In recent weeks, a number of international events has highlighted the danger of deficit spending. First, Obama went to the G20 to ask the member nations to spend more money. Instead of going along with his worthless idea, they repudiated him and pledged deficit reduction. Additionally, the IMF on July 8 issued a call for America to focus on deficit reduction. And not all of the spirited calls for deficit reduction originate from outside our borders: Recent polling puts deficit spending as the number 1 or number 2 concern (depending on the specific poll) for Americans. And, the Tea party movement has long criticized the out-of-control deficit spending.
Therein lies the trap: Obama's sheep in Congress have added new spending like drunken sailors, and now that Obama has the spending in-hand, he's not going to give it up. Come November, (when, I predict, the GOP reclaims the House of Representatives), Obama will demand that Republicans make good on their promise of "deficit reduction" (which I still haven't heard Republicans commit to), and raise taxes. Of course, Obama will not remotely consider any more than token spending cuts to accomplish deficit reduction. If the Republicans are to avoid the trap, they need to control the debate before we ever reach the election. Republicans need to focus on policies that will promote growth in the economy, and instead of focusing on deficit reduction, they need to focus the debate on spending reduction.
