Much has written about David Stockman’s 7/31/10 Op-Ed piece in the in the New York Times; “Four Deformations of the Apocalypse.” It was a damning indictment of modern government economic policy starting back in the Nixon administration and moving forward, Stockman was head of OMB for the Regan administration. Stockman attacks deficit spending, Republican tax cuts, increased military budgets, Wall Street and the financial sector and the printing of money. He argues (among other things) that the Bush tax cuts, that he feels did not make sense in the first place, should be allowed to expire as part of a call for a new austerity.
Stockman’s article is something all Americans should read. I say this not because I think the piece is necessarily “correct” but because it is correct enough, and comes from the unique perspective Stockman offers. I think Stockman leans too heavily on increased taxation and not enough on spending cuts and government streamlining and re-organization – things that could have a significant impact on our governments spending (including ending the wars in Iraq & Afganistan).
All that being said the other thing Mr. Stockman had brought into the discussion is the idea of austerity. It seems that there is little doubt that the extreme size of the deficit is (when any adults happen to be elected to congress or the White House) going to lead to some very tough choices in our public and private life.
What remains to be seen, is if Americans, who have shown a very slight taste for austerity, have the moral fortitude to stomach this. Years of drunken, debt fueled spending (both public and private) have left Americans little equipped to fight this coming battle.
We're going to need some seriously courageous governmental leadership to get American's onboard any austerity train. But as long as the wars continue and the government continues to incur huge debt to bail out banks, public employee unions, states - and now states bailing out cities (hello Harrisburg) - that's one train that'll never get started. Our politicians continue to disgrace and redefine shamelessness (no small feat considering their predecessors) but some of these schwepp's need to start slashing spending. At the Federal level, start with the fattest and simplest target of all, military spending. When the Secretary of Defense is out in front of military spending cuts you know there are billions of other cuts that can be easily made - pretty much anywhere but the VA. And the states need to start brandishing the international middle finger to their bloated, lecherous public employee unions including new workers, soon to retire, and, horror, yes even those already collecting. Unions got a sweet deal during better times; times ain't so sweet so suck it up. Government needs to slash/lead by example, establish legitimacy, and then raise taxes.
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