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Mitch McConnell

With a debt default only 2 weeks away and President Obama failing in every sense to provide a solution, the “last resort” plan presented by Republican Senate Minority Leader Mitch McConnell appears to be the legislation most likely to pass out of option presented thus far.  Senate Majority Leader Harry Reid has teamed up with McConnell to work toward forming a plan that can easily pass Congress, thus avoiding a debt default that would send the country further into the bucket.

Pros of McConnell Debt Ceiling Plan

• First and foremost, the plan saves the nation from a debt default.  While defaulting on our debt obligations would likely force the nation to practice greater fiscal responsibility in the future, it would also be detrimental to America’s credit score and put the final nail in the coffin of the American economy.  The McConnell plan allows the president to increase the debt ceiling as needed in order to prevent a default.
• The McConnell plan also includes provisions that would require President Obama to submit a list of spending cuts that equal the amount of cushion requested to be added to the debt ceiling.  This gives Conservatives and Tea Party members of Congress the spending cuts they’ve been holding out for.
• The McConnell plan does not include tax increases, or “revenue” increases as Democrats like to say.  McConnell’s plan, while giving a lot of power to President Obama, does not allow him to increase taxes as a way to clear his debt ceiling raise request.
• Republicans are basically in the clear with this plan.  The set-up of the plan puts the pressure on President Obama and gives each member of Congress the opportunity to clear their name.  The plan allows President Obama to submit his debt ceiling raise request and spending cut suggestions, with Congress casting a vote on a resolution of disapproval, effectively voting for or against the raise.  If Congress passes the resolution of disapproval, the Obama vetoes the resolution and the debt ceiling increase is passed in a round-about sort of way.  Republicans would be able to use their “vote against the debt ceiling raise” as political fuel in 2012.
• The plan may include spending cuts right out of the gate in order to entice more conservative members of Congress to vote in favor of the package.  Some talks have even produced mentions of more than $1 trillion in spending cuts upon passage of the McConnell plan.
• The plan is limited.  McConnell’s plan doesn’t allow for unlimited increase, only 3 increases in incriments of $700 billion, $900 billion, and again in $900 billion.
• Finally, passing the McConnell plan clears Republicans of the political fall-out that would be against them should we default on our debt obligations.  Not only would the fact that it’s a Republican-inspired plan give the party a boost, but the fact that Republicans were able to save the nation from a debt default and an increase in taxes would be a great addition to Republican’s 2012 talking points and stump speeches.

Cons of the McConnell Debt Ceiling Plan

• The plan does not include a balanced budget amendment in any form.  Many fiscal conservatives, myself include, have pushed hard for a balanced budget amendment and hoped that this debt ceiling debacle would produce such an act. Unfortunately, the McConnell plan, nor any feasible plan, include this step toward total fiscal responsibility.
• The plan doesn’t require spending cuts, it only requires the president to submit suggestions for cuts.  Theoretically, the president could request and receive a debt ceiling raise without ever knocking digits off the federal governments tab.
• Should the spending cuts not take effect, we simply increase the amount of time that our nation flounders and stalls economically before again being faced with a “debt ceiling crisis”.
• While the plan will more than likely help Republicans in 2012, should the more conservative end of the party fire back against McConnell and more moderate Republicans, the fallout could create an even clearer picture of a dysfunctional, divided party. If Tea Party members of Congress see the pros outweigh the cons and vote for this plan, however, we can avoid this problem.

Though the plan has its faults, The Conservative Journal is endorsing the McConnell plan in it’s current state.  The plan is expected to take the floor of Congress in the coming days, which will give voters and pundits an increased look into the exact workings of the McConnell plan.  Unless Dirty Harry ruins the proposal in his meetings with McConnell, I’d say this plan is likely going to be our solution to the debt ceiling crisis.

Further Reading:

• TCJ Research Poll: Michele Bachmann Leads Iowa Caucus, Tim Pawlenty Surges
• Gallup, Mason-Dixon Paint Grim Picture for Obama in 2012
• Top 10 Worst Government Policies of 2010

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Thanks for reading!

Rick

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