According to the Congressional Budget Office’s recent estimates of President Obama’s current budget proposal, debt held by the public relative to the size of the economy is heading toward heights last seen since the end of the Second World War:
The 1965 Elementary and Secondary Education Act sparked a huge increase in federal education spending and regulations. The legislation’s Title I was supposed to provide aid to K–12 schools in high-poverty areas, but by the end of the 1960s it was providing aid to 60 percent of the nation’s school districts. Today, Title I is the largest federal subsidy program for K–12 education.
The budgetary recklessness that was a hallmark of the Bush presidency has gotten worse under President Obama. Like the previous administration, the Obama administration was fully aware when it took office that the country is facing an entitlement-driven budgetary crisis.
One of the topics Chris Edwards will be discussing with Glenn Beck this evening (5:00 EST, Fox) is the “Not-So-Great Depression” of 1920-21.
A couple of weeks ago I discussed the rising cost of the Pentagon’s F-35 Joint Strike Fighter program. Pentagon officials told the Senate Armed Services Committee that costs for the F-35 had jumped more than 50 percent since the program began in 2001. Now the Pentagon has informed Congress that the price tag is going to be even higher when new estimates are completed in the summer.
Policy wonks on the left are sometimes willing to concede that particular ideas they supported for micromanaging the economy haven’t worked out as planned. But they are rarely willing to admit that there are deeper problems with central planning in general.