The Washington Post’s David Fahrenthold recently took a look at the $38 billion in spending cuts that Republicans and Democrats agreed to in 2011 in order to avoid a government shutdown. Fahrenthold estimates that $17 billion of those “cuts” were little more than budgetary gimmicks. For instance, $6 billion in authorized spending for the previous year’s decennial census were merely wiped off the books and counted as a “cut.”
Beltway politicians like to pretend that smaller spending increases amount to spending “cuts.” As Dan Mitchell has pointed out numerous times (see here for one example), that’s baseline budgeting baloney. Now that the 2011 Budget Control Act’s spending caps are in place, politicians are making an even more ridiculous claim: the so-called “cuts” have already occurred.
The U.S. Postal Service announced today that it intends to end Saturday mail delivery beginning on August 1st. According to the USPS, the move would save the government’s beleaguered mail monopoly $2 billion a year. The USPS has lost over $40 billion since 2006 and it has maxed out its $15 billion line of credit with the U.S. Treasury. With mail volume in permanent decline, the USPS has no choice but to try and cut costs.
The Washington Times noted this week that the 2012 improper payment rate for unemployment insurance benefits was 11.4 percent ($10.3 billion out of $90.2 billion), according to U.S. Department of Labor data. The good news is that the figure is down from 12 percent in 2011. The bad news is that it’s still a pathetic waste of money.
The odds that $85 billion in “unthinkable, draconian” sequestration spending cuts will go into effect in March as scheduled are looking better. The odds must be getting better because, as if on cue, the horror stories have commenced.
Richmond Times-Dispatch columnist A. Barton Hinkle recently made what should be a simple point to understand, but it’s unfortunately one that few people seem to appreciate. Writing about the supposed win-win situation whereby states expand Medicaid coverage and the federal government foots most of the bill, Hinkle reminds readers that the “free” federal money isn’t really free:
It’s my job to advocate for spending cuts. It’s a job I’ve been doing in one form or another for over a decade. If I’ve ever experienced a victory, it must have been a pretty small one, because I can’t recall any. So why do I persist?
The Washington Post’s David Fahrenthold reports on a tiny federal program that House Republicans and even the Obama administration would like to terminate but that is seemingly invincible. The Christopher Columbus Fellowship Foundation, a grant program created in 1992, was supposed to pay for itself from the proceeds of coins honoring the 500thanniversary of Columbus’s landing in the new world.
Despite four years of annual budget deficits of over US$1 trillion and the most sluggish economic recovery since World War II, voters have rewarded President Barack Obama with a second term. The president has supported a huge growth in federal spending and deficits, believing it to be an economic stimulus. But while there is little evidence that such Keynesian policies actually work, electoral ratification of the president’s approach has further engrained the idea in Washington that higher spending is beneficial.
A study [$] published in the winter edition of Political Science Quarterly considers two possible reasons for why the 2009 American Recovery and Reinvestment Act (ARRA) failed to sprinkle Uncle Sam’s magic dust onto those areas of the country that were being hardest hit by the recession.