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Fiscal Policies: A Reflection of National Priorities
reprinted from OMB Watcher Online Vol. 2 No. 19
September 18, 2001
In the wake of the September 11 tragedy, much of the ordinary business of government, including the appropriations process, has been pretty much on hold during the past week. We are saddened by the loss of so many lives in the September 11 attack and by the pain of their family, friends, and companions. We wrestle with the broad implications for each of us, personally, as global citizens, and as a nation. As we return to "normalcy" and the business of government -- the policy decisions and the appropriations process that will be resuming, now is perhaps a good time to again examine the budget as a reflection of our underlying values and judgments. The federal budget is the way we allot our nation's resources -- the money we as taxpayers contribute -- for various projects to accomplish certain goals. The budget is the clearest expression of what our priorities as a country are. Just as our everyday acts add up to what our lives are all about, the annual appropriation of resources -- deciding who gets what -- adds up to what our country is all about.
There was relatively swift passage on Friday, September 14, of an emergency allocation of $40 billion (H.R. 2888), double the President's request, in the wake of the events on September 11 (see related story). The vote was unanimous. While, according to many, in the light of such a huge national tragedy, "money was not an object," determining who would control the use of the money did raise some issues. This will likely be a continuing theme as legislators determine the allotment of resources for two very different goals: increased security measures and "counterterrorism" efforts on the one hand, and rescue, recovery and victim assistance on the other hand. Besides preventative measures against future acts of violence, we are also faced with the intention to proceed against the perpetrators, and any country that harbored them, through military means and through the rule of law. This will require more resources.
All of these new spending needs take place when the cost of President Bush's tax cut has reduced the anticipated surplus substantially, when an increase in "defense" spending of $18 billion has already been requested, and before the expenses for prescription drug coverage for Medicare recipients or increased federal contributions for education have been figured in. Most of the emergency spending allotted during the past few years has been for natural disasters, but we are now faced with considerable emergency spending for another kind of unanticipated disaster. This will likely bring back the "guns or butter" debate in full force -- many thoughtful people see this tragedy as a wake-up call for us to consider our obligation as the richest nation in the world to address the inequality and injustice that may result in this kind of violence; while others see the strongest imperative to retaliate, to find and punish the perpetrators, and to use our military might "to rid the world of evil;" and yet others fall somewhere in between. It seems very likely, however, that those of us who advocate increased investment in people and communities, whether domestic or international, will need to make our message stronger.
The sudden abandonment of any pretense of preserving the so-called "Social Security lockbox" represents a realization that, in light of urgently pressing needs, the political wrangling about who is going to spend the Social Security surplus first will thankfully be set aside. This is good news, but it makes some of us wonder why the pressing needs that existed in this country and internationally before September 11 had so little power over the budget purse strings. While we are seen by others (and hated by some) as the richest and most powerful country on the face of the earth, many of our own citizens live in poverty, our children go hungry and cannot afford health care, and some of us even lack such basics as air that is healthy to breathe and water that is safe to drink. Many people in this country live in poverty, and poverty correlates with limited social, economic and political power and thus reduced opportunity on all fronts. Yet we have been unable to come together to work towards national purposes that would improve the lives of our people and communities.
Perhaps this tragedy can make us realize the importance of pulling together and of realizing our shared values about the worth of each person's life and our commitment to insuring that every person in the United States has the opportunity to succeed. Just saying the words doesn't accomplish ideals of equal opportunity and social justice -- it also requires money. Now, when we are in a space where pure political maneuvering seems a little silly and much of what was being hotly debated only a week ago seems inconsequential, might be a good time to reexamine our budget priorities. We must do so in light of the terrible events of September 11, but we could also begin to think in terms of making a positive difference in the lives of ordinary Americans.
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