Tag: spending

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Accountability government transparency insider corruption moral hazard national politics & policies porkbarrel politics too much government

Earmark This Bad Argument

earmarks, ear marks, pork, Congress, spending, corrumption, deals

With President Trump endorsing a return to earmarks, House Republicans too are reportedly “reconsidering” their usefulness and pondering “how they might ease back into the practice.” Lawmakers fret that they have lost too much power by giving up this instrument of corruption. (Not their characterization.)

Wikipedia defines “earmark” as a budgetary provision that “directs funds to a specific recipient while circumventing the merit-based or [competitive] allocation process.” An earmark is a taxpayer-funded goodie bestowed on a congressman’s constituent, the sort of crony willing to contribute to the bestower’s next election campaign in return.

Quid pro quo, pay-for-play, bribery. Whatever you call it, there’s darn good reason why political leaders who fight corruption have fought to end earmarks.

Congressional Republicans imposed a ban on earmarks in 2011 to show that they were anti-corruption. So why relapse? Well, “the time is right,” according to GOP Representative John Culberson, for Congress to prove it can use earmarks responsibly. His bad argument is that the “excesses” of a decade ago were committed by “knuckleheads [who] went overboard.”

Somebody alert Culberson to the fact that many of the same knuckleheads are still in office. Ahem. Congress is not yet term-limited, remember?

The more basic point is that earmarks are by nature corrosive of sound government. President Trump’s only metric is apparently “getting [things] done” as opposed to obstructionism, preferring “the great friendliness” when we had earmarks. Sure, stuff got done — a lot more spending, a lot more bad stuff.

To the extent they’re gone, earmarks should stay gone. The only appropriate action is to make it even harder to bring them back.

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 local leaders moral hazard porkbarrel politics responsibility term limits too much government

Most Messed Up

Illinois, budget crisis, garbage, term limits, spending, responsibility, Junk Bond, Moody's

“Politicians are notorious for making promises they can’t keep,” Matt Egan reports at CNN Money. “But they really outdid themselves in Illinois — and now the state is paying for it.”

Egan dubs the state “America’s most messed-up.”*

No wonder the state has the worst outbound migration in the nation — or, as Egan puts it: “people are leaving in droves.”

On June 1, Moody’s and S&P Global Ratings downgraded the state’s credit rating to one notch above so-called “junk bond” status. “Illinois has suffered 21 downgrades from the three major ratings agencies since 2009,” the Illinois Policy Institute informs, and now has the lowest credit rating of any state, making it more expensive to borrow. Even with passage of a budget — finally, after three years of the legislature failing to fulfill its constitutional duty — the threat of a further downgrade still looms.

“After decades of historic mismanagement, Illinois is now grappling with $15 billion of unpaid bills and an unthinkable quarter-trillion dollars owed to public employees when they retire,” the article explains.

Decades of mismanagement? Perhaps the problem was inexperienced legislators, lacking the necessary expertise to do their crucial jobs, because of term limits. Except that Illinois doesn’t have term limits.

In fact, Illinois sports the nation’s longest-serving Speaker of the House in modern times. Mike Madigan has been speaker for 32 of the last 34 years, since 1983. Call him “Mr. Experience.” Madigan is recognized as the most powerful man in state government.

All that leadership experience . . . leading citizens to experience much pain and suffering.

This is Common Sense. I’m Paul Jacob.

 

* That’s in the headline. In the article, Egan explains the mess as “the inevitable result of spending more on pensions and services than the state could afford — then covering it up with reckless budget tricks.”

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Accountability free trade & free markets moral hazard national politics & policies political challengers porkbarrel politics responsibility subsidy too much government

Trump Proposes a Budget

Trump, budget, spending, big government, entitlements, welfare, cuts, pig

Will Donald Trump, infamously successful businessman, actually do something about the federal government’s out-of-control deficits and mounting debt?

Economist Pierre Lemieux, writing in the Financial Post, finds some reason for hope in President Trump’s “America First: A Budget Blueprint to Make America Great Again”:

The proposal to eliminate funding for agencies like the Corporation for Public Broadcasting, the National Endowment for the Arts, and the National Endowment for the Humanities is welcome. Artists should be able to stand on their own two feet with the support of private sponsors and organizations, of which there are many in America. Lovers of concerts should finance their own passion.

Though Lemieux gives good reason to want to cut “official arts and humanities” subsidies even sans their budgetary implications, imagine the backlash from Democrats, the media and the whole collegiate sector!

Actually, the backlash has already begun.

Can united government under the GOP cut even these most obviously least necessary aspects of government subsidy?

I’m not holding any pockets of air in my two lungs.

“Many monstrous bureaucracies would be reined in,” Lemieux goes on, listing proposed cuts to the Environmental Protection Agency (-31 percent), Department of Labor (-21 percent), and other departments of the so-called “discretionary” budget. But this is all small potatoes. “Really cutting federal expenditures would require reducing the welfare state — which Trump has no intention of doing.”

And the fortunes Trump wishes to throw at the military? No knack for parsimony there.

Though we can expect a little exceptional hack-and-slashery from Trump, Lemieux remains skeptical of any overall major effect.

Get used to ballooning debt.

Like you haven’t already.

This is Common Sense. I’m Paul Jacob.

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Accountability media and media people moral hazard national politics & policies responsibility

War on Page A-10

war, news, newspapers, defense, spending, Iraq, bombs, drones, soldiers

War was once big news. Now? Not so much.

Which may be a function of the never-ending War on Terror, no end in sight in Afghanistan and an Iraq War that is officially over . . . except for the fighting.

Last October, Green Party presidential candidate Jill Stein busied fact-checkers by claiming the U.S. was “bombing seven countries.” True, declared PolitiFact: Afghanistan, Iraq, Libya, Pakistan, Somalia, Syria and Yemen.

Yemen is better known after January’s raid that killed Navy SEAL Ryan Owens, wounded three other SEALs, and killed 14 to 25 Yemeni civilians, including children. Last week, during President Trump’s speech to Congress, Owens’s widow, Carryn, received a thunderous ovation.

But, as I argued at Townhall, “Ryan Owens and his widow and her three now fatherless children deserve more than applause.“ How about thoughtful policies and a Congress that holds the executive branch accountable?

Invading Iraq was a mistake. So was President Obama’s swerve over to destabilize Libya.

“We are not about to send American boys 9 or 10 thousand miles away from home to do what Asian boys ought to be doing for themselves,” President Lyndon Johnson once said . . . right before he sent more American soldiers to Vietnam.

Consider that U.S. Special Forces were deployed to 70 percent of the world’s nations in 2016. And, in recent weeks, President Trump asked for a $54 billion increase in military spending, and we have learned of Pentagon plans to seek a “significant increase in U.S. participation” against ISIS.

We owe it to those in uniform to ask tough questions, including: Is what we’re doing really worth a single American life?

This is Common Sense. I’m Paul Jacob.

 

Further reading:

Reason: Is the Military Really “Depleted” After Years of Record-High Spending?

The Atlantic: Fighting Terrorism With a Credit Card

The National Interest: America Is Never (Ever, Ever) Ending the War on Terror

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Common Sense folly general freedom ideological culture national politics & policies political challengers tax policy too much government

Weekend with Bernie: Fairy-Tale “Free”

Bernie Sanders, Free, Fairy Tale, promises, collage, photomontage, James Gill, Paul Jacob, Common Sense, illustration

Bernie Sanders is many a progressive’s fairy-tale candidate.

Well, yeah.

Not “once upon a time,” but today . . .  the federal government’s public debt is in the double-digit trillions. The total debt — consisting also of unfunded/underfunded welfare state “promises” — may be in the triple digits. Still, politicians pat themselves on their backs when they deliver annual deficits under half a trillion per year.

Meanwhile, Senator Sanders, former member of America’s Socialist Party and current caucuser with the Democrats, is running on the “freebie” platform: let’s spend more!

He serves as the pusher of a very old folly: thinking that good things come to us without cost.

But the costs have to be paid.

And will be.

That’s the essence of common-sense wisdom since ancient times. Usually I conjure up an accountant or an economist to explain this, but why not go back to folklore? Folk and fairy tales, along with myths both ancient and modern (remember Tolkien’s Lord of the Rings?), tell us that magic powers come at a price.

And those costs can be killer.

Far-left-of-center magic pretends that not only can Bernie provide “free” stuff for everyone (including those of us in his “hard-working middle class”), but also that the wherewithal for these goodies (college, medicine, food, shelter, meaningful work) can easily come from . . . three pot-of-gold sources: “the rich,” “print more money,” and that least plausible sprinkle of fairy dust, “government efficiency.”

We tell children fairy tales not to make them wish for magic solutions, but to illuminate the logic of responsibility.

Bernie didn’t get that lesson.

This is Common Sense. I’m Paul Jacob.

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Bernie Sanders, Free, Fairy Tale, promises, collage, photomontage, James Gill, Paul Jacob, Common Sense, illustration