federal budget

Obama and Infrastructure

The President is continuing his push for the federal government to go deeper into debt in order to fund infrastructure projects. While nobody disputes that the country has infrastructure needs, the precarious nature of federal and state finances indicate that policymakers need to starting thinking outside the box. Specifically, policymakers should be looking to make it easier for the private sector to fund and operate infrastructure projects.

A Thousand Cuts

That’s the title of a recent paper from the liberal Center for American Progress, which attempts to demonstrate “what reducing the federal budget deficit through large spending cuts could really look like.”

The authors, Michael Ettlinger and Michael Linden, issue a challenge that I whole-heartedly embrace:

GOP’s Pledge to America

The House Republicans’ release of its “Pledge to America” has been met with criticism from across the ideological spectrum. While excoriation from the left was inevitable, those who were hoping that the GOP would set out a detailed agenda for limiting government were also not satisfied.

Senate Rejects Capping Fannie/Freddie Losses

Yesterday the Senate rejected an amendment by Senators McCain, Shelby and Gregg that would have capped the taxpayer losses on Fannie and Freddie at $200 billion each.  The amendment would have also brought Fannie and Freddie onto the Federal budget, forcing the government to admit what most of us already suspect: we’re on the hook for their bad behavior.  All Republicans, with the additions of Democrats Feingold and Bayh, voted for the failed amendment. 

Congress to Skip the Budget Process—-a Transparency Problem at the Very Least

You are required by law to file your taxes by the end of the day tomorrow, and you get penalized if you don’t. Meanwhile, Congress will not meet its April 15 requirement to pass a budget resolution. The budget resolution is the plan for FY 2011 revenue and spending that dictates the amounts in forthcoming annual spending bills.

It’s an understatement to say that skipping the annual budgeting process is a transparency problem. It’s a management problem, a spending problem, a leadership problem, a responsibility problem …

My Big Fat Greek Budget

Since we’re already depressed by the enactment of Obamacare, we may as well wallow in misery by looking at some long-term budget numbers. The chart below, which is based on the Congressional Budget Office’s long-run estimates, shows that federal government spending will climb to 45 percent of GDP if we believe CBO’s more optimistic “baseline” estimate. If we prefer the less optimistic “alternative” estimate, the burden of federal government spending will climb to 67 percent of economic output.

Fannie, Freddie, Peter, and Barney

Last week, after Rep. Barney Frank (D-MA) said that holders of Fannie Mae and Freddie Mac’s debt shouldn’t be expected to be treated the same as holders of U.S. government debt, the U.S. Treasury took the “unusual” step of reiterating its commitment to back Fannie and Freddie’s debt.

If ever there was case against allowing a few hundred men and women to micromanage the economy, this is it.

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