Category: Spending Cuts

We’re All Neighbors Now

By , February 17, 2011 9:22 am

This almost needs no comment. The New York Times reports on the protests in Wisconsin over Governor Walker’s move to “sharply curtail the collective bargaining rights and slash benefits for most public sector workers in the state”:

The battle in Wisconsin, which some view as a precursor to similar fights in other states, was drawing attention around the country, including from Education Secretary Arne Duncan, who said he planned to talk to Mr. Walker by telephone on Thursday. “Where we’re fighting each other, where we’re divisive, where we’re demonizing or vilifying any group, including unions, I don’t think that helps us get where we need to go as a country,” Mr. Duncan told CNN on Thursday morning.

President Obama also weighed in during an interview Wednesday with a Wisconsin TV station, “I think it’s very important for us to understand that public employees, they’re our neighbors, they’re our friends. These are folks who are teachers and they’re firefighters and they’re social workers and they’re police officers.”

But, I guess, bankers and corporate executives are not.

There’s at Least one Black Man With Tricks Up His Sleeve

By , February 15, 2011 7:10 pm

Megan McCardle has something constructive to say about Obama’s budget. As I read it, I couldn’t help thinking of Herman Cain’s Tweet: “I told y’all I don’t have any tricks up my sleeve.” I’m not sure how many more President Obama has left after this budget.

Quien Es Mas Macho? The New York Times Takes a Stand

By , February 15, 2011 9:41 am

The New York Times editorial board opined on Obama’s new budget today. In the following paragraph, you can get it flavor of how they think it stacks up against the one proposed by House Republicans:

The questions are whether [the Obama budget’s] tough choices are also wise choices and whether it stands a chance in a Congress in which Republicans, who now dominate the House, are obsessed with making indiscriminate short-term cuts in programs they never liked anyway. The Republican cuts would eviscerate vital government functions while not having any lasting impact on the deficit. (emphasis supplied here and below)

Pay attention to that word vital as we proceed, but first, let’s allow the Times to give Obama a hall pass:

What Mr. Obama’s budget is most definitely not is a blueprint for dealing with the real long-term problems that feed the budget deficit: rising health care costs, an aging population and a refusal by lawmakers to face the inescapable need to raise taxes at some point. Rather, it defers those critical issues, in hopes, we assume, that both the economy and the political environment will improve in the future.

That’s a nice–and a fair–assumption, one you won’t see the Times granting those nasty Republicans.

For the most part, Mr. Obama has managed to cut spending while preserving important [read vital] government duties. That approach is in stark contrast to Congressional Republicans, who are determined to cut spending deeply, no matter the consequences.

Again, Obama gets a pass. Not so the Republicans. And let’s see what important government duties Obama preserves.

A case in point: the Obama budget’s main cut — $400 billion over 10 years — is the result of a five-year freeze in nonsecurity discretionary programs, a slice of the budget that contains programs that are central to the quality of American lives, including education, environment and financial regulation.

Got that? Obama’s main cut is not a cut at all. It’s a five-year freeze for Hell’s sake!

But the cuts are not haphazard. The budget boosts education spending by 11 percent over one year and retains the current maximum level of college Pell grants — up to $5,500 a year. To offset some of the costs, the budget would eliminate Pell grants for summer school and let interest accrue during school on federal loans for graduate students, rather than starting the interest meter after graduation.

Cuts and boosts spending within spitting distance of each other. This is rich. And then another hall pass: “To offset some of the costs.” Some? Compare that with what the Times dishes out to the Republicans: “Republicans are determined not to raise any taxes . . .” And Obama is? Remember, he “offset some of the costs” of his changes in Pell grants, not by raising taxes, but by diddling with summer school and student loan interest.

The laugh track continues:

[Republicans refuse to raise taxes] even though investing spending for the future and taming the deficit are impossible without more money.(correction my doing)

Okay, having slapped Republicans up side the head about their refusal to raise taxes, the Times writes–immediately after, and I do mean immediately,

The budget would also increase transportation spending by $242 billion over 10 years. It does not specifically call for an increased gas tax to cover the new costs, though it calls on Congress to come up with new revenues to offset the new spending.

This is a truly cynical editorial about a truly cynical budget. The Republicans refuse to raise taxes, while Obama boldly goes where no man has gone before and passes the buck to Congress? Oh the humanity!

Remember that word vital? Here’s a whiff of what it means:

Republicans want to eliminate forward-looking programs like high-speed rail.

In other words, vital means boondoggle. Amtrack is doing so well, we just have to have a faster version of it.

I have to go, so let’s jump to the end:

Real deficit reduction will require grappling with rising health care costs and an aging population, which means reforms in Medicare, Medicaid and Social Security, as well as tax increases to bring revenues in line with obligations.

Mr. Obama’s budget does not directly address those big issues, but doing so would require a negotiating partner, and Mr. Obama, at present, does not have one among the Republican leaders in Congress. His latest budget is a good starting point for a discussion — and a budget deal — but only if Republicans are willing participants in the process.

Okay, as if to help me prove my point, the Times editorial ends the fact that Obama hasn’t proposed any tax increases either, he hasn’t addressed the big issues–either. Yet he gets a pat on the back, and the Republicans get chided for not wanting to cross the aisle and stand foursquare on his side. Quien es mas macho? Why Obama, of course.

Or as Someone Who’s Not Spinning Like a Top Would Say

By , February 14, 2011 8:09 am

E.J. Dionne of The Washington Post writes,

For President Obama, the battle lines will be drawn on investments in – or, as Republicans would say, spending on – education, energy, infrastructure and innovation, thus E2I2.

The Republicans have it about right.

It’s Keynes v. Hayek

By , February 11, 2011 10:09 pm

Fed Watch – FOMC Statement

By , January 26, 2011 2:50 pm

Here it is

The two key statments:

To promote a stronger pace of economic recovery and to help ensure that inflation, over time, is at levels consistent with its mandate, the Committee decided today to continue expanding its holdings of securities as announced in November. In particular, the Committee is maintaining its existing policy of reinvesting principal payments from its securities holdings and intends to purchase $600 billion of longer-term Treasury securities by the end of the second quarter of 2011.

and

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels for the federal funds rate for an extended period.

All emphasis mine.

Fed Watch – FOMC

By , January 26, 2011 11:55 am

Today, I begin watching the Fed. The FOMC began its January meeting yesterday and ends today. According to Bloomberg,

The FOMC announcement for the January 25-26 FOMC policy meeting is expected to leave the fed funds target rate unchanged at a range of 0 to 0.25 percent. Market focus will be on any update on the current round of quantitative easing and if there are any upgrades on the economy.

The announcement should come later today. Then we’ll see how the consensus holds up.

What’s Your Political Philosophy?

By , November 15, 2010 4:22 pm

Apparently, I’m a Libertarian:

What about you?

How to Cut Spending? Get Specific!

By , November 3, 2010 12:01 pm

I agree with the Cato Institute:

We will not get federal spending under control unless we begin a national discussion about specific cuts. And we won’t get that discussion unless enough members of Congress start pushing for specific cuts.

I’ve created a page to keep track of that conversation online.

Let the conversation begin.

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