McCain's bizarre earmark obsession

Sat, 09/27/2008 - 11:44am

I remain completely baffled by John McCain's windmill-tilting at federal earmarks.

In last night's presidential debate, the Arizona senator first began by talking about how the United States is in a "fiscal crisis" rather than a financial or credit crisis. Yet U.S. deficit spending as a percentage of GDP is not particularly high in historical terms, and now that there is a flight to safety in the markets, the U.S. government is able to borrow money at a near-zero interest rate. Yes, there is a looming fiscal calamity ahead, but the main problem today has to do with a freezing up of the credit markets, not the federal government's deficit spending.

What's more, McCain seems not to understand that earmarks are just a tiny piece of the fiscal picture. As Barack Obama pointed out during the debate, earmarks represent just $18 billion out of a much larger pie. Compare that to the projected 2009 deficit (not counting the bailout) of roughly $500 billion. Or compare it to the total federal budget of about $3 trillion.

Here's a pie chart, via economist Mark Thoma:

This is a fake issue, folks.



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Earmarks

Earmarks are often mentioned for their symbolism, rather than their substance.

Their enactment often illustrates vote buying, corruption, and closed door, non-transparent dealmaking. Sometimes the earmarks for a bill do not show up until long after the bill is passed, in a committee report.

While not a huge part of the budget, earmarks have an outsized contribution to corruption, being one of the few Congressional spending areas kept largely out of the public eye.

All that said, I am not endorsing McCain's harping on earmarks. It is shameful that McCain failed to address entitlement spending, as that is a huge looming problem for America (in combination with demographics, notably an aging population and the choking off of immigrants). McCain's only mention of entitlements was to suggest a spending freeze on everything but entitlements, defense, and veterans' affairs.

On a final note, a better graph would divide into three areas: entitlement budget obligations, discretionary spending, and earmarks. In practice, Congressmen have little control over entitlements, which would be a huge part of an updated graph.

Jeff @ Armchair FP

Not a Fake issue

You're wrong, its not a fake issue. The numbers are low, but the truth is, that 1% of spending is used by appropriators to buy much high levels of federal spending than would otherwise pass through Congress.

Bear with me while I explain it. Let me tell you a story.

We have an idealistic young freshman Republican Congressman, lets call him Mr. Conservative. Well, Mr. Conservative, like many of his friends (particularly Republicans) came to Washington saying that the government is too big, too intrusive, and we have to shrink it. Then, met John Murtha, Jerry Lewis, and Dave Obey (Senior members of the Appropriations Committee). Obey comes up to Mr. Conservative, and says, "I've got a great deal for your constituents. I can put a $1.5 million earmark for your district's largest employer, Littletown General Hospital, to support jobs and high-tech research." This is great, says Mr. Conservative, "I get to support my favorite hospital, create new jobs, and promote a high-tech economy." So, he puts out a press release touting the earmark when the appropriations committee passes the bill. It also helps that the lobbyists for Littletown General Hospital come in and throw a nice fundraiser for Mr. Conservative. Of course, that's not why he got the earmark, but it will help in next year's election against Ms. Lefty, right?

Now, the Health and Human Services Appropriations bill is slated to be brought up on the House floor tomorrow, and it's cost has ballooned up to $150 billion because those bleeding-heart liberals leading Congress have created a new welfare program that Mr. Conservative opposes, and he really wants to vote against. Then, that nice Dave Obey -- who put in the earmark that will do so much good for Littletown General -- stops our hero in the hall and reminds him that he's put this important project in the bill, and "you wouldn't want to vote against jobs and high tech industry for your district, would you?" He also reminds our hero how nice he was to put the earmark in, and "wouldn't it be a shame for Littletown if they never got another earmark?" How can Mr. Conservative vote against the interests of his own district? Wouldn't Mr. Conservative's election opponent, Ms. Lefty, like to know that he opposes high tech research and jobs?

The next day, Mr. Conservative goes in and votes for a bloated $150 billion welfare bill. This is how $18 billion in earmarks buys our government a $3 trillion budget and a $500 billion deficit. This is not a fake issue. Earmarks go to the very heart of the overspending in Washington.

Hmmm . . .

I'm not entirely sure the best way to deny earmarks are a fake issue is to respond with a fake story. But that's just me.

That's a good point, but the

That's a good point, but the problem doesn't seem to be with earmarks, it seems to be with greed and finance.

Simple

earmark = corruption.

mccain damaged his cred re earmarks

I grant that earmarks might have an effect greater than the numbers indicate, but McCain pretty much destroyed his credibility on spending reform when he chose Palin and repeatedly broadcast lies denying she'd aggressively sought and obtained pork for Alaska, most infamously with the Bridge to Nowhere. Don't think the politicians didn't learn the cynical lesson--grab all the pork you can and then just deny, deny, deny.

4% seems tinier than $15 billion

Re: "As Barack Obama pointed out during the debate, earmarks represent just $18 billion out of a much larger pie."

I didn't understand during the debates why Obama didn't just say those earmarks account for about 4% of the total budget? "$18 billion" is such an abstract figure, it still seems like a lot of money.