Category Archives: Budget

The GOP’s Gift To Henry Waxman — Part I

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Nancy Pelosi (D-CA) and John Boehner (R-OH) took a bow when the House passed a $141 billion health care bill. But Henry Waxman deserves the credit. [Credit: Politico]

Nan­cy Pelosi (D‑CA) and House Speak­er John Boehn­er (R‑OH) took a bow when the House passed a $141 bil­lion health care bill. But Hen­ry Wax­man deserves the cred­it. [Cred­it: Politico]

“What a way to cel­e­brate a birth­day!”  – House Minor­i­ty Leader Nan­cy Pelosi (D‑CA) after the House passed bipar­ti­san health care legislation

Sor­ry, Nan­cy.  It’s not about you.

The $141 bil­lion health care bill that cleared the House last month and that is expect­ed to win Sen­ate approval next week is a trib­ute from the GOP-con­trolled Con­gress to for­mer Con­gress­man Hen­ry Wax­man, a man who worked tire­less­ly – and with great suc­cess – to expand health care-relat­ed wel­fare spend­ing. Con­tin­ue read­ing →

Debt And The New American Exceptionalism

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Federal Reserve Chairman Janet Yellen plans to increase interest rates. Can government and households survive the shock? [Credit: Huffington Post]

Fed­er­al Reserve Chair­man Janet Yellen plans to increase inter­est rates. Can gov­ern­ment and house­holds sur­vive the shock? [Cred­it: Huff­in­g­ton Post]

The Amer­i­can econ­o­my is back.  After years of tepid growth and a first quar­ter con­trac­tion, GDP grew by a robust 4.6 per­cent in the third quar­ter of last year.  The unem­ploy­ment rate remained at 5.8 per­cent in Novem­ber, and ana­lysts expect the Labor Depart­ment to announce tomor­row that the econ­o­my added sub­stan­tial­ly more than 200,000 jobs in Decem­ber.  Infla­tion is low, the dol­lar is strong, oil prices have tum­bled, and fed­er­al deficits are low­er.  Near­ly six years after the reces­sion end­ed, the long-await­ed recov­ery appears at last to have arrived.

That recov­ery has in part been dri­ven by a force that could be its undo­ing: debt.  Near­ly $46 tril­lion of it, or more than 2–1/2 times our annu­al eco­nom­ic out­put. Con­tin­ue read­ing →

When Dead Men Rule

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G.K. Chesterton worried that our predecessors would have too little influence on our politics. But Gene Steuerle says that they have too much. [Credit: christiancompletely blog]

G.K. Chester­ton wor­ried that our ances­tors would have too lit­tle influ­ence on our soci­ety. But a new book by the Urban Insti­tute’s Gene Steuer­le says that they exert too much con­trol over our pol­i­tics. [Cred­it: chris­tian­com­plete­ly blog]

“Tra­di­tion means giv­ing votes to the most obscure of all class­es, our ances­tors.  It is the democ­ra­cy of the dead.” – G.K. Chester­ton

Chester­ton fret­ted that mod­ern democ­ra­cies might show too lit­tle def­er­ence to past gen­er­a­tions.  But accord­ing to the Urban Institute’s Gene Steuer­le, the very oppo­site is true: in Amer­i­can democ­ra­cy, dead men rule. Con­tin­ue read­ing →

How The Budget Deal Could Threaten Obamacare

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An angry John Boehner (R-OH) lashed out at conservative groups who opposed the budget deal. The deal strengthens his hand with his caucus and in negotiations over changes to Obamacare. [Credit: Washington Post]

An angry John Boehn­er (R‑OH) lashed out at con­ser­v­a­tive groups who opposed the bud­get deal. The deal strength­ens his hand with his cau­cus and in nego­ti­a­tions over changes to Oba­macare. [Cred­it: Wash­ing­ton Post]

“Frankly, I think they’re mis­lead­ing their fol­low­ers. I think they’re push­ing our mem­bers in places where they don’t want to be. And frankly, I just think that they’ve lost all cred­i­bil­i­ty.” – House Speak­er John Boehn­er (R‑OH), com­ment­ing on oppo­si­tion by con­ser­v­a­tive groups to the bud­get deal.

Last week’s over­whelm­ing House vote to rat­i­fy a mod­est bud­get agree­ment has been var­i­ous­ly depict­ed as a defeat for the Tea Par­ty, a rare instance of bipar­ti­san­ship, and a moment of ratio­nal­i­ty in an oth­er­wise chaot­ic and dys­func­tion­al bud­get process. It is all of those things and some­thing more: a new threat to the already trou­bled imple­men­ta­tion of Oba­macare. Con­tin­ue read­ing →

Politics as the Art of Spurning Compromise

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It may take a bigger gavel for House Budget Committee Chairman Paul Ryan (R-WI) and his Senate counterpart Patty Murray (D-WA) to hammer out a budget agreement. (Credit: Swampland Times)

It may take a big­ger gav­el for House Bud­get Com­mit­tee Chair­man Paul Ryan (R‑WI) and his Sen­ate coun­ter­part Pat­ty Mur­ray (D‑WA) to ham­mer out a bud­get agree­ment. (Cred­it: Swamp­land Times)

Bud­get nego­tia­tors have strug­gled for near­ly two months to find agree­ment on the out­lines of a spend­ing bill that would fund the gov­ern­ment after Jan­u­ary 15.  The tar­get date for a deal is next Fri­day. They hope to meet it.

The agree­ment that con­tin­ues to elude them, if it comes at all, would be a small one. Gone are aspi­ra­tions for a “grand bar­gain” that would reform enti­tle­ments and the tax code and replace future across-the-board cuts with some­thing less mind­less. Changes to Medicare, Med­ic­aid, Social Secu­ri­ty and oth­er “manda­to­ry” spend­ing pro­grams, which togeth­er con­sti­tute 63 per­cent of non-inter­est gov­ern­ment spend­ing, are off the table.  So, too, are tax­es. Con­tin­ue read­ing →

Could A Wealth Tax Solve the Problem of Government Debt?

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A recent IMF report suggests that this man's enormous wealth might help resolve the government's debt problem. [Credit: NY Post]

A recent IMF report sug­gests that this man’s enor­mous wealth might help resolve the gov­ern­men­t’s debt prob­lem. [Cred­it: NY Post]

The Inter­na­tion­al Mon­e­tary Fund (IMF) recent­ly report­ed that Euro­pean gov­ern­ments could reduce their debt back to pre-Great Reces­sion lev­els by con­fis­cat­ing 10 per­cent of the wealth held by their rich­est cit­i­zens. IMF isn’t rec­om­mend­ing that, of course.

They’re just sayin’. Con­tin­ue read­ing →

In Washington, All Is Well

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The faces of Congressional leaders are hardly etched with joy, but they did manage to avert a fiscal crisis, even if only for a few months. [Credit: Bloomberg]

The faces of Con­gres­sion­al lead­ers are hard­ly etched with joy, but they did man­age to avert a fis­cal cri­sis, even if only for a few months. [Cred­it: Bloomberg]

Octo­ber 16, 2013, 6:00 am

All is well in Wash­ing­ton. The gov­ern­ment is spend­ing and bor­row­ing again. Con­tin­ue read­ing →

Republicans Should Join Democrats in Impeding Obamacare Implementation

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Media reports indicate that Senate Majority Leader Harry Reid (D-NV) and Republican Leader Mitch McConnell (R-KY) are nearing an agreement on temporarily funding the government and increasing its borrowing authority. [Credit: Huffington Post]

Media reports indi­cate that Sen­ate Major­i­ty Leader Har­ry Reid (D‑NV) and Repub­li­can Leader Mitch McConnell (R‑KY) are near­ing an agree­ment on tem­porar­i­ly fund­ing the gov­ern­ment and increas­ing its bor­row­ing author­i­ty. [Cred­it: Huff­in­g­ton Post]

Octo­ber 14, 2013, 7:15 am

Sen­ate lead­ers are report­ed­ly clos­ing in on a deal that would both fund the gov­ern­ment and restore its bor­row­ing author­i­ty for a few months. The deal report­ed­ly con­tains two changes to the health care law, one pro­posed by Repub­li­cans, the oth­er by Democ­rats. The pro­vi­sion backed by Repub­li­cans is polit­i­cal­ly mis­guid­ed, unwork­able and would do lit­tle to impede the law’s imple­men­ta­tion; the pro­vi­sion backed by Democ­rats, by con­trast, appears to com­pli­cate imple­men­ta­tion of a law whose launch has so far not gone smooth­ly. Repub­li­cans who oppose Oba­macare should join Democ­rats in seek­ing changes that would dam­age its imple­men­ta­tion. Con­tin­ue read­ing →

Welfare or Work: A Difficult Choice

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The choice between welfare and work is not always an easy one, according to a new study by the Cato Institute. (Credit: LA Times)

The choice between wel­fare and work is not always an easy one, accord­ing to a new study by the Cato Insti­tute. (Cred­it: LA Times)

(NOTE: This post was updat­ed on Sep­tem­ber 23 to incor­po­rate the gov­ern­men­t’s new­ly-released pover­ty rate data.)

If forced to choose between a full-time job that paid $24.40 per hour and enrolling in a pack­age of gov­ern­ment ben­e­fits that paid a com­pa­ra­ble amount, which would you choose? Con­tin­ue read­ing →

Republicans Getting Deficit Reduction, But President Getting His Way

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The President and Speaker are headed for another budget confrontation. [Credit: Fox News]

The Pres­i­dent and Speak­er are head­ed for anoth­er bud­get con­fronta­tion. [Cred­it: Fox News]

Con­gress is on hol­i­day, rest­ing up for the next round of bud­get wars that will resume after Labor Day. The issues they will face when they return are famil­iar: the fed­er­al gov­ern­ment is about to lose author­i­ty to do what it does best (or, at least, most nat­u­ral­ly) – bor­row and spend. Con­tin­ue read­ing →