Decrying “a decade of deficits” on Monday, President Obama declared that “my budget lays out a path for how we can pay down these debts.” It is hard to see how that can be true, since his plan would add $6.7 trillion to the national debt during the next decade. Obama thus begins his fourth … Read more
Since Barack Obama became president on Jan. 20, 2009, the federal government has not had a budget. It did not have one for the first two years of his presidency, when Democrats controlled both houses of Congress, and it did not have one for 2011, when the Democrats controlled the Senate and the Republicans … Read more
“I don’t think Ron Paul represents the mainstream,” says Mitt Romney. Newt Gingrich, another of the Texas congressman’s opponents in the contest for the Republican presidential nomination, uses stronger terms, declaring, “Ron Paul’s views are totally outside the mainstream of virtually every decent American.” As the results in Iowa suggest, the “mainstream” to which … Read more
Reporters routinely describe Ron Paul’s foreign policy views as “isolationist” because he opposes the promiscuous use of military force. This is like calling him a recluse because he tries to avoid fistfights. The implicit assumption that violence is the only way to interact with the world reflects the oddly circumscribed nature of foreign policy … Read more
When I graduated from college in 1976, I got a job in Washington with the National Taxpayers Union, which was working to get a constitutional amendment to require a balanced federal budget. Someone graduating today could sign up there and pursue the same goal. The balanced-budget amendment has never gone away and never come … Read more
DAVENPORT, Iowa — As a crowd of more than 100 waits patiently for Mitt Romney’s late arrival, the sound system blares country singer Alan Jackson: “You must be the dream I’ve been dreamin’ of/Oh, what a feelin’, it must be love.” That selection suggests it’s Romney who is dreaming. He’s been running for president … Read more
Presenting his fiscal plan in USA Today last week, Mitt Romney said he wants to “eliminate every government program that is not absolutely essential.” That sounds good until you realize that Romney’s goal of cutting $500 billion from projected federal outlays in 2016 would, at best, leave the budget about 8 percent higher than it … Read more
Next month, the Joint Select Committee on Deficit Reduction, a 12-member subset of Congress that Congress created to make the hard fiscal choices Congress itself has failed to make, is expected to propose $1.2 trillion in cuts from projected spending during the next decade. This week, Rep. Ron Paul, R-Texas, who is seeking the Republican … Read more
Some of society’s most intractable problems come not from its failures but from its successes. Often you can’t get a good thing without paying a bad price. A prime example is our public old-age pension system, Social Security. It has been completely successful in wiping out poverty among the elderly. Old ladies no longer have … Read more
Greece is a microcosm for most of the developed world. It is mired in debt and at the mercy of forces beyond its financial control. The downward spiral is accelerating. As a condition for granting the May, 2010 rescue package, the IMF imposed severe austerity measures which included reductions in government social spending and … Read more
In 2010, there was a “tax gap” — i.e., the difference between federal taxes owed and those actually paid — of $410-$500 billion. Some of the gap stems from the complexity of the tax code. Much of it, though, is deliberate: self-employed individuals working for cash, table-servers under-reporting tips, taxpayers claiming unauthorized credits and deductions. … Read more
It’s hard to keep up with all the arguments and proposals in the debt limit struggle. But what’s at stake is fundamental. The bedrock issue is whether we should have a larger and more expensive federal government. Over many years, federal spending has averaged about 20 percent of gross domestic product. The Obama Democrats have … Read more
Politicians often rail against government spending, except when it goes to the military. Conservatives believe there is no such thing as too much defense spending, and liberals don’t argue, for fear of being labeled appeasers. So when there is talk of the two parties agreeing to cut the Pentagon budget, it sounds like a monumental … Read more
Being a congressman can be a great job. It can be attractive for someone who relishes the ersatz virtue of playing Santa Claus with other people’s money, who finds a year-round routine of fund-raising social events enjoyable, and who covets receiving one of the most generous pensions on the planet. It can also be a … Read more
Which past leader does Barack Obama most closely resemble? His admirers, not all of them liberals, used to compare him to Abraham Lincoln and Franklin Roosevelt. Well, Obama announced his candidacy in Lincoln’s hometown two days before Abe’s birthday, and he did expand the size and scope of government. But no one seriously compares … Read more
Last week, I noted that various forms of the word “unexpected” almost inevitably appeared in news stories about unfavorable economic developments. You can find them again in stories about Friday’s shocking news, that only 54,000 net new jobs were created in the month of May and that unemployment rose to 9.1 percent. But with news … Read more
The latest Social Security Trustees Report tells us that the program will be insolvent by the year 2037. The combined unfunded liability of Social Security and Medicare has reached nearly $107 trillion in today’s dollars. That is about seven times the size of the U.S. economy and 10 times the size of the national debt. … Read more
Earlier this month, over 80 Catholic scholars — mostly professors — sent an open letter to Rep. John Boehner, Speaker of the U.S. House of Representatives, on the occasion of his presenting the commencement address at The Catholic University of America in Washington, D.C. They accused him of being out of line with the … Read more
That is the question asked by the left-leaning Christian organization, Sojourners, in its campaign of the same name. It is a most appropriate question given the battle over the budget and given this time of year, not long after the most holy holiday of the year for Christians. Sojourners claims that, despite record budget … Read more
Barack Obama is a politician who likes to follow through on long-term strategies and avoid making course corrections. That’s how he believes he won in 2008, and since then he’s shown that he’s not much into details. So he was happy to let congressional appropriators fill in the blanks in the 2009 stimulus package, and … Read more