Congress should show some fiscal restraint

Mon, May 12 2008

— The lessons of the marketplace do not often translate into corresponding action by elected officials.
With wholesale prices and jobless rates rising while interest rates and housing starts are falling, the country is either slipping into a recession or already there.
Action by the Fedral Reserve to aggressively slash a key interest rate by three-quarters of a point could be viewed as desperation by some. At the very least, it should signal apprehension about the state of the economy.
But federal government officials collectively continue to operate seemingly without awareness of the nation’s dire straits. Although a stimulus package was approved, spending money is the only action that receives wholehearted congressional approval.
A federal budget that would add $2 trillion to America’s national debt over the next five years was passed last week by the Senate by a 51-44 vote.
Indiana Sen. Evan Bayh, who last year declined to pursue a run for the presidency, was the only Senate Democrat to vote against the measure. Bayh has been a centrist Democrat during his years of public service, and he criticized the budget proposal.
“Families are tightening their belts. Businesses are tightening their belts. But the federal government is not. Those on the far right want more tax cuts for the wealthiest Americans. Those on the far left want us to spend money we don’t have and continue to borrow from China. Neither of these is the right course,” Bayh said.
The senator has articulated the public’s dissatisfaction with Washington. Spending and debt spiral upward while many Americans face difficult or uncertain economic times.
While no one expects Congress to radically change the methods of operation during an election year, some fiscal restraint would be appreciated. It’s not too much to ask during a recession.