Ezra Klein has an eyebrow raising piece on Bloomberg View this week where he argues–despite today’s conventional wisdom of complete divide–that Democrats and Republicans have come to a consensus for the moment on certain issues.
Republicans swear to protect Medicare and Social Security, and most recognize they can no longer hope to repeal Barack Obama’s Affordable Care Act. Democrats voted to make the George W. Bush tax rates permanent for almost all Americans.
This is not a stable peace. The Democrats have mostly won the debate over what the government should do, while the Republicans have mostly won the debate over how much the government should tax. Sadly, the two sides of that equation don’t come anywhere near to adding up. The war currently raging from cliff to cliff is about bringing taxation and commitments closer to alignment.
Klein predicts that the latest debt ceiling fight will fall in the Democrats’ favor with Republicans eventually folding on cutting more government benefits. On a broader scale, the fight over the welfare state is all but over and politics moving forward will focus on how to best implement this expansion of government–according to Klein.
So while the debate over the size of the welfare state is mostly concluded, the debate over its increasing sprawl is more necessary than ever. If we’re going to do so much — and we are — we should learn to do it well
Writing in the conservative blog the American Thinker, Greg Richards has alternative ideas for where we are as country, and the major political debate and problem at hand; spending and handling the debt.
What will become of us? Nothing good if this(spending) continues. The mechanism of financial ruin will be a collapse in the value of the dollar, perhaps occasioned by a return of the rate of interest the government pays on its debt to a normal level. Currently, due to the unique circumstances of the slow growth world economy, the continued safe haven status of the U.S., and the Fed’s quantitative easing, interest rates are at the abnormally low level of about 1.8% on the total federal debt. Every 1% increase in the interest rate the federal government pays on its debt would add $125 billion to the budget. An increase of 500 basis points, which would be large but not unprecedented, would add about $600 billion to federal expenditures simply to service the debt. That could push the deficit to $2 trillion a year.
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This budget battle is a turning point for republican government as significant as Caesar crossing the Rubicon and ending the Roman Republic. Or, as Lincoln put it, determining whether “government of the people, by the people, for the people shall not perish from the earth.”
What is the real debate ahead for American politics? How to implement big government moving forward according to Klein, or finding a consensus on real fiscal restraint as called for by Richards? Is the era of entitlement over? Watch the ‘Real News’ team debate this all below:





















































































































SanDiegoCountyCitizen
Jan. 18, 2013 at 1:47pmJust as most of our Founders feared, Federalism has failed, due to the corrupting nature of power, prestige and wealth upon the minds and souls of most Americans; especially the type who seek out political office, or seek out politicians to legally plunder other’s wealth.
Watching the near future of America for me and most of you will be like watching a slow motion car crash on video; knowing it will result in the destruction of the car and sever injuries of most everyone involved.
The only safe haven’s will be areas away from urban environments, in smaller communities involved in the production of food, fuel and the tools to produce those two commodities. There is very little hope for trying to live near urban areas, even in a semi self-sufficient lifestyle… there will be far too many “zombies”.
- I’m looking for work in Utah & Idaho!
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ChrisDiamond
Jan. 18, 2013 at 10:35amWhy are we not also discussing republican spend-happiness? Medicare Part D? Doubling the Dept. of Education? Nearly $2 trillion (much of which went to the beneficiaries in the military industrial complex, or corporate welfare) in warring between 2002 and the end of Dubya’s presidency? Farming subsidies? Oil subsidies? Big Pharma? Stimulus under Bush…? I am no democrat and no fan of Obama, but if we’re going to apply a lens through which to examine the problem, we ought to at least be sure it covers the entire spectrum instead of simply focusing on the element we would prefer to blame… It isn’t the welfare queen… it’s the corporate executives and banksters that purchase our politicians who are largely to blame for the outrageousness of our debt and egregious spending.
Whether the boot on your neck is a right boot or left boot, it’s still a boot on your neck.
What government spending do you support? Why? I invite you all to listen to some podcasts about the inefficiency of government spending in social welfare, education and national defense at the following website: http://www.nomorecages.com
Did you know that charity dollars are 233.33% more effective than tax dollars at helping the poor? Did you know that we outspend most other industrialized nations combined on ‘defense’? Did you know that despite substantial increases in spending per student since 1992, real improvement in student achievement has remained relatively stagnant? Hmmm…
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woodyee
Jan. 18, 2013 at 8:14amThe Democrats were waging a war ON government spending and the welfare state? Really? I thought they were fighting to create a permanency on both fronts?
Well, if the headline be accurate, then Welfare and Spending won the war…
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JRook
Jan. 18, 2013 at 9:50amok chris let’s keep this simple so even you can understand it. First Social Security is a separate tax that is earmarked for SS benefits. The fact that weak politicians did not make the necessary changes to fund it adequately and balance benefits is nothing more than the same inaction that has most state pension plans underfunded. Medicare is similar and could easily be fixed if we didn’t feel a need to pay doctors twice as much as they do in other developing countries and line big pharma’s pockets. The fact that the federal government has borrowed money from both trust funds does not make them the problem, it makes other spending the problem. Now why not actually present a useful graph on government spending besides SS and Medicare. And show you loyal lemmings who actually lobbies for food stamps, housing aid, etc. The 15 year old crack head mother of 2 is not the individual who caused us to run up $16 trillion in debt, $10 trillion of which was Reagan, Bush Sr. and Bush Jr. Bush Jr. more if you consider the $1.2 trillion deficit run rate he left the PRESIDENT. You can’t throw $billion wars and not pay for them. You can’t give $billion tax cuts and not reduce spending. You can’t provide a pharmacy benefit to Medicare and not pay for it. Follow the money people follow the money. Large corporations and the wealthy benefit the most from federal spending, not the poor.
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Lloyd Drako
Jan. 18, 2013 at 12:06pmI would like to add to what JRook has said, but in principle he (or she) has said it all.
If you want to know who is ripping you off and laughing at you behind your back, don’t look down at those below you in the social/economic pecking order, look up.
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woodyee
Jan. 19, 2013 at 11:41amBoth of you are so intelligent, that the simple things sail right under you. I didn’t even read the article, I merely stated two facts – that welfare and spending are out of control. Medicare? BULL. That is MY personal responsibility, just as raising my OWN children are. Welfare? That’s BULL, for the same reason. Social Security? BULL. Same reason. These are debts created under false pretenses, with no intention of ever ending them – BECAUSE THEY BUY VOTES. Social Security? 5yr program. Welfare(aka – Great Society) 5yr program.
Somebody has to say this – government has NO BUSINESS taking from a worker, what he has rightfully earned, to give to someone not entitled to it (entitlements being unpaid bills, unpaid wages, etc.). Protection of our borders (Nat’l defense), and general welfare (roads, bridges, gen. infrastructure) – THAT is our (taxpayers and government) business. EVERYTHING ELSE (stay a very few exceptions) is THEFT.
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Detroit paperboy
Jan. 18, 2013 at 7:48amThe united states of Detroit ………………..welcome everybody !
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Obama Been Lauding
Jan. 18, 2013 at 6:06amMorality, upbringing, education, and politicians are all to blame for what we are seeing in society.
We have TV that has been put in an “R” status, so our children are seeing and acting out things they see. You have less parenting. Teachers are not teaching their students, they are just checking the blocks. Politicians are saying it is okay to be lazy, and get “free stuff”, and even making adds on how to get the free stuff, while demonizing the actually “doers” in the economy.
Cut, Cap, and Balance the U.S. budget, or we will sink.
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EllieR
Jan. 18, 2013 at 2:01amI always thought that “welfare state” was a derogatory term. My bad. Forward to the re-education camp…
As for the so-called consensus on real fiscal restrain, do the democrats even have the words “fiscal restrain” in their vocabulary? What’s going to happen is the gutless republicans will cave in eventually, as per usual practice.
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ChrisDiamond
Jan. 18, 2013 at 10:37amI believe you are correct. The GOP will cave, and just try and make sure some of the spending increases go to their corporate and bankster masters. The GOP likes government spending, too, but that goes largely unmentioned here on The Blaze.
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