Mitch Daniels on Budget & Economy
Republican IN Governor
The level of government spending we are engaging in may soon leave us with a defunct, bankrupt, destitute economy. If we don't find a way to restore the goose to good health, we will soon run out of golden eggs.
The risk is even higher than lost jobs, income, or hope for a better future and higher living standards. Our position of world leadership could be eclipsed and with it the power of our free political system as a model for other countries. It's not out of the question that the American republic could undergo a full economic and social collapse, with consequences beyond our ability to imagine.
One tool that I had at my disposal was the power not to spend money budgeted by the General Assembly. On the federal level, this tool is called the power of "impoundment" or "rescission." It is a powerful tool because it enables the chief executive to react to changing budget circumstances and stop agencies from spending money the government doesn't have. Unfortunately, Congress effectively stripped the president of this power along with others, in the post-Watergate period. I appreciated the power to save unspent funds--which in Indiana is called the power of "reversion"--because it not only made budgetary sense, but also changed the politics of government spending.
An obvious starting point is a major downsizing of federal employment. This should be accompanied by a hiring freeze, which should last for years. Reductions in head count should be coupled with a federal pay cut, followed by a long-term pay freeze. This is only secondarily a matter of debt reduction; it is even more about reasserting the principle that the private sector comes first.
In the hands of an administration willing to use it aggressively, some version of impoundment authority would produce billions in savings immediately. Impoundment ought to be part of an urgen strategy to bring the beast back to a size the nation can afford.
Impoundment can be limited--for example, by providing opportunity for a prompt congressional disapproval vote before each reduction took effect. Or the authority could be granted on an emergency basis; our current debt condition certainly qualifies as one. But the degree of surgery required to bring the federal budget back within even hailing distance of balance more than justifies the use of this tool.
|2010 Governor, House and Senate candidates on Budget & Economy:||Mitch Daniels on other issues:|
2011 Special Elections:
Running for Mayor:
Running for Governor:
Running for Senate:
in 112th Congress:
in 112th Congress:
in 111th Congress:
NY-25:Ann Marie Buerkle
Email Contact Form