This Week in Government Failure

Over at Downsizing the Federal Government, we focused on the following issues this past week:

• Republicans and Democrats have come together on a “historic” budget deal that cuts federal spending by more than $2 trillion over 10 years. However, the budget deal doesn’t cut federal spending at all.
• Even if Congress holds to the debt deal’s spending caps — and even if the “deficit reduction” targets established in the bill are achieved — the federal government’s spending binge will continue.
• Debt deal to slow the economy? Nonsense: biggest stimulus, slowest recovery. Keynesianism isn’t working.
• Centrist and liberal columnists are lamenting the lack of tax increases in the debt deal. But the hollowness of the deal itself provides a good justification for Republicans to oppose all tax increases in such bipartisan deals.
• The FAA’s problems should be solved by privatization.
• What does the debt deal mean for military spending?

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