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NY Times with a bit more reporting saying that the Republican members are unified is being against the Commission report. It is not clear how much it may have changed since Bowles and Simpson released their draft report earlier in November.
If the Commission negotiations are only among the Democrats it shows several things. (1) Republicans are total frauds in worrying about the deficit. They lament tax and spend but practice don't tax but still spend.
(2) The Democrats have allowed the Republicans to get away with the above because they have been mostly worried about programs and haven't talked about the deficit.
(3) The deficit and cumulative debt is an actual problem, and we will have to address it at some point. The only question is whether that point comes during an economic crisis or through some sort of (reasonable?) debate.
(4) Republicans have more to lose short term in actually doing the hard thing, because they think they can ride bad economy and Obama unpopularity to win the White House and Senate in 2012.
(5) For the President, good policy and good politics (for his re-election chances) are coming toward the same thing. He should call the bluff of the Republicans and propose a budget that actually lays out many of these hard decisions.
Again, the historical data on taxes and spending. 21% of GDP is lower than spending was in 1975, 1980, 1985 and 1990. Spending was 22.8% of GDP in 1985. And the baby boomers were working then and not receiving Soc Security and Medicare.
And 21% of GDP collected in taxes would be the highest amount since I have been alive.
Taxes and Spending as Percent of GDP, 1970-2009
| Year | Taxes Collected, % GDP | Spending, % GDP | -Deficit/+Surplus, %GDP |
| 1970 | 19.0 | 19.3 | -0.3 |
| 1975 | 17.9 | 21.3 | -3.4 |
| 1980 | 19.0 | 21.7 | -2.7 |
| 1985 | 17.7 | 22.8 | -5.1 |
| 1990 | 18.0 | 21.9 | -3.9 |
| 1995 | 18.4 | 20.6 | -2.2 |
| 2000 | 20.6 | 18.2 | +2.4 |
| 2005 | 17.3 | 19.9 | -2.6 |
| 2009 | 14.8 | 24.7 | -9.9 |
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