Topic: Government and Politics

Can We Cut Government Spending If They Have Less Work?

The U.S. Postal Service has far less mail to carry, but they’re still not quite ready to cut their massive workforce.

Never before has the U.S. Postal Service laid off workers. Now, it’s a real possibility.

“For the first time in history, that is being considered,” said Gerald McKiernan, a USPS spokesman.

Already, the Postal Service is not hiring because it simply doesn’t move as much mail as it once did. E-mail has taken an increasing amount of its business. McKiernan says mail volume dropped 11 percent in fiscal 2008, which ended Tuesday. That resulted in the service spending $2.3 billion more than it took in.

The workload is down 11 percent, but they’re not yet ready to lay anybody off? That’s government at work. Or non-work.

National Debt Soars under Bush

NPR’s “Studio 360” ran a segment Saturday on conservative folk music of the ’60s. Yes, it existed, though it seems to have been largely parodies of lefty folk songs. One of the clips included was a 1964 tune from the Goldwaters: “Oh, what have you done, left wing, left wing? Oh, what have you done for our country? Well, we’ve raised the national debt, Yeah, it’s going higher yet!”

So it must be a great disappointment to Goldwater Republicans to discover this story that got almost no notice this week:

With no fanfare and little notice, the national debt has grown by more than $4 trillion during George W. Bush’s presidency.

It’s the biggest increase under any president in U.S history.

On the day President Bush took office, the national debt stood at $5.727 trillion. The latest number from the Treasury Department shows the national debt now stands at more than $9.849 trillion. That’s a 71.9 percent increase on Mr. Bush’s watch.

The bailout plan now pending in Congress could add hundreds of billions of dollars to the national debt – though President Bush said this morning he expects that over time, “much if not all” of the bailout money “will be paid back.”

But the government is taking no chances. Buried deep in the hundred pages of bailout legislation is a provision that would raise the statutory ceiling on the national debt to $11.315 trillion. It’ll be the 7th time the debt limit has been raised during this administration.

Which might be why the former lead singer of the Goldwaters says he would describe himself “as a Libertarian today.”

Joe Biden’s Health Care Whopper

…is the title of my oped in today’s New York Daily News.  It seems that I am of the opinion that when it comes to Sen. John McCain’s proposed health-insurance tax credit, Sen. Joe Biden (D-DE) doesn’t know what he’s talking about.  An excerpt:

…the most important part of McCain’s tax credit is something that Biden still doesn’t get: McCain would replace the current tax break with not one tax cut, but two…

…over the next 10 years McCain’s tax credit would let workers control $7 trillion of their own earnings that they otherwise would not control. This effective $7 trillion tax cut completely swamps the $3.6 trillion tax increase Barack Obama advisers claim would result from McCain’s tax credits not growing as rapidly as the current tax “break.”

The Obama-Biden campaign seems determined to deny the reality of McCain’s tax-credit proposal. Perhaps that’s because they would prefer to let the government control that $9,000 you’ve got coming to you.

It’s as full-throated a defense of McCain’s tax credit as you’ll find from someone who doesn’t even like the proposal.  Read the whole thing here.

Hot Air in the Senate Bailout

What does global warming have to do with the liquidity “crisis?” Nothing!  But not according to the Senate, whose bill includes a provision, Section 117,  directing the National Academy of Sciences to “undertake a comprehensive review of the Internal Revenue Code of 1986 to identify the types of and specific tax provisions that have the largest effect on carbon and other greenhouse gas emissions and to estimate the magnitude of those effects.”  For this, The National Academy  is appropriated $1.5 million.

In other words, somehow the government’s purchase of bad loans is related to global warming? This is a naked attempt by environmental extremists to use people’s fears of financial collapse as an excuse to ultimately skew the tax code in such a way that it makes energy even more expensive. Some bailout! 

Bloomberg’s Banana Republic

Michael Bloomberg has decided to run for an additional term as mayor of New York. He will do so despite a law limiting mayors to two terms in New York.

Here’s some history. The voters twice endorsed the term limits law in 1993 and 1996. In 1993, the law passed by a margin of 59 percent to 41 percent. In 1996, the City Council tried to change the law to extend term from 8 to 12 years. The initiative making that change lost.

Of course, elected officials predicted disaster. Some agreed then but not now. John Mollenkopf, a well-known political scientist at the City University of New York said: “My initial reaction to the term limits was negative, but the experience of how they have worked has changed my mind. On balance, I think this feature of government does create openings for fresh thinking and new leadership.”

Bloomberg does not plan to put the change in term limits before the voters. Instead, he will try to get the City Council to extend his term. A New York Times survey of City Council members in early September found that a majority might support changing the term limits law. Perhaps that’s not surprising: two thirds of the City Council will be turned out of office in 2009 under the current law. If the mayor’s term can be extended, it will be easier to change the law for City Council members.

New Yorkers are not rolling over for Bloomberg. Gene Russianoff, a spokesman for the New York Public Interest Research Group, said of Bloomberg’s power grab: “Sadly, the move is worthy of ‘democracy’ in a banana republic.” Susan Lerner, executive director of Common Cause/NY, called the mayor’s stance “profoundly undemocratic and deeply disquieting.” Even Establishment types are opposing him, according to the New York Times.

Before his ambition got the best of him, Bloomberg himself “called for the need for restraints on elected leaders, dismissed the notion that anyone is indispensable, and once called an effort to revise the limits ‘disgusting.’”

Let’s see if New Yorkers agree with the mayor.

Treasury Can Only Spend $50 Billion Per Month

So why give them $700 billion?

Representative Spencer Bachus (R-AL) is before the House Rules Committee arguing that the Treasury Department can’t even use all of the $700 billion that the bailout legislation would authorize. Congress can allow Treasury some of the money, take a look later at a couple of months of the program, and see how well it’s being used.

His colleagues are beating him up for it, but it makes simple sense. The right answer is not to bail out Wall Street at all - and for heaven’s sake do away with the government-sponsored enterprises that got us here - but a compromiser would let the program run for a few months, with the new Congress in January taking a look at how it’s working.