Say what you will about Dan Crippen, the new director of the Congressional
Budget Office, but you always know exactly where he stands on the issues of
the day. Since taking office in February, Crippen has shared his opinions on
topics such as President Clinton's plan to pump funding into Medicare (it "would
do nothing to address the underlying problem"), proposals to build up reserves
for retirement programs (they "never seem to work"), and Senator John Breaux's
Medicare overhaul ("clearly promising").
The trouble is that a man in Crippen's
position is not supposed to prattle on like a panelist on "The McLaughlin Group."
The Congressional Budget Office, created in 1974, represents a post-Watergate
ideal of government informed and constrained by objective expertise -- an outpost
of dispassionate academic rigor in an atmosphere where such attributes are notably
lacking. CBO directors traditionally bend over backward to avoid any hint of
favoritism, and they usually have -- by hiring staffers of different ideological
stripes, carefully avoiding punditizing, and generally carrying on in the manner
of a secular priesthood.
All this is necessitated by the Congressional
Budget Office's immense authority. The office's budget forecasts establish the
size of the projected budget surpluses, and its analyses determine whether a
proposed bill would save the government money. In Washington, this is the power
of life and death. The annual calculations of the CBO decide whether the politicians
will pursue a path of austerity or profligacy. The CBO can snuff out an incipient
political movement -- as it did in 1994, when an adverse report from the CBO effectively
doomed the Clinton health care plan. In return for this power, the CBO has always
maintained a rigorous neutrality.
Naturally, this has not always made the
CBO popular. Congressional overlords don't appreciate it when some pencilnecked
academic informs them that their budget doesn't add up. But, in a way, that
is exactly the point of the CBO. In Washington, numbers are political weapons -- grotesque
distortions of logic and mathematics, mass-produced by politicians and parties
and lobbyists in order to put a patina of precision on their prevarications
and ambiguities. The CBO, in short, has always been a nonpartisan scorekeeper
in the political bloodsport of the capital. But now the rules of the game could
be changing.
The CBO'S historic strength
is not that it always gets it right (it doesn't) but that all sides recognize
it as valid and necessary. That is no longer true, though, and the change can
be traced to a meeting at Andrews Air Force Base in 1990. That is where President
Bush and congressional Democrats agreed to a deficit-reduction pact that raised
taxes on upper-income Americans. Throughout the negotiations, Democrats insisted
that the burden of the contemplated changes not fall mainly on the lower classes.
So, following every twist and turn of the negotiations, the two sides beckoned
the CBO to determine the distributive impact of every proposed tax hike or spending
cut. To the horror of the conservatives, the CBO charts showed that the only
way to reduce the deficit without hurting the poor was to raise taxes on the
wealthy.
To the right-wingers, who regarded any
analysis based on income differentials as hoary "class warfare," this made the
CBO complicit in Bush's betrayal. Their dismay was compounded by new budget
rules, which essentially held that Congress could not do anything that increased
the deficit. Since it was the CBO that decided what did and did not increase
the deficit, this placed it in the awkward position of appearing to foil Republican
schemes to cut taxes.
Among conservative intellectuals, particularly
the proponents of supply-side economics -- the CBO became a bete noire, the subject
of denunciation in National Review, The Washington Times, and The
Wall Street Journal's editorial page. So fervently did supply-siders come
to detest the CBO that they developed special epithets with which to express
their grievances: "Keynesian" is one, an all-purpose insult that supply-siders
hurl at moderates in general but apply with particular eagerness to the CBO.
They also accused the CBO of practicing "static analysis" -- their name for any
econometric method that fails to account for the fantastical growth-creating
powers of tax-cutting -- and argued instead the CBO's imprimatur on the Republican
claim that Clinton was expanding social spending and starving the military.
Of course, the most important question
is whether Crippen will bend to the conservatives' demand of instituting "dynamic
scoring." Crippen wrote to one Democratic congressman that he planned to "review
CBO's methods" of calculating the effect of taxing and spending on the economy.
And, according to one Republican congressional staffer, "Dan has expressed interest
in the past in dynamic scoring."
All this has badly shaken the CBO staff's
morale, according to Hill staffers and former CBO personnel (current CBO staff
members won't speak with the press). The office's professional economists see
themselves as apolitical civil servants, and they have "grown accustomed to
blustery threats from angry congressmen on the left and the right that always
come to nothing. This time, though, the threat may come from their own director,
and the staff has fallen into a deep depression, some even telling friends and
outside contacts that there might be mass departures. Whether that literally
comes to pass or not, apparently these staff members believe that, by suggesting
that the CBO is about to lose its nonpartisan professionals. They can give Crippen
and the Republicans pause. But what if an emasculated CBO is exactly what the
conservatives want?
Copyright 1999, The New Republic
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