Category Archives: Fiscal Policy

Congress: Replace 1 Year Of Modest Cuts With 10 Years Of Miniscule Cuts And We’ll Call It Even

This is absurd.

Brad Plumer at WaPo recounts the 4 plans in play to stop the sequester. And it’s astounding. It’s made ever more clear to me that nobody in Washington is serious about cutting spending. Right now we’re 15 days away from the implementation of $85.3B in 2013 spending cuts. Oh, for the record, that’s roughly in the realm of 2 fucking percent of this year’s budget.

First, there are three Democrat plans; the Senate plan, the House plan, and the President’s plan. So what are the Democrats proposing? Small spending cuts and modest tax increases. Exactly what you’d expect. Both plans seem to take spending cuts out of farm subsidies, which tells me one thing: they know farm states are red states and they’re gonna punish them for it.

But what’s notable about those plans? They replace $85.3B of cuts this year with spending and taxation over 10 years. Talk about playing kick the can! In fact, both Congressional Democrat plans really do almost nothing to affect the 2013 deficit. They’ll gladly pay you Tuesday for a hamburger today.

Second, we’ve got the Republicans. They know they can’t touch entitlements. They absolutely refuse to take a penny out of defense. So what’s left? Cuts to a whole host of social programs that they know they can’t actually pass, so they get red meat for the base without actually having to cut a single thing.

And the President? Well, if we can’t solve the sequester, he’s not even talking about kicking the can out to next year, he’s talking about kicking it merely a few months:

“If Congress can’t act immediately on a bigger package, if they can’t get a bigger package done by the time the sequester is scheduled to go into effect,” Obama said in the White House briefing room, “then I believe that they should at least pass a smaller package of spending cuts and tax reforms that would delay the economically damaging effects of the sequester for a few more months.”

As I said last fall, maybe the best answer is to just let the sequester happen.

Dr. Ben Carson Speaks Truth to Power

Until yesterday, if someone asked me what I thought about Dr. Ben Cason, I would have had no idea who you were talking about. After listening to his speech (below) from the National Prayer Breakfast from a few days ago with President Obama just a few feet away, I thought this speech was too good not to share.

As an atheist, there were obviously some points I disagreed with. Theological disagreement notwithstanding, overall there was a great deal of wisdom in what he had to say about history, political correctness, personal responsibility, morality, education, healthcare, the national debt, and the tax code. There was easily more intelligent ideas being spoken here than last night’s State of the Union.

If you don’t watch any other part of this speech, start watching around the 18 minute mark where Dr. Carson talks about the immorality of class warfare the progressive tax code and watch the president’s face (spoiler alert: he doesn’t seem too amused). I honestly don’t know how this guy got in the room, much less had the opportunity to speak!

More Than One Class of Parasite

The welfare state is a problem in America, there’s no question about it. When you have a country were nearly 49 million people are dependent on food stamps as of this writing, that is a problem. We libertarians as well as conservatives lament the growing welfare state because of what it is doing to the economic health of this country and the negative incentives (i.e. the moral hazard) to discourage people from working when it’s easier to get a check from the government. That being said, I think we libertarians could do a better job with the messaging on this particular issue.

Today’s episode of the Neal Boortz show is a perfect example of what I’m referring to. Boortz’s personality is that of a curmudgeon. Over the years he has referred to himself as the “High Priest of the Church of the Painful Truth.” I usually enjoy his blunt, non-P.C. style but sometimes I think he goes a little overboard when he calls people who are on one type of welfare or another “parasites” regardless of their individual circumstances. I missed the first part of his show (which is normal) but I tuned in about the time a caller who said the only government assistance he was receiving was food stamps called in. He went on to explain that he worked 3 minimum wage jobs at about 120 hours a week to support his 5 kids (I think that was the right number). After explaining his circumstances, he asked Boortz: “Do you think that I am a parasite?” Boortz responded “yes.” Boortz went on to criticize the man for having children he couldn’t afford to support and told him that perhaps since he still couldn’t support his children on his three jobs that perhaps he should give them up.

Taking the caller’s word at face value that he works 120 hours a week, I have to disagree somewhat on Boortz’s characterization that the man is a parasite. I also think that telling someone who really is trying to support his children but still coming up short and supplementing his income with food stamps to give up his kids is an unreasonable suggestion. How much would it cost taxpayers if every person who struggled with supporting their children put their children in the foster care system or an orphanage? We hear all the time from conservatives – especially social conservatives* that the ideal situation for raising children is a household with a mother and a father. I have heard some social conservatives say that the reason the state shouldn’t recognize gay marriage or civil unions is that the purpose of marriage is procreation. They also argue for the child tax credit and favorable tax treatment for married couples to encourage more people to have families**.

I don’t know to what extent Boortz agrees with these notions as he doesn’t seem to talk about these issues much. I do think there is something to say about children growing up in a stable environment, however. I haven’t done much research at all about the foster care system but from what I understand, it’s far from ideal. How many children in the foster care system find themselves in the criminal justice system whether on probation or incarceration versus those who are raised by at least one loving biological parent? I don’t happen to know the answer but I suspect that there are more of the former than the latter. Again I ask, how much would this man giving up his children possibly cost the taxpayers? I suspect it would be more than whatever he is getting in food stamps.

To some degree***, this man is a parasite but certainly not to the extent some people I have met are. There are the single dads who have too many children to too many baby mamas who don’t take responsibility for their children and have no shame about going on the dole. There are also far too many single moms out there who have made some very bad choices who basically marry the government. If anything, the caller is probably receiving less government support because he is working so many hours. Slacking is rewarded while trying to better oneself is punished – this in of itself is a major part of the problem, I think.

While I agree with Boortz in principle that one man’s need does not mean he has a claim on another’s money, there are more classes of parasites I think are even more offensive than poor people on welfare. I am much more offended by the corporate welfare and the welfare for the rich. I’m not talking about tax cuts or anything like that but subsidies. I’m talking about billionaire sports franchise owners who have their stadiums built by taxpayer dollars so they can pay millions more to their millionaire athletes. I’m talking about TARP, the auto bailouts, QE 1, QE2, QE 3 and other policies the Federal Reserve has used to make our dollars worth less and less every day. I’m talking about corporate lobbyists who write regulations in their favor to make it difficult for competitors to enter the market place. I’m talking about lawyers.

Yes there are more than one class of parasite bringing our economy down. When it comes to going after those who are using taxpayer money for their benefit, I think it’s high time we libertarians say women and children last.

Point of Clarification: It wasn’t fair to lump all lawyers together as parasites. Lawyers are necessary in our system to take out some of the parasites I mentioned above (the white blood cells, if you will). Like any profession, there are bad apples. When I think of parasitic lawyers, I think of the likes of John Edwards and the ambulance chasers on late night TV. There are plenty of heroic lawyers who truly fight for liberty and justice such as those at the Institute for Justice and The Innocence Project. I’m sure we can count fellow Liberty Papers contributor Doug Mataconis among them as well (though I know nothing about his work as an attorney, he’s a good person and I’m sure that’s reflected in his profession as well).

» Read more

Thoughts on the fiscal cliff

Just some quick thoughts on the fiscal cliff…


It’s frustrating that no one is discussing the fact the the Obama plan for deficit reduction actually increases spending with the inclusion of a stimulus package in 2013. Raising taxes and borrowing more money for more stimulus not debt reduction. It’s just more debt.

The political failure from Republican leaders in the House is staggering. Republicans should have been hammering Obama’s plan so damn hard even the media had to listen. The ad writes itself: “Obama’s plan is tax now, borrow now, spend now. Is that a balanced approach?” It’s a compelling message, a potent political weapon, and it’s true. Had Boehner been looking for any of those, he would have figured this out. Unfortunately for the American people, Boehner felt it was more important to compromise with Obama.

At this point, if I were Boehner, I would actually give into Obama on tax increases but insist that tax increases be met dollar-for-dollar with spending cuts. If suddenly there were no conflict about tax rates but there was no deal, it would force people (even reporters) to ask what the remaining barriers were. This would allow Boehner to shift the conversation where it needs to be… on spending. (Yes, I know this plan is insane. However, when you’re negotiating someone who’s view of compromise is “heads, I win; tails, I win”, there is no such thing as sanity.)


From the WaPo article linked above:

Boehner’s latest offer calls for $2 trillion in savings over the next decade, half from higher taxes and half from cuts to the fast-growing health and retirement programs that are the federal government’s largest expense. All told, Obama’s latest offer calls for about $2.15 trillion in savings.

Taking more money from the citizens is “savings”? Who knew bank robbers were being so darn responsible, saving all that money?

The accurate description of Boehner’s plan would be $1.2 trillion in savings and $800 billion in taxes. Obama’s plan would accurately be described as $1.5 trillion in new taxes, $80 billion in new spending in 2013, and $570 billion in cuts thereafter. The truth, of course, would disrupt the narrative that the President’s plan is balanced while Boehner’s is not. Therefore, spending cuts and taxes are all called savings.

In other news, the English Language filed assault charges against the Washington Post after reading the article. (If only.)


The conventional wisdom is that going over the cliff will be an economic nightmare. But what if it isn’t? There are a some positives in going over the fiscal cliff:

  1. Government spending will go down.
  2. The debt limit will not need to be increased.
  3. Americans will actually be impacted by the cost of government.

Might these mitigate the harms of going over the cliff? In the short term, I don’t think so. The financial hit taken by Americans coupled with the continued economic uncertainty of a government groping for a solution will cause a lot of pain.

In the long term, the pain might (notice I said “might”) produce a healthy skepticism of government spending among the citizens. A 2011 Gallup poll already indicated that the public overwhelmingly favors spending cuts in the abstract. However, they tend not to favor cutting things that benefit them directly. Since different people benefit from different programs, this produces an unwillingness for politicians in either party to cut spending. If people suddenly become concerned with the economic pain of the fiscal cliff, they just might be receptive to a trade-off of reduced government benefits for decreased taxes and increased economic stability.

Of course, there has to be support from the GOP in Washington for this, since it certainly won’t come from the Democrats. Well, there goes that idea…


Take these thoughts for what they are… frustrations and wild speculations about the fiscal cliff. Hopefully they start a good discussion on the subject. Maybe they’ll even open a few eyes to facets of the situation left unreported by the mainstream media.

Let me steal adapt a song title from Avenue Q for a closing thought: There is life outside of the Beltway. This country has survived a hell of a lot and it still can. The will of the American people to be successful and prosperous has survived recessions and depressions and governments more suffocating than what we have today. We can do it again, even if we go over the cliff.

1 2 3 4 5 6 26