Tag: debt

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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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Accountability government transparency national politics & policies

Fire or Promote the Best?

DOGE, government waste, corruption, spending, debt

Things looked bad recently for Leland Dudek, an employee of the Social Security Administration.

Dudek almost got fired for helping the DOGE team understand how SSA’s systems work so that DOGE could zero in on wasteful or fraudulent payments.

On social media, Dudek wrote: “At 4:30pm EST, my boss called me to tell me I had been placed on administrative leave pending an Investigation. They want to fire me for cooperating with DOGE …

“I confess. I helped DOGE understand SSA. I mailed myself publicly accessible documents and explained them to DOGE.… I moved contractor money around to add data science resources to my anti-​fraud team.… I asked where the fat was and is in our contracts so we can make the right tough choices.”

An investigation? Administrative leave? For helping, as an executive-​branch employee, the head of the executive branch to find and extirpate waste and fraud? SSA managers may have been confused about whether Donald Trump really is the president.

The suspense didn’t last long.

Dudek was not fired. Instead, the SSA commissioner was fired and Dudek became acting commissioner. 

“There are many good civil servants,” says Senator Mike Lee, “who have been quietly frustrated for years with politically motivated mismanagement [and] who possess an encyclopedic knowledge of the problems with their agencies. Put them in charge, hand them scalpels and flamethrowers.”

Could we have at long last found the cure for dimwitted obstructionism? A certain reality TV star had words for it: “You’re fired!”

This is Common Sense. I’m Paul Jacob.

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deficits and debt meme

Just Imagine

debt, Congress, spending, corruption, meme

Imagine stealing everyone’s money and still being $36 trillion in debt.

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deficits and debt national politics & policies too much government

The Biggest

Congress, US Capitol, debt, government, inflation

Trump’s riding high, in the first week of his second term — but not regarding the biggest problem he faces, inflation and economic instability.

“When bondholders don’t see a credible fiscal path to be repaid for current and future government debt,” writes Veronique de Rugy at Reason, “they expect that eventually the central bank will create new money to buy those government bonds, leading to higher inflation.

“Recent inflation wasn’t just about money supply; it reflected the market’s adjustment to unsustainable fiscal policy.”

Winning, for Trump, cannot equate to Spending.

While Ms. de Rugy tries to explain this all in terms of a big-​picture economic analysis, she does not quite reach back in time far enough. We had stagflation way back when I was young. It was cured then not by decreased spending but by Paul Volcker of the Federal Reserve putting the brakes on money-​and-​credit expansion. He stopped inflation. 

A pure recession immediately followed, followed by recovery in the new administration, Ronald Reagan’s, who helped reduce the rate of growth of government (and not much else).

Inflation could, theoretically, be handled by the Fed alone, now, as then.

Except — the federal government can hardly now afford to service existing debt, which would skyrocket with the nitty-​gritty of the Fed’s cure, higher interest rates. 

Today, debt service (paying just the interest) approaches One Trillion Per Annum. 

“A crucial tipping point was reached in 2024 when the interest expense on the federal debt exceeded the defense budget for the first time,” Nick Giambruno summarizes at The International Man. “It’s on track to exceed Social Security and become the BIGGEST item in the federal budget.” 

Increasing it yet more would cripple the government.

The only way out, if there is one, is a radical decrease in spending and deficits, as de Rugy advises. Trump’s path to success is somehow accomplishing that.

This is Common Sense. I’m Paul Jacob.

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national politics & policies porkbarrel politics

The Biggest Gift of All

Donald Trump, debt, funding, Santa, Congress, government shutdown

We received an early Christmas present from the incoming Trump administration.

The gift? The torpedoing of a continuing resolution (CR) supported by House Speaker Johnson that was full of concessions to the Democrat side of the aisle. Aside from the drunken-​sailor spending, the 1,500-plus-page legislation — just something to tide the government over for a few months — contained many other horrific elements that made it worthy of deletion.

Trump, Vance, and Musk are among those who volubly criticized the pork and other bad provisions of the CR.

Senator Rand Paul said: “I had hoped to see @SpeakerJohnson grow a spine, but this bill full of pork shows he is a weak, weak man. The debt will continue to grow. Ultimately the dollar will fail. Democrats are clueless and Big Gov Republicans are complicit.”

Ostensibly designed to continue funding the federal government after the money had run out, the bill’s poisonous elements included a pay increase for members of Congress and a provision to make it almost impossible for the Trump Justice Department to investigate wrongdoing in the House (such as the evidence-​destroying way the J6 investigation was conducted).

Another provision would have extended the life of a State Department’s Global Engagement Center, a censorship office that Republicans have been trying to kill for years. Some Republicans, that is. The ones in favor of freedom of speech. The GEC funds efforts to suppress speech.

But the worst of it was stopped. The CR monstrosity became a much more manageable, much smaller CR; “the government was saved” — and, more importantly, we were saved some of the awful things packed into the earlier resolution.

Still, a lot of people (mainly Democrats) didn’t like their Christmas gift.

And dashed were the holiday dreams of members of Congress, stuck another term at current levels of remuneration.

Ho ho ho.

This is Common Sense. I’m Paul Jacob.

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national politics & policies partisanship

Repeal Obamacare

Kamala Harris, Donald Trump, MAGA, socialism, debt, lizard

Oy vey! Given the alternative of Donald Trump on the one hand and — now that Biden has bailed — a bad-​as-​Biden Biden-​substitute on the other, Americans must re-​level their look at the lesser of two evils.

It may be difficult to resist hoping that Trump gets elected this November to allow many of the Democrats’ worst initiatives be left to die on a withering vine. (Examples of the worst: Congress-​bypassing regulations designed to penalize production of gas-​powered cars and outlaw certain freelance or contract work.)

Still, the candidate and his party have many flaws.

We cannot forget that. Indeed, with their abandonment of the tiniest desire to reduce the size of the federal leviathan, remembrance should be easy. 

Shrink government? Radically reduce spending? Reduce debt? No such goal was seriously pursued in the first Trump administration, and no such goal is mentioned in the twenty-​point Trump-​Republican Party platform.

There’s talk of tax cuts, ending inflation (somehow), diverting spending from Democratic projects. Sure. But the platform insists that Social Security and Medicare programs not be modified in any way. 

In any way!

And about Obamacare — the biggest expansion of the medical state in recent years, which Republicans had once pledged to repeal — the platform is mute.

The 2016 platform said that improving healthcare “must start with repeal of the dishonestly named Affordable Care Act of 2010: Obamacare,” a declaration retained in 2020. Now it’s gone. Republicans seem to have succumbed to the strategy of turning Obamacare into yet another supposedly unassailable, supposedly inextirpable entitlement program.

Unfortunately, you don’t recover or expand liberty by accepting every expansion of serfdom.

This is Common Sense. I’m Paul Jacob.

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