Topic: General

The Hyperactive Federal Government

The problem with the federal government is not just its vast size but its increasing scope. It has expanded into many areas that should be left to state and local governments, businesses, charities, and individuals. The federal expansion is sucking the life out of the private sector and creating a top-down bureaucratic society.

Many people in Washington seem to think that nothing would ever get done without the help of Uncle Sam. They seem to have no idea that businesses invest, towns and cities grow, people help people, and problems are solved every day in billions of ways across our nation without guidance from central government experts.

Take a look at the new “Rural Development Progress Report” from the U.S. Department of Agriculture (USDA). Rural programs are just $6 billion out of the $150 billion USDA budget, which in turn is just a small sliver of the $4 trillion federal budget. Yet this relatively small USDA division has its subsidy tentacles into everything, as the following giveaways from the 2015 Progress Report show:

5 Things ACA Supporters Don’t Want You To Know About UnitedHealth’s Withdrawal From ObamaCare

UnitedHealth’s enrollment projections provide evidence that healthy people consider Obamacare a bad deal. (AP Photo/Jim Mone, File)

UnitedHealth is withdrawing from most of the 34 ObamaCare Exchanges in which it currently sells, citing losses of $650 million in 2016. A recent Kaiser Family Foundation report indicates UnitedHealth’s departure will leave consumers on Oklahoma’s Exchange with only one choice of insurance carriers. Were UnitedHealth to exit all 34 states, the share of counties with only one or two carriers on the Exchange would rise from 36% to 52%, while the share of enrollees with only one or two carriers from which to choose would nearly double from 15% to 29%. 

The Obama administration dismissed the news as unimportant. A spokesman professed “full confidence, based on data, that the marketplaces will continue to thrive for years ahead.” Like what, two years? Another assured there is “absolutely not” any chance, whatsoever, that the Exchanges will collapse.

ObamaCare hasn’t yet collapsed in a ball of flames. But UnitedHealth’s withdrawal from ObamaCare’s Exchanges is more ominous than the administration wants you to know.

Five Graphs Celebrating Women’s Progress

Harriet Tubman’s forthcoming placement on the U.S. twenty dollar bill is being hailed as a symbolic win for women. Tubman certainly deserves the honor, and Cato’s Doug Bandow called for putting Tubman on “the twenty” a year ago. In celebration of the soon-to-be-redesigned twenty dollar bill, here are 5 graphs showcasing the incredible progress that women have made in the realms of work, education, health, etc.

1. The gender wage gap, which is largely the result of divergent career choices between men and women rather than overt sexism, is narrowing in the United States and in other developed countries. Part of this trend may be explained by more women entering highly paid fields previously dominated by men. For example, there are more women inventors and researchers in developed countries.label 

2. Around the world, girls in their teens have fewer children and are more likely to complete secondary education. As a smaller share of teenaged girls become mothers, many are better able to pursue education. The gender gap in youth literacyprimary school completion, and secondary school completion are all shrinking, even in many poor areas. Today, there are actually more women than men pursuing tertiary education and earning college degrees.label  

3. In the United States, domestic violence against women has fallen considerably since the 1990s. And the very worst kind of domestic violence—homicide of an intimate partner—has also become rarer in the United States, both for male and female victims. Police also recorded fourteen thousand fewer cases of rape in the United States in 2013 than in 2003—in spite of a population increase. In fact, both rapes and sexual assaults against women have declined significantly in the United States since the 1990s. Evolving attitudes about the acceptability of violence against women may be partially to thank.

Topics:

Largest Federal Government Agencies

We’ve updated the charting tool at www.downsizinggovernment.org/charts with the latest data. You can plot spending on hundreds of federal agencies and programs in constant, or inflation-adjusted, dollars. The charts cover 1970 to 2016.

Which are the largest federal government agencies, and how much have they grown? The following series of seven charts captured from the charting tool shows the 21 largest agencies in order by size.

The first chart shows that Defense, Health and Human Services, and the Social Security Administration used to vie for top spot as the largest agency. But Defense is now being left in the dust, as the latter two entitlement-dispensing agencies gobble up ever more tax dollars.

On Vergara: Stop Making Parents and Children Wards of the State

I am not a lawyer, and I’m certainly not an expert on California law, but yesterday’s state appeals court ruling in the much-discussed Vergara v. California teacher tenure case seems plausible. While Golden State statutes make it very hard to remove bad teachers, and may lead to the worst teachers being disproportionately assigned to schools serving low-income kids, district administrators could curb that if they really, really wanted to. It would just require very expensive, convoluted dismissal procedures be followed for each unsatisfactory educator. So technically, the law may not violate California’s constitution. But to defend it, in reality, is to defend a system heavily slanted against low-income students.

Vergara has spawned similar cases in other states, and I would guess there is a good chance similar rulings will come down the pike in those places. But there is probably also a good chance of tenure laws being overturned. It doesn’t strike me that, from a legal perspective, either side has a clearly superior case. But again, I am not a lawyer.

What this once again screams is that public policy needs to move away from an education system in which parents are dependent on politicians or courts to protect their children. They need money to be attached to kids and to have the ability to take their children out of schools they do not like and put them into other institutions. And there should be no blanket state seniority or teacher evaluation rules. Educators should be free to get together and set up schools with whatever policies they want, and whether or not those schools survive or those policies are maintained should depend on their ability to attract enough paying customers with the services they produce.

We need to stop making parents and children wards of the state, and instead give them real power.

Balancing the Federal Budget

Donald Trump says, “we’ve got to start balancing budgets,” and promises that he is “going to cut spending big league.” Trump provides few specifics, but his impulse is certainly commendable.

Ted Cruz offers a much more detailed plan, which includes abolishing four cabinet departments and a couple dozen agencies and programs. The presidential candidate is right that the “current and projected rates of government growth are unsustainable, irresponsible, and constitutionally indefensible.”

Large spending cuts should be on the agenda when the next president enters office in 2017. Spending cuts would spur economic growth by shifting resources from lower-valued government activities to higher-valued private ones. Cuts would expand freedom by giving people more control over their lives and reducing the regulations that come with spending programs.

What should the next president cut? I have updated a plan at DownsizingGovernment to cut dozens of agencies and programs across the budget. I’ve included cuts to entitlements, business subsidies, aid to the states, and other items. The cuts would not only balance the budget and begin reducing the government’s massive debt, but they would also enhance our civil liberties by dispersing power from Washington.

See the new spending cut plan here.

Political Parties Belong to Their Members

Principled Republicans have been dismayed by the way this primary season has gone, rightly believing that their party has been hijacked by people having little or no connection with the party or its principles as articulated over the years in party platforms. In this morning’s Wall Street Journal, Kimberley Strassel has a long interview with former Cato board member Eric O’Keefe, head of the Wisconsin Club for Growth, who puts his finger on the heart of the problem.

Pointing to “the party’s constitutional right to operate as a wholly private, autonomous political actor,” and looking ahead to the convention, O’Keefe asks, “Why should Republicans bow down to the results of state-mandated open primaries that allow liberal and independent voters to bum-rush what is supposed to be a private poll?” “There’s nothing that special or even good about the government-run primary process,” he adds, and this year’s process is Exhibit A. While the media focus on the anger in the country—which surely there is, and for good reason—still, no one can tell how much mischief has been done through cross-over, sometimes strategic voting in state-mandated open primaries. When that happens, a party—a private organization, not contemplated by the Constitution’s Framers—loses control of its message and its purpose: to put forward in the general election the candidates that best represent the views of its members.

The hijacking of the primary process is only part of the problem, of course. Campaign finance restrictions, about which O’Keefe has had bitter experience in Wisconsin in the last few years, are an equal or even greater burden on a party’s ability to conduct its affairs and get its message out, but that’s a subject for another day. For the present, O’Keefe is looking ahead to the July convention:

The delegates have been going to conventions for years and treating them like Super Bowl parties because there was nothing else to do. But this year they have the opportunity to practice a great national tradition, to exercise their legal, historical right to defeat a man who opposes most of what they believe in, and instead nominate a candidate who represents them.

If they succeed, and succeed in November as well, perhaps the first order of business should be to work with the states toward restoring the principle that political parties are private entities, not extensions of the government, and how they run their affairs are for their members alone to decide.