John Stossel is a favorite of mine. I watch his show whenever I can. He is fearless, even when faced with that intimidating buffoon Bill O’Reilly.
Stossel not only thinks Congress will kick the can on the Fiscal Cliff, he even explains how it is likely to happen:
Will Congress act?
It will! I see the future: The politicians will meet and fret and hold press conferences and predict disaster. Then they’ll reach a deal.
It will just postpone the reckoning, but they’ll congratulate themselves, and the media will move on.
Ron Paul sees what’s happening. He’s seen it all happen before. It’s happening again. Says Paul:
They’re not going to admit that we’re bankrupt, and they won’t admit that we’re on the verge of a major, major change in our society. So they’ll keep putting it aside, but then [they’ll] eventually probably destroy the [remaining purchasing power of the] dollar…
They’re not even … talking about real cuts. They’re talking about cuts in baseline budgeting…
If they propose, let’s say, a $10 billion increase for next year and cut it down to $9 billion, they say they’re cutting 10 percent. But they’re not cutting anything, they’re only increasing it $9 billion instead of $10 billion. It’s done on purpose so that people get confused.
In other words, what’s happening in Washington is all for show – it’s for the rubes – it’s to give the impression that much is being done about a serious problem. It isn’t. Here’s what Russ Roberts, an economist at the Hoover Institute, had to say about the show:
When government spending is about $3.8 trillion, you’re going to cut $100 billion? That’s a deck chair on the Titanic.
If they’re actual cuts, I think that would be great. I’d cut 10, 20 percent across the board if I had my druthers…
But they’re not actual cuts, they’re baseline projection cuts. And the baseline projects increasing government spending.
And so Stossel comes out of all of this at the same place as Gary North:
I won’t lose sleep over automatic spending cuts. The “fiscal cliff” frightens me less than the bankruptcy cliff.