Spending

7 on the 7th: Sequestermageddon Edition (Plus Free Bonus!)

So the sequester approached like the screaming meteor of Chelyabinsk, startling everyone and convincing most to run for the hills, to grab cans of green beans and ammo to survive the coming collapse in society…only for it to pass by as just another oxygen particle, sucked up into our collective noses.

As everyone on Capitol Hill flailed around with their messaging (“Oh jeez, maybe we shouldn’t have hyped that up after all…”) Mike Riggs at reason noted that the OMB report summarizing the cuts to government, as part of the sequester, included cuts to an agency that no longer even exists. Curious as to what other nuttery there may be within the report, I’ve decided to make it the centerpiece of this month’s edition of 7 on the 7th, where I list 7 agencies, offices, departments, programs…whatever…that we should cut from the federal government. Here, we have them being trimmed in a very tiny, minuscule way….why not gut them entirely?

1. Capitol Police (And the Mint Police. And the FBI Police. And the….)

The first item I came across in my look was the Capitol Police. The Capitol Police are the men and women who guard the literal US Capitol, where Congress meets, and the National Mall (where sadly, the only products are overly expensive hotdogs and legislators) I’m not saying their job is unnecessary, but when you walk around DC, you see things. Like…we have a Capitol Police. And a Mint Police. And an FBI Police. And a Smithsonian Police. And the Federal Protective Service. And….

Sequestration: An Inside Perspective

In two days, the sequestration axe will either drop, or it won’t.  Personally, I am about as close as you can get to the situation, and I have no idea how it will turn out.  While the “national security” argument against sequestration was gradually left behind, the arguments against the cuts have become increasingly economic in nature.  These arguments are problematic at best and disingenuous at worst.

A while back, I proposed a couple of ways to gradually cut more than sequestration does, therefore creating less pain in the current fiscal year; but as dieting often fails, cutting swiftly might be the only surefire method to actually cut spending.  Putting the cuts into perspective, as George Will did in his article this weekend, $85 billion from a $3.6 trillion budget, or 2.3%, is miniscule. The “draconian” cuts merely return us to 2006 levels.

I have been advocating deeper cuts for some time now, and as a defense contractor, am prepared to lose my job as a result (although I don’t expect to). I will try to be as objective as possible herein as I offer a couple of personal thoughts as we draw closer to the actuality of sequestration:

How The Sequester Torpedoed Conservatives’ Credibility

John Boehner

It was a mere tweet, but it summed up the entirety of the modern conservative movement:

It has everything: the source is the preeminent conservative “think tank” in DC, soon to be headed by Tea Party conservative and former senator Jim DeMint; lamenting about spending cuts; the laments are all about a government department that by all rights should not exist; and for good measure, it has a photograph. It shows precisely how the sequester had torpedoed conservative credibility.

We have heard relentlessly these past five years, ever since Obama was elected, that we need to cut spending. (Indeed, another Heritage article is a dorky little bit that specifically notes a “thrifty” House which demands that they have a balanced budget and avoid deficits.) Yet now that there is something which will cut—no, sorry, I can’t type that with a straight face; it will not cut spending, but merely slightly decrease the rate of spending—Heritage is up in arms about it.

Meanwhile, Speaker of the House John Boehner (R-Military Contractors) wrote the following in an op-ed:

Guess who else is against the minimum wage?

minimum wage

Read these paragraphs and see if you can figure out who wrote them:

The Federal minimum wage has been frozen at $3.35 an hour for six years. In some states, it now compares unfavorably even with welfare benefits available without working. It’s no wonder then that Edward Kennedy, the new chairman of the Senate Labor Committee, is being pressed by organized labor to battle for an increase.

No wonder, but still a mistake. Anyone working in America surely deserves a better living standard than can be managed on $3.35 an hour. But there’s a virtual consensus among economists that the minimum wage is an idea whose time has passed. Raising the minimum wage by a substantial amount would price working poor people out of the job market. A far better way to help them would be to subsidize their wages or - better yet - help them acquire the skills needed to earn more on their own.

An increase in the minimum wage to, say, $4.35 would restore the purchasing power of bottom-tier wages. It would also permit a minimum-wage breadwinner to earn almost enough to keep a family of three above the official poverty line. There are catches, however. It would increase employers’ incentives to evade the law, expanding the underground economy. More important, it would increase unemployment: Raise the legal minimum price of labor above the productivity of the least skilled workers and fewer will be hired.

[…]

The idea of using a minimum wage to overcome poverty is old, honorable - and fundamentally flawed. It’s time to put this hoary debate behind us, and find a better way to improve the lives of people who work very hard for very little.

Guess? Guess? Hmm? Give up? All right then, the individual who wrote this was…

7 on the 7th: Inaugural Low-Hanging Fruit Edition

I’ve decided to start a new feature here at United Liberty, one that would run on a monthly basis. I’m calling it “7 on the 7th.” It will be a list of 7 agencies, on the 7th of the month, that we should get rid of. The purpose is to showcase just how many government agencie that exist, which most Americans just don’t realize. While they may think the government does too much stuff, I doubt that many know just what the government really does. Most don’t know about the ridiculous organizations that are prt of our government, and I can say because I don’t know.

So this will be informative not just for you, dear reader, but also for yours truly. What sort of stupid things can we uncover? Feel free to submit your suggestions for next month’s feature in the comments (but please, don’t be silly and tell me we must get rid of the Department of Defense; we’re moderate, sensible libertarians here, not barking-at-the-moon anarcho-capitalists.) Hopefully, if enough on the web read this feature, we may be able to spark a genuine discussion about the role of government and what it should actually be doing, so when some politician says we need more money to fund essential services, we can tell him (or her) that nothing he (or she) is demanding funding for is actually essential.

Now, on to the inaugural list. For this one I’ve decided to go for the low-hanging fruit, to get them out of the way and remove temptations for future entries. I don’t really expect to surprise anyone with these, but that just goes to show you how many folks think a lot of what our government does is rubbish.

1 - Department of Homeland Security

We Are All Modern Monetary Theorists Now

As a consequence of loose monetary policy with a fiat currency, the United States is rapidly descending into an economic reality of Modern Monetary Theory, or MMT.  While MMT (also known as Chartalism) is typically associated with its Keynesian predecessor and the policies of the Left, new developments reveal that both parties are responsible for the slip into a brave new economic world.

Essentially, there are four preconditions in Modern Monetary Theory:

1) Money enters the economy through government spending, as the total amount of money is constrained not by gold but by the total output of the national economy;
2) Government spending is speculative as it prints as much money as it needs to control production and, as a byproduct, employment, and spending beyond productive capacity leads to inflation;
3) Taxes do not pay for expenditures but are instead a way to throttle private sector demand; and
4) The government is the issuer of the currency, sovereign governments that issue their own currency are never insolvent, so debts essentially don’t matter.

Rand Paul’s New Plan to Prioritize Spending

Rand Paul

Senator Rand Paul has a new plan to prioritize government spending in order to stave off defaults and bring the country back towards solvency:

In a renewed attempt to force President Barack Obama’s hand on the debt limit, Kentucky Republican Sen. Rand Paul is pushing legislation that would ban federal spending on anything but interest payments on the national debt, Social Security checks, and military salaries.

Paul, who is traveling through Israel this week, told Business Insider here Thursday that he believes the GOP should take a more pro-active approach to the coming fight over raising the debt ceiling. Rather than march the country toward a government shutdown — and spook markets with possible default — Paul argued that Republicans should pass a bill that would force the government to prioritize payments to bondholders.

Welfare Recipients Make More Than Honest Workers

welfare_state_greetings

I think I may have finally found the most bothersome, noxious piece of information of all time, thanks to the editors at Townhall.com. The emphasis in the next quote is mine:

It’s official. Taxpayers are no longer simply helping the poor, they’re subsidizing the lives of welfare recipients at a better rate than their own. The Senate Budget Committee has released a report showing households living below the poverty line and receiving welfare payments are raking in the equivalent of $168 per day in benefits which come in the form of food stamps, housing, childcare, healthcare and more. The median household income in 2011 was $50,054, totaling $137.13 per day. The worst part? Welfare payments are equivalent to making $30 per hour for 40 hours a week. The median wage for non-welfare recipients is $25 per hour but because they pay taxes, unlike welfare recipients, the wage is bumped down to $21 per hour.

When I read this, I threw up a bit.

I’m going to be honest with you and tell you a little bit about my personal life, which I don’t typically do in the pages of United Liberty. And I certainly don’t want to start a pity party over me. But here’s the facts: I currently have a paying job, but not a great one. I’m an intern in DC. I make $30 a day. Let me repeat that: I make thirty dollars a day. Yet even though I work hard, create value, and do my damndest to support myself without forcing others to support me, the average welfare recipient receives 5.6 times what I make, paid for with my tax dollars.

Dear Media: This Isn’t About Grover Norquist

Grover Norquist is under fire. Unjustly.

With Republican Sens. Lindsey Graham, Saxby Chambliss, Rep. Peter King and others seemingly deserting Grover Norquist and the Taxpayer Protection Pledge created by his organization, Americans for Tax Reform, media outlets across the spectrum are declaring that the GOP is “Over Grover” and that his vicelike grip of eternal dominance on the GOP might not be so eternal after all. We have images like this one, showing Republican leaders bowing to him as if he is a god. And on and on and on.

What it really is, though, is just another round of misinformation, wrong data, and interpretations based on faulty premises. Yet another sideshow that is completely missing the point, the real debate we should be having in DC.

More about libertarianism, fusionism, and the Romney campaign

Jason Pye has written a great blog post about libertarians and the Romney campaign already. He asked me my opinion about it, perhaps even with the possibility of a “point-counterpoint” sort of thing. I pretty much agree with what he’s saying, particularly about Ron Paul and the Libertarian Party. We are not a monolithic group; we are a very wide and very diverse range of individuals who just want to increase individual liberty.

What I want to add is that, while Republicans and conservatives complain about us, and want us to support them in elections, they have done nothing to earn such support. Let me show you a few examples:

To which I responded with:

And to which I got this response:


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