Noted Economist Len Burman Endorses a Referendum on the Deficit Reduction Plans

Why Republicans Will Hate That Idea

Economist Leonard Burman has found himself in unusual agreement with WSJ editorial writer Daniel Henninger who has proposed a national referendum on the Republican and Democratic plans for changes in taxes and government spending to reduce the deficit.

This doesn’t often happen.  I agree with the Wall Street Journal editorial page.  Dan Henninger wrote:

Democrats say they won’t vote to raise the debt limit unless they get … higher taxes. Republicans say they won’t raise the debt limit unless they get reductions in public-sector spending without raising taxes.

Shall we put this to a vote? Not a vote of Congress, but of the American people—the 130 million or so who will vote for president in November 2012.

Wow, what a great idea.  For such a critical issue we let the people decide.  Well Mr. Burman and Mr. Henninger, there is only one problem with your idea.  Republicans would never allow such a vote.

How do we know?  Because we have the exact same situation in California as we have nationally.  Governor Jerry Brown of that state proposed closing a budget deficit partly by cutting spending and partly by raising taxes, and campaigned (and won) on the concept that the state would allow a vote on whether or not to raise taxes.  Well Republicans in the legislature, who have veto power on whether or not to call a referendum said no, not to higher taxes but to voting at all.

See Republicans view higher taxes not just as bad economic policy, but as something immoral.  You don’t vote on morality, so no referendum.  The problem that Republicans have with a referendum is that voters might vote the wrong way, you know, vote for immorality and they cannot have that, can they. 

So Mr. Burman and Mr. Henninger, sorry, no vote, not now, not ever.  Wouldn’t be right, you know.

Editor’s Note:  The Dismal Political Economist is not quite correct here.  An un-named spokesperson for the Republicans said today they would consider voting on any issue as long as the vote was restricted to white males over the age of 21 who owned property.