We’re all doomed, or are we? We Libertarians want a small government and a balanced budget and the coming recession may be the required bridge to get us there. That is, unless Congress keeps kicking the can down the road and it’s time to stop. The only good investment now is no investment; investment in government that is.
Thanks to the upcoming 2011 debt ceiling deal, automatic cuts of $109 billion for the current fiscal year, including $55 billion from defense, which will kick in starting in January unless a separate deal can be forged. Additionally, the government is slated to hit a debt ceiling sometime between December and February, and tough negotiations are expected over terms under which more government borrowing would be allowed.
Is a recession beginning next year the price we’re going to pay for freedom? You’re either part of the solution or part of the problem and it’s the Democrats who want more government. Republicans complain that they’ve acceded to increases in government revenue but Democrats haven’t detailed any spending cuts they’d accept. Incoming Senate Budget Committee chairman Patty Murray of Washington has said the plunge should be an option. But aghast, the argument goes that if the U.S. does fall off the cliff, the new Congress would meet in 2013 and retroactively pass tax and spending legislation in an attempt to repair the damage. This while President Barack Obama and congressional Democrats would have new leverage to pass legislation that lowers tax rates on poorer households and the middle class.
Nov. 27 (Bloomberg) — Senate Majority Leader Harry Reid said Democrats and Republicans have made little headway in negotiations over how to avoid a year-end fiscal cliff. (Read San Francisco Chronicle).
What might Democrats give up in “fiscal cliff” talks and who do you believe? The White House continues to make noises about the big entitlement programs, saying they’re on the table as part of a multi-part deficit solution (What might Democrats give up in ‘fiscal cliff’ talks?).