Firm in its determination to continue to spend borrowed dollars, the Obama administration is trying to make the impending government shutdown as noticeable as possible to score political points.
The Democrat-controlled 111th Congress failed to pass any of the 12 annual appropriations bills, and the job now falls to the 112th Congress.
So Washington may lose trash collection and street sweeping, even though these services could be continued, since they protect property and public safety.
And the National Park Service won’t honor permits it has distributed for Saturday’s Cherry Blossom Parade. Why not? Organizers could hire private security guards and clean-up crews.
The Federal Housing Administration, stating that lenders could still approve loans made according to its guidelines, warns that mortgage markets may be disrupted.
President Obama, sensing a win from a shutdown, said yesterday that he will not sign another stopgap funding measure, even though Republicans want to send him one that cuts spending by $12 billion.
The two sides aren’t far apart. Republicans want to cut $61 billion from 2010 fiscal year spending, the year that endedSept. 30. Democrats have agreed to cut $34 billion, and Speaker John Boehner has offered a compromise of $39 billion.
The difference between Republicans and Democrats is $5 billion, about one-tenth of 1 percent of the $3.8 trillion in projected government outlays in 2011. Late yesterday, no compromise had been reached.
The threat of a shutdown is a scare tactic, used by the White House and some in Congress to get opponents to cave. But no one is fooled. Visions of missing Social Security checks and invading foreigners are false.
Many outside Washington won’t notice whether the government is closed, but shutting down the government is an inefficient way to deal with our huge deficit.It is disruptive and won’t save money.
With that in mind, here are six of the most important myths about a government shutdown:
Myth 1: The government ceases to function. In truth, essential services continue, but some functions may stop for a few days.
Myth 2: Government employees on layoff don’t get paid. Actually, government workers will be paid, after a budget deal is made, if past practice is followed.
Myth 3: Social Security and food stamp payments will stop. Not so. The Treasury Department has the ability to decide what must be paid, and Social Security checks and food stamp debit cards have been at the top of the list.
Myth 4: Air traffic control, veterans hospitals, prisons and courts will shut down. No, they continue, because they will be deemed “essential services.”
Myth 5: The military shuts down and the country is defenseless. On the contrary, national defense continues. Some troops’ pay may be delayed, but it will not be lost.
Myth 6: Congress has decided to shut down the government. Or the president has decided. Depending on what happens, it may be a little of each.
Perhaps we could benefit from a shutdown, by identifyingnonessential services that could be eliminated permanently in the fiscal 2012 budget bill.
One sector ripe for cuts is transportation. The president’s 2011 budget allocates $96 billion for transportation — $62 billion for ground transportation ($34 billion to be raised from Highway Trust Fund motor fuel taxes), $22 billion for air, $10 billion for water, and $1 billion in unspecified spending.
In the 21st century, new technology exists for travelers and shippers to pay the costs of transportation. States should be given responsibility for highway finance and for levying all motor fuel taxes.
Government or no government, Americans still have to file taxes on April 18. Since we pay members of Congress, surely they can do their job and figure out how to cut another $5 billion from a $3.8 trillion budget.
Examiner Columnist Diana Furchtgott-Roth, former chief economist at the U.S. Department of Labor, is a senior fellow at the Hudson Institute.
