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Tag Archives: Government Spending


Secure the Homeland and Ignore the Jones Act Blame Game

By George LandrithTownhall

While Puerto Rico is still recovering from last year’s severe hurricane damage, the all too predictable push to blame the tragedy on the Jones Act appears to have passed — for now. But almost like clockwork, this false blame game will be replayed whenever opponents of the Jones Act think they can spread falsehood during times of tragedy to gain a political advantage. When that next moment comes, the tired, oft-repeated, and baseless arguments will be trotted out once again.

The Jones Act, or more precisely, the “Merchant Marine Act of 1920,” simply requires goods shipped between U.S. ports to be shipped on American vessels crewed by Americans. It does not limit foreign vessels from bringing goods to US ports. It only prevents foreign ships from carrying cargo between two or more US ports. This has a number of homeland security benefits as well as ensuring that our military has a robust merchant marine sea lift capability and ship repair industry.

Some may assume that Americans are burned out on debating the Jones Act’s merits every time there’s a hurricane or some other event that supplies the pretext to blame the nearly 100 year old law. But when I recently spoke at a public policy conference, I saw Continue reading


3 Reasons Trump Should Have Vetoed The $1.3 Trillion Spending Monstrosity

Investor’s Business Daily

Some Republicans were complaining that they didn’t know what was in the massive $1.3 trillion “omnibus” spending bill they voted on this week. But it’s what’s not in the bill that’s the most troubling.

Republicans used to love to trot around copies of ObamaCare, pointing out how its massive size — around 2,300 pages — was a sign of runaway government.

The spending bill Congress just approved is nearly as big, weighing in at 2,232 pages. And, like ObamaCare, no one who voted on it had read the bill before casting their ballots.

Then there’s the amount of money we’re talking about. That $1.3 trillion is what will be spent in just the next six months. And that represents just a fraction of what the government will spend, since it doesn’t include Social Security, Medicare, Medicaid, ObamaCare or welfare. Continue reading


The Pension Crisis and School Choice

By Lewis M. Andrews • National Review

Talk to the people of Illinois about America’s looming public-pension crisis, and they’ll tell you it’s not looming — it’s already here. This month, a statute went into effect giving Comptroller Susana Mendoza the right to make up for any town or county’s delinquent pension payments by seizing its share of sales, excise, and other taxes collected by the state. The result is that municipalities across Illinois have been scrambling to either cut services or raise taxes.

Mattoon officials have announced that ambulance services will be scuttled to pay pension bills a half-million dollars higher than last year’s, while Springfield’s budget director, Bill McCarthy, says he will have to “reduce other services just to meet pension obligations.” Normal will handle the problem through property-tax increases, while Danville has imposed a separate “public safety pension fee,” which will cost residents up to $267 annually. East St. Louis, which depends almost exclusively on its share of tax money from state’s Local Government Distributive Fund, could soon see its entire budget confiscated to satisfy pension obligations.

With a national pension asset shortfall calculated as high as $6 trillion — and with accelerating benefit payouts to retiring Baby Boomers — Illinois is sadly not the only state where voters are being hit with revenue surcharges or deprived of essential services. Florida localities will have to allocate an additional $178.5 million in their upcoming budgets to pension payments; Continue reading


The Stakes of the Shutdown Standoff

Government shutdowns are petty, but they're rarely as detrimental as pundits and politicians fear.

By Peter RoffUS News

For various reasons it’s become popular to threaten to shut down the federal government. Whether that goes back to the Reagan years when Democrats would run out the clock on the fiscal year to try and force spending increases the White House didn’t want or the years in which the tea party Republicans decided the American people would stand with them in closing the government to stop Obama initiatives, there are people in government who believe hanging the “Closed” sign on the Washington Monument is a political winner.

It isn’t. It makes everyone involved look petty and small. The American political process is by design deliberative. The founders designed a system that forced compromise between regions of the country, between politicians of dissimilar views and of competing interests at all levels of government. Pushing the government to close because there’s no money to run it is akin to taking one’s ball home from the playground because the other kids will not agree to play the game by the rules you want.

All that said, the government never really shuts down. The president is allowed far too much discretion to declare services essential, meaning all kinds of people get to stay on the job without pay, working away as usual processing government checks, funding grants, administering programs and doing all kinds of things that, while they might be the purpose for which people get up and go to work each day, would hardly be classified as “essential” in any kind of real emergency. Continue reading


The White House Shoots for the Moon

By Peter RoffTownhall

Earlier this month, President Donald J. Trump signed a space policy directive to “restore American leadership in space.” To the excitement of many, this directive includes sending men back to the Moon and perhaps even Mars. The prospect of making dreams a reality once again is enthralling, something we will do, echoing a previous chief executive, not because it is easy but because it is hard.

To do all this, to optimize performance and ensure a successful, modern-day space program, government appropriators must adhere to a standard set of business protocols. It is essential NASA and the White House have clear goals in mind and ensure the interests of the country are at the heart of every mission. Stating the objective of going to the moon is not enough; bureaucrats need to take the process a step further and iron out precisely what it wants to achieve, how much it will cost to do so, and why the country will be better off as a result.

It is true few companies would turn down a government contract – after all, no one’s checks clear better than Washington’s – but that is not license for decision-makers to issue them carelessly. Every mission must have the clear intent of either advancing national security interests or significantly increasing the country’s scientific progress before the disbursement of taxpayer funds begin. The general rule of thumb should be that if extensive research from private firms has not been conducted on a given topic, it is likely not worth the federal government pursuing.

Continue reading


‘Evil’ Tax Cuts? Nope, It’s Blue-State Panic

By Heather Wilhelm • National Review

Ah, the holiday season. It’s a magical time, bursting with joy and merriment, the laughter of children, jolly parties, twinkling lights, mildly terrifying mall-dwelling Santas . . . and the faint sounds of caterwauling blue-state politicians shrieking that the GOP tax bill signals the end of civilization as we know it.

Can you hear it? Fire and brimstone! The weeping and gnashing of teeth! According to Nancy Pelosi, this reshuffling of government regulations amounts to “Armageddon” and “the worst bill in the history of the United States Congress.” California governor Jerry Brown labeled the tax bill “evil in the extreme.” According to Bernie Sanders, the proposal amounts to “class warfare” and “one of the greatest robberies in American history.” In terms of sheer melancholy drama, comedian Patton Oswalt might win the prize: Because of the GOP tax bill, “there’s no America now. Not the one we knew. Sorry, feeling real despair this morning.” Continue reading


President Trump’s Budget Would Reduce Deficit By $160 Billion and Increase GDP Growth

by Ali Meyer • Washington Free Beacon

President Donald Trump’s proposed budget for 2018 would reduce the deficit over the next decade by $160 billion and increase GDP at the same time, according to an analysis from the Congressional Budget Office.

Trump’s budget proposes a cut back in mandatory and discretionary spending that would not only reduce the deficit, but the debt as well.

Relative to the size of the economy, federal budget deficits are projected to decline by 2.6 percent to 3.3 percent of gross domestic product over the next 10 years. This would mean that the deficit would be roughly one-third smaller than it was originally projected to be.

Trump’s budget also aims to reduce the debt to 80 percent of GDP, which is 11 percentage points below the budget office’s baseline. By the end of the next decade, debt held by the public is projected to decline by 0.6 percent of GDP. Continue reading


Obamacare Subsidies Projected to More Than Double Over Next Decade

by Ali Meyer • Washington Free Beacon

Subsidies for health insurance purchased through the marketplaces established under the Affordable Care Act are projected to more than double over the next decade, according to a report from the Congressional Budget Office.

The report, which evaluated spending for various means-tested programs or programs that offer benefits to those who earn income under a certain threshold, found that spending on Obamacare subsidies will total $42 billion in 2017 and are estimated to more than double to $97 billion by 2027.

In fiscal year 2016, payments for subsidies totaled $31 billion and, according to the budget office, payments will grow rapidly in 2017 and 2018 largely due to the growth in enrollment. Continue reading


CBO: Federal Debt to Hit $28.2 Trillion Over Next Decade

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


Chinese firm bamboozles McAuliffe out of $1.4m in taxpayer money

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

Money Hole TaxJust 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 Economic Freedom Has Rapidly Declined Under Obama

America’s declining score in the index is closely related to rapidly rising government spending, subsidies, and bailouts.

by Anthony B. Kim     •     Daily Signal

obama_frownMillions of people around the world are emerging from poverty thanks to rising economic freedom. But by sharp contrast, America’s economic freedom has been on a declining path over the past decade.

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


A Road Paved With Good Intentions

by Kenneth BloomquistWeak Economy

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


Feds Spent $100 Billion on Food Assistance Last Year

109,930,090 Americans participated in overlapping programs

by Elizabeth Harrington     •     Washington Free Beacon

The federal government spent $100 billion providing food assistance to Americans last year, according to the Government Accountability Office (GAO).

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


Ten Liberal Superstitions

Child Yelling Liberal Democratby 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


Obamacare’s website still faces hurdles as year two approaches

by The Washington Examiner

Obamacare WebsiteA 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