Downsizing Blog
Obamacare Subsidies
Over at DarwinsFool.com, Michael Cannon summarizes a lengthy report issued by two congressional committees on how the Treasury Department, the Internal Revenue Service, and the Department of Health and Human Services conspired to create a new entitlement program that is authorized nowhere in federal law.
Edwards’ Law of Government Cost Overruns
Here is a rule of thumb to remember when you hear about a proposed government project: If a politician says that it will cost $1, it will end up costing $2 or more. Call it Edwards’ Law.
The School Computer Mania
The Washington Post reports that President Obama is cheerleading for more spending on high-speed Internet, tablet computers, and Wi-Fi in the nation’s K-12 schools. There are budget and federalism reasons why the president of the United States should not be sticking his nose into local schooling activities, but let’s put those concerns aside here.
New CBO Budget Report
The CBO released its new budget outlook today. The chart below shows total federal spending since 2000. Spending was way up under Bush and the first two years of Obama, and roughly flat since then.
Basic Fiscal Facts
We’re not going to come up with a good answer if we don’t understand basic fiscal facts.
Minimum Wage Laws Kill Jobs
President Obama set the chattering classes abuzz after his unilateral announcement to raise the minimum wage for newly hired Federal contract workers. During his State of the Union address, he sang the praises for his action, saying that “It’s good for the economy; it’s good for America.” Yet this conclusion doesn’t pass the economic smell test; just look at the data from Europe.
New SOTU Education Promises Just Like the Old SOTU Education Promises
What should President Obama have said about education policy in this year’s State of the Union address? In a more perfect world, he would have announced his plan to eliminate the U.S. Department of Education in order to restore control of education policy to the state and local governments where it constitutionally belongs.
Farm Bill Spending Up 49 Percent
Under cover of SOTU media coverage, Congress is set to sneak through the first big farm bill since 2008. The Congressional Budget Office released its estimate of the bill’s cost: $956 billion over 2014-2023. It would thus mean almost $1 trillion more borrowed from U.S. and foreign creditors, adding more weight to the anchor pulling down the living standards of our children and grandchildren.
Another Cost Overrun on Government Infrastructure
From the Wall Street Journal, here’s the latest evidence on quality and efficiency in government infrastructure spending
Tax Reform: The First Step Is Simple
New leadership is coming to the congressional tax-writing committees. Ron Wyden will be taking the helm of Senate Finance and Paul Ryan will be likely taking the helm of Ways and Means. This is good news, as both gentlemen are serious legislators and very interested in major tax reform.