Tag Archives: government spending

What to expect when Congress returns

Source: Campaign For Liberty
by Norm Singleton

"Yesterday the House leadership announced that when the House comes back from August recess it will consider a 'consolidated' appropriations bill. The bill will contain the 8 appropriation bills that have yet to pass the House. The idea is to get this bill to the Senate in time to avoid another end of year, big spending budget deal rammed through Congress. I'm skeptical that this will work." (08/08/17)

http://www.campaignforliberty.org/expect-congress-returns

The junk bond state

Source: Common Sense
by Paul Jacob

"What a pleasure — comparing notes with Nick Tomboulides, executive director of U.S. Term Limits, my old job. Speaking on a panel last week at the Young Americans for Liberty National Convention, Illinois came up. Nick agreed that if the Land of Lincoln had a term-limited legislature, we would never have heard the end of it: 'Term limits are a failure!' Illinois, you see, is a failed state, confessing the lowest credit rating in history." (08/02/17)

http://thisiscommonsense.com/2017/08/02/the-junk-bond-state/

Now it's time for tax cuts — and Republicans are more divided than ever

Source: The Intercept
by David Dayen

"When presidents fail, it creates a snowball effect. George W. Bush couldn’t privatize Social Security and his legislative agenda never recovered. Bill Clinton’s abandonment of health care reform led it to tackle small-ball measures. Both were punished by voters for their failures in the next midterm, losing control of Congress and the ability to get anything else done. Voters don’t like losers. That’s bad news for House Republicans. Fresh off the (probable) failure to repeal the Affordable Care Act, they are pivoting to tax cuts. But along the way, for procedural reasons, they need to pass a budget." (07/21/17)

https://theintercept.com/2017/07/21/now-its-time-for-tax-cuts-and-republicans-are-more-divided-than-ever/

Will Trump be less of a spendthrift than his Republican predecessors?

Source: Ludwig von Mises Institute
by Ryan McMaken

"In the past here at mises.org, we've looked at several different ways of comparing government spending across presidential administrations. No matter how we look at it, we're forced to conclude that Republican presidents cannot be counted on to spend less than Democratic presidents. In this analysis, for example, we found that over the past fifty years, George W. Bush and Ronald Reagan were among the worst offenders, with Obama coming in behind third-placed Gerald Ford." (07/14/17)

https://mises.org/blog/will-trump-be-less-spendthrift-his-republican-predecessors

The United States has no fiscal space left

Source: Heartland Institute
by Barry Poulson & John Merrifield

"Some economists argue the current low interest rates have expanded the 'fiscal space' for countries to pursue expansionary fiscal policies, using long-term bonds to lock in interest rates. Deficits in the medium term are justified as a stimulus to economic recovery and to finance investments for long-term economic growth. That view is challenged by economists who argue that high debt-to-GDP ratios have reduced — and in some cases eliminated — fiscal space, and that expansionary fiscal policies have exposed at least some countries to the risk of default." (07/12/17)

http://blog.heartland.org/2017/07/the-united-states-has-no-fiscal-space-left/

US Senate unveils $700 billion corporate welfare plan for ship and plane builders

Source: Military Times

"Senate lawmakers introduced a $700 billion defense authorization bill on Wednesday that sets the stage for another financial showdown with House budget planners and White House officials over the right target for national defense planning. The Senate draft calls for more base defense spending than either of the other plans, fewer troops and a smaller military pay raise than the House proposal, but 54 more aircraft and five more naval ships than the president had planned." (06/28/17)

http://www.militarytimes.com/articles/sasc-ndaa-fy18-more-spending-unveiled

Five ways to fix Puerto Rico's economic meltdown

Source: PanAm Post
by Cathy Reisenwitz

"Puerto Rico’s foreclosure rate has more than doubled in the last decade after the island faced a real-estate crash even worse than the one that sparked the mainland’s Great Recession. Last month Puerto Rico declared bankruptcy on its $73b debt, the largest in U.S. history. This is definitely about politics. 'This is not about politics,' Former Gov. Alejandro Garcia Padilla said of his refusal to negotiate in good faith with creditors. 'It’s about math.' But like every government-created catastrophe, it’s about both." (06/26/17)

https://panampost.com/editor/2017/06/26/five-ways-to-fix-puerto-ricos-economic-meltdown/

IL: Pols' credit rating could be downgraded to "junk"

Source: ABC News

"Illinois is on track to become the first U.S. state to have its credit rating downgraded to 'junk' status, which would deepen its multibillion-dollar deficit and cost taxpayers more for years to come. S&P Global Ratings has warned the agency will likely lower Illinois' creditworthiness to below investment grade if feuding lawmakers fail to agree on a state budget for a third straight year, increasing the amount the state will have to pay to borrow money for things such as building roads or refinancing existing debt." (06/24/17)

http://abcnews.go.com/Politics/wireStory/illinois-1st-state-junk-credit-due-budget-48255357

Dare to dream of a world without endless debt ceiling hikes

Jesse Hathaway

Source: Heartland Institute
by Jesse Hathaway

"The debt limit was created by the Second Liberty Bond Act of 1917, a law partially freeing the executive branch from congressional oversight on debt policy. Between 1917 and today, the federal government’s credit limit has been extended — largely without question or care — at least 78 times. It’s time to start caring. Refusing to extend the government’s debt limit for once would not trigger Doomsday, but instead would force the federal government to actually think about what it’s spending instead of just continuing to light taxpayer money on fire." (06/21/17)

http://blog.heartland.org/2017/06/dare-to-dream-of-a-world-without-endless-debt-ceiling-hikes/

Puerto Rico bankruptcy storm heading for mainland America

Source: Heartland Institute
by Jesse Hathaway

"The Financial Oversight and Management Board for Puerto Rico, a federal board tasked with managing the island commonwealth’s course out of fiscal emergency, declared failure on May 3, filing paperwork to begin court proceedings restructuring the government debt. Territory government agencies, such as the Puerto Rico Electric Power Authority, are likely to follow the government into bankruptcy court, leaving investors to potentially lose as much as 65 percent of their original investments. In 2015, Puerto Rico Gov. García Padilla warned of an impending 'death spiral' if territory lawmakers did not make pro-growth reforms. They did not, and Padilla’s warning has come to pass. Puerto Rico is circling the drain, financially speaking, but it’s not too late for mainland lawmakers to learn from the island’s mistakes." (06/12/17)

http://blog.heartland.org/2017/06/puerto-rico-bankruptcy-storm-heading-for-mainland-america/