Showing posts with label Congressional Super Committee. Show all posts
Showing posts with label Congressional Super Committee. Show all posts

Thursday, November 17, 2011

Super Committee Suicide

By Alan Caruba

By the weekend, news reports indicated that the congressional Super Committee was closing in on an agreement. The deficit-cutting panel is mandated to trim at least $1.2 trillion in federal spending over the next ten years and, failing an agreement, automatic cuts would begin in 2013, after the national elections.

In days, however, it was clear that there was no agreement and the Super Committee, as Congress has always done, was looking at a variety of gimmicks and magical thinking to avoid having to address what is now a $15 trillion national debt, more than an entire year’s Gross Domestic Product.

The Super Committee was and is a bad idea on many levels if for no other reason than the Constitution requires that all bills involving expenditures must originate in the House of Representatives (Article 1, Section 7), but “the Senate may propose or concur with amendments as on other bills.” The Constitution, however, has mattered less and less to U.S. Congresses for a very long time.

On November 8, ABC News reported that Senate Majority Leader Mitch McConnell (R-KY) “suggested that the White House is pulling for the Joint Select Committee on Deficit Reduction…to fail because success would step on their storyline of Republican obstructionism.” Because Washington is a house of mirrors, the news of the past week has been of Democratic obstructionism.

By the end of the week, the President said that he would not sign any bill that repeals the automatic spending reductions that would occur if the Committee does not come to an agreement. “That veto threat,” said a Wall Street Journal article “was a response to GOP lawmakers’ proposals to shield the Pentagon from such cuts.”

On Veteran’s Day, November 11th, a Wall Street Journal editorial, “If Iran Gets the Bomb", took note of the International Atomic Energy Agency report that Iran was closing in on having its own nuclear weapons, saying that “The serious choice now before the Administration is between military strikes and more of the same. As the IAEA report makes painfully clear, more of the same means a nuclear Iran, possibly within a year.”

So, while Iran closes in on becoming a nuclear power, national election campaigns will be raging in 2012 with Obama’s only hope of reelection being to claim that the Republican Party is blocking his efforts to tame unemployment, revive the economy, and keep America safe. Meanwhile, Democrat members of the committee keep pushing for new taxes in the midst of a “recession” that rivals the Great Depression.

If it wasn’t so absurd, it would be laughable, but it is also the worst possible time to have automatic budget cuts that would take as much as $500 billion out of the Pentagon’s budget over the next decade if the Super Committee cannot find agreement. Reportedly, Defense Secretary Leon Panetta was looking for potential savings in the budget by cutting the Pentagon’s nuclear arsenal!

The state of our military equipment is geriatric and it is dwindling. The F-15 fighter jets that make up half the fleet, have an average age of 25 years! Air force strategic bombers average 34 years of age and refueling aircraft are 47 years old. The Navy has fewer ships today than on 9/11; 284 now compared to 316 in 2001.

Equipment and vehicles in use since the 2001 invasion of Afghanistan and the 2003 invasion of Iraq are in need of replacement. If the automatic cuts kick in, the Pentagon budget will be cut by $500 billion over the next ten years, precisely at the time the military will need the means to fight a war that would presumably start in the Middle East if Iran’s threats mean anything.

Cutting the Pentagon budget at this time and into the near future is the worst idea to come out of Congress when a kindergartner could find ways to cut $1.5 trillion from the U.S. budget.

Iran’s leaders, from the day in 1979 they seized American diplomats and held them hostage for 444 days, have been in a state of war against America. An Iranian truck bomb was used against the U.S. Embassy in Lebanon and against Marine barracks in 1983. Iranian-made IEDs killed many U.S. military personnel in Iraq. Within recent weeks we learned of a thwarted Iranian plan to assassinate Saudi Arabia’s ambassador in a Washington, D.C. restaurant.

Iran’s Supreme Leader, Ali Khamenei has called for the destruction of Israel, the “little Satan” and America, the “big Satan.”

Ignoring such threats is suicidal.

Israel destroyed Saddam Hussein’s nuclear reactor with a preemptive strike in 1981 and did the same to Syria’s secret nuclear program in 2007. It is unimaginable how events would have played out if Iraq had acquired nuclear weapons. The notion that the United States of America must depend on Israel to end the Iranian threat is cowardly and shameful.

Cutting the Pentagon’s budget now or over the next decade would be suicidal.

© Alan Caruba, 2011

Thursday, November 10, 2011

What We Have Here is a Failure to Negotiate


By Alan Caruba

In the movie, “Cool Hand Luke” the warden of a prison camp utters the now famous line, “What we have here is a failure to communicate.” The decision of the Democratic members of the Congressional Super Committee to refuse further discussion of revenue issues is a failure to negotiate.

I have a friend, Jim Camp, who is one of the world’s authorities on negotiation, a coach to international corporations and others that engage in multi-million dollar deals requiring major negotiation skills. When the news was reported on Wednesday that the Democratic members had walked away from the negotiation table, I picked up the phone to ask for his reaction.

“We live in an era when the conventional wisdom is that compromise is the goal,” said Camp. “The real goal is a valid mission and purpose. What’s missing is that the committee as a whole is not focused on the real mission which is the best result for the American people and the nation. Instead, their goal is political gamesmanship, a massive over-reach by both parties to the negotiation.”

Based on more than twenty years of coaching negotiations, Camp said "Tactics do nothing more than create conflict." The news media reports on tactics, but Camp said “Neither party is negotiating to the benefit of the American people.”

What is at stake? It’s not whether Democrats or Republicans “win” the Super Committee negotiation.

Created under the Budget act of 2011, the law was passed the first two days of August when the nation’s $14.294 trillion debt ceiling was raised to avoid a potential national default. It was the fourth increase of the mandatory borrowing cap during President Obama’s first term; one that saw the first down-grade of the nation’s top credit rating in its history.

Consisting of six members each from the House and Senate, evenly divided between Republicans and Democrats, the official name for the Super Committee is the Joint Select Committee on Deficit Reduction. The amount of debt is comparable to the annual Gross Domestic Product, meaning that every dollar the economy earns is equal to the amount of debt that exists.

In the basic terms, Democrats want to raise revenue through taxation to address the debt and permit for more spending. Republicans have committed themselves to avoid such an increase during a period of recession.

The decision to walk away from the negotiation reflects one of Camp’s major warnings. “To act according to how you think the other side will react to you and your actions creates great conflict. To think you know what someone is going to do or say based on how you impact them is to attempt suicide.”

It would be naive to think that the Democrat and Republican members of the Super Committee are not negotiating with an eye on the 2012 elections. As a November 10 Wall Street Journal editorial notes, Republicans have offered a plan "to raise revenues by $500 billion over 10 years as part of a tax reform that would lock in lower rates in return for giving up deductions. Democrats have rejected it, which is puzzling since it would achieve so many of their stated goals."

Refusing to negotiate makes sense only if Democrats are positioning themselves to blame the Republicans for the failure to avoid another potential down-grade of the nation's credit rating. It's not the truth, but the truth is often a rare commodity in politics.

“What we are witnessing,” said Camp, “is a textbook definition of incompetence.”

All negotiation, says Camp, is based on emotion. When both sides share a vision of the end result of the negotiation it can move forward. When emotions blind one or both sides, it is doomed.

As a recent Los Angeles Times editorial noted, in order to slash federal borrowing by at least $1.2 trillion over the coming decade, “members will have to bridge a deep partisan divide over taxes, spending programs, and the effect of government spending on the economy.”

That is the mission, the purpose of the Super Committee, and the editorial warned that “If they have any doubts about the need to cut a deal, however, they should turn their attention to what’s happening on the other side of the Atlantic.”

The turmoil in Europe, based on decades of excessive borrowing and spending by several nation-states, is a reflection of how critical it is for the Super Committee to achieve its mission.

Automatic cuts, not guided by the need, for example, of maintaining our military strength could have disastrous consequences if the U.S. was perceived as weakened and vulnerable by its enemies. Diminishing our military capabilities at this time is not an option.

The Super Committee is an admission of the failure of the U.S. Congress to fulfill its responsibility to conduct the nation’s borrowing and spending in a prudent fashion and it’s been a failure in which both Parties have participated for a very long time.

The deadline for the Super Committee to reach agreement is November 23, the day before Thanksgiving and one side has walked away from the table.

I wish the Super Committee could bring Jim Camp in to help resolve the impasse. Simply stated, failure is not an option.

Editor’s note: Jim Camp is the founder of the Camp Negotiation Institute and the author of “Start with No” and “No, the Only Negotiating System You Need for Work and Home” which has been translated into twelve languages.

© Alan Caruba, 2011