The Debt-Ceiling Divide

From Charles Krauthammer:

We’re only at the midpoint of the battle to change the ideological course of the country. 

We’re in the midst of a great four-year national debate on the size and reach of government, the future of the welfare state, indeed, the nature of the social contract between citizen and state. The distinctive visions of the two parties — social-democratic versus limited-government — have underlain every debate on every issue since Barack Obama’s inauguration: the stimulus, the auto bailouts, health-care reform, financial regulation, deficit spending. Everything. The debt ceiling is but the latest focus of this fundamental divide.

The sausage-making may be unsightly, but the problem is not that Washington is broken, that ridiculous, ubiquitous cliché. The problem is that these two visions are in competition, and the definitive popular verdict has not yet been rendered.

We’re only at the midpoint. Obama won a great victory in 2008 that he took as a mandate to transform America toward European-style social democracy. The subsequent counterrevolution delivered to that project a staggering rebuke in November 2010. Under our incremental system, however, a rebuke delivered is not a mandate conferred. That awaits definitive resolution, the rubber match of November 2012.
I have every sympathy with the conservative counterrevolutionaries. Their containment of the Obama experiment has been remarkable. But reversal — rollback, in Cold War parlance — is simply not achievable until conservatives receive a mandate to govern from the White House.

Lincoln is reputed to have said: I hope to have God on my side, but I must have Kentucky. I don’t know whether conservatives have God on their side (I keep getting sent to His voicemail), but I do know that they don’t have Kentucky — they don’t have the Senate, they don’t have the White House. And under our constitutional system, you cannot govern from one house alone. Today’s resurgent conservatism, with its fidelity to constitutionalism, should be particularly attuned to this constraint, imposed as it is by a system of deliberately separated — and mutually limiting — powers.

Given this reality, trying to force the issue — trying to turn a blocking minority into a governing authority — is not just counter-constitutional in spirit but self-destructive in practice.

Consider the Boehner plan for debt reduction. The Heritage Foundation’s advocacy arm calls it “regrettably insufficient.” Of course it is. That’s what happens when you control only half a branch. But the plan’s achievements are significant. It is all cuts, no taxes. It establishes the precedent that debt-ceiling increases must be accompanied by equal spending cuts. And it provides half a year to both negotiate more fundamental reform (tax and entitlement) and keep the issue of debt reduction constantly in the public eye.
I am somewhat biased about the Boehner plan because for weeks I’ve been arguing (in this column and elsewhere) for precisely such a solution: a two-stage debt-ceiling hike consisting of a half-year extension with dollar-for-dollar spending cuts, followed by intensive negotiations on entitlement and tax reform. It’s clean. It’s understandable. It’s veto-proof. (Obama won’t dare.) The Republican House should have passed it weeks ago.

After all, what is the alternative? The Reid plan with its purported $2 trillion of debt reduction? More than half of that comes from not continuing surge-level spending in Iraq and Afghanistan for the next ten years. Ten years? We’re out of Iraq in 150 days. It’s all a preposterous “saving” from an entirely fictional expenditure.

The Congressional Budget Office has found that Harry Reid’s other discretionary savings were overestimated by $400 billion. Not to worry, I am told. Reid has completely plugged that gap. There will be no invasion of Canada next year, no bicentennial this-time-we-really-mean-it 1812 do-over. Huge savings. Huge.

The Obama plan? There is no Obama plan. And the McConnell plan, a final resort that punts the debt issue to Election Day, would likely yield no cuts at all.

Obama faces two massive problems — jobs and debt. They’re both the result of his spectacularly failed Keynesian gamble: massive spending that left us a stagnant economy with high and chronic unemployment — and a staggering debt burden. Obama is desperate to share ownership of this failure. Economic dislocation from a debt-ceiling crisis precisely serves that purpose — if the Republicans play along. The perfect out: Those crazy tea partiers ruined the recovery!

Why would any conservative collaborate with that ploy? November 2012 constitutes the new conservatism’s one chance to restructure government and change the ideological course of the country. Why risk forfeiting that outcome by offering to share ownership of Obama’s wreckage?