For Immediate Release Thursday, September 26, 2013
There is no impending government shutdown — only a government slowdown . The threat of a “shutdown” is designed to scare voters while avoiding scrutiny of reckless government overspending.
If federal lawmakers do not pass a budget or a “continuing resolution” (CR) by Oct. 1, a government spending slowdown will take effect. This could halt almost $1 trillion in annualized spending that the CR would authorize, which is the size of the current federal deficit. If made permanent, this would cut annual federal spending by approximately 27 percent to $2.7 trillion — the current level of revenues coming in.
In other words, a federal slowdown — if allowed to take full effect — would balance the federal budget. This would greatly benefit the U.S. economy.
“Elected Republicans in the House can stimulate the productive private sector by slowing down Big Government,” said Geoffrey J. Neale, chair of the Libertarian National Committee.
“Why?” Neale asked. “Because a government-sector slowdown equals a private-sector growth speedup of small businesses and jobs. Americans should welcome a government slowdown — and fear the opposite: allowing politicians to continue irresponsible, reckless government overspending.”
Do politicians properly prioritize spending cuts when a slowdown takes effect? Yes and no. Functions that affect life or property generally remain funded, but many needed cuts — such as lucrative government perks, Obamacare, and large volumes of waste marbled throughout government spending — remain intact.
Furthermore, lawmakers have made numerous exceptions to the slowdown. Only a portion of the $1 trillion that would be authorized by a CR will be blocked if a slowdown takes effect.
While the particulars of the impending slowdown are far from perfect, any serious spending cuts are a welcome change from wildly irresponsible government overspending and growing government debt.
Every American should ask himself one question: Is my family better off with a government slowdown that cuts federal spending by 27 percent? Or is my family better off with another trillion dollars in federal government debt?
Transferring wealth out of the government sector and into the private sector creates jobs. Every government-funded job loss is matched by roughly two private sector job gains — a panacea for jobseekers.
“The Libertarian Party calls for a permanent government slowdown,” Neale said. “Cutting taxes, removing regulations, ending failed Big Government programs, and cutting total government spending is the only way to revive the American economy and save it from further decline.”
“Americans should be very afraid every time politicians pass another ‘continuing resolution,'” he said. “It’s their latest method for keeping government spending high, adding to government debt, devaluing the dollar and putting the American economy at risk.”
Republicans tie less spending with more spending
The U.S. Constitution requires all spending bills to originate in the House of Representatives. Members of the U.S. House can vote to veto any spending of which they disapprove. They can reject all “continuing resolutions.” They can also fully defund Obamacare.
But Republicans in the U.S. House have refused to defund Obamacare, despite having a majority in the House since 2010. On Sept. 20, they finally passed a bill to defund it — but at a very high price to taxpayers and jobseekers. The bill also authorizes a “continuing resolution” through Dec. 15.
Republicans were willing to fully defund Obamacare only when coupled with a permission slip for continued reckless spending at an annualized rate of almost $1 trillion.
The U.S. Senate leadership and President Barack Obama vow to reject the House bill and protect Obamacare.
The solution: reject both overspending and Obamacare
As it stands, Obamacare will go into effect on Oct. 1 even with a government slowdown. It will be funded by new taxes and cuts in Medicare that are not stopped by a slowdown.
Does this mean that House Republicans are forced to accept either Obamacare or a “continuing resolution?” Are they powerless to stop both of these dangerous and destructive government policies?
At any time, the Republican-controlled House can do the right thing: Both fully defund Obamacare and refuse to pass a continuing resolution. They control the federal purse strings.
All that House Republicans need to do is debunk phony “shutdown” talk and pass a new bill.
“Lawmakers do not need to concede to either overspending or Obamacare,” said Neale. “Instead, we must move in the opposite direction: dramatically cut government spending and remove existing health care mandates, taxes, and regulations that stifle human progress.”
Voters are becoming increasingly aware of the exorbitant cost of Obamacare and the damage it will do to their family’s health. If it takes effect, it will force Americans to buy unwanted and grossly unaffordable medical insurance policies that provide poor coverage — or pay a fine. It will result in higher medical costs, more red tape, and more rationing of health care services.
Voters are also deeply concerned about high government spending and government debt.
The Libertarian Party runs candidates for federal, state, and local office to cut spending, lower taxes, and balance budgets — and to nullify, defund, and repeal Obamacare.