Balanced Budget

Obamanomics: Not Smarter Than a Cave Man (or JFK)

Obamanomics

One thousand, four hundred and twenty four…that’s the number of days that have passed since the Democrat-controlled Senate performed their constitutional duty to pass a budget, more than a year before the ubiquitous iPad was invented. Judging by the contents of that budget, we can see why Democrats were scared to reveal their plans before Obama was safely re-elected and no longer accountable to the voters. It is unbridled recklessness that passes for the Democrat budgeting process.

Such sheer irresponsibility reminds me of P.J. O’Rourke, the civil libertarian who once said “Giving money and power to government is like giving whiskey and car keys to teenage boys.” Admittedly, it is not fair to compare elected Democrats to drunken teenage boys who, even with a fleet of cars and a swimming pool filled with whiskey could not hope to achieve as much damage as is being done by Democrats right now.

The Senate budget demands nearly one trillion dollars in new tax increases, on top of the nearly $700 billion already conceded by Republicans just a few months ago in the “Fiscal Cliff” deal. An almost equal amount would supposedly be cut from spending, but considering the bait-and-switch tactics that have become the modus operandi for Democrats, it is hard to believe that those cuts would ever come to fruition.

Exposing Washington’s Dishonest Budget Math

Written by Daniel J. Mitchell, a senior fellow at the Cato Institute. Posted with permission from Cato @ Liberty.

I’ve repeatedly tried to expose pervasive fiscal dishonesty in Washington.

In these John Stossel and Judge Napolitano interviews, for instance, I explain that the crooks in DC have created a system that allows them to claim they’re cutting the budget when the burden of government spending actually is rising.

This sleazy system is designed in part to deceive the American people, and the current squabbling over the fiscal cliff is a good example. The President claims he has a “balanced approach” that involves budget cuts, but look at the second chart at this link and you will see that he’s really proposing bigger government.

This dishonest approach also was used by the President’s Fiscal Commission and last year’s crummy debt limit deal was based on this form of fiscal prevarication.

It’s Simple to Balance the Budget with Modest Spending Restraint

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Written by Daniel J. Mitchell, a senior fellow at the Cato Institute. Posted with permission from Cato @ Liberty.

Now that new numbers have been released by the Congressional Budget Office, it’s time once again for me to show how easy it is to balance the budget with modest spending restraint (though please remember our goal should be smaller government, not fiscal balance).

Tea Party Debt Commission booted from Senate hearing room

Our friends at FreedomWorks had hoped yesterday to release the findings of the Tea Party Debt Commission at the Russell Senate Office Building in Washington. Despite being sponsored by Sen. Mike Lee (R-UT), Senate Democrats shut down the event, forcing them move to nearby Hillsdale College.

Congress has not passed a budget — one of its most basic functions — in 933 days, including two years of overwhelming Democratic Party majorities in both chambers while also controlling the presidency. FreedomWorks President Matt Kibbe and Sen. Lee were understandably frustrated by the actions of Senate Democrats, but were undeterred (as you can see in the video above).

In a statement from FreedomWorks, Kibbe said:

“The Senate hasn’t been able to pass a budget resolution three years running. They have been unable to do their job, and now the Rules Committee is trying to prevent the American people from doing it for them,” said Matt Kibbe, president of FreedomWorks

August 2nd: A Day That Won’t Live In Infamy

If a deal hasn’t been reached by the time this is posted (the agreement reached by congressional leaders and the White House over the weekend is pending caucus approval), then tomorrow will be a day of infamy. According to public consensus, our credit rating will be downgraded, our borrowing rates will skyrocket, Social Security checks won’t go out, we’ll have to lay off millions of government workers (oh hyperbole), China will get mad, and our cost of living will sharply increase while the quality of living decreases dramatically. The sky will fall, the world economy will collapse, unemployment will make what we have now look like a cakewalk. It will be Disaster;.

Except it will be none of these things.

August 2nd, if a deal is not reached, will not spell the end of the world. Even if S&P and Moody’s try and downgrade the United States. Why? Three reasons: One, if the markets thought we were going to be screwed, they would have done it before. Second, the credit rating agencies are utterly superfluous and worthless when it come to US debt. Third, even if we hit the debt ceiling, Turbo Tax Geithner will be permitted to prioritize interest payments on the debt and send out Social Security checks, meaning we won’t have a default (and Grandma can still buy the ingredients for her damned fruitcake.)

Taken together, these three things illustrate a picture where August 2nd isn’t the end of the world, and that we should really slow down, take a deep breath, and then have a shot of whiskey. Preferably rye, but that’s just me.

Article the First: The market was supposed to explode under the debt ceiling, showing how urgent and necessary it is to raise it, according to John Carney:

The Odd Lies of David Price, Part III

For this entry, we will go outside his aforementioned email. Don’t worry; we’ll be returning to it very soon.After taking another look at the debate between Congressman Price and Dr. Lawson, his “Keeping in Touch” newsletter that he sent to the 4th District voters (at taxpayer expense), and his Vote Smart page, there’s a particular claim that Congressman Price likes to make (or at least imply) that his recent record shows to be a bowl of mush.

This claim is that he is some sort of a principled fiscal conservative who works tirelessly for balanced budgets.

A few ways government could, you know, maybe not waste your money.

“If we can prevent the government from wasting the labors of the people, under the pretence of taking care of them, they must become happy.” ~ Thomas Jefferson, 1802, Letter to Thomas Cooper

Our federal government is an all-consuming, gargantuan parasite growing ever larger with each passing day. Under the rubric of providing for our every need from cradle to grave, it consumes more and more of our labor. It is, to quote Reagan, “like a baby: An alimentary canal with a big appetite at one end and no sense of responsibility at the other.”

Yet one organization has a blueprint for reining in this ocean of red ink; Citizens Against Government Waste. CAGW has compiled a list of wasteful government spending each year since 1983, and the incorporation of some of its recommendations for the federal budget has resulted in spending cuts of $1.4 trillion.

A short sampling of potential taxpayer savings from this year’s report, Prime Cuts 2016, includes:

- Reducing improper Medicare payments by 50% over five years ($4.3 billion), noting, “Medicare is plagued with the highest reported amount of improper payments of any federal program…Because of its chronic vulnerability to fraud, waste, abuse, and mismanagement, the [Government Accountability Office] has for 20 years designated the Medicare program as ‘high risk.’”

- Eliminating federal subsidies for Amtrak ($1.4 billion in one year, $7.1 billion in five years). Amtrak, a government-run railroad, has been in operation for 45 years at a cost to taxpayers of more than $40 billion. It has never turned a profit and now costs taxpayers almost a billion dollars a year, leading Amtrak’s founder to call it a “massive failure”.

A Practical & Optimistic Approach to Cutting Big Government

Like a lot of libertarians and small-government conservatives, I’m prone to pessimism. How can you be cheerful, after all, when you look at what’s been happening in our lifetimes.

New entitlement programs, adopted by politicians from all parties, are further adding to the long-run spending crisis.

The federal budget has become much bigger, luring millions of additional people into government dependency.

The tax code has become even more corrupt and complex, with more than 4,600 changes just between 2001 and 2012 according to a withering reportfrom outgoing Senator Tom Coburn of Oklahoma.

And let’s not forget the essential insight of “public choice” economics, which tells us that politicians care first and foremost about their own interests rather than the national interest. So what’s their incentive to address these problems, particularly if there’s some way to sweep them under the rug and let future generations bear the burden?

Vulnerable Senate Democrat who once complained about Washington’s addiction to spending has failed to live up to her rhetoric

Kay Hagan made out of control federal spending and the surge in the national debt an issue during her successful 2008 campaign for U.S. Senate against then-Sen. Elizabeth Dole (R-NC).

“You only need to look at what kind of state senator I’ve been for the last ten years to see what kind of U.S. senator I’ll be,” said Hagan in a 2008 campaign speech, a clip of which was made available on the NRSC Rapid Response YouTube channel. “While Washington spends itself into a hole and mortgages the future for our children and our grandchildren, I’ve produced five balanced budgets,” she adds before the clip cuts away.

The criticism was valid. Dole had largely toed the party line on spending, approving much of then-President George W. Bush’s domestic and foreign policy agenda in her first and only term in the upper chamber.

Only two House Democrats support Obama’s budget

Rep. Mick Mulvaney (R-SC) did something yesterday that no House Democrat would dare do. The South Carolina conservative presented President Barack Obama’s tax and spend FY 2015 budget for a floor vote.

The budget unveiled by President Obama last month relies upon $3.5 trillion in higher than expected revenues to the federal government over the next 10 years. The increased revenues rely on rosy economic growth scenarios as well as $1 trillion in new taxes to finance a budget that never comes into balance.

The White House’s budget, however, failed to gain any real support when it was presented on the House floor. It was defeated by a 2 to 413 vote. The two votes came from Reps. Mary Kaptur (D-OH) and Jim Moran (D-VA).

President Obama’s budget was just one of several offered as amendments on the floor yesterday before the final vote on House Budget Committee Chairman Paul Ryan’s (R-WI) “Path to Prosperity.”

Rep. Raul Grijalva (D-NM) offered the Congressional Progressive Caucus’ alternative budget, which, believe it or not, is worse than the White House’s proposal. That measure did remarkably better — which should tell you exactly how far left the much of Democratic Party has drifted — but still failed, 89 to 327.


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