Tag: debt

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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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Accountability Common Sense folly general freedom media and media people moral hazard nannyism national politics & policies responsibility term limits too much government

It’s the Stupid Spending

debt, spending, Congress, term limits

These United States are approaching a crisis. Mounting debt seems increasingly unpayable. Sovereign default and financial chaos are “in the offing” — drifting from the (future) horizon to the (present) shore.

The costs of our debt load have been accommodated as astute economists predicted, with the weakest recovery in American history.

Seven years ago I wrote:

According to increasing numbers of Americans, it’s the level of spending by government that must decrease. We must balance budgets. Soon.

One could play sloganeer and say “It’s the spending, stupid”; or, twist that, to say “It’s the stupid spending.” But however you formulate the problem, what the new Republican House must do is find a way to cut spending.

They haven’t. Is there any reason, even with super-​duper businessman Donald Trump riding herd, that they will make net cuts? 

We can expect gross spending to increase and the debt to balloon even bigger.

Why?

Well, we are trapped. 

Even the politicians themselves feel trapped. 

You see, once the government begins a program, a constituency comes to depend upon it, and resists being “betrayed.” And the media supplies a steady stream of sob stories about the brutality of “austerity.” Politicians fear the passion of voters reacting to a specific hyped human need more than the general desire for less spending. So politicians increase the stupid spending.

Well, if the politicians are trapped, release them. Free them. 

How? Term limits.

Congressional term limits would un-​trap not just the pols — it’d free the voters, too. Let’s end the pretense that sending the same politicians to Washington term after term can produce local prosperity. Oh, the power of incumbency may lavish benefits on career congressmen, but it doesn’t pay off for the rest if us. 

This is Common Sense. I’m Paul Jacob.

 

* It was President Harry Truman who said that term limits would “help to cure senility and seniority — both terrible legislative diseases.”

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Illustration: Gustave Doré, “Avaricious and Prodigal”

 

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Accountability folly free trade & free markets ideological culture media and media people national politics & policies

Next Bubble to Pop?

bubble, Paul Krugman, recession, student loans, debt, folly, David Stockman

There was a great and wondrous moment, a decade and a half ago, when economist Paul Krugman, Nobel Laureate and New York Times’s unregistered shill for the Democratic Party, suggested that what the economy really needed was another housing bubble. 

What he wrote, specifically, was this: “To fight this recession, the Fed needs more than a snapback; it needs soaring household spending to offset moribund business investment. And to do that, as Paul McCulley of Pimco put it, Alan Greenspan needs to create a housing bubble to replace the Nasdaq bubble.”

Krugman later reinterpreted that statement in a clever (if not convincingly honest) way. After the subprime loan industry collapsed in 2008, he attributed that bust to financial market malfeasance, not the Fed-​inflated bubble we got … and that he had previously called for.

Now we are looking at several ready-​to-​burst bubbles:

  • The student loan debt problem seems scary. 
  • The sovereign debt problem is undoubtedly more dangerous and far larger, but is perhaps still able to take on more fake money — all the world’s 1s and 0s have to go somewhere! 
  • So the current bets seem to be on a huge auto loan industry bubble, about to pop.

Loan terms have increased in duration, and the average amount new car buyers are financing has jumped over 17 percent in five years. The idea has been “to continually lower monthly payments,” says David Stockman, “so people can get behind the wheels of vehicles they can’t really afford.”*

Which bubble does Krugman favor? I don’t have the stomach to check.

But, be certain, as we play pop goes the bubble, he’ll play pop goes the weasel.

This is Common Sense. I’m Paul Jacob.

 

* Stockman seems to be echoing warnings made by Eric Peters, of Eric Peters Autos.

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