In a normal business world, the bookkeeper is above the CEO. That is, when the bookkeeper says, “there’s no money,” the boss cannot override her. New projects get put on hold. Banks pull back. Investors dry up. Finances need to be fixed.
Well, Congress does not act in any semblance to normal business practices. The boss overrides the bookkeeper. The numbers get manipulated. Projects keep going. Money gets extracted from that beautiful bank in the sky, an unfettered debt limit. Taxpayers be damned.
In this article by Paul Winfree in The Hill, he explains the Bipartisan Budget Act passed recently that removes the limits to government spending.
1. Congress spends invisible money
2. Budget Act favors over-spending
Via The Hill On November 2, President Barack Obama signed the Bipartisan Budget Act (BBA), which passed Congress with 233 Democrats and 97 Republicans voting in its favor.
Enactment of the BBA was historic event. For the first time in modern history, Congress granted a president unlimited borrowing authority for nearly an entire term in office.
Now, with the BBA in the books, the federal debt can continue to grow unchecked for the rest of Obama’s tenure. Many Republicans who voted for the BBA claimed that raising the debt limit was necessary. In a statement, Chairman of the Finance Committee, Sen. Orrin Hatch (R-Utah) said “supporting this budget agreement is the only realistic way to avert another government shutdown and avoid risking default on our debt obligations.”
Knowing that Republican leadership would be in a tight spot if pushed to breech the debt limit, the president and Congressional Democrats extracted a sweetheart deal. As Sen. Harry Reid’s (D-Nev.) top spokesperson observed, Senate Republican leadership “decided to wait until weeks before the [debt ceiling] deadline to start negotiating, by which time the [Democrat’s] leverage had increased dramatically.”
Over the next two years, the BBA allows an additional $80 billion in discretionary spending beyond the caps set in the 2011 Budget Control Act. It also paves the way to give the president everything that he asked for on domestic programs while continuing to shortchange the defense department.
The country simply cannot afford the Bipartisan Budget Act. Via The Hill