Downsizing Blog
Sequestration Panic!
This Cato video takes on the apocalyptic hype surrounding sequestration:
Sequestration: Governors Are a Special Interest Too
The president made an appearance at the National Governors Association’s winter meeting to drum up support for his position that the sequestration spending cuts should be mitigated with tax hikes. The president understands that state politicians are dependent on federal handouts (see chart below), which makes them ideal candidates to help him convince the citizenry that spending cuts would usher in the apocalypse.
Sequestration Will Not Make the United States Less Safe
Military spending will remain at roughly 2006 levels—$603 billion, higher than peak U.S. spending during the Cold War. Meanwhile, we live in a safer world. The Soviet Union has been dead for more than two decades; no other nation, or combination of nations, has emerged since that can pose a comparable threat. We should have a defense budget that reflects this reality.
It’s Plane Pork
The Washington Post’s David Fahrenthold has identified another budget zombie. This time it’s an obscure grant program administered by the Federal Aviation Administration that dumps money on tiny airports with scant activity.
The Fairy Tale on Spending Cuts
“The sequester is coming, the sequester is coming,” cries Chicken Little, speaking of the across-the-board spending reductions set to kick in next Friday. As a result, much of the Washington establishment, politicians of both parties, and the media are bracing for the apocalypse.
The Sequestration Cuts in Perspective
According to the Congressional Budget Office, the $85 billion in sequestration spending cuts translates into $44 billion reduction in actual federal outlays for 2013. The following chart puts that figure in perspective.
Rick Scott’s ObamaCare Flip-Flop
Florida Gov. Rick Scott (R) has decided to throw his support behind, or at least drop his opposition to, ObamaCare’s Medicaid expansion. His formal announcement is receiving much attention. Scott was an early opponent of ObamaCare. He parlayed that opposition into a bid for governor in 2010, and rode the anti-ObamaCare wave into office. Shortly after becoming governor, he announced he would not lift a finger to help the federal government implement the law. I followed all this pretty closely. I served on Scott’s gubernatorial transition team, at his invitation.
Why the Areas Affected by Sequestration Should be Cut
The scheduled implementation of the sequestration spending cuts is a little more than a week away, which has Republicans, Democrats, bureaucrats, special interests, and the media warning that the apocalypse is nigh. Sequestration isn’t the ideal way to cut spending, but it would be a start. And despite all the wailing and gnashing of teeth, the areas of federal spending targeted by sequestration should be cut.
Take the Public-Private Road to Efficiency
In his State of the Union address, President Obama laid out an array of new spending proposals, including a $50 billion plan for highways, bridges and other projects. He wants to attract “private capital” for the plan, but the problem is that federal planners would remain in control of the allocations.
Are Spending Cuts Good Politics?
Grover Cleveland says “yes.”
Calvin Coolidge says “yes.”