BlogWatch: The Butterfly Effect and Other Budgetary...

This edition of the BlogWatch covers the end of last week through the weekend.  The blogosphere leans somewhat to the left this edition, as chatter ensued following comments from GOP presidential nominee John McCain. But before I get into that, while perusing the blogs this weekend, I encountered an interesting post that focuses on unanticipated effects of policy decisions.  Dr. Richard L. Reece uses the “butterfly affect” (the idea that a small disturbance in one locality could create a larger issue in an entirely different location) to illustrate unintended consequences.  Reece uses Medicare as a prime example:  

“Introduction of Medicare in 1965, originally estimated to cost no more than $9 billion, now consumes $400 billion, 25% of federal budget. The butterfly effects here were, given unfettered access to “free” health care, people would flock to it, and doctors would provide more of it than ever anticipated.”

On The Huffington Post, Public Agenda/Facing Up’s own Scott Bittle and Jean Johnson take on the federal budget in their piece, “The Budget Debate for Grownups.”  They touch on what the American people deserve, as well as the challenges we're facing:

“The next four years are critical for the country's fiscal future. We deserve to have the presidential candidates treat us like rational human beings. We deserve a news media that asks the tough questions, so we can understand what's going on. We deserve to be told not just what candidates would like to do, but about the tradeoffs the country will almost certainly have to make if they get their druthers.”

 Over on the “Buenos Aires in English” blog, discussion centers on McCain and his pledge to veto any bill that contains earmarks if, indeed, he is elected president.  The blog’s author, T.A.O., takes issue with McCain’s stance: 

“McCain has failed to note, however, that earmarks have paid for projects that he supports, such as U.S. aid to Israel.  Confronted with this reality this week, McCain's campaign quickly granted an exception for Israel.”

 “The Carpetbagger Report” mirrors this sentiment: 

“John McCain has an earmark problem. I don’t mean a problem with earmarks; I mean an earmark problem. It includes confusion over what an earmark is, how much they cost, and whether he actually likes them or not.”

 In other blog news, Martin Neil Baily, the director of the business initiative at the Brookings Institution, and an economic advisor under former president Bill Clinton, takes on the budget deficit, borrowing, spending and the war in Iraq.  He suspects that America will be paying for bad budget decisions for some time to come, although he does not believe that the war and the current fiscal situation in America are directly tied to one another: 

“In practice, budget deficits did not result in high interest rates because of the huge flows of foreign capital into the American economy. The lack of discipline in the federal budget in recent years is deplorable and we will pay for that, especially as we face the costs of an aging population. The failure to pay for the war is part of this policy mistake, but only a part and not a big cause of today’s problems.”

Rep. Keith Ellison takes on a different view regarding the Iraq war on “The Hill’s Congress Blog”:

“A recent poll found that 89% Americans believe the war Iraq has contributed to the economic downturn here at home, yet many of President Bush’s allies in Congress, like Senator McCain, are still 100% behind same failed Bush policies that led to both the downward economic spiral and the endless, costly War in Iraq.”

 He sees budgetary decisions as direct reflections of America’s priorities: 

“Our taxes support our federal budget and a budget is a moral statement about who matters in our society. A budget is a reflection of our own humanity. It talks about who counts, who doesn’t and what are our priorities.”

That’s all for roundup.  Stay tuned for more news on our nation’s budget from Facing Up to Our Nation’s Finances.