Downsizing Blog
Reforming Medicaid Subsidies
Federal spending and deficits are at dangerously high levels, and interest costs on government borrowing are soaring. If spending is not restrained, we may face an economic crisis. Congress should cut spending, and one good reform target is the huge and fast‐growing Medicaid program.
Would Congress Abdicate Its Responsibility by Empowering a BRAC‐like Fiscal Commission?
Following the Fiscal Responsibility Act’s passage, many legislators remain rightfully concerned that the May 2023 debt limit deal doesn’t do nearly enough to rein in out‐of‐control federal deficits and debt. Now Fitch Ratings has given them a wake‐up call by downgrading the U.S. credit rating from AAA (the highest possible rating) to AA+.
Independence in 1776; Dependence in 2023
Federal government spending is soaring and debt will soon reach record highs compared to the size of the economy. Rising spending and debt are undermining growth and may push the nation into a financial crisis.
Fiscal Federalism
Under the U.S. Constitution, the federal government was assigned specific, limited powers, and most government functions were left to the states.
Should the Bankrupt Feds Subsidize Cash‐Flush States?
The infrastructure and entitlement bills pending on Capitol Hill are bad for many reasons.
Biden’s Programs Would Fail for Many Reasons
President Biden is proposing to expand federal intervention in many areas that are the responsibility of state and local governments and the private sector.
Decentralize Power to Unite the Nation
The problem with democracy is that after the election, half the country is going to feel as unhappy as this tortured fellow.
Federal Reserve Aid to State and Local Governments
I testified today to the Congressional Oversight Commission regarding federal and Federal Reserve aid to state and local governments.
Senate Is Right to Resist State Aid
Another week, another news story about supposedly imploding state‐local government budgets.
Federal Aid Creates Central‐Planning Power
The Trump administration is threatening to cut federal aid to cities that do not follow its approach to policing and civil unrest.