Tuesday, March 2, 2010

Fly in the Ointment

Senator Jim Bunning of Kentucky is single handedly blocking legislation to keep several government programs up and running. Among the things affected by Bunning's blockage are such things as extending unemployment benefits, worker furloughs, and the provision of highway funds. While the amount appropriated in the legislation is near infinitesimal by Washington standards, a mere $10 billion, the effects will be felt. Bunning's obstinacy lay in his insistence that the $10 billion appropriation bill actually be paid for rather than simply piled atop the massive federal deficit. One reason for Bunning's obstinacy is that he is not running for reelection. "If we can't find $10 billion to pay for it," said Bunning, "then we're not going to pay for anything." Unlike many in Washington, Bunning's decision not to seek reelection gives him the luxury of being responsible.

Bunning's stand is causing problems in Washington. Senator Susan Collins, a Republican Senator from Maine lamented that there are 500 people in Maine whose benefits would expire as a result of Bunning's action. With due sympathy for those workers, I do not see how maintaining benefits for 500 unemployed workers in Maine is justification for supporting a $10 billion federal appropriations bill. The state of Maine sent $6.3 billion in federal taxes to Washington in 2007 alone. It wouldn't have taken very much of that to keep 500 people employed.

Transportation Secretary Ray LaHood accused Bunning of playing political games. "As American families are struggling in tough economic times, I am keenly disappointed that political games are putting a stop to important projects around the country" he said in a statement. LaHood spoke as if "playing political games" was only limited to opposing legislation and did not include the practice of jumbling bills together to inhibit opposition. Despite the billions sloshing back and forth in Washington, money is tight. And, while the national debt swells and many programs and agencies are facing shortfalls and budget cuts, Obama insists on pushing a health care bill that will cost hundreds of billions of dollars the federal government does not have.

The state of California had $37.5 million in federal highway funds put on hold due to Bunning's action. The state of Virginia had $49.5 million put on hold. The state of California sent nearly $414 billion in tax receipts to Washington in 2007 (roughly $8,590 per person). The state of Virginia sent nearly $62 billion (roughly $8,000 per person). If only a small percentage of those federal tax receipts were left in the hands of those two states, social programs could be funded and very few roads would go unpaved. If only a portion of the taxes collected were left in the hands of the tax payers of those two states, their economies would be much better off and therefore far fewer workers would have been laid off. Those states could also spend that money on things they needed, such as extending unemployment benefits, improving education, and providing social services besides simply repairing roads and maintaining bridges. In short, they could spend that money on things they needed rather than on things Washington wanted. And therein lies the rub.

"I don't know how you negotiate with the irrational" said White House press secretary Robert Gibbs speaking of Bunning. This presumes that spending billions of dollars one does not have is rational. When it comes to Bunning's maneuver, the administration and Congress are coming to sound like the customer who, while attempting to buy a new television suddenly has his credit card cut up and then laments "how will I feed my children?" The children are hungry, the roof is leaking, the porch needs repair, and the washer and dryer are broken. But Washington is still trying to buy a flat screen television.

Demanding that federal programs be paid for is not a game. Insisting the government spend only what it takes in is not irrational. It is just the opposite. Many in Washington are being irresponsible when they suggest that insisting on fiscal sobriety is a game. It is time someone stepped up and said no.

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