White House automaton Jay Carney told reporters recently that reducing the deficit is not really a worthy goal. Here’s what he said:
“The goal remains one that the president believes is the right one and he hopes that in dealing with our further budgetary and fiscal challenges that he will be able to reach an agreement with Congress to further reduce our deficit in a balanced way and to, most importantly- because deficit reduction is not a worthy goal unto itself, this is all about making our economy stronger, making it more productive and allowing it to create even more jobs. That is the most important thing when it comes to economic policy as far as the President is concerned.”
Running trillion dollar deficits from year to year isn’t really all that big of a deal, even though that means the government is spending more than it takes in. In a normal household, that means you have a budget problem, and you either have to get a second or third job to increase your income, or you have to cut spending. Or, you could do the equivalent of what Congress does and spend even more using multiple credit cards. In the real world though, eventually that bill will come due. But our government is not bound by these rules since they create their own money and arbitrarily establish its value.
While closing the deficit isn’t a worthy goal of the Obama administration, raising the $16.4 trillion debt limit is. It’s so worthy that Senator Reid (who was against raising the debt ceiling before he was for it) and some others wrote a letter to Obama, telling him that he should just bypass Congress if they won’t agree to raise the debt ceiling. The letter accused the GOP of holding the nation’s economy and reputation “hostage” by not compromising:
“In the event that Republicans make good on their threat by failing to act, or by moving unilaterally to pass a debt limit extension only as part of an unbalanced or unreasonable legislation, we believe you must be willing to take any lawful steps to ensure that America does not break its promises and trigger a global economic crisis — without congressional approval, if necessary.”
Closing the deficit is not a worthy goal because Obama’s in the White House. Endless borrowing facilitated by continuously raising the debt ceiling is OK because Obama’s in the White House. If the GOP had the White House, the Dems and the media would be going crazy with how “unpatriotic” it is to maintain such a large deficit year after year and how “irresponsible” it is to raise the debt limit. We wouldn’t hear the end of it.