Legislative Update, November 23, 2011
As we express our gratitude, we must never forget that the highest appreciation is not to utter words, but to live by them. ~John Fitzgerald Kennedy
Members of the Joint Committee on Deficit Reduction (the “Supercommittee”) and the leadership of the 112th Congress would do well to heed the words of our 35th president as they join their families around the Thanksgiving table this week.
It seems that the committee, formed as part of the deal arising from this past summer’s protracted debt ceiling negotiations has failed in its mandate to recommend $1.5 trillion in deficit reduction (to occur over the next ten years) by November 23. The legislation which gave rise to this committee, the Budget Control Act of 2011, provides for some $1.2 million in automatic budget cuts to entitlement and defense programs, starting in FY 2013, should the committee fail to find and agree upon the requisite reductions. There is talk on both sides of the aisle of repealing or ignoring the triggers set forth in the enabling legislation. This outcome – absent a workable solution which provides for the requisite deficit reduction in the interim – would be unacceptable.
During times of economic prosperity and peace, legislative inaction can be a sublime virtue. However, as we prepare to enter 2012, our nation is experiencing neither prosperity nor peace. Our national debt currently stands at about $14.9 trillion, stands at nearly 100% of our gross domestic product. The budget deficit for fiscal year 2012 was $1.5 trillion. National unemployment is 9 percent; a figure that has been met or exceeded by the U3 unemployment statistic for 31 months running. More than 45 percent of the unemployed has been so for more than six months. The U3 data only takes into account those still actively seeking work. The real number of unemployed is markedly higher. We are winding down two decade-long wars and funding a massive global military and security apparatus. Our public education system is in dire need of serious reform, and our infrastructure is serious need of repair.
A number of our chief northern industrialized allies are experiencing sovereign debt crises. Our chief rival for global influence, the People’s Republic of China, is lending them substantial sums to aid in stabilizing the global financial system. That same rival is the chief foreign holder of U.S. sovereign debt.
As a nation, we still have much to be grateful for on this Thanksgiving. We have overcome every previous major challenge which has faced us in our 235-year history. Now is the time for leadership to meet what are truly generational challenges. The action – or inaction – of our leaders will determine our place in the world in the 21st Century.