海角大神

The election results did not change the political status quo, and the status quo has not been conducive to solving the nation鈥檚 festering fiscal problems.聽 In his victory speech President Obama pledged to seek bipartisan cooperation in solving problems, though 聽it is not going so well so far.聽 But we better hope that in the end he succeeds. That is the only way to avoid the fiscal cliff and cure the long-run fiscal imbalances that threaten our economic wellbeing.

Given the challenges faced by the president and Congress, it is instructive to look back almost 60 years to a time when divided government did not mean gridlock and intense ideological battles did not lead to paralysis. Unlike most presidents who followed him, Dwight Eisenhower truly believed that budgets should be balanced. Consequently, he was embarrassed when by early 1959 the budget deficit was heading toward $13 billion.

Today, that seems very small but it was the largest deficit since the aftermath of World War II. Eisenhower was determined to attain balance, and his 1960 budget incorporated severe spending restraint and only minor tax increases.

But budget balancing would not be easy. Democrats had won a landslide victory in the 1958 midterm elections and held large majorities in both the House and the Senate.聽

The composition of 聽the political parties and the budget were very different in 1959 than today. The Democratic Party contained extreme conservatives from the South like Richard Russell and John Stennis and liberals like Hubert Humphrey and William Proxmire. Republicans ranged from 鈥�Mr. Conservative鈥� Barry Goldwater to Jacob Javits, who might now be considered a liberal Democrat.

Defense constituted about half of federal spending, compared with 18 percent in 2012. Social Security amounted to only 11 percent, compared with 22 percent today. Medicare and Medicaid, which have been growing very rapidly for decades, did not exist.

Foreshadowing his farewell warning about the military-industrial complex, Eisenhower had been hard on defense throughout his presidency. He was especially tough 聽on the Army, believing that large armies created a temptation to get into ground wars.

Yet, the Cold War was raging, the Soviet Union鈥檚 Nikita Khrushchev was bellicose, and there was much discussion of a missile gap. Early in 1959 it appeared as though Congress, prodded mainly by conservative Southern Democrats, would significantly exceed Eisenhower鈥檚 defense request. But 聽the president held firm and Congress agreed to an aggregate figure almost equal to 聽his request.

The most interesting budget battle of the year involved a major housing bill. First, 聽Congress passed a version that greatly exceeded 聽the president鈥檚 request. But Democrats were very sensitive to being labeled 鈥渂ig spenders,鈥� so they pared the bill back. Eisenhower vetoed it anyway, arguing it would add to spending in future years. Lawmakers upheld his 聽veto.

Congress then 聽sent the bill back to the Oval Office with several changes aimed at satisfying the president. Surprisingly, Eisenhower 聽vetoed it again, and yet again Congress upheld his 聽veto. Congress revised the bill a third time, and finally the president signed it, although it still contained some items he opposed.

What explains Eisenhower鈥檚 great success contending with a Congress controlled by the opposing party, 聽especially given 聽recent history of presidential budgets being 聽labeled 鈥渄ead on arrival鈥�?

There are two reasons. First, Eisenhower was amazingly popular. Over the eight years of his presidency, his approval rating averaged 64 percent. No subsequent president has come close to that. Congress took him on at its peril. Second, Eisenhower鈥檚 聽budgets were serious documents, and he was 聽willing to strongly defend them in speeches and 聽frequent news conferences, and by wielding the veto pen if necessary.

Recent budgets are often forgotten by the presidents who present them. Eisenhower issued 181 regular and pocket vetoes over his eight years to back his budget and other policies. George W. Bush issued 12, and until now Barack Obama has issued 2.

Even 聽Eisenhower did not always succeed. He twice vetoed a public works bill that he thought started too many projects. His 聽second veto was overridden鈥攖he only 聽veto battle he lost in the first 6-1/2 years of his presidency鈥攑roving that even a popular president better not come between a politician and pork.

Nevertheless, the final 1960 budget was 聽balanced. Admittedly, it was aided by a bit of luck and one big gimmick. The good fortune: The recovery from the 1958 recession turned out to be more vigorous than expected. The 聽gimmick: A large contribution to the International Monetary Fund was artificially moved forward into 1959 so it would not count against the 1960 budget.

But none of that detracts from Eisenhower鈥檚 enormous success 聽working with a heavily Democratic Congress. Lyndon Johnson, the majority leader of the Senate, and Sam Rayburn, the speaker of the House, deserve some credit as well. They knew when to fight and when to give in. Are there lessons that might help to resolve today鈥檚 fiscal gridlock?聽 I鈥檒l explore that question in tomorrow鈥檚 blog.

Rudolph G. Penner is an Institute Fellow at the Urban Institute.聽 He was director of the Congressional Budget Office from 1983 to 1987.