"Deficits and dysfunction - Fiscal stewardship abandoned as GOP embraces red ink". Editorial by Peter G. Peterson (Secretary of Commerce under Nixon, Chairman of Federal Reserve Bank of New York, and co-founder of Blackstone Group).

Highlights

Reagan cuts supposed to be a one time supply side fix. Instead of growing income to balance out cuts (as predicted), national debt grew from 26 to 42 percent of GDP over the 80's. (Notes: Debt not deficit, numbers far too high for deficit. Reagans 90's "success" is a common refrain of Tom's in support of this deficit approach to economic management rather than the low interest rate supported success of the 90's. Does anyone here believe debt at 50% of your income is financially responsible?).

Republican politicians have admitted privately to Peters that public statements downplying the potential downside of projected deficits are misleading but the cuts are needed to restrain democratic spending. The fallacy of that argument is then shown on several levels.

We have gone from a 5.6 trillion in projected surpluses to 4 trillion in additional national debt with 25 trillion in unfunded obligations for SS and Medicare. (Note: Hardly the trivial impact Tom has been trying to sell us {probably unintentionally just repeating some of those misleading Republican comments}).

It was formerly a bedrock principle of the Republican party that the goverment should invest in posterity and safeguard future generations from unsustainable liabilities. (Note: a top priority for me and the reason I have tended to vote republican despite many disagreements on environmental and social policy) This has lead to painful Republican initiated tax increases and or spending cuts since the parties founding according to Peters.

He provides a long list of financial obligations this administration has had to add to the budget only to add tax cuts on top of that.

He claims fiscally responsible Republicans have been blackballed for raising issues of fiscal responsibility and the potential downside of these cuts.

He also blasts the Democrats lame response to this irresponsibilty by the way. An assessment I agree with for the most part.

I firmly hope this fiscal irresponsibility will stimulate another Ross Perot style popular revolt against the established parties with a large scale revolt amongst elected officials as well to give it some legs. I want a party dedicated to benefitiing all of America not just those at either end of the spectrum (the majority of the votes or the majority of the money).

Regards,
Mark