The False Promises of the Debt-Ceiling Deal
Now that the deal struck by Congress has been signed into law, it is important to debunk the myth-based statements regarding this deal before such statements become accepted as conventional wisdom.
The claim by those who supported this deal to prevent the United States from defaulting is that the deal cut spending.
It in-fact did not cut a dime of spending.
As the Cato Institute illustrated in very simple terms, the deal only reduced the projected rate of spending growth.
In no way is spending cut, only the rate of growth is cut.
This fact seems to have eluded even our North Dakota federal delegation.
Congressman Rick Berg is quoted as saying the bill “ensures that America is able to pay its bills, without raising taxes, while also ensuring that that both chambers of Congress cut spending and enact serious reforms to address our nation’s debt.”
While the statement is true in the framework of how Washington, D.C. works, in the real world, in North Dakota, the average person would consider that to be completely false in the context of reality.
Senator John Hoeven uses the same flimsy language by saying “but I believe the framework passed today is an important first step in beginning to find real savings and control our spending.”
Again, this deal does not cut any spending, only the projected rate of growth for spending.
Another key feature of this bill is the creation of yet another debt-commission that is euphemistically being referred to as “The Super Congress.”
This new commission will be tasked to work on reducing the deficit and national debt, but it is yet another way to support the status quo of spending and make tax increases easier to pass.
Even the left-wing Huffington Post is concerned about the direction this Super Congress will go and has said it has “little transparency.”
It seems our federal delegation was a little too eager to go-along-to-get-along on this debate.
Hopefully that will change.
Dustin Gawrylow is the executive director of the North Dakota Taxpayer’s Association.Tags: deficits, John Hoeven, Kent Conrad, national debt, North Dakota News, Rick Berg