indication that Congressional leaders should follow the example and tradition of the Delaware Congressional Delegation of reaching across the aisle to get things done.
On President Obama’s job performance, results were mixed. 9.6 percent of respondents strongly approve, while 29.2 percent approve. 9.1 percent were unsure how they viewed his work so far. His disapproval numbers edged higher, with 19.2 percent disapproving and 32.9 percent strongly disapproving for a combined disapproval rating of 52.1 percent versus a combined approval number of 38.8 percent.
Regarding the Affordable Care Act, a 32.9 percent plurality strongly disapproved, while 16.4 percent disapproved, for a 49.3 percent combined disapproval rating. 16 percent are understandably not sure of their opinion, given the complexity of this legislation and the resulting regulations. 21.5 percent approve; and 13.2 strongly approve. The diversity of opinion may reflect more than just a partisan difference of opinion or a left or right policy bias. Small businesses have been clamoring for a solution to skyrocketing health care costs for years and many are willing to try something new. However, increasing doubts that this Act will do anything to decrease costs overall are leading others to question its efficacy.
Our members were clear on spending. When asked whether the federal government should increase spending in an attempt to stimulate the economy or cut spending to reduce the deficit, 60 percent favored cutting spending to reduce the deficit, while 40 percent prefer an increase to attempt to stimulate the economy.
80 percent of respondents believe that our nation is on the wrong track, while 20 percent optimistically indicated that we are on the right track. Roughly 35 percent think that our state is on wrong track; and 65 percent believe that Delaware is on the right track.
Respondents evenly divided concerning which type of candidate they would support if the election were held today. 42 percent indicated they would be more likely to vote Democratic. Another 42 percent would be more likely to vote Republican. The remaining 16 percent would be inclined to support a third party candidate.