Over at Downsizing Government, we focused on the following issues this week:
- The Washington Post argues that both tax hikes and spending cuts will be needed to fix the government’s budget problem, but the Post’s conclusion is based on faulty one‐sided accounting, only considering the recipients of government largesse.
- Federal hiring of the best and brightest imposes an “opportunity cost” on the economy by drawing talented people away from higher‐valued activities in the private sector.
- Republicans were elected, in part, to help put the private sector back in the economic driver’s seat. To do so, Republicans need to be much more ambitious than trimming just $100 billion off of the president’s three‐year $853 billion spending increase.
- The confused U.S. Department of Agriculture spends taxpayer money subsidizing fatty foods while at the same time setting nutritional guidelines with the purported aim of getting Americans to eat healthier.
- Downsizing the Department of Defense is up.
- The good and the bad in the draft report released by the co‐chairs of President Obama’s National Commission on Fiscal Responsibility and Reform.