by Ali Meyer • Washington Free Beacon
Outstanding federal debt is projected to hit $28.2 trillion over the next decade, according to a report from the Congressional Budget Office.
At the end of this year, outstanding federal debt is expected to climb to $19.4 trillion and to rise by $8.8 trillion in the next ten years.
The federal government’s budget deficit, which is the difference between how much money the government spends and how much money it takes in through tax collection, will be $590 billion by the end of 2016, $152 billion more than the previous year. Continue reading
The Virginia Governor put together a large economic development package—and bragged about bringing jobs—on the basis of fabricated promotional materials from a Chinese company.
by Steve Albertson • The Bull Elephant
Just over a year ago, in November 2014, Virginia Governor Terry McAuliffe beamed with pride at having concluded a deal to bring 349 jobs to the ailing economy around Appomattox. The plan was to use various state economic development incentives, including an upfront payment of $1.4 million from the Governor’s Opportunity Fund. From the Governor’s press release at the time:
Governor Terry McAuliffe announced today that Lindenburg Industry, LLC, a subsidiary of a Chinese-owned corporation, will invest $113 million to establish an industrial honeycomb manufacturing operation in the Town of Appomattox in Appomattox County. This project, which represents the first new company announcement in Appomattox in 15 years and the largest since Thomasville Furniture began construction in 1972, is a direct result of the Governor’s meeting with company officials in Beijing, China during his Asia Marketing Mission last month. Virginia successfully competed against North Carolina for the project, which will create 349 new jobs.
But, as it turns out, McAuliffe’s enthusiasm about prevailing over the Tar Heel State was misplaced. You see, the Chinese “company” has now apparently bailed out, without refunding the Governor’s check. It seems that folks in North Carolina were a wee bit more responsible with taxpayer funds. They did background research that the Governor’s office did not. In fact, an investigation by The Roanoke Times found that: Continue reading
America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts.
by Anthony B. Kim • Daily Signal
According to the 2016 Index of Economic Freedom, an annual publication by The Heritage Foundation, America’s economic freedom has tumbled. With losses of economic freedom in eight of the past nine years, the U.S. has tied its worst score ever, wiping out a decade of progress.
The U.S. has fallen from the 6th freest economy in the world, when President Barack Obama took office, to 11th place in 2016. America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts. Continue reading
by Kenneth Bloomquist
Standing before an audience of college students, President Obama remarked that “As Americans, we can and should be proud of the progress that our country has made over these past six years. This progress has been hard, but it has been steady and it has been real. And it’s the result of the American people’s drive and their determination and their resilience, and it’s also the result of sound decisions made by my administration.” These remarks sound more defensive than confident. The President asserted that Americans should feel proud of the modest economic gains his administration frequently cites, but given that over half of Americans still consider the economy to be meandering through a recession it seems they have overwhelmingly rejected his outlook and chosen to remain humble instead.
Perhaps they’re being overly pessimistic? In the President’s defense, the metrics commonly used to measure the duration of recessions do indeed place the end of the Great Recession in 2009. Since then, GDP has risen slowly, but steadily, at an adjusted rate of just over 2% per year. The unemployment rate has fallen from its 2009 high of just under 10% to just under 6%, and new jobs are being created at a pace which is improving with time. And yet despite the graphs and charts, Americans refuse to be optimistic no matter how often they are told to be. The economy as described in press conferences doesn’t seem to be same one which most Americans live and work in, where family and friends remain unemployed or underpaid, where they have been passed over for raises, and where there just isn’t enough income leftover to save. Americans may not all have advanced economics degrees, but they are intuitively aware when times are good and when times are bad, and they remain skeptical even when bombarded by a steady stream of rose-tinted statistics. Continue reading
109,930,090 Americans participated in overlapping programs
by Elizabeth Harrington • Washington Free Beacon
The lion’s share of spending comes from the food stamp program, which gave benefits to an average 46 million Americans in 2014, at a cost of $74.6 billion, according to a testimony from the GAO’s Director of Education, Workforce, and Income Security Kay E. Brown before the House Subcommittee on Nutrition Wednesday.
The national school lunch program was second, costing $11.3 billion, followed by the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) at $7.1 billion. Continue reading
by Kate Bachelder • Wall Street Journal
A hallmark of progressive politics is the ability to hold fervent beliefs, in defiance of evidence, that explain how the world works—and why liberal solutions must be adopted. Such political superstitions take on a new prominence during campaign seasons as Democratic candidates trot out applause lines to rally their progressive base and as the electorate considers their voting records. Here’s a Top 10 list of liberal superstitions on prominent display during the midterm election campaign:
1. Spending more money improves education. The U.S. spent $12,608 per student in 2010—more than double the figure, in inflation-adjusted dollars, spent in 1970—and spending on public elementary and secondary schools has surpassed $600 billion. How’s that working out? Adjusted state SAT scores have declined on average 3% since the 1970s, as the Cato Institute’s Andrew Coulson found in a March report.
No better news in the international rankings: The Program for International Student Assessment reports that in 2012 American 15-year-olds placed in the middle of the pack, alongside peers from Slovakia—which shells out half as much money as the U.S. per student.
Someone might mention this to North Carolina Democratic Sen. Kay Hagan, who is knocking State House Speaker Thom Tillis for cutting $500 million from schools. Per-pupil K-12 spending has increased every year since Mr. Tillis became speaker in 2011, and most of what Ms. Hagan is selling as “cuts” came from community colleges and universities, not the local middle school. Mr. Coulson’s Cato study notes that North Carolina has about doubled per-pupil education spending since 1972, which has done precisely nothing for the state’s adjusted SAT scores. Continue reading
A year ago this week, Healthcare.gov launched and set a new standard for costly technological disasters.
The portal for obtaining private insurance under Obamacare proved completely impenetrable for consumers in its first two months. The constant error messages, glitches and outages became fodder for late night comics, but the Americans forced to interact with the site after Obamacare pushed them out of coverage they already liked were not amused.
A year later, most of Obamacare’s outwardly noticeable technological frustrations are gone. Even though the law remains as unpopular as ever — at 25 percent support among U.S. adults, according to the latest Associated Press poll — consumers who log in when with the second open enrollment begins on Nov. 15 will probably have a less unpleasant technical experience.
But here’s the problem: Beginning with the website’s early failure, the Department of Health and Human Services has concentrated mostly on fixing the portion of the site that the public interacts with. They have not yet fixed major structural and security issues on the back-end, and testing for some of these only begins this month. Continue reading
The government is making you work longer and longer to cover its hefty costs. It took Americans 186 days of work to pay for their massive government.
Just in time for American Independence Day, the folks over at Americans for Tax Reform have released their annual Cost of Government Day findings – and the news is not good.
According to the annual study, which the group began to compile in the early ’90s, an American would on average have to work for 186 days into the calendar year before they earned enough to pay their share of government’s total cost at all levels – not just for the spending and borrowing, but for the cost the regulatory burden imposes as well.
For 2014, Cost of Government Day falls on July 6, the sixth consecutive year it comes in the seventh month of the year. Prior to President Barack Obama coming to office, the group said in a release, the latest date it had ever fallen was June 27. Continue reading
Congressional negotiators reached a deal late Monday on a massive spending bill to fund the government for the rest of 2014, agreeing to undo last year’s cut to military retirement benefits and a list of other GOP demands in exchange for the higher spending levels.
But some of the most interesting action happened on the sidelines, where negotiators agreed to strict rules to prevent the Internal Revenue Service from targeting groups for ideological scrutiny, and specifically banning the agency from targeting citizens “for exercising any right guaranteed under the First Amendment.”
Negotiators also agreed to block the Obama administration from imposing standards that effectively would prohibit the sale of incandescent light bulbs. Continue reading
How many times did the Obama Administration promise that GM would repay every dime of the taxpayer provided bailout? And how many times have you heard the lie that GM has fully repaid the federal government for the taxpayer provided bailout? The truth is the taxpayers lost $10 billion on GM, but GM CEO says the taxpayer took a risk like any other investor. That sucking sound you hear is the government taking $10 billion out of the taxpayer’s pocket.
by Todd Spangler
The General Motors bailout may have cost the government $10 billion, but GM CEO Dan Akerson rejects any suggestion that the company should compensate for the losses.
He says Treasury officials took the same risk assumed by anyone who purchases stock.
“I would not accept the premise that this was a bad deal,” Akerson said during a question-and-answer session at the National Press Club in Washington. He also said the government’s $49.5-billion aid to GM helped save billions of dollars in tax revenue and government social services. Continue reading
by Andrew Huszar
I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the program for what it really is: the greatest backdoor Wall Street bailout of all time.
Five years ago this month, on Black Friday, the Fed launched an unprecedented shopping spree. By that point in the financial crisis, Congress had already passed legislation, the Troubled Asset Relief Program, to halt the U.S. banking system’s free fall. Beyond Wall Street, though, the economic pain was still soaring. In the last three months of 2008 alone, almost two million Americans would lose their jobs. Continue reading
The debt of the federal government, which is normally subject to a legal limit, jumped by $409 billion in the month of October, according to the U.S. Treasury.
That equals approximately $3,567 for each household in the United States, and is the second-largest one month jump in the debt in the history of the country.
In the continuing resolution deal sealed by President Barack Obama and the Republican congressional leadership last month, the legal limit on the federal debt was suspended until February 7 of next year. Continue reading
I have been broadcasting for 31 years and writing for longer than that. I do not recall ever saying on radio or in print that a president is doing lasting damage to our country. I did not like the presidencies of Jimmy Carter (the last Democrat I voted for) or Bill Clinton. Nor did I care for the “compassionate conservatism” of George W. Bush. In modern political parlance “compassionate” is a euphemism for ever-expanding government.
But I have never written or broadcast that our country was being seriously damaged by a president. So it is with great sadness that I write that President Barack Obama has done and continues to do major damage to America. The only question is whether this can ever be undone. Continue reading
They don’t call it “Government Motors” for nothing.
Once one of the “bluest” of America’s blue chip corporations, General Motors has seen better days. Early in President Barack Obama’s first term, it was nearly subsumed into the U.S. government on the grounds that a federal bailout – which amounted to a near takeover of the company – was necessary in order to save it from bankruptcy and to protect tens of thousands of American jobs.
The president campaigned for re-election on the success of his bailout of the auto industry which, truth be told, was confined to GM and Chrysler. There are plenty of companies that were and still are building cars and trucks in the United States that did just fine without the kind of interventions needed to keep two of what used to be called “The Big Three” from sliding into an economic abyss despite the recession. Continue reading
It’s all-shutdown-all-the-time in Washington these days. But all that talk has obscured the far bigger challenge facing the nation next week, when the government runs out of room to borrow more money to cover its expenses as it hits the congressionally imposed “debt ceiling.” It would be a disaster for the global economy to see America default on its debts. While it is true America can continue to pay the obligations on its debt and most of its other outlays each month with the tax dollars that are collected, that is only a stop-gap solution. As a nation we must find a sustainable long-term solution to run away debt and eventual insolvency.
Therefore, it is incumbent on all parties to work to work to find a practical and workable long-term solution. Thankfully, we have a recent precedent from the last debt ceiling debate. The result was sequestration. It worked in curbing spending growth, but was a blunt tool, applied across the board. The current shutdown gives us much better information about where the next sequestration should be targeted. Continue reading