One of my correspondents at the Club for Growth -- which has key-voted the defeat of the Boehner plan -- replied almost immediately thus:
- The only thing that math can't immediately conclude, however, is if the spending cuts will ever materialize. The big joke about the Boehner Plan is that it increases the debt limit NOW for only the promise of spending cuts over the next 3650-ish days. It's a fool's bargain.
I agree. My proposal for the end game to this current battle -- which went out to you all on July 16th but wasn't posted on Econ-Lib -- is to cut next year's spending by 1/10 of a short term $1T debt limit increase. If Boehner's proposal included $90B = $900B/10 in cuts for next year, instead of the $22B it does include, then we'd be one step closer to balance. I think it should be amended to increase next year's spending cuts to that level, which he promised back in May, or defeated.
I think the chances are small of our persuading the electorate to throw the Democrat Senate and President out on their ears in November 2012 if we force an immediate balanced budget by not raising the debt limit now. The economic dislocations would be substantial, and the President would have all the authority to focus them where they would do maximum damage to our cause.
The political impact of a real $90B in cuts for next year -- being both large and too small -- along with the next debt limit battle in early Spring would all but assure our taking over the Senate and Presidency, while holding the House.
