Tag: white house

Deficits, Spending, and Taxes

The White House and the CBO announced this week that:

The nation’s fiscal outlook is even bleaker than the government forecast earlier this year because the recession turned out to be deeper than widely expected, the budget offices of the White House and Congress agreed in separate updates on Tuesday.

The Obama administration’s Office of Management and Budget raised its 10-year tally of deficits expected through 2019 to $9.05 trillion, nearly $2 trillion more than it projected in February. That would represent 5.1 percent of the economy’s estimated gross domestic product for the decade, a higher level than is generally considered healthy.

What is the right response to these deficits?

One view holds that most current expenditure is desirable — indeed, that expenditure should ideally be much higher — so the United States should raise taxes to balance the budget. Taxes are a drag on economic growth, however, and unpopular with many voters, so this view presents politicians with an unhappy tradeoff.

The alternative view holds that a substantial fraction of current expenditure is undesirable and should be eliminated, even if the revenue to pay for it could be manufactured out of thin air. To be concrete:

  • Medicare and Medicaid encourage excessive spending on health care.
  • The invasions of Iraq and Afghanistan encourage hostility to the U.S. and thereby increase the risk of terrorism.
  • Drug prohibition generates crime and corruption.
  • Agricultural subsidies distort decisions about which crops to grow, and where.
  • And much, much more.

So, under this view, the United States can have its cake and eat it too: improve the economy and reduce the deficit without the need to raise taxes.

This approach is not, of course, politically trivial, since existing expenditure programs have constituencies that will fight their elimination.

But thinking about these two views of the deficits is nevertheless useful: it shows that discussion should really be about which aspects of government are truly beneficial, not just about the deficits per se.

C/P Libertarianism, A to Z

Cato Institute to Launch Ad Campaign Against Government-Run Health Care

The Cato Institute will launch an ad campaign Thursday highlighting under-reported poll data showing Americans’ concerns that current health care reform plans will raise costs, limit choice and reduce the quality of their health care.

The campaign will feature full-page ads in major national newspapers, in addition to radio spots focusing on why government-run health care cannot address the problems of growing costs and lack of coverage for many individuals and families. The campaign will expand in the weeks ahead.

“Our goal is to help the American public navigate terms like ‘a public plan’ and ‘individual or employer mandates’ to understand what is really happening here,” said Ed Crane, founder and president of the Cato Institute. “The bottom line is, most of the plans coming from the White House and congressional leadership will result in a government-run health care system that is really not the best option for most Americans.”

A poll by the Washington Post and ABC News conducted June 18-21 showed that 84 percent of respondents were “very” or “somewhat” concerned that “current efforts to reform the health care system” would increase their health care costs. The survey also showed that 79 percent of respondents were concerned that current efforts would limit their choices of doctors or medical treatments.

As part of the campaign, Cato is running radio ads in major cities across the country. You can listen to them below, and embed them on your own blog using the code on the official campaign site.

Who Pays?

Download the MP3

Who Decides?

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Cato has also created a new website, Healthcare.cato.org, to promote more free market-oriented health care reform proposals.

Broken Promises — to Voters and the New York Times

“[O]nce it is clear that a bill will be coming to the president’s desk, the White House will post the bill online,” White House spokesman Nick Shapiro told New York Times reporter Katherine Seelye for her June 22 story on President Obama’s “Sunlight Before Signing” campaign pledge. “This will give the American people a greater ability to review the bill, often many more than five days before the president signs it into law.”

The story, titled “White House Changes the Terms of a Campaign Pledge About Posting Bills Online,” was about the White House effort to walk back from President Obama’s campaign pledge to post bills he receives for five days before signing them.

When the New York Times published the story, five bills had been presented to the president and were awaiting his signature. Four more were presented to him after the story’s publication. All nine are now law.

And for the life of me, I can’t find where any of them have been posted on Whitehouse.gov. Surely it was clear to the White House that the five bills it had and the four soon to come would reach the president’s desk.

I disagree with arguments for releasing President Obama from his pledge to sign bills only after he has posted them for a full five days after receiving them. It would have the same effects as the 72-hour hold the Sunlight Foundation is seeking from Congress — also a welcome legislative process reform.

And it’s becoming more clear that the five-day promise could be implemented. At this point, only one of 39 bills that the president has signed has been posted for five days in advance. (The DTV Delay Act was actually not held five days after formal presentment, but the White House posted it after the final version had passed Congress.) Twenty-four other bills have been held at the White House five days or more before the President has signed them. They just haven’t been posted.

To repeat, over 60% of the legislation coming out of Congress waits five days for the president’s signature as a matter of course. The only thing preventing implementation of the president’s promise as to these bills is the White House’s inexplicable reluctance to do what it says it will do.

At this point, it’s worth repeating that I can’t find the bills online at Whitehouse.gov. I have searched the site high and low, even entering URLs where I would guess they might be. I find it hard to believe that no bills have been posted under even the modified promise given to the Times late last month. I will happily post a correction and apology if there is a corner of Whitehouse.gov that I failed to explore. (If bills are so deeply hidden, that’s a problem, too, of course.)

I’m fond of joking that the “Sunlight Before Signing” promise is a golden opportunity because I can write 100 blog posts over the next few years without thinking a single original thought. But voters and me are one thing — if the White House is breaking a promise to the New York Times, that could be serious!

For the record, here are the pieces of legislation signed by the president so far:

Public Law Date Presented Date Signed Posted (Linked) for Comment? Five Days?
P.L. 111-2, The Lilly Ledbetter Fair Pay Act of 2009 1/28/2009 1/29/2009 1/29/2009 No
P.L. 111-3, The Children’s Health Insurance Program Reauthorization Act of 2009 2/4/2009 2/4/2009 2/1/2009 No
P.L. 111-4, The DTV Delay Act 2/9/2009 2/11/2009 2/5/2009 Yes and No
P.L. 111-5, The American Recovery and Reinvestment Act of 2009 2/16/2009 2/17/2009 2/13/2009 No
P.L. 111-6, Making further continuing appropriations for fiscal year 2009, and for other purposes 3/6/2009 3/6/2009 No n/a
P.L. 111-7, A bill to designate the facility of the United States Postal Service located at 2105 East Cook Street in Springfield, Illinois, as the “Colonel John H. Wilson, Jr. Post Office Building” 2/26/09 3/9/2009 No n/a
P.L. 111-8, The Omnibus Appropriations Act, 2009 3/11/2009 3/11/2009 3/6/2009 No
P.L. 111-9, To extend certain immigration programs 3/18/2009 3/20/2009 No n/a
P.L. 111-10, To provide for an additional temporary extension of programs under the Small Business Act and the Small Business Investment Act of 1958, and for other purposes 3/19/2009 3/20/2009 No n/a
P.L. 111-11, The Omnibus Public Land Management Act of 2009 3/30/2009 3/30/2009 3/30/2009 No
P.L. 111-12, The Federal Aviation Administration Extension Act of 2009 3/24/2009 3/30/2009 No n/a
P.L. 111-13, The Generations Invigorating Volunteerism and Education Act 4/20/2009 4/21/2009 No n/a
P.L. 111-14, To designate the United States courthouse under construction at 327 South Church Street, Rockford, Illinois, as the “Stanley J. Roszkowski United States Courthouse” 4/14/2009 4/23/2009 No n/a
P.L. 111-15, The Special Inspector General for the Troubled Asset Relief Program Act of 2009 4/14/2009 4/24/2009 No n/a
P.L. 111-16, The Statutory Time-Periods Technical Amendments Act of 2009 4/30/2009 5/7/2009 No n/a
P.L. 111-17, A joint resolution providing for the appointment of David M. Rubenstein as a citizen regent of the Board of Regents of the Smithsonian Institution 4/28/2009 5/7/2009 No n/a
P.L. 111-18, A bill to repeal section 10(f) of Public Law 93-531, commonly known as the “Bennett Freeze” 4/28/2009 5/8/2009 No n/a
P.L. 111-19, The Civil Rights History Project Act of 2009 4/30/2009 5/12/2009 No n/a
P.L. 111-20, The Protecting Incentives for the Adoption of Children with Special Needs Act of 2009 5/5/2009 5/15/2009 No n/a
P.L. 111-21, The FERA 5/19/2009 5/20/2009 No n/a
P.L. 111-22, The Helping Families Save Their Homes Act of 2009 5/20/2009 5/22/2009 No n/a
P.L. 111-23, The Weapon Systems Acquisition Reform Act of 2009 5/21/2009 5/22/2009 5/14/2009 No
P.L. 111-24, The Credit Cardholders’ Bill of Rights Act of 2009 5/20/2009 5/22/2009 5/14/2009 No
P.L. 111-25, The Ronald Reagan Centennial Commission Act 5/21/2009 6/2/2009 No n/a
P.L. 111-26, To designate the facility of the United States Postal Service located at 12877 Broad Street in Sparta, Georgia, as the “Yvonne Ingram-Ephraim Post Office Building” 6/9/2009 6/19/2009 No n/a
P.L. 111-27, To designate the facility of the United States Postal Service located at 300 East 3rd Street in Jamestown, New York, as the “Stan Lundine Post Office Building” 6/9/2009 6/19/2009 No n/a
P.L. 111-28, To designate the facility of the United States Postal Service located at 103 West Main Street in McLain, Mississippi, as the “Major Ed W. Freeman Post Office” 6/9/2009 6/19/2009 No n/a
P.L. 111-29, To designate the facility of the United States Postal Service located at 3245 Latta Road in Rochester, New York, as the “Brian K. Schramm Post Office Building” 6/9/2009 6/19/2009 No n/a
P.L. 111-30, The Antitrust Criminal Penalty Enhancement and Reform Act of 2004 Extension Act 6/19/2009 6/19/2009 No n/a
P.L. 111-31, The Family Smoking Prevention and Tobacco Control Act 6/16/2009 6/22/2009 No n/a
P.L. 111-32, The Supplemental Appropriations Act, 2009 6/19/2009 6/24/2009 No n/a
P.L. 111-33, The Native American Heritage Day Act of 2009 6/16/2009 6/26/2009 No n/a
P.L. 111-34, To designate the Federal building and United States courthouse located at 306 East Main Street in Elizabeth City, North Carolina, as the “J. Herbert W. Small Federal Building and United States Courthouse” 6/19/2009 6/30/2009 No n/a
P.L. 111-35, To designate the Federal building located at 799 United Nations Plaza in New York, New York, as the “Ronald H. Brown United States Mission to the United Nations Building” 6/19/2009 6/30/2009 No n/a
P.L. 111-36, The Webcaster Settlement Act of 2009 6/19/2009 6/30/2009 No n/a
P.L. 111-37, The Veterans’ Compensation Cost-of-Living Adjustment Act of 2009 6/25/2009 6/30/2009 No n/a
P.L. 111-38, A bill to provide additional personnel authorities for the Special Inspector General for Afghanistan Reconstruction 6/24/2009 6/30/2009 No n/a
P.L. 111-39, To make technical corrections to the Higher Education Act of 1965, and for other purposes 6/26/2009 7/1/2009 No n/a
P.L. 111-40, A bill to award a Congressional Gold Medal to the Women Airforce Service Pilots (“WASP”) 6/24/2009 7/1/2009 No n/a

This “Cyberwar” Is a Cybersnooze

The AP and other sources have been reporting on a “cyberattack” affecting South Korea and U.S. government Web sites, including the White House, Secret Service and Treasury Department.

Allegedly mounted by North Korea, this attack puts various “cyber” threats in perspective. Most Americans will probably not know about it, and the ones who do will learn of it by reading about it. Only a tiny percentage of people will notice the absence of the Web sites attacked. (An update to the story linked above notes that several agencies and entities “blunted” the attacks, as well-run Web sites will do.)

This is the face of “cyberwar,” which has little strategic value and little capacity to do real damage. This episode also underscores the fact that “cyberterrorism” cannot exist – because this kind of attack isn’t terrifying.

As I said in my recent testimony before the House Science Committee, it is important to secure web sites, data, and networks against all threats, but this can be done and is being done methodically and successfully – if imperfectly – by the distributed owners and controllers of all our nation’s “cyber” assets. Hyping threats like “cyberwar” and “cyberterror” is not helpful.

Cato Experts Live-Blog ABC News Health Care Special

Cato health care experts Michael D. Tanner and Michael F. Cannon provided live commentary Wednesday night for ABC’s “Prescription for America,” a special program from within the White House on Obama’s health care reform proposal.

You can watch the program, and follow along below.

For more, visit Healthcare.Cato.org.

Cato Health Care Experts Live-Blogging Tonight’s ABC News White House Special

Tonight at 10:00 PM EST, ABC News will broadcast a “special report from the White House” on President Obama’s plan to revamp the nation’s health care system. Cato scholars Michael D. Tanner and Michael F. Cannon will offer live commentary and analysis when the program begins.

Don’t miss this opportunity to hear another voice in the health care debate.

Sign up below:

 

For more on Cato’s research on health care, visit Healthcare.Cato.org

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“It’s a Lot Easier to Promise to Change Washington Than It Is to Actually Change It”

The New York Times has an interesting story on President Obama’s continuing failure to follow through on his “Sunlight Before Signing” promise. On the campaign trail, he said he would post bills online for five days before signing them. Two dozen bills now have his signature, and only one has been posted for five days before signing.

The article (and accompanying video) fixes on a couple of reasons why the president might be excused from carrying out the promise. One is the technical difficulty of managing potentially hundreds of thousands of comments. The promise did not include a promise to publish comments, though – much less to read them (though it would be politically astute to appear to do so). In my view, the difficulty of administering a public comment system – which was not part of the promise – does not excuse the failure to post the bills Congress presents to the president for five days before he signs them.

A second excuse is that posting bills online would be ineffectual. Ellen Miller of the Sunlight Foundation is quoted saying, “There isn’t anybody in this town who doesn’t know that commenting after a bill has been passed is meaningless.”

I have done my level-best to illustrate how a five-day hold at the White House would have good effects on reducing earmarks, parochial amendments, and other shenanigans – such as congressional approval of bonuses to AIG executives.

Miller’s preferred approach – placing a similar hold on bills before they leave Congress – would have a similar effect – but nothing dramatically more open. Just as under a presidential hold, members of Congress and Senators would be more reticent to introduce potentially controversial amendments. Just as under a presidential hold, they would carefully avoid a blossoming of debate about their pet projects at the end of the legislative process. A congressional hold would change the upstream behavior of the politicians – just like a presidential hold would.

A presidential hold and a congressional hold are both good ideas, and they are not mutually exclusive. The presidential hold has a key advantage: The president has already promised it – to the cheers of American voters.

The New York Times story reports a small step toward meeting the actual terms of President Obama’s pledge:

“In order to continue providing the American people more transparency in government, once it is clear that a bill will be coming to the president’s desk, the White House will post the bill online,” said Nick Shapiro, a White House spokesman. “This will give the American people a greater ability to review the bill, often many more than five days before the president signs it into law.”

If this means posting links to bills on the Thomas legislative system from Whitehouse.gov, this is something the White House has done sporadically, and it would increase transparency by a small margin if it were regularized. The administration should establish a uniform URL where bills are posted so that every American can easily find every bill the president signs. But, in terms of fulfilling President Obama’s promise, “posting a link from WhiteHouse.gov to THOMAS of a conference report that is expected to pass doesn’t cut it.”

I think this is grudging progress toward implementation of President Obama’s “Sunlight Before Signing” promise. In the video, the author of the Times article has the best line illustrating why the White House deserves modest congratulations for taking this step: “It’s a lot easier to promise to change Washington than it is to actually change it.”