Tag: budget

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budgets & spending cuts deficits and debt

The Continuing Crisis

Congress, Continuing Resolution, budget, debt

“By law, we have one job,” Rep. Tim Burchett (R‑Tenn.) asserted the last time he opposed the “continuing resolution” (CR) on the federal budget. 

What is that “one job”? It is “to pass twelve appropriations bills and a budget. We aren’t doing that, which is why we are $33 trillion in debt.”

You noticed the typo. But it wasn’t. Sure, $33 trillion isn’t right. Yesterday, the official public debt of the federal government was $36.6 trillion, with just a smidge of rounding up. Those first two paragraphs are from 2023; one can almost cut and paste old copy about Washington’s CR fiascos and place them in new pieces and get away with it, clean. 

On Tuesday, the House passed a continuing resolution to keep the federal government chugging along, with its usual substitute authorization for spending rather than a real budget.

In another old Common Sense column from right before Christmas, I celebrated the possible “torpedoing” of a CR, and its replacement with a more modest one — but what about the CR that now heads for a Friday vote in the Senate?

The resolution cuts $20 billion from IRS enforcement, $7 billion from fiscal year 2024 levels, $13 billion in non-​defense discretionary spending but added $6 billion to defense. Last year’s earmarks were nipped, but what’s happening with USAid is less clear. Secretary of State Marco Rubio says that “83% of programs” have been closed in the agency; Elon Musk declares that “the important parts of USAID should always have been with Dept of State” — but that plan is not implemented in this CR.

Meanwhile, Rep. Thomas Massie was the sole Republican No vote, continuing his dissent: “Congress just locked in a large portion of the Biden agenda for the first nine months of Trump’s presidency.” And then Trump threatened to primary him!

Massie is up against Republicans who think the resolution’s cuts are big enough. And Democrats who think they are way too big.

This is Common Sense. I’m Paul Jacob.

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deficits and debt national politics & policies

Of Stopgaps and Ladders

budget, debt, Congress, shut down

“By law, we have one job,” Rep. Tim Burchett (R‑Tenn.) asserted the last time he opposed the “continuing resolution” (CR) on the federal budget. 

What is that “one job”? It is “to pass twelve appropriations bills and a budget. We aren’t doing that, which is why we are $33 trillion in debt.”

Katherine Mangu-​Ward, at Reason, fleshed this out: “In theory, the president proposes a budget, Congress passes a budget resolution, and then various committees put together a dozen separate spending bills. They’re debated and voted on, and then the president signs them into law by October 1.”

The practice, however, is a bit different: “What happens instead is that the members of the House careen into each fall full tilt, screaming at each other until they throw together some kind of stopgap measure to fund the federal government for a little while longer until they can get their act together to generate a big, messy omnibus bill that no one will have time to read.”

But it’s worse: “When they can’t manage even that, we get a shutdown.”

To prevent a shutdown, but also not fall back into the usual iterations of the continuing resolutions, the new House Speaker, Rep. Mike Johnson (R.-La.) has floated the idea of a “laddered” CR. According to The Epoch Times, this plan “would spread the due dates over a period of time rather than having all the bills come due at once.” Think of it as an ultra-​weak echo of the responsible budgeting process.

Will it work? Will Congress manage this merest hint of responsibility?

In ten days, it’s go time — or, no-go time — again.

This is Common Sense. I’m Paul Jacob. 

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deficits and debt folly national politics & policies

Catastrophic! Calamity! The Debt

U.S. Sen. Pat Toomey (R-Penn.)

“Once again, the stability of the U.S. financial system is at risk,” warned CNN State of the Union host Jake Tapper, “thanks to political brinksmanship in Congress.

“If lawmakers do not act, the federal government will shut down this week. And, next month, the Treasury secretary says, the U.S. will not be able to pay its bills … which … could be catastrophic for the U.S. economy.”

Incredulous, Tapper further bemoaned, “that has not convinced a single Republican lawmaker to get on board to raise the debt ceiling.”

But he made the mistake of inviting retiring U.S. Sen. Pat Toomey (R‑Penn.) on the Sunday program.*

“[O]n combining the debt ceiling increase or suspension with the continuing operations of the government,” Toomey declared his vote is NO. 

“And there is no calamity that’s going to happen, Jake.”

Toomey explained that “after Republicans vote no, Chuck Schumer is going to do what he could have done months ago, what he could have done weeks ago, what he could do tomorrow, and that is, he will amend the budget resolution so that Democrats can pass the debt ceiling all by themselves.”

Noting that Democrats were “in the midst of an absolutely unprecedented, very damaging spending spree on a scale that we have never seen,” Toomey emphatically refused to “authorize the borrowing to help pay for it.”

Over the weekend, a Washington Post editorial attacked Republicans for being “unwilling to lift a finger to avoid financial calamity,” while excusing Democrats. 

“For their part,” The Post justified, “Democrats … want the same political cover they gave Republicans during Mr. Trump’s presidency by raising the debt limit in a bipartisan fashion.”

The nation’s newspaper of record in full-​throated advocacy of political cover.

This is Common Sense. I’m Paul Jacob.

* Sen. Toomey has been a stalwart term limits supporter in Congress. He leaves having kept a pledge to serve only six years in the House, left the Congress for six years before winning a Senate seat and now stepping down after two terms in the U.S. Senate.

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national politics & policies too much government

Make Deficits Great Again?

money, case, window, floating, deficit, spending,

Is Donald Trump really “draining the swamp”? 

It’s overflowing.

Stan Collender, writing last year in Forbes, noted just what a big spender the president really is. Now, an update: fiscal year 2019 sports a deficit of $1.09 trillion, up considerably from the $897 billion projected earlier this year; the next year is expected to nudge the deficit even higher, to $1.1 trillion.

The whys aren’t a mystery: it is politically difficult to cut an expected benefit to any constituency. It looks stingy — though it is the very opposite. Spending other people’s money — including taxpayers’ — is not generosity. For a politician, it is naked self-​interest. Buying votes.

Worse than merely corrupt, it’s corrupting — since the People are increasingly tempted to look to government to supply special voting bloc advantages rather than the mutual, universal advantage of liberty and justice for all.

Collender speculated that a $2 trillion deficit is “definitely within view” because “Trump is demanding that federal spending and the government’s red ink be increased even further.”

Judd Gregg, writing yesterday for The Hill, summarizes current GOP fiscal policy as “now the most profligate and debt-​driving party in the nation’s history.” 

He’s not wrong, but I question his next line: “Fiscal restraint is no longer part of the cloth the Republican Party wears.”

Careful wording. 

Republicans sometimes talk a good game, but are known to be big spenders when not opposing a Democratic president. The Class of 94 was effective against Bill Clinton. Under unified government in the aughts, though, under George W. Bush, they went on a spree.

Maybe Republicans just need a good enemy.

Bernie Sanders for President? 

Perhaps any socialist Democrat will do.

This is Common Sense. I’m Paul Jacob.

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money, case, window, floating, deficit, spending,

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education and schooling ideological culture moral hazard nannyism national politics & policies Popular

Make Others Pay?

Betsy Devos, education, special olympics, funding, budget, debt, spending,

Special Olympics has found a way to get kids and young adults with disabilities to feel something important: Able.

Three decades ago, as part of a community service requirement, I spent one day each week working with physically and intellectually-​challenged adults at Easter Seals in Little Rock, Arkansas. I loved it. 

Most unforgettable were their beaming smiles of pride when they got a chance to show what they could do. I’ve always loved sports, but never as much as there and then. In the decades since, my family has given to the Special Olympics what financial support we could afford. 

So, can you imagine how I must feel hearing Education Secretary Betsy DeVos testify in favor of cutting all $17.6 million in federal funding for the Special Olympics? 

“It’s appalling,” declared Rep. Barbara Lee (D‑Calif.).

John Kasich, the former Republican governor of Ohio, called the cut “outrageous” and “ridiculous.”

“Cruel and reckless” were the words Rep. Rosa DeLauro (D‑Conn.) used.

“The Special Olympics is … a private organization. I love its work, and I have personally supported its mission,” countered Sec. DeVos.* “But given our current budget realities, the federal government cannot fund every worthy program, particularly ones that enjoy robust support from private donations.”

Federal funding provides only 10 percent of Special Olympics revenue, with over $100 million raised annually in private donations. 

So, how must I feel about DeVos’s suggested cuts? 

Gratitude … for her generous contributions to Special Olympics — and for her fiscal responsibility. Let’s fund this wonderful program without the government forcing (taxing) support from others.

Check, cash or credit card is always preferable to virtue-​signaling gum-flapping.

This is Common Sense. I’m Paul Jacob.

* Special Olympics is one of four charities to which DeVos donated her entire 2017 federal salary.

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Betsy Devos, education, special olympics, funding, budget, debt, spending,

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national politics & policies Second Amendment rights tax policy too much government

Was the Line Crossed?

Trump, Congress, budget, 2nd Amendment, guns,

Everybody has a limit, a point after which they reach for the nearest weapon and fire.

Or, in normal politics, withdraw support and go on the attack.

But it is not normal politics right now. 

In mid-​March, a Congressman from Long Island expressed his frustration with the Trump administration by saying, “This is where the Second Amendment comes in, quite frankly, because you know, what if the president was to ignore the courts?”

Days after this pol darkly implied insurrection, attacking gun rights became, on our Democratic Congressman’s end of the spectrum, a cause célèbre. Obviously, there remains a strong tension between politically opposing gun rights and the commonsense acknowledgment of the vital political function of the Second Amendment.* Lines are drawn all over the place.

But last week a very different line was crossed.

Donald Trump signed the latest Omnibus whopper. And a few of the gonzo president’s biggest Internet supporters — including the oddest, anarchist Stefan Molyneux — could take no more. Trump’s fatal flaw, Molyneux stated, “is his desire to shovel the money of the unborn into the Great White Shark maw of the military-​industrial complex.” Molyneux identifies “the largest military budget in human history” as what Trump wanted in exchange for betraying his base.

So, you can see where Mr. Molyneux draws the line of support.

Meanwhile, others are wondering about Trump’s own line on trade policy. With much ballyhoo and bluster, he raised tariffs on steel — and then, quietly, exempted most of America’s steel trading partners.

Crazyman? Or genius? 

The line between those two concepts is notoriously gray.

This is Common Sense. I’m Paul Jacob.

 

* In my weekend column I noted that “when the populace is armed sufficiently to realistically repel tyranny, the calculations of self-​interested politicians per what they can get away with changes.” Guns can remain holstered, most of the time.

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