Grand Fiscal Failure of The Debt Commission- A Debt Bomb

The long awaited recommendations by the debt commission failed to get the fourteen votes needed to get an up or down vote by Congress.  Contrary to the rhetoric attempting to salvage the utility of this process, it was not the beginning of an “adult conversation” regarding our fiscal crisis.  When the debt commission was put together, I criticized it for not having a sufficient sense of urgency in my blog Business As Usual.  Almost a year later, the procrastination commission has not caused one change in policy.  Adult implies being responsible, and at this late date responsibility requires action.

This situation becomes more critical as each day passes since state governments need to know what to expect in federal cuts.  With a new term beginning in January, most states’ priority is addressing structural deficits in what will be a very difficult budget process.  If there will in fact be cuts in federal largess, every state in America is underestimating their deficits.  States are going to need more than a “conversation” to make a responsible budget.

It is projected that by spring of 2011, Congress will be facing the prospect of voting on raising the debt ceiling.  Since many of the newly elected congress used voting to raise the debt ceiling in the past against their opponents, it would be strange to expect them to want to pick up this toxic issue.  Democrats can let Republicans eat the issue by making them vote for it or shut down the government.  You would think this would be sufficient motivation to have started cutting, but the surgery cannot commence until there’s a consensus on the disease.