Tag Archives: government spending

Tax cut doomsayers need a history (and economics) lesson

Source: Independent Institute
by Mary LG Theroux

“Swamped by the legend that World War II ended the Great Depression are the facts that the U.S. domestic economy remained mired in depression until 1946—after the war had ended. The single measure by which many conclude that the Depression ended with the war is unemployment — which not surprisingly declined from a high of 9-15% in 1940, to 1.2% in 1944, when 16 million Americans were ’employed’ by the military. Those left at home continued to suffer low standards of living including rationing of almost everything, the pain of which was likely eased by the ‘spirit’ of shared privation for the war effort. It was only at the end of the war that the Depression truly ended, when following the death of FDR Truman abandoned New Deal economic policies and slashed federal spending by 40%. Despite warnings from his economic advisors that this would plunge the economy ‘back’ into Depression, the U.S. economy instead boomed, easily absorbing the 10 million newly ‘unemployed’ released from the military.” (02/07/18)

http://www.independent.org/newsroom/article.asp?id=9295

Washington, DC desperately needs a dose of fiscal restraint

Source: Cato Institute
by Michael D Tanner

“[W]hile Congress and the media were obsessed with Devin Nunes’s much-ballyhooed memo late last week, virtually no one noticed a new Congressional Budget Office report that the federal government is on track to borrow $955 billion this year, an 84 percent increase in the deficit over last year. That’s the highest budget deficit since 2012. And while the trillion-dollar deficit of six years ago was driven in part by one-time events — TARP, the stimulus bills tied to the Great Recession — the current flood of red ink, driven as it is by much more intractable structural problems, seems unlikely to recede any time soon. Next year’s deficit could top $1.1 trillion, and by 2027 we could see deficits as high as $2 trillion per year. The reaction from Congress and the Trump administration has been a bipartisan shrug.” (02/07/18)

https://www.cato.org/publications/commentary/washington-dc-desperately-needs-dose-fiscal-restraint

US House tries to kick spending can down the road again

Source: FirstPost [India]

“The US House of Representatives has passed a stopgap spending bill to fund the government through late March. In a vote of 245-182 on Tuesday night, the House passed a temporary spending bill to extend most government spending at current levels through 23 March while providing more funds for the Pentagon through 30 September, the end of the current fiscal year …. However, Senate leaders from both the Republican and Democratic parties were discussing a two-year deal to lift spending caps on defence and domestic programmes, which suggests that they would probably not support the House-version spending bill.” (02/07/18)

http://www.firstpost.com/world/us-house-of-representatives-passes-stopgap-spending-bill-to-fund-government-till-23-march-4339703.html

The debt ceiling hysteria and profligate government

Source: Future of Freedom Foundation
by Richard M Ebeling

“Once again, the financial fears have been ratcheted up due to recent announcements by the U.S. Treasury Secretary, Steven Mnuchin, and the Congressional Budget Office (CBO) that by the middle of March 2018 the Federal government will have run out of room to continue borrowing due to the official debt ceiling. Some are now calling for scrapping a legal debt ceiling altogether, and allow[ing] Uncle Sam to have an unlimited line of credit. This is a bad idea.” (02/05/18)

https://www.fff.org/explore-freedom/article/debt-ceiling-hysteria-profligate-government/

The US government is set to borrow nearly $1 trillion this year, an 84 percent jump from last year

Source: MSN

“It was another crazy news week, so it’s understandable if you missed a small but important announcement from the Treasury Department: The federal government is on track to borrow nearly $1 trillion this fiscal year — Trump’s first full year in charge of the budget. That’s almost double what the government borrowed in fiscal year 2017. … The uptick in borrowing is yet another complication in the heated debates in Congress over whether to spend more money on infrastructure, the military, disaster relief and other domestic programs. The deficit is already up significantly, even before Congress allots more money to any of these areas.” [hat tip — David Klaus] [editor’s note: Neither Trump nor any other president is “in charge of the budget.” He’s required to submit a “request” to Congress (that’s been law since the 1920s), but every dime raised, borrowed and spent is raised, borrowed and spent by Congress. The only true power the president has in that equation is the veto – TLK] (02/04/18)

https://www.msn.com/en-us/news/politics/the-us-government-is-set-to-borrow-nearly-dollar1-trillion-this-year-an-84-percent-jump-from-last-year/ar-BBIDDl0

Why not end funding now?

Source: Future of Freedom Foundation
by Laurence M Vance

“Donald Trump’s possible decision to end NASA’s funding of the International Space Station by 2025 brings up that age-old question of the proper role of government, although it is certainly not he who is bringing it up. … If Donald Trump decides that he wants to end NASA’s funding of the ISS, it won’t be because he opposes government space exploration or government funding of scientific research in space. He simply has other ambitions, such as wanting NASA ‘to send astronauts back to the Moon, as a pit stop to eventually send people to Mars.’ But why wait until 2025 to end funding of the ISS? Why not end funding now?” (02/02/18)

https://www.fff.org/explore-freedom/article/not-end-funding-now/

Your tax dollars at work: $24 million for two refrigerators

Source: Honolulu Star-Advertiser

“Homeowners, take comfort: Even the appliances on Air Force One break down. More than a quarter-century after they were installed, two of the refrigerators on the president’s plane need to be upgraded, and these specially designed ‘chillers’ aren’t cheap. The Boeing Co. was awarded a nearly $24 million contract in December to engineer the refrigerators for Air Force One, the Defense Department said. The two units being replaced came with the aircraft in 1990 and are no longer able ‘to effectively support mission requirements for food storage,’ the Air Force said in a statement today.” (01/27/18)

http://www.staradvertiser.com/2018/01/27/nyt/air-force-one-needs-2-new-refrigerators-together-they-cost-24-million/

DC: Ticks agree to end fake break from blood-sucking antics

CNBC

Source: CNBC

“President Donald Trump has signed into law a bill that ends the government shutdown, and provides congressional negotiators with additional time to hammer out an immigration reform package capable of passing both the House and Senate. Hundreds of thousands of federal employees are expected to return to work on Tuesday morning, after spending the day Monday on furlough. The bill funds the government for 17 days, and it funds the popular CHIP children’s insurance program for six years. It does not include a permanent fix for the Obama-era DACA program, which Senate Democrats had originally demanded.” (01/22/18)

https://www.cnbc.com/2018/01/22/trump-signs-bill-to-end-government-shutdown.html

The worst thing about federal government “shutdowns”

Source: Garrison Center
by Thomas L Knapp

“The second worst thing about federal government ‘shutdowns’ is that they’re almost entirely meaningless theatrical productions — tales told by idiots, full of sound and fury, signifying nothing — from beginning to end. The worst thing about such ‘shutdowns’ is that they end, usually in a way that undoes most of what little good they accomplished in the first place.” (01/20/18)

http://thegarrisoncenter.org/archives/12520

US House passes short-term spending bill; fake shutdown hysterics move to Senate

Source: The Hill

“The House passed a short-term extension of government funding late Thursday after Republican leaders, with help from President Donald Trump, cobbled together enough GOP votes to overcome an internal revolt. Still, the possibility of a [fake] federal shutdown moved closer to a certainty after Senate Democrats rallied against the GOP proposal, announcing they would not lend their votes to a bill that did not reflect their priorities on immigration, government spending and other issues. … Senate GOP leaders prepared to force Democrats into a series of uncomfortable votes, aimed at splitting their ranks by pitting moderates from states that Trump won against party leaders and the handful of outspoken liberals considering a run for the presidency.” (01/18/18)

http://www.chicagotribune.com/news/nationworld/politics/ct-trump-chip-government-shutdown-20180118-story.html