An audit released this week by the Department of Justice’s inspector general details wasteful and extravagant spending at DOJ conferences under both the Bush and Obama administrations. Stories about waste in government programs are as common as ants, but this one appears to have struck a nerve across the country—perhaps because the president is trying to convince us that Washington needs more money.
Tad DeHaven
Damaging Rise in Federal Spending and Debt
Chris Edwards testified to Congress's Joint Economic Committee this week on the damaging rise in federal spending and debt (his written testimony is here). The following are a few key points:
One Reason Obama Wants Another State Bailout
I recently discussed why the additional federal subsidies for state and local government that President Obama is proposing as part of his “job plan” are a bad idea. A new study from two Harvard economists suggests that the president’s affinity for these subsidies might have something to do with the fact that the aid would be particularly helpful to states with more left-leaning legislators and strong public sector unions.
Interesting Thoughts on Postal Reform
Postal expert Alan Robinson’s Courier, Express, and Postal Observer blog is always an interesting read, but his latest two posts are particularly worthwhile.
Solyndra: Another Energy Boondoggle
The details surrounding the $535 million government loan to Solyndra – the now-bankrupt solar energy company that had been the green apple of the president’s eye – are still emerging. It remains to be seen whether or not the Obama administration broke any laws when it pushed the loan out the door despite obvious problems with the company’s finances.
Postal Service Running on Fumes
The Senate Homeland Security and Government Affairs Committee held a hearing this week on the U.S. Postal Service’s dire financial situation. The USPS is facing a $10 billion loss this year, is about to max out its $15 billion line of credit with the U.S. Treasury, and doesn’t have the money to make a required $5.5 billion payment for retiree health care benefits due at the end of the month. The USPS is projecting insolvency in 2012 if Congress doesn’t step in to provide relief.
Small Business Administration to Close?
According to Lloyd Chapman, the hyperbolic president of the American Small Business League, legislation introduced by Sen. Richard Burr (R-NC) would close the Small Business Administration. Chapman actually stated on a Fox Business News show that Burr’s bill is “the worst idea in the history of America.” And here I thought it was Rick Santorum’s decision to run for president.
The Dumbest Budget ‘Plan’ Yet
Are you aware of the budget plan that promises to cut federal spending by 25 percent per year and has been endorsed by seven Republicans running for president? I just found out about it this week in Steve Chapman’s latest column. Having checked it out, I think I know why I hadn’t heard of it: it’s the dumbest “plan” out there.
HUD Subsidizes Wealthier Indiana County
The Indianapolis Star recently ran an article on a relatively wealthy county in Indiana that has received $3 million in HUD Community Development Block Grant funding since 2005. I lived in Hamilton County for three years and it has a well-deserved reputation in Indiana as being the home of the state’s hoity-toity. I don’t believe the federal government should be subsidizing community development for any locality, but subsidizing wealthier areas of the country is extra ridiculous.
Terminate the SBA
There's plenty of talk about cutting the federal budget these days in Washington. And there's lots of fighting over the size of the federal government. But there has been relatively little discussion about the scope of Uncle Sam's activities.