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EDITORIAL: Battle of the budget
Sunday, November 08, 2009 3:53 PM


(Source: Akron Beacon Journal (Akron, Ohio))trackingBy The Akron Beacon Journal, Ohio

Nov. 8--John Boehner of Ohio often says something along these lines: "It is irresponsible for Democrats to continue spending taxpayers' money we don't have to fund an agenda that would destroy the jobs we need to get our economy moving again." The House minority leader sees a political advantage in highlighting the country's whopping budget deficit ($1.4 trillion in the fiscal year that just ended) and its mounting debt (nearly $12 trillion).

What Boehner doesn't acknowledge is the full story.

No question, the country must get its financial house in order. China and others playing the role of creditor expect the necessary discipline. This generation owes such action to the next. That doesn't mean the country should act immediately to soak up the red ink. The government's deficit spending has been essential to softening the blow of the harsh recession.

Look at Ohio, where, for starters, stimulus money has protected the jobs of thousands of teachers (who then spend money with local businesses). As it is, the economy continues to struggle, the early recovery generating few jobs, foreclosures still mounting, many small businesses having difficulty securing credit. Congress has moved to extend jobless benefits and, along with the Obama White House, is considering other steps to bolster the fragile economy.

What deserves attention is that such spending amounts to one-time money. The sum triggers a spike in the deficit. Then, it cycles out of the fiscal picture. Worth notice, too, is that the massive financial bailout and the $787 billion stimulus package account for roughly one quarter of the annual deficit.

The rest of the shortfall? Here's what Boehner doesn't share. Substantial contributors to the deficit are policies pushed by Republicans, most prominent, the tax cuts of George Bush the younger. More, Bush and the Republican Congress presided over an expansion of Medicare without finding a way to cover the cost. They took a similar approach toward the conflicts in Iraq and Afghanistan.

Add the downbound economy, and the Obama team has good reason to argue that it inherited a fiscal mess. Now the president finds himself trying to strike the right balance between aiding the economy and applying discipline to the budget.

Some members of Congress, Democrats and Republicans, support the concept of a deficit commission, a bipartisan panel that would propose remedies for the deficit, even require lawmakers to vote, up or down, on the proposals. Hard to see such a coming together in the words of Boehner. For now, it is well to see why the federal government must spend. The immediate health of the economy is the first priority.

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To see more of the Akron Beacon Journal, or to subscribe to the newspaper, go to http://www.ohio.com.

Copyright (c) 2009, The Akron Beacon Journal, Ohio

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