By David Hogberg on 6.26.03 @ 12:03AM
Tax cuts cause deficits but prescription drugs do not?
A few weeks ago I penned a column
in which I griped that the specter of deficits is always invoked
against tax cuts, not spending increases. An editorial in the
Washington Post titled "Debt and Taxes" prompted me to
write, "Do you suppose we'll ever see a liberal-newspaper editorial
titled 'Debt and Prescription Drug Coverage'?" I might as well have
asked, "Will Robert Byrd ever learn humility?"
As the prescription-drug benefit to Medicare heated up last
week, the words "debt" and "deficit" were, quite literally,
exceptionally difficult to find. Both the Washington Post
and the New York Times ran seven news articles related to
the prescription-drug benefit. Not one contained any mention of
what the $400 billion program would add to the deficit or the
national debt. Some suggested that it didn't go far
enough: An
article in the Times with the lamenting headline
"Seniors May Find Drug Benefit Lacking" began, "Seniors expecting a
generous Medicare prescription drug benefit from Congress are
likely to be disappointed." The one exception appeared in an
editorial in the Times (!). After complaining that the
benefit was not enough, the editorialists conceded, "But given the
current state of the federal deficit, Congress has picked the right
priorities."
Compare that to the Times' and Post's coverage
in the week leading up to President Bush's May 28 signing of the
$330 billion tax cut. The Times ran five articles, the
Post eight. The word "deficit" was used fifteen times in
those articles, while "debt" was used eighteen. One article in the
Post, titled "A Payoff Now, Paying the Price Later," dealt
with little else but the effect of the tax cut on the deficit.
Another headline in the Times read "A Tax Cut Without
End." Although it warmed the cold cockles of my heart, it probably
conveyed the impression of "it's too much" to the average
reader.
The lack of concern about debt and deficits regarding spending
cannot be fully attributed to media bias, although that accounts
for some of it. A large chunk of the blame falls on the shoulders
of Washington's politicians. While many of the usual suspects --
Tom Daschle, Charles Rangel, Kent Conrad -- were quoted complaining
about debt and deficits in the articles on tax cuts, the lack of
such quotes in the articles on prescription-drug coverage suggests
that politicians are not talking about the new Medicare program in
those terms. Few would expect left-of-center politicians to so
complain, but what explains the silence from more conservative
ones?
Expressing concern about the fiscal effects of a new entitlement
would, arguably, enable conservative pols to craft a better
program. By raising spending concerns in the mind of the public,
congressional conservatives would have had a better chance at
winning more cost-effective reforms, such as President Bush's
desire to see more of Medicare managed by private insurance
companies. Perhaps even Medical Savings Accounts or even
means-testing for prescription-drug coverage would have been within
the realm of possibility. Nor will it likely help conservatives if
and when it comes time to deal with the federal deficit. Without
conservative politicians bemoaning deficits due to new spending,
the public is more likely to see tax cuts as the prime cause of an
increasing national debt.
The primary concern of center-right politicians appears to be
political expediency. An article
in the Post cited research from the Henry J. Kaiser Family
Foundation showing that the public ranks President Bush even with
Democrats on the Medicare issue. While I wouldn't lightly dismiss
the electoral concerns of President Bush and congressional
Republicans, I do wonder how much of an electoral edge they would
have sacrificed had they raised the deficit issue and held out for
more cost-effective reforms.
Not all the news failed to cast a skeptical eye toward the new
Medicare program. Robert Pear and Robin Toner had a particularly
interesting
look at the new bureaucratic complexity that will result from a
prescription-drug benefit. It also contained what is easily the
irony of the decade from Senator Clinton. The former mastermind of
"HillaryCare" complained that the new Medicare program would result
in "a new Medicare maze, a whole new bureaucracy."
Nevertheless, for those who favor limited government it was a
depressing week. Washington is on the verge of creating more
bureaucracy and adding a new liability to the federal budget. And
neither the media, nor Democrats, nor Republicans seemed much to
care.
topics:
Taxes, Federal Budget, NATO, Medicare