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Selective Shut Down strategy better than Debt Ceiling bluff

Despite my “gamecock” nickname, I have never favored games of chicken and so don’t support a House GOP contest of Blind-Debt-ceiling-Man’s Bluff either. I have always thought that protest votes, especially if cast by a majority that would have the United States default on its current obligations, were irresponsible.

Moreover, how much credible a threat is such a bluff under current circumstances? Zero, with but one caveat if the proposal includes current cuts that make such a raising of the debt ceiling unnecessary and/or the “sequencing” rule which Tim Pawlenty proposes further below.

I have long favored a publicly-declared Republican Shut-Down strategy, especially since the Lame Duck Session, and have long lamented that Newt didn’t employ such a plan back in the 1990s. The beauty of drawing the line in the budget battle sand rather than the debt ceiling ether, is that the latter would precipitate a financial crisis that would make 2008′s look puny, whereas the former, if effectively advanced, would thrill economic markets with the most serious action against deficits and debt since…well, ever!

Coincidentally, a few days ago Hugh Hewitt laid out such a strategy that would reassure the public in advance of the continuation of essential government services and preempt the falsity of the sob stories about Park Rangers who would eventually get their back pay:

“Selective shutdown” is a term the Republicans need to embrace and the public needs to understand.

Within a few weeks, the vast gap between President Obama’s spending objectives and the House Republicans’ agenda of fiscal restraint will become obvious. Compromise between the two will not really be possible.

The president’s attachment to Obamacare and to the EPA’s massive power grab via administrative cap-and-trade is too deep for him to give them away, while the consequences of both programs’ continuation are too devastating to the economy for House Speaker John Boehner to allow either initiative or spending generally to continue on their current paths.

The GOP can defund Obamacare and the EPA’s power grab simply by refusing to appropriate money for either effort. The House can indeed “just say no.”

The president will try and save his priorities from the chopping block by holding the rest of the federal government hostage.

Thus, Boehner and his three key allies –House Majority Leader Eric Cantor, House Budget Committee Chairman Paul Ryan and House Appropriations Committee Chairman Hal Rodgers need to lay out now and explain in detail exactly what will happen over the next nine months.

The key operations of the government that should continue without interruption –Defense spending, Social Security and Medicare payments, and any other “must fund” operation—should be moved through the budget and appropriations process quickly and be in the Senate’s hands long before the impasse with the president over the other items becomes unavoidable.

Boehner needs to be explaining now that, absent the president’s embrace of the necessary fiscal restraint, the repeal of Obamacare and a reigning in of EPA, the non-necessary functions of the federal government will be closing down in the fall.

Boehner needs to start talking now about the “selective shutdown” of the federal government that is ahead if the president refuses to listen to the verdict of the voters rendered decisively in November.

At the same time, Boehner and his allies have to reassure Americans and especially senior citizens that they have provided the Senate with the bills necessary to fund Social Security, Medicare and defense, but that the president is holding these appropriations hostage in order to defend Obamacare,the bureaucrats at EPA and the leftwing broadcasters at NPR.

I have always thought it best to pursue only that strategy, rather than the usual debt ceiling bluffs that only secure minor budget concessions, or even the more consequential strategies such as Sen. Rand Paul’s (R-KY) balanced budget rule or Economist Arthur Laffer’s ObamaCare and Dodd-Frank repeal strategies, given the unlikelihood of the Senate to go along. I also wouldn’t trust President Barack Obama to act responsibly.

But the “sequential payment of debt principal and interest plan” gives me pause.

Former two-term Minnesota Governor Tim Pawlenty proposes legislation that would put interest and debt payments ahead of other federal spending and allow the federal government to pay its creditors as tax revenue flows in. With the surge of tax payments that come in between April and June, that would at least buy time to try to cut spending dramatically, he said.

“This debate about how we’re going to restructure spending is inevitable. My view is, let’s have it now,” Mr. Pawlenty said in the Journal interview. “Let’s call their bluff.”

Pawlenty’s plan is bold and just might work, and if we are going to save the nation, we are going to have to be bold, and not just “cute”.

We can’t fix the budget painlessly, although I do favor the plan to simply reduce spending across the board by 10%, which would trim the budget back to 2008 levels. The budget was too big in 2008 as well, and I’m not sure that the 2008 plan would actually fire 10% of federal employees, much less all those hired to regulate us since Obama too control of pitchforks and began running the federal government like a Chicago mob that defies court rulings on net neutrality, oil drilling moratoriums and carbon emissions.

This will be serious stuff, most likely unlike the gimmick requirement that all bills contain a provision listing what parts of the Constitution authorize said bill’s subject matter, if all they do is throw in “general welfare” and “necessary and proper” clause references:

The new Republican House will henceforth require, in writing, constitutional grounding for every bill submitted. A fine idea, although I suspect 90 percent of them will simply make a ritual appeal to the “general welfare” clause. Nonetheless, anything that reminds members of Congress that they are not untethered free agents is salutary.

The battle will concern the repeal of ObamaCare as well as “regulation reversal” and preemption, which, given the recent moves by the Democratic party-controlled Senate to change filibuster rules, thankfully doesn’t allow same under current law:

Rep. Fred Upton, 57, who represents southwestern Michigan, is now chairman of the House Energy and Commerce Committee. He notes that last summer the Progressive Change Campaign Committee got 95 Democratic congressional candidates to pledge support for federal regulation of the Internet. In November, all 95 lost. Upton will try to stymie the FCC’s impertinence by using the Congressional Review Act, under which a measure to reverse a regulation gets expedited consideration and cannot be filibustered in the Senate.

The GOP House also needs to address, early and often, the matter of the State of Texas v EPA that seeks to destroy domestic oil drilling on land and sea; the folly of government by arbitrary man (instead of the rule of law) via ObamaCare waivers; government death panels via executive fiat after rejection by a Democratic Congress; and executive overreach via executive orders and regulation promulgation, in general.

Bottom Line: We will have to FIRE FEDERAL EMPLOYEES and cut entitlements. Not pleasant tasks.

It will take courage. Godspeed to the House and full steam ahead.

Mike DeVine

“One man with courage makes a majority.” – Andrew Jackson

Charlotte ObserverThe Minority Report and Examiner.com archives

www.devinelawvista.com

COMMENTS

  • fedsocdan

    Hugh’s strategy is a no-brainer. Settling for these minor budget concessions are absolutely suicidal. Ten years ago we could at least tolerate them but now we’re basically out of time.

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • edwyrd

    i would submit that selective shut down contains elements of genius unaware. that is to specifically and vindictively target government agencies and policies that either intentionally or by proxy severely encumber investment and entrepreneurial risk, would spawn an economic boom, increasing federal tax revenues and reducing the political and economic costs of reducing the federal budget. for an example (please multiply at will) the drilling ban. in fact, any and all such encumberances, across the board. however i am just a crane operator from south carolina (go gamecocks!), who would be awful happy if the damn marxists took their paws off my country!

  • edwyrd

    wouldn’t it be wiser to be fighting to free unemployed polly from the regulatory train tracks. and the reward, so hard fought for, would go far in restoring our good fortunes and prosperity, instead of just avoiding an international financial meltdown, that is, to win, only to keep from losing, aint good medicine!

  • diesel53

    Hugh Hewitt laid out such a strategy that would reassure the public in advance of the continuation of essential government services and preempt the falsity of the sob stories about Park Rangers who would eventually get their back pay, or Grandma has to eat cat food…and all that bull..
    one of the best plans I’ve read, and needs support from RS, lets find a way to get this to the power listed, and start yesterday…

    Pull all forces together to win the game- Ron Reagan

  • eastbaylarry

    He seems to think the FDA needs full funding.
    The recent FDA ruling that injectable vitamin C is a ‘new drug’ and ‘needs clinical testing’ and is banned until such testing is completed tells me that they need to have their budget cut also.

    http://www.redstate.com/markmeed/2011/01/14/internet-meme-on-fda-ban-on-injectable-vitamin-c-suggests-larger-ban-on-fact-checking/

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://impudent.edublogs.org/ kyle8

    need a firm hand to tell them not to overstep. And a lot of budget cutting.

    I think we went way past the point of marginal utility in a cost benefit analysis of the good we get from these agencies for the costs they impose.

    We reached that point Probably about in the mid 1980′s

  • GregInFla

    was, if it were to exist, for it to simply guarantee a drug’s safety, not its efficacy. (“Do no harm.”) This was its original mission. I agree with him on that, and many other of his ideas as well.

  • Menlo

    Despite mandatory labeling and lecturing to consume more, it actually has no consistent definition. The nutritionists at FDA cannot agree on what food components should or should not constitute fiber.

    That ought to be a top priority right now.

  • edwyrd

    in the morning briefing. i personally would like to hear boortz, rush and hannity curmudgeoning the establishment republicans with the wisdom herein…

  • edwyrd

    well, i personally vow to hold close and constant cold warriors’ mission calling on us all to become precinct commiitteemen. cold warrior, even us blue collar kooks can hear you loud and clear! viva the conservative revolution!

  • bobmontgomery

    Defining things is so easy, even a political appointee can do it! Like, Lisa Jackson, Ken Salazar, Kathleen Sebelius. In fact, it is so easy, even a First Lady can do it! Ever drank non-fat milk? Ummmm! How are you going to get kids to drink milk when you’ve got Arne Duncan and Michelle Obama directing the USDA to say it would be a really good thing for kids not to drink a little carton of whole milk four or five times a week? These people’s power lust allows them to brush aside the entirety of human and animal history to substitute their definitions for your mother’s.

  • Menlo

    You are correct about the left’s attempts to redefine words. That’s what “law” schools train them to do.

    However, they have neglected their duty on this one by failing to provide a chemical definition. For instance, should manufacturers be allowed to count resistant starch as “fiber?” How about methylcellulose? Right now, there is inconsistency and confusion among scientists and consumers.

  • bobmontgomery

    One can understand why there might be confusion among consumers – mixed messages and all. The question is, why is there confusion among scientists? There might be some disagreement over the interpretation of results, and there might be some question about the amount of review and testing something should undergo before it is recommended, but there shouldn’t be confusion. So we go back to, for example, climate science, where the data was incorrectly obtained, misquoted, concealed, lost or destroyed, but the premise was accepted anyway. People did things to get money and other people didn’t do their jobs and other people presumed to speak for scientists and nobody stopped them. Now you’ve got two generations of mind-numbed robots walking around out there incapable of taking care of themselves, let alone their children.

  • Menlo

    Meanwhile, labeling is required for something that has no clear definition. That’s why I say it is something they need to do rather than not do.

    FDA needs to narrow the definition to an all-inclusive list of one or more chemical components.

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://impudent.edublogs.org/ kyle8

    be assured that MOC do indeed learn of the ideas on this site. Though I am sure that this is a strategy they have already discussed.

    Whe have done our best this election cycle and we certainly got more than a few good people elected. Now we just have to hope they know what they are doing.

  • melbedewy

    which is what I fear we’ll get as the Reds pull out there usual “You’re killing babies, grandmas and cripples” game.

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • edwyrd

    framing the debate. this is why we attack the regulations first, the “job killing” (did i say killing?!) regulations. then we are the heros and they are the bad guys, this is the GENIUS of selective shutdown. it allows us to frame the debate and take the initiative, avoiding, or at least, offsetting the tag as baby killing budget cutters.

  • GregInFla

    Let the market do it. If people want it, they’ll buy products with the nutrition labels. Besides do people really know the differences between polyunsaturated fats, monunsaturated fats, and saturated fats???

    Then again, you also have Los Angeles deciding that poor areas of South Los Angeles have too many obese people and so they cannot have any more “fast-food” restaurants there. Talk about two ends of the spectrum. This goes way beyond the SanFranHappyMeal ordinance (which the mayor vetoed).

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

    be read by all Americans, it would be “Free to Choose”.

  • http://www.thejoyofreason.com Greg Garrison

    Friedman’s Capitalism and Friedman and Sowell’s Basic Economics are also outstanding.

  • GregInFla

    Thomas Sowell’s Applied Economics, Thinking Beyond Stage One.

    I’ve thought of teaching it to home schooling seniors here. I’ve still got a son in 6th grade so I have some time to prepare. One chapter a week, one semester total. It is written in a way that should keep kids interested and stimulate discussion.

    I’ve also thought about teaching American History using William Bennett’s America: The Last Best Hope, one chapter per week for a school year.

  • aesthete

    I remember an interview with Roland Coase (by no means a hidebound libertarian, despite his contact with Friedman and the Chicago Boys), and he noted that every study of regulation using the best tools the profession had available both failed to meet expectations and imposed a societal cost that far exceeded the utility provided. He believed much the same thing that you do, but judged that the point of optimal regulation was much further back than the 80s from his studies on the issue. IMO, both he and you are correct: some regulation is utility-enhancing, but that point was passed some time ago.

  • Sam Gamgee

    We should make calm, calculated, deliberate policy choices on spending. And there’s nothing that Obama or the Democrats can do to stop it.

    Two additional suggestions: (1) don’t give any government agency a “pass” — there is fat in every agency, so let’s at least get back to 2008 spending in every agency, and (2) if necessary, use continuing resolutions to make this happen — in other words, you can stagger the cuts agency by agency, to avoid complete agency shut-downs, but to keep the pressure on them to cut costs.

    My experience is that most government agencies are much more conservative with their spending if they are on a continuing resolution with the threat of a budget cut. In other words, even the threat of budget cuts reduces government spending across the board, as long as by the end of the fiscal year the cuts actually materialize.

  • tedpomeroy

    There is a solution for the lingering fiscal consequences from our current recession and the resultant Federal Reserve actions.

    What does a private sector CEO do when his company has more debt than the company can service?

    Answer: Sell assets. Andrew Jackson was the only President to pay off the national debt. He did it by selling off parts of the Lousiana Purchase.

    What do the American people have to sell by auction?

    Over 440 million acres of surface land in the Bureau of Land Management and Forest Service

    700 million acres of subsurface mineral estate within the BLM

    58 power generating plants within the TVA (the TVA may be overleveraged, even more reason to sell)

    Who would buy it? In the case of the BLM land and mineral rights, if there is a lease there is already an interested party in the lessee. Also, the US environmental movement could dedicate all of their fundraising prowess to purchasing of what they want to preserve.

    Of course when these lands move into private hands they will be subject to their respective States taxing authorities.
    (this would go long way towards righting California fiscally)

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

    The Fatal Conceit and Road to Sefdom,. But Free to Choose is so assessable to the general public. Sowell’s are too.

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

    Great one.

  • http://www.thejoyofreason.com Greg Garrison

    I have not read The Fatal Conceit or Bennett’s history. Those will have to go on the list.

    Applied Economics is great for those who have a good grasp of the basics (from Basic Economics or a similar text), and The Road To Serfdom is a must. The old PBS programs of Free To Choose are great, and availble on YouTube. (I think that’s where I saw them. It was somewhere on the Internet.)

    GregInFla, have you looked at Paul Johnson’s A History of the American People? I’m listening to it right now (audible.com makes my long commute more enjoyable), and it provides an excellent, optimistic history of America that doesn’t go overboard the way that some other books do, in my opinion (For example, A Patriot’s History of the United States, which is a welcome counterbalance to Howard Zinn and other leftist historians, but goes a bit overboard at times). An unapologetically pro-American Englishman, Tory, Roman Catholic, and a personal friend of Margaret Thatcher, Johnson is a bit idiosyncratic, but I enjoy his writing, as his perspective informs, rather than overpowering, his histories.

  • runner12

    This is such a common sense approach. I hope that the House adopts this wise strategy. If they get serious about cutting debt, it may actually keep conservatives in office for the next 50 years. People want REAL change, not Obama-style socialism.

  • Finrod

    The problem with 2008 spending levels is that locks in the spending of the Democratic 110th Congress. I’d prefer to go back to the last Republican Congress’s spending levels in 2006, or even earlier when possible.

  • concap

    I think some where around 1900, and adjusted for inflation.

  • Remington_Steele

    Love it. Thanks for the analysis!

  • GregInFla

    During the BRAC base closures, many times the feds just gave the bases to local governments, instead of selling them. You are talking lots of real estate. When Glenview NAS was closed in the Chicago suburbs, the land and assets were just given away, and led to housing and business developments. I drive by Patrick AFB here on the ocean and wonder how much the real estate and buildings would sell for.

  • GregInFla

    nt

  • http://www.TheConservativeChampion.org Thomas Cheplick

    We would never have to even deal with this if Congress would just pass Rep. Mike Pence’s Spending Limit Amendment that would keep our government’s spending at its historic average of 20% of America’s GDP.

    http://mikepence.house.gov/images/stories/sla_one-page_final.pdf

    This is another reason why I am are cheering him on to run for President! Rep. Mike Pence is the Strongest Reagan-Kemp pro-Jobs free market guy we have got in America. There is really nobody else like him! He was the first to stand up to Karl Rove to fight against the bailouts, he stands strong on national defense and fights Planned Parenthood tooth-and-nail! Principled, and he has got a fine and crisp speaking-style! I urge you to come to www.TheConservativeChampion.org to find out more or sign our declaration cheering him into the Race for the White House!

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • boxedquad

    They claim the developers pay a lease rate for the thousands of acres of land taken away from public use, without mitigated opening of like acreage back to public from reserved land and “wilderness”. The greenies fought hard to give these projects their blessing, and in fact took the land away from the owners (the people). They only wanted us out of all public lands and giving the land away for green projects was OK with them.

    Wind and Solar resources should be linked to cost generated, like oil and gas taken from Federal Lands, it is the peoples resources. No difference.

    When land it given away the public is held out in most areas, but some Sheriffs will not certify any Fed to enforce laws, thereby they can’t arrest anyone nor put up “locked” gates, in the Sheriffs district. And it goes for BLM and Fish and Wildlife LEO’s. This is great stopper, perhaps HC enforcement officers can also be banned by local Sheriff’s? Or is that to much to ask…

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • Flagstaff

    “Defense spending, Social Security and Medicare payments, and any other ?must fund? operation”

    Of course, that leaves open the question of what constitutes “must fund operations.” Does that include all federal payrolls? And I would say it includes paying interest and principal on the national debt as it comes due. We know the government is a notorious slow-payer. I guess those bills will be paid even more slowly.

    It also seems to me that Social Security, at least, doesn’t need an exemption. SS benefits are paid out of current receipts and the trust fund, which is far from broke and can still pay its bills.

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