Downsizing Blog

Rising Welfare Costs

The Government Accountability Office released congressional testimony this week looking at Temporary Assistance for Needy Families. TANF, which replaced unrestricted welfare in 1996, has reduced welfare rolls and encouraged recipients to obtain work. Unfortunately, TANF’s goals have been undermined.

Food Stamps Cut?

Prior to last week’s passage of another $26 billion in bailout money for state and local governments, I noted that the legislation wasn’t really offset: 

Government Sugar Planners "Confounded"

The federal government operates a complex system of supply controls, price supports, and trade restrictions on sugar. The system protects the incomes of sugar producers by guaranteeing a minimum price for sugar in the domestic market. As a result, U.S. consumers have been paying more than twice the world market price for sugar.

USDA Local Subsidies

On May 27th the USDA awarded $168 million in stimulus money to 145 local infrastructure projects across the country. A third of the money is going to the Mohegan Indian tribe in Connecticut for a new community center. The $54 million loan has attracted national scrutiny because the tribe operates one of the biggest casinos in the country, which grossed $1.3 billion in 2009.

Food Subsidies Are No Free Lunch

We are being bombarded with sensationalist stories in the press about state and local governments having to “slash” programs because of a lack of revenues. These stories typically revolve around the question of whether the federal government will continue supplementing “essential services” provided by state and local government.

Microcosms of Government Waste

As a fiscal wonk, I spend a lot of time digging through the federal budget looking at the spending trends in the biggest programs such as Medicare. But I’m often struck by the large amounts spent on the tiniest and most obscure activities. Eliminating any one of these tiny activities wouldn’t save much, but they are illustrative of a spending culture in Washington oblivious to the ongoing trillion-dollar deficits.   

Obama Plans Rural "Renaissance"

National Journal reports [$] that the administration wants more rural development programs in the next farm bill. Responding to congressional criticism that the administration isn’t sufficiently attuned to rural America’s needs, USDA secretary Tom Vilsack said that subsidizing biofuel facilities and high speed Internet service are “about a renaissance of the rural community.”

Food Subsidies Overkill

The Government Accountability Office recently reviewed 18 federal programs that provide food and nutrition assistance to low-income households, a subset of the nearly 70 programs that provide food and related subsides.

Rising Food Stamp Dependency

Food stamp enrollment has reached a record high of almost 40 million people. You can blame the recession and legislated benefit increases under presidents Bush and Obama. According to Obama’s latest budget, the total cost of the program will reach $73 billion this year, or more than double the 2007 price tag. 

Red State Subsidies

Sentiment for reducing government spending is rising, and the unstructured tea party movement is its most visible representation. However, Americans unhappy with overspending in Washington need to get more specific about where it thinks the federal budget ought to be cut.  

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