Can the supercommittee save the economy?

Members of the Joint Select Committee on Deficit Reduction hold a public hearing on Capitol Hill in Washington, Wednesday, Oct. 26, 2011. From left are, Rep. Fred Upton, R-Mich., Co-Chair Rep. Jeb Hensarling, R-Texas, Co-Chair Sen. Patty Murray, D-Wash., Sen. Jon Kyl, R-Ariz., Sen. Max Baucus, D-Mont., Sen. Rob Portman, R-Ohio, Sen. John Kerry, D-Mass.

/ AP Photo/J. Scott Applewhite

It may sound like hyperbole, but the 12-member congressional group tasked with finding huge budget savings in the next few weeks says its job essentially amounts to fending off another major fiscal crisis - and essentially saving the economy as a whole. Choose the wrong path, however, and they could only make the nation's economic problem worse, some members of the so-called "super committee" worry.

"These aren't just numbers on a page," Sen. Patty Murray, D-Wash., the committee co-chair, said at the group's public hearing today with respect to the federal budget. "They affect real people in real ways. When food assistance for women and infants is cut, that means greater challenges for struggling families. When infrastructure investments are shelved, that means fewer jobs and more crumbling bridges and roads."

The group of six Democrats and six Republicans is charged with finding at least $1.2 trillion in budget savings by November 23. That figure would be a feat in and of itself, given how hard it is for members of Congress to find common ground between their vastly different ideological views, or to even remove politics from the discussion.

Furthermore, in addition to finding common ground on tax increases and spending cuts -- the two obvious ways to achieve budget savings -- the committee has something of a new mandate to help the struggling middle class, in the face of the continuing "Occupy" protests.

"All this obfuscation with percentages of GDP, this is just trying to confuse the issue," one protester shouted at the congressmen today before she was escorted out of the hearing by the police. She called on Congress to raise taxes on the wealthy and end the wars on behalf of "the 99 percent," referring to Americans who aren't among the top wealthiest one percent.

Even if it were possible for the group to agree on $1.2 trillion in savings, that may not be enough, several people have warned.

Sen. John Kerry, D-Mass., said today that if the committee doesn't shoot higher, "we're going to be back here in about a year or two, or three at maximum, dealing with the very same issues that are on the plate now about the unsustainability of our budget."

The committee's meetings have been largely-closed door, but reports suggest there's been little progress so far. Today's hearing focused on the discretionary portion of the budget, even though mandatory spending on programs like Medicare is eating up an ever-increasing portion of the federal budget. Rep. Jeb Hensarling, R-Texas, the committee's other co-chair, lamented that today's meeting amounted to "debating the pennies, nickels and dimes in a debt crisis that is demanding half- dollars and dollar bills."

Should the group fail to come up with a plan that can pass in Congress, that will trigger a round of across-the-board cuts that Congress agreed to earlier in the year -- cuts designed to be painful for both sides of the aisle. Yet even if those cuts were "triggered," they wouldn't go into effect for a year -- giving Congress plenty of time to amend them.

Still, members today expressed optimism about their mission. "We aren't there yet, but I am confident that we are making progress, and I'm hopeful that we are moving quickly enough to meet our rapidly approaching deadline," Murray said.

Reuters reports that Democrats in a closed-door meeting yesterday put forward a plan for $2.5 trillion to $3 trillion in savings, achieved through an equal mix of spending cuts and revenue increases. The plan reportedly includes between $200 billion and $300 billion in new stimulus spending, which would be paid for with lower interest payments from reducing deficits.

"We need to address the large, long term drivers of our unbalanced federal budget," Murray said today. "But I also really believe that we have to take steps to strengthen that economic recovery and address the jobs crisis that we're seeing today."

She pointed out that the nonpartisan Congressional Budget Office (CBO) has lowered its projections for economic growth for 2011 and 2012 since August. CBO Director Doug Elmendorf, the hearing's one witness, confirmed to Murray that a "reduction in government spending will generally reduce the demand for goods and services. Either because the government is buying less itself, or because it's providing lower transfers to individuals to purchase goods themselves."

Elmendorf said that "it's a widespread view among analysts that lack of demand for goods and services is the key factor holding back the recovery."

It's clear, however, that Republicans won't be quick to sign on to any Democratic plans for stimulus.

"I would just urge us to consider that there's another theory here which is that government can't really create demand, on balance," Sen. Pat Toomey, R-Penn., said. "It can substitute public demand for private demand, but that it's illusory to think that the government can simply step in and make up for what is perceived to be a shortfall of private sector demand."

Countries like Greece, Portugal and Spain have created demand through government spending, he said, "and it's not working out so well for them."

[hhandyman]

If the did a few budget adjustments to income and benefits to anyone holding an elected or appointed federal job over 2 years including Judges at the highest court tied to the median Social security retirement benefit that is equal to but not higher than that median income since the majority of congress has acted more retired than the population at large Limit all staff to Secretary and 1 intern No Lawyers or medical staff outside of the military All food served in the government offices change to the same as all soldiers have in the field of operation change the offices to have sleeping capsules in each room Like the tiny Chinese coin operated hotels in airports Let No elected Representative own a second house in DC without moving their voter registration to that property thus limiting their term to the current one This get fresh blood and brains in elected office, Thus would clear the dead wood out.

[sj-beverage]

Subject: All the 12-member deficit "supercommittee" needs to do is get in line (LION?)!!!
Date: 10-27-11 10.00 am
[e-mail]

Since the comment I left at the "CharlotteObserver.com Opinion - Our View" is still without feedback, I suppose this IS the ONLY answer to this SITUATION!

___+++___ ___+++___ ___+++ ___ ___+++___ ___+++___ ___+++___ ___+++___ ___+++___

CharlotteObserver.com Opinion - Our View

Countdown begins to deficit deadline
Supercommittee outlook bleak a month before legislation due.
http://www.charlotteobserver.com/2011/10/25/2719603/countdown-begins-to-deficit-deadline.html#ixzz1bpLXBP2Q

~~~<<^^^$^^^>>~~~ ~~~<<^^^$^^^>>~~~ ~~~<<^^^$^^^>>~~~ ~~~<<^^^$^^^>>~~~

QUOTE:

Adding to the pressure is an unsurprising swarm of lobbyists - nearly 200, according to Politico this week - each of them attempting to preempt any

supercommittee proposal that might put a hurt on the bottom line of industries ranging from health care to transportation to education. If the committee

manages to overcome such love and stagger from the room with meaningful legislation, it still has to be approved without amendments by Congress.

For now, Republican leaders say that won't happen for any legislation that includes a tax increase. Democratic leaders say it won't happen for anything that

doesn't.

Pessimistic yet?

~~~<<^^^$^^^>>~~~ ~~~<<^^^$^^^>>~~~ ~~~<<^^^$^^^>>~~~ ~~~<<^^^$^^^>>~~~

There's is always room for Pessimism! I have been awaiting the GOVERNOR to put me back into my "EVIL" foreclosed home, since March 29, 2011! Even though I
have been on the streets of Charlotte, 210 days, with signs on my bicycle, I'm sure the LORD is speaking to "CIVIC CLUBS": "ENJOY YOUR IGNORANCE!"

???????????????????????????????????????????????????????????????
Unforgettable Northern Lights display recorded.
October 25, 2011 2:33 PM.
http://www.cbsnews.com/8301-205_162-20125354/unforgettable-northern-lights-display-recorded/
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???? All the 12-member deficit "supercommittee" needs to do is get in line (LION?)!!! ????

Current signage:

On a stick coming out of the MILK CRATE (2 signs on each side):

MY TIRES TELL ME WOLF ATE CIVIC CLUBS! (Anyone passing can see at least 3" of exposed broken tire threads, on each side of front tire that faces STARBUCKS

Tryon Street windows!)

http://forums.charlotteobserver.com/?q=node/13506#comment-64181


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FYI:
VY Canis Majoris
If Earth's Sun were replaced by VY Canis Majoris, its radius might extend beyond the orbit of Saturn (about 9 AU).
http://www.rozenek.com/print.php?ln=english&article_id=356

[Kenny777_y]

the quick poll on this topic has 74% say no. wow thats unreal.looks like there will be around 53,000.000 marching in washington next year.

[Anotheryahoo]

1st this committee is nothing but a bunch of bought off politicians going to bat for their favorite special interests. There is not a thing Super about any of these crooks. 2nd these clowns couldnt agree on a ham sandwich for lunch let alone anything important like running our country.

They couldnt find the middle of a monopoly board let alone the middle of a problem. We the people should wake up! forget these parties of special interest and vote out every single one of them! If you think one party has your interests and the other doesnt your simply wrong. One wants a socialist Police state, the other wants a corporatocracy police state. There is no middle. Both want to tread all over our Constitution and have been taking turns.

[tsigili]

Is there still a spendthrift in the WH?

Of course the super committee cannot offset the outrageous spending going on in the WH. No one can. It is the worst government spedning in the history of this nation.

The nation cannot get past this economy, until the occupant in the WH, changes. It is that simple. You have to stop doing the spending, before you can devise a plan to correct the problem.

[Martha12345]

Don't bet on Patty Murray doing anything worthwhile.

[Kenny777_y]

theres nothing any of them can do its to late. to pick out PATTY MURRY is a bit selfish dont you think.

[Noval53]

What has either political party done to stop insane spending? Both parties have supported bailing out banks while millions of American Family Farms, Homes, and Businesses were lost. Neither party has a clue. The president and congress have done nothing to balance to budget or even present a budget. It will end. All fat, bloated, and corrupt governments eventually fall under their own gross weight. I predict the president and both houses of congress will raise the debt ceiling, print more money, and drive the ship of state full steam ahead to full economic and financial collapse. Forget your pathetic party loyaties and hang on; it's going to be a rough ride.

[RunsWithWolves]

No....they still don't get it. OWS has gone straight over their heads (and I mean you Republicans). Repubs still will not budge one inch on revenue increases of any kind. The Dems have offered major cuts on their end. It really is time for the voters to take out the Republican Guard in the next election.

[collie61]

You seriously believe this. That's sad.

[skeezix06]

Can the supercommittee save the economy?... I doubt they're interested in saving the economy. I think they're deeply interested in saving the top %1's money.

The rest of us aren't even on their radar.

[outsource_congress]

Right on skeezix06. They are worried the 1% won't come across with as much in bribes and campaign donations if they don't squeeze the rest of us off the farm.

[Overruled1]

Remember those death panels Palin said the healthcare act was going to lead too?
Well now we have them, but they aren't a result of the affordable healthcare act.
They are the result of GOP stalling on jobs, taxes on the 1%ers and calling on the president to cut everything they consider socialist while holding the debt ceiling hostage.
We cannot allow these panels to be a new era of McCarthyism and inquisitional politics.