Tag: debt

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national politics & policies tax policy

The Six-Trillion Dollar Man

spending, taxes, government

“Mr. Biden is making a six-trillion dollar bet that promoting popular programs will be popular,” offered NBC Meet the Press host Chuck Todd on Sunday, “and that he’ll be rewarded for getting things done, long before the actual bill comes due.”

That “Six trillion dollars”? New splurging “on social spending, infrastructure, climate change, health care and more.” 

The host intoned that this constitutes the “return of big government.” 

“We have to prove democracy still works, that our government still works,” Joe Biden, the 47th president, implored Congress last week, “and we can deliver for our people.”

Spend = Deliver. 
Deliver = Democracy. 
Democracy = Spend!

So goes a federal “democracy” wherein voters never get a straight, democratic choice on how much government should spend and tax.* Instead, politicians opt for their beloved “deficits forever” method. Purchase votes today — “People like it when you give them money” — and leave for future generations of voters the tax burden needed to pay that bill. No pain, all gain. 

Smart re-election strategy, some say. 

“Democratic strategists are betting that the infighting in the Republican Party, the extremism on display during the Jan. 6 attack . . . and the sheer scale of the trillion dollar programs Democrats have pushed through this year,” reports The Washington Post, “leads to a reorienting of partisan divisions that can overcome historical patterns.” Meaning Democrats avoid the traditional loss of congressional seats for a president’s party.

“Will voters care about the scope of Mr. Biden’s plans?” Todd inquired. “. . . care about the price tag?” 

Likely to the degree they notice paying that price. 

“President Trump and the Republicans may have made it a bit easier for Mr. Biden by spending big themselves,” reminded Todd.

He’s not wrong there.

This is Common Sense. I’m Paul Jacob.

* Colorado voters have such a choice: a vote on any tax increase and on government spending increases. It’s called the Taxpayer Bill of Rights (TABOR) and was passed by citizen initiative back in 1992. The politicians and lobbyists just hate it, as I detail here. 

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government transparency

Do Not Discuss This!

UFO, disclosure, media, conspiracy

Some stories linger in the background, under-acknowledged, never really addressed, driving us a bit crazy.

Example? Deficit spending and debt accumulation.

The problems that deficit financing inflicts upon us are many and devastating. We would be a lot wealthier, healthier, and wiser were the federal government not so madly out-of-control. We could invest in all sorts of great things, and prices would be more stable, and . . . and . . . and . . .

But what can we do about it?

It’s not obvious. So we don’t talk about it much. 

And the debt only grows, with destructive hyperinflation looming as an ever-increasing danger.

The other under-discussed story is even more disturbing — so we ignore it even more studiously.

Within the last several years headlines in The New York Times and on TV have covered it, yet . . . very few people talk about it, despite the startling revelations.

The issue? UFOs — a strange subject at face value, which, once you poke into it, gets even weirder.

We level-headed yokels used to deny the existence of UFOs, but now the Pentagon has confirmed their persistent plaguing of Navy jets and seacraft, and the Army has acknowledged its ongoing study of UFO-derived “meta-materials.”*

In June, the Senate will be briefed on the subject, per instructions in a recent stimulus bill. (Which brings us back to our first blank-out issue.) Meanwhile, as we wait for what could be big news, new revelations of repeated incursions by UFOs against a Navy fleet 100 miles off the California coast back in 2019 appear in specialty media** but barely make a ripple in major media.

Wait — Fox just featured a segment on a Pentagon confirmation of flying pyramids!

Will we make headway on UFOs before the debt?

This is Common Sense. I’m Paul Jacob.

 * French scientist and UFO researcher Jacques Vallee is also engaged in research on UFO-site-retrieved mystery alloys.

** See Richard Dolan discuss these recent Channel Island incursions, based chiefly on the report in The Warzone.

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previously on Common Sense with Paul Jacob:

It’s Aliens (May 30, 2019) 

The Whys Behind the Whats (June 25, 2019)

Stranger Things 2019 (January 2, 2020) 

Two Conspiracies Unearthed (December 10, 2020) 

Why We Still Live (December 18, 2020) 

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national politics & policies political economy too much government

The Slow Bullet

slow motion bullet, debt,

Modern government finance is like Russian Roulette . . . but with incredibly slow bullets.

We spend money. We create money out of thin air. We borrow it. We promise the Moon. We deliver rocks. With each action, we spin the chamber and pull the trigger. That slowround doesn’t immediately hit, so we do it again.

Calling the perennial deficits and ballooning debt a “predictable crisis,” Nick Gillespie at Reason writes that our federal government’s debt “is already choking down economic growth, but in the future, it could lead to ‘sudden inflation,’ and ‘a loss of confidence in the federal government’s ability or commitment to repay its debts in full.’” And worse: “‘Such a crisis could spread globally’ causing some ‘financial institutions to fail.’ That’s all according to the nonpartisan Congressional Budget Office (CBO), which has been warning Americans about the long-term consequence of the ballooning debt for years.”

This is an old warning. I have been talking about it for years, too. So have you. But once politicians start playing the game, it’s hard for them to stop. They see and we see the benefits, but that slow motion slug has yet to strike the target. 

Gillespie makes a better analogy than “slow bullets” (which don’t exist): “Like the coronavirus, the debt problem has the potential to seemingly appear out of the blue and turn our world upside down in a matter of weeks.”

Nassim Nicholas Taleb gained fame talking about “black swans,” major events we cannot predict. But he insists that the financial crisis resulting from government overspending is not a black swan. It’s predictable. We just do not know when.

Here’s a fourth analogy:

In free fall, you don’t feel a thing . . . until you hit the pavement.

This is Common Sense. I’m Paul Jacob.

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media and media people national politics & policies

Stranger Things 2019

UFO, debt, deficit,

On Tuesday, I seconded George F. Will’s judgment that the biggest story of 2019 was the Hong Kong protest movement.

In America, though, 2019’s top news story must be how the anti-Trump movement morphed from Russiagate, which fizzled upon release of the Mueller Report, to the quasi-impeachment bit over the most yawn-inducing scandal of all time, Trump’s Ukraine Phone Call.

It is certainly a strange story, but there are stranger big stories from last year. I am tempted to assert that the year’s biggest news is actually the Biggest Non-Story: trillion-dollar deficits and ever-increasing debt.

No protest over that enormity. Getting anyone to talk about it is like getting the government to come clean on . . . UFOs.

Which brings us to the absolutely weirdest story of 2019. During this last swing ‘round the sun, multiple sources associated with (and inside) the federal government, admitted that, within the corridors of our un-beloved Deep State, artifacts from crashed ‘and landed’ UFOs were being studied.

After decades and decades of ridicule, eye-rolls, stonewalling, lying, and disinformation about ‘flying saucers,’ several important government bodies — including the Army and Navy — now admit that they almost regularly encounter astounding . . . crafts . . . that are not part of our nation’s official sea and air technology inventory. 

These admissions amount to ‘disclosure.’ But it is not an information dump — disclosure is just a trickle, so far.*

Why? Perhaps the idea is that we cannot handle the truth.

Or perhaps they can’t.

Which isn’t really unlike ever-increasing deficits and debt, now that I think about it.

This is Common Sense. I’m Paul Jacob.

* Still, even with a mere handful of official and near-official admissions of retrieved UFO tech, the story looms large indeed.

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UFO, debt, deficit,

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Accountability

Sinkhole States

Truth in Accounting, states, debt,

What do citizens lack most at all levels of government? Truth in accounting. 

So Sheila Weinberg really has her work cut out. This very morning, her Chicago-based research-tank called, not coincidentally, Truth in Accounting released its annual Financial State of the States report. The new data shows that “the total debt among the 50 states decreased by $62.6 billion in FY 2018 due to a prosperous economy.”

But that’s where the good news ends. “Every state, except for Vermont, has balanced budget requirements,” notes the report, “yet even with these rules in place, states have accumulated more than $1.5 trillion in debt.”

Almost entirely from unfunded pension and employee benefit liabilities. 

“At the end of the fiscal year (FY) 2018, 40 states did not have enough money to pay all of their bills. This means that to balance the budget . . . elected officials have not included the true costs of the government in their budget calculations and have pushed costs onto future taxpayers.”

Put another way: Your government is lying to you.

One interesting feature of the analysis is its top five “Sunshine States” —

  1. Alaska
  2. North Dakota
  3. Wyoming 
  4. Utah
  5. Idaho 

— and its bottom five “Sinkhole States” — 

  1. Hawaii
  2. Massachusetts
  3. Connecticut
  4. Illinois
  5. New Jersey

Fun fact: It just so happens that all five of the top states have a statewide process of voter initiative and referendum, while none of the “sinkhole states” have this democratic check. 

The new online State Data Lab has the skinny on every state. Compare your state against the rest. 

Be brave.

This is Common Sense. I’m Paul Jacob.

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Truth in Accounting, states, debt,

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education and schooling subsidy

Sell College Short?

college, student, debt, loan, forgiveness, hat,

We are often lectured on the importance of a college education. The path to upward mobility is greased via higher education, we are informed, and all that investment in time and money pays off . . . with a lifetime of higher salaries and better opportunities.

“The typical American with a bachelor’s degree or higher,” President Barack Obama pointed out back in 2014, “earns over $28,000 more per year than someone with just a high school diploma.” 

Accordingly, Obama urged “students and parents” to “begin preparing yourself for an education beyond high school.”

Was he just pulling our legs?

After all, $28,000 extra each year for many decades isn’t chump change. Yet, if college proves such a royal road to wealth, why would highly educated folks gaining such lucrative earning-power need the bailouts . . . especially from taxpayers who didn’t make that self-investment?

That subsidy of the richer by the poorer is precisely what many Democratic Party presidential candidates are promising younger voters, with Sen. Bernie Sanders topping the proposed taxpayer-generosity by offering to cancel all $1.6 trillion in outstanding student debt.

“Not satisfied with having the government take over 20 percent of the economy with his Medicare-for-All program,” James Joyner writes at Outside the Beltway, “the Vermont Senator wants the government to assume all debt taken on for education and make college absolutely free from here on out.”

If a college education is worth what it costs, no bailout should be necessary.

And only in the political world would anyone suggest giving away such a valuable commodity for free.

This is Common Sense. I’m Paul Jacob.

college, student, debt, loan, forgiveness, hat,

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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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Accountability crime and punishment education and schooling national politics & policies responsibility U.S. Constitution

Will Feds Foil Foolish Licensing?

Marco Rubio, Elizabeth Warren, student, loan, debt, Florida, federalism, states, federal, law, college loan

It would be nice if the federal government used its often-abused authority over state and local governments to outlaw various forms of state and local oppression.

In his book Leviathan: The Growth of Local Government and the Erosion of Liberty, Clint Bolick argues that the federal government is not alone in hugely violating individual rights. Eminent domain, asset forfeiture, zoning, and occupational licensing are among the modes of sub-federal assault on the innocent. Even as policymakers in various regions of the land act to stop the worst of these abuses, they proceed unchecked elsewhere.

U.S. Senators Marco Rubio and Democrat Elizabeth Warren are the unlikely duo who may interrupt the now-common practice of depriving delinquent borrowers of student loans of their right to earn a living from certain trades. Rubio recently admitted on Twitter that as a Florida lawmaker, he once voted to allow the state “to suspend professional licenses of those who defaulted on student loans. I WAS WRONG. . . . How can they pay back if they can’t work?”

Yes, Rubio was wrong.

Senator Warren, for her part, agrees that the practice is “wrong and counterproductive.”

The bi-partisan duo’s bill would prohibit states from denying driver’s licenses and occupational licenses to borrowers who default on student loans.

I don’t think the legislation goes as far as it should, even in the delimited area of occupational licensing. The absurdities of occupational licensing go way beyond the scope of the proposed remedy.

But it’s a start.

This is Common Sense. I’m Paul Jacob.

 

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Photos by Gage Skidmore and Edward Kimmel

 

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Accountability general freedom ideological culture media and media people national politics & policies political challengers porkbarrel politics Regulating Protest responsibility tax policy too much government

“Our Agenda Was Common Sense”

tea party, nail, coffin, spending, debt, responsibility, dead

The Republican Party doesn’t need to bury the corpse. Its victim has been assimilated, like the Borg did with alien peoples in the Star Trek universe, or maybe it was just soaked up as if the GOP were a giant fungus amongus.

So, what’s dead? The Tea Party, which was killed by partisanship, says Matt Kibbe, President and Chief Community Organizer at Free the People. He admits that the movement’s obituary has been written many times, but, he argues, “this time is different. Republicans, now controlling both the legislative and executive branches, jammed through a ‘CRomnibus’ spending bill that strips any last vestiges of spending restraint from the budget process.”

Kibbe identifies the Tea Party’s central theme simply: “Our agenda was common sense: We demanded that Washington politicians stop spending our money like it was theirs, and keep out of our health care. But in Washington, common sense is often seen as radical.”

This, he insists, was not a partisan movement.

But only Republicans played to it. Kibbe calls Sarah Palin a “political huckster” who “helped hijack our purpose,” and fingers Mitt Romney as the man who scuttled Tea Party “political momentum” in 2012. “And then Donald Trump split the Tea Party right down the middle, and that was the end.”

Nail in the coffin? The recent budget deal.

Kibbe signs the autopsy, but assures us: “American principles of individual freedom, fiscal responsibility, and constitutionally limited government, are all still very much alive.”

I sure hope so. But it takes more than a handful of Freedom Caucus members on Capitol Hill to realize it in practice.

Like a new citizen movement.

This is Common Sense. I’m Paul Jacob.

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