The House's overwhelming rejection of a clean debt-limit increase means that the two parties must now find major spending cuts. House Republicans say that they will not support a debt increase unless the Democrats agree to equal-sized spending cuts. If Congress raises the debt limit by $1 trillion, then it must also find budget savings of at least $1 trillion, over either five or ten years.
Last week, the House passed a $40.6 billion Homeland Security appropriations bill for fiscal 2012. The Constitutional Authority Statement for the bill cited Congress’s authority to appropriate money and the General Welfare Clause. Citing the General Welfare Clause might be appropriate for activities associated with the common defense of the nation. However, it is not an appropriate justification for something like the Federal Emergency Management Agency’s Assistance to Firefighters Grant program, which distributes federal taxpayer money to local fire departments.
The Senate is set to take up legislation reauthorizing the Department of Commerce’s Economic Development Administration. A relic of the Great Society, the EDA was created to help economically depressed areas of the country. Today it’s just another example of an unnecessary, unconstitutional program that lingers around because politicians like to demonstrate to the public that they’re “doing something.”
On Tuesday, Case-Shiller released their monthly housing price index. Surprise, it fell by 4.2% in the first quarter of 2011. I’ve been predicting a decline of about 6% over the course of 2011 (might need to adjust that). Of course, this should come as no surprise. We’ve spent the last couple of years trying to re-create the bubble, with little success.
House Transportation Committee chairman John Mica (R-FL) and Rail Subcommittee Chairman Bill Shuster (R-PA) announced that they will draw up legislation that would kill Amtrak’s desire to develop and operate high-speed rail in the Northeast Corridor:
Last week, a motion to proceed on a budget resolution introduced by Sen. Rand Paul (R-KY) was decisively defeated in the Senate (7 in favor, 90 opposed). Paul’s proposal would have balanced the budget in five years (fiscal year 2016) through spending cuts and no tax increases. Social Security and Medicare would not have been altered. Instead, the proposal merely instructed relevant congressional committees to enact reforms that would achieve “solvency” over a 75-year window.
Yesterday, Education Secretary Arne Duncan and Health and Human Services Secretary Kathleen Sebelius announced how $700 million in new Race to the Top money will be employed: $200 million to get close-loser states in the last RTTT to once again jump through hoops and grovel before their federal overloards, and $500 million for a new “early-learning” obedience contest.
Harold Camping is “flabbergasted” that the world did not end on May 21st as he had predicted. I think it’s because he didn’t account for the devastation that will be wrought by Republican budget cuts for fiscal 2012, which doesn’t begin until October 1st. Therefore, Camping’s new predication that the world will end on October 21st is much more plausible.