Downsizing Blog
Another State and Local Bailout?
A Tale of Two Frauds
Fannie, Freddie, Peter, and Barney
Last week, after Rep. Barney Frank (D-MA) said that holders of Fannie Mae and Freddie Mac’s debt shouldn’t be expected to be treated the same as holders of U.S. government debt, the U.S. Treasury took the “unusual” step of reiterating its commitment to back Fannie and Freddie’s debt.
Reassessing FHA Risk
Six Reasons to Downsize Washington
1. Additional federal spending transfers resources from the more productive private sector to the less productive public sector of the economy. The bulk of federal spending goes toward subsidies and benefit payments, which generally do not enhance economic productivity. With lower productivity, average American incomes will fall.
Smelling Your Email
In response to this week’s news that the beleaguered U.S. Postal Service is facing $238 in losses over the coming decade, Charles Krauthammer lamented the inevitable demise of the government mail monopoly:
Ray LaHood as Santa Claus
U.S. News & World Report’s columnist, Paul Bedard, reports that Transportation secretary Ray LaHood told him that it’s fun playing Santa Claus to states and cities around the nation.
Privatize the U.S. Postal Service
In August, President Barack Obama commented that “UPS and FedEx are doing just fine. … It’s the post office that’s always having problems.” We found out just how deep those problems were when Postmaster General John Potter announced that the U.S. Postal Service is facing $238 billion in losses over the next 10 years.
Federal Aid to States is Too Popular
The Economist’s Free Exchange blog asks: “[W]hy isn’t federal aid to states more popular, and popular enough to get through Congress, given that nearly every American lives in one?”
More Black Eyes for DHS
The Department of Homeland Security is in the news for a range of management problems. Bureaucratic bungling at DHS has been an agency hallmark since its creation in 2003. In 2008, the House Committee on Homeland Security counted $15 billion worth of failed DHS contracts for various projects since its inception.