Let's Focus on What's Important

Yours truly, oldstyleliberal, thinks we all need to stop, take a deep breath, and retract our claws. This year's election campaign is setting all-time records for nastiness and ugliness, just when we need to keep our focus on important issues.

There is big trouble on the fiscal horizon. In his most recent Sunday op-ed piece, "The Next President's Due Bill," Washington Post columnist David Broder notes that according to the Congressional Budget Office, "the next president, whoever he is, will probably inherit a budget that is at least $500 billion out of balance — a record sum that will limit his ability to do any of the wonderful things being promised daily in the upbeat rhetoric of the campaign."

According to this report by the nonpartisan Tax Policy Center:

Although both candidates have at times stressed fiscal responsibility, their specific non-health tax proposals would reduce tax revenues by an estimated $4.2 trillion (McCain) and $2.9 trillion (Obama) over the next 10 years. Both candidates argue that their proposals should be scored against a "current policy" baseline instead of current law. Such a baseline assumes that the 2001 and 2003 tax cuts would be extended and the AMT patch made permanent. Against current policy, Senator Obama's proposals would raise $600 billion and Senator McCain's proposals lose a similar amount.

And Post columnist Sebastian Mallaby summarized that in this recent piece:

According to the Tax Policy Center, over the course of a decade Obama's plan would result in a national debt $1.2 trillion smaller than you would get under McCain's plan.

We talk about the national debt in terms of changes and increments — plus or minus $1.2 trillion or so — because it's too huge to imagine in absolute terms. (To see how huge, click here.) The national debt — the nation's outstanding public debt — is the federal government's "accumulated deficits plus accumulated off-budget surpluses" (see this web page). When U.S. budget deficits grow, as they have done precipitously this year due to rising expenditures and falling tax revenues in an economic downturn, the national debt grows. And 22.7% of this debt is now owed outside the U.S. to foreign governments and international organizations (see here).

According to this article by Jeremy J. Siegel at Kiplinger.com, the ceiling on the national debt is about to be increased by Congress to $10.6 trillion dollars. This is not in itself bad, even if a lot of the money is owed to China and others: "Although our national debt is large, the annual output of the U.S. economy -- our gross domestic product -- now exceeds $14 trillion. With a national debt now totaling $9 trillion, the ratio of debt to GDP is only 63%."

So we can afford to carry a national debt this high, but even so, Siegel says, "The nation's debt will grow rapidly over the next two decades as entitlement spending surges to meet the demands of more than 80 million retiring baby-boomers." That's the "real debt crisis" we are going to be facing soon.

That's why "Defending the Insiders: Change in Washington? Not Without Them," Norman J. Ornstein's column in today's Post is must reading. Ornstein, one of those much-reviled "Washington insiders" for many, many years, says the key initiatives undertaken by the next president and Congress

... have to come in reforming our large entitlement programs — Social Security, Medicare and Medicaid — to cope with explosive growth in the number of older people. Change to these programs would mean pain for large numbers of voters. As that late, great Washington insider Daniel Patrick Moynihan noted long ago, serious reform of entitlements, absent an immediate meltdown, can only occur if there is broad, bipartisan cover from leaders on the left, center and right, from Democrats and Republicans, from inside Congress and key interest groups such as AARP and the business community.

That kind of consensus is forged through the political process. It's done by finding allies and building coalitions via intense bargaining and politicking. The skills needed are far more likely to be possessed by Washington insiders than iconoclastic outside reformers.

In other words, we can't really afford the kind of "change" both candidates are now offering the country, if "change" means a radical shift toward either the left or the right. The kind of "change" we actually need is one that greases the wheels for broad consensus — for meeting in the middle. Washington insiders can be our most precious facilitators in this, but only if the political hatreds this election seems to be breeding can be set aside.

So, as I say, can we all just retract our claws?