Category Archives: spending out of control

Dear Senator Pryor, here are some spending cut suggestions (“Thirsty Thursday”, Open letter to Senator Pryor)

___________________

Senator Pryor pictured below:

Why do I keep writing and emailing Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions herehereherehere, hereherehereherehere, herehereherehereherehereherehereherehere,  here, and  here, and they all were emailed to him. In fact, I have written 13 posts pointing out reasons why I believe Senator Pryor’s re-election attempt will be unsuccessful. HERE I GO AGAIN WITH ANOTHER EMAIL I JUST SENT TO SENATOR PRYOR!!!

Dear Senator Pryor,

Why not pass the Balanced  Budget amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion).

On my blog www.thedailyhatch.org . I took you at your word and sent you over 100 emails with specific spending cut ideas. (Actually there were over 160 emails with specific spending cut suggestions.) However, I did not see any of them in the recent debt deal that Congress adopted although you did respond to me several times. Now I am trying another approach. Every week from now on I will send you an email explaining different reasons why we need the Balanced Budget Amendment. It will appear on my blog on “Thirsty Thursday” because the government is always thirsty for more money to spend. Today I actually have included a great article below from the Heritage Foundation concerning an area of our federal budget that needs to be cut down to size. The funny thing about the Sequester and the 2.4% of cuts in future increases is that President Obama set these up and then he acted like the sky was falling in as the cartoons indicate in the newspapers.

IF YOU TRULY WANT TO CUT THE BUDGET AND BALANCE THE BUDGET THEN SUBMIT THESE POTENTIAL BUDGET CUTS PRESENTED BELOW!!

___________

Shouldn’t we cut subsidy programs that are exploding the debt?

July 3, 2014 2:02PM

Independence in 1776; Dependence in 2014

Since the 1960s, the Catalog of Federal Domestic Assistance (CFDA) has provided a list of all federal subsidy programs. That includes subsidies to individuals, businesses, nonprofit groups, and state and local governments. The CFDA includes subsidies for farmers, retirees, school lunches, rural utilities, the energy industry, rental housing, public broadcasting, job training, foreign aid, urban transit, and much more.

The chart below shows that the number of federal subsidy programs has almost doubled since 1990, reaching 2,282 today. The genesis of the CFDA was the explosion of hand-out programs under President Lyndon Johnson. Members of Congress needed a handy guide to inform their constituents about all the new freebies.

The growth in subsidies may be good for the politicians, but it is terribly corrosive for American society. Each subsidy program costs money and creates economic distortions. Each program generates a bureaucracy, spawns lobby groups, and encourages more people to demand further benefits from the government.

Individuals, businesses, and nonprofit groups that become hooked on subsidies essentially become tools of the state. They have less incentive to innovate, and they shy away from criticizing the hand that feeds them. Government subsidies are like an addictive drug, undermining American traditions of individual reliance, voluntary charity, and entrepreneurialism.

The rise in the size and scope of federal subsidies means that Americans are steadily losing their independence. That is something sobering to think about on July 4.

Which subsidies should we cut? We should start with these.

___________

The Balanced Budget Amendment is the only thing I can think of that would force Washington to cut spending. We have only a handful of balanced budgets in the last 60 years, so obviously what we are doing is not working. We are passing along this debt to the next generation. YOUR APPROACH HAS BEEN TO REJECT THE BALANCED BUDGET “BECAUSE WE SHOULD CUT THE BUDGET OURSELF,” WELL THEN HERE IS YOUR CHANCE!!!! SUBMIT THESE CUTS!!!!

Thank you for this opportunity to share my ideas with you.

Sincerely,

Everette Hatcher, everettehatcher@gmail.com  www.thedailyhatch.org, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733

Related posts:

A suggestion to cut some wasteful spending out of the government Part 6 (includes editorial cartoon)

Funding Government by the Minute Published on Mar 28, 2012 At the rate the federal government spends, it runs out of money on July 31. What programs should be cut to balance the budget and fund the government for the remaining five months of the year? Cutting NASA might buy two days; cutting the Navy […]

A suggestion to cut some wasteful spending out of the government Part 5 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 4 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

A suggestion to cut some wasteful spending out of the government Part 3 (includes editorial cartoon)

What Can We Cut to Balance the Budget Published on Oct 16, 2012 Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) […]

A suggestion to cut some wasteful spending out of the government Part 2 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 1 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

Wasteful spending again from Washington

I have been emailing Senator Mark Pryor over and over again about places to cut spending out of our federal government and I will email him about this too. Great Moments in Government Waste March 25, 2013 by Dan Mitchell Taxpayers all across America send lots of money to Washington, DC, in part because we’re supposed […]

Lots of wasteful spending by federal government

I wish the federal government would go back to spending less than 5% of GDP like they did the first 150 years of our country’s history. We could cut down on a lot of wasteful spending if we did that. Morning Bell: The Governing Class and Us Mike Brownfield April 19, 2012 at 8:57 am […]

We need to stop wasteful government spending by privatizing the post office!!

We need to stop wasteful government spending by privatizing the post office!! Postal Service Won’t Shut Down but Will Default on Its Debt James Gattuso October 1, 2013 at 9:30 am Newscom The U.S. Postal Service (USPS) defaulted on its debt last night. No, it has nothing to do with the partial shutdown of the […]

We got to cut spending because real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014!!!

____________ We got to cut spending because real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014!!! July 2, 2014 11:56AM Federal Highway Spending By Chris Edwards Share The federal Highway Trust Fund (HTF) is running out of money. Congress will likely […]

Dear Senator Pryor, here are some spending cut suggestions (“Thirsty Thursday”, Open letter to Senator Pryor)

_____________

Senator Pryor pictured below:

Why do I keep writing and emailing Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions herehereherehere, hereherehereherehere, herehereherehereherehereherehereherehere,  here, and  here, and they all were emailed to him. In fact, I have written 13 posts pointing out reasons why I believe Senator Pryor’s re-election attempt will be unsuccessful. HERE I GO AGAIN WITH ANOTHER EMAIL I JUST SENT TO SENATOR PRYOR!!!

Dear Senator Pryor,

Why not pass the Balanced  Budget amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion).

On my blog www.thedailyhatch.org . I took you at your word and sent you over 100 emails with specific spending cut ideas. (Actually there were over 160 emails with specific spending cut suggestions.) However, I did not see any of them in the recent debt deal that Congress adopted although you did respond to me several times. Now I am trying another approach. Every week from now on I will send you an email explaining different reasons why we need the Balanced Budget Amendment. It will appear on my blog on “Thirsty Thursday” because the government is always thirsty for more money to spend. Today I actually have included a great article below from the Heritage Foundation concerning an area of our federal budget that needs to be cut down to size. The funny thing about the Sequester and the 2.4% of cuts in future increases is that President Obama set these up and then he acted like the sky was falling in as the cartoons indicate in the newspapers.

IF YOU TRULY WANT TO CUT THE BUDGET AND BALANCE THE BUDGET THEN SUBMIT THESE POTENTIAL BUDGET CUTS PRESENTED BELOW!!

___________

Obamacare increased government spending by expanding Medicaid and big subsidies for private insurance and it will bankrupt country eventually!!!

Obamacare resulted in big increases in the fiscal burden of government (ironically, it would be even worse if Obama hadn’t unilaterally suspended parts of the law).

The legislation increased government spending, mostly for expanded Medicaid and big subsidies for private insurance.

There were also several tax hikes, with targeted levies on medical device makers and tanning beds, as well as some soak-the-rich taxes on upper-income taxpayers.

These various policies are bad news for economic performance, but the damage of Obamacare goes well beyond these provisions.

Writing for Real Clear Markets, Professor Casey Mulligan of the University of Chicago explains that Obamacare contains huge implicit tax hikes on work and other forms of productive behavior.

…can we begin to take seriously the idea that the fiscal policies and regulations hidden in the Affordable Care Act are shrinking our economy? …Politicians and journalists use the term tax more narrowly than economists do, but the economic definition is needed to understand the economic effects of the ACA. …Withholding benefits from people who work or earn is hardly different than telling them to pay a tax. For this reason, economists refer to benefits withheld as “implicit taxes.” What really matters for labor market performance is the reward to working inclusive of implicit taxes, and not the amount of revenue delivered to the government treasury… The ACA…is full of implicit taxes. Many of them have remained hidden in the “fog of controversy” surrounding the law and their effects excluded from economic analyses of it.

In other words, his basic message is that the government reduces incentives to be more productive and earn more money when it provides handouts that are based on people earning less money.

Indeed, click here to see a remarkable chart showing how redistribution programs discourage work.

And speaking of charts, here’s one from Professor Mulligan’s article, and it shows the nation’s largest tax hikes based on what happened to the marginal tax rate on working.

Wow. No wonder we’re suffering from a very anemic recovery.

Professor Mulligan elaborates.

During a period that included more than a dozen tax increases, the ACA is arguably the largest as a single piece of legislation, adding about six percentage points to the marginal tax rate faced, on average, by workers in the economy. The only way to cite larger marginal tax increases would be to combine multiple coincident laws, such as the Revenue Acts of 1950 and 1951 and the new payroll tax rate that went into effect in 1950. Even with these adjustments, the ACA is still the third largest marginal tax rate hike during the seventy years. …Let’s not be surprised that, as we implement a new law that taxes jobs and incomes, we are ending up with fewer jobs and less income.

By the way, other academics also have found that Obamacare will lure many people out of the workforce and into government dependency.

The White House actually wants us to believe this is a good thing, as humorously depicted by this Glenn McCoy cartoon.

But rational people understand that our economic output is a function of how much labor and capital are being productively utilized.

In other words, Obamacare is a mess. It’s hurting the economy and should be repealed as the first step in a long journey back to market-based healthcare.

P.S. Mulligan’s chart also re-confirms that unemployment benefits increase unemployment. Heck, that’s such a simple and obvious concept that it’s easily explained in this Wizard-of-Id parody and this Michael Ramirez cartoon.

______________

The Balanced Budget Amendment is the only thing I can think of that would force Washington to cut spending. We have only a handful of balanced budgets in the last 60 years, so obviously what we are doing is not working. We are passing along this debt to the next generation. YOUR APPROACH HAS BEEN TO REJECT THE BALANCED BUDGET “BECAUSE WE SHOULD CUT THE BUDGET OURSELF,” WELL THEN HERE IS YOUR CHANCE!!!! SUBMIT THESE CUTS!!!!

Thank you for this opportunity to share my ideas with you.

Sincerely,

Everette Hatcher, everettehatcher@gmail.com  www.thedailyhatch.org, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733

 

Related posts:

A suggestion to cut some wasteful spending out of the government Part 6 (includes editorial cartoon)

Funding Government by the Minute Published on Mar 28, 2012 At the rate the federal government spends, it runs out of money on July 31. What programs should be cut to balance the budget and fund the government for the remaining five months of the year? Cutting NASA might buy two days; cutting the Navy […]

A suggestion to cut some wasteful spending out of the government Part 5 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 4 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

A suggestion to cut some wasteful spending out of the government Part 3 (includes editorial cartoon)

What Can We Cut to Balance the Budget Published on Oct 16, 2012 Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) […]

A suggestion to cut some wasteful spending out of the government Part 2 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 1 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

Wasteful spending again from Washington

I have been emailing Senator Mark Pryor over and over again about places to cut spending out of our federal government and I will email him about this too. Great Moments in Government Waste March 25, 2013 by Dan Mitchell Taxpayers all across America send lots of money to Washington, DC, in part because we’re supposed […]

Lots of wasteful spending by federal government

I wish the federal government would go back to spending less than 5% of GDP like they did the first 150 years of our country’s history. We could cut down on a lot of wasteful spending if we did that. Morning Bell: The Governing Class and Us Mike Brownfield April 19, 2012 at 8:57 am […]

We need to stop wasteful government spending by privatizing the post office!!

We need to stop wasteful government spending by privatizing the post office!! Postal Service Won’t Shut Down but Will Default on Its Debt James Gattuso October 1, 2013 at 9:30 am Newscom The U.S. Postal Service (USPS) defaulted on its debt last night. No, it has nothing to do with the partial shutdown of the […]

We got to cut spending because real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014!!!

____________ We got to cut spending because real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014!!! July 2, 2014 11:56AM Federal Highway Spending By Chris Edwards Share The federal Highway Trust Fund (HTF) is running out of money. Congress will likely […]

 

Dear Senator Pryor, here are some spending cut suggestions (“Thirsty Thursday”, Open letter to Senator Pryor)

_______________

Senator Pryor pictured below:

Why do I keep writing and emailing Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions herehereherehere, hereherehereherehere, herehereherehereherehereherehereherehere,  here, and  here, and they all were emailed to him. In fact, I have written 13 posts pointing out reasons why I believe Senator Pryor’s re-election attempt will be unsuccessful. HERE I GO AGAIN WITH ANOTHER EMAIL I JUST SENT TO SENATOR PRYOR!!!

Dear Senator Pryor,

Why not pass the Balanced  Budget amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion).

On my blog www.thedailyhatch.org . I took you at your word and sent you over 100 emails with specific spending cut ideas. (Actually there were over 160 emails with specific spending cut suggestions.) However, I did not see any of them in the recent debt deal that Congress adopted although you did respond to me several times. Now I am trying another approach. Every week from now on I will send you an email explaining different reasons why we need the Balanced Budget Amendment. It will appear on my blog on “Thirsty Thursday” because the government is always thirsty for more money to spend. Today I actually have included a great article below from the Heritage Foundation concerning an area of our federal budget that needs to be cut down to size. The funny thing about the Sequester and the 2.4% of cuts in future increases is that President Obama set these up and then he acted like the sky was falling in as the cartoons indicate in the newspapers.

IF YOU TRULY WANT TO CUT THE BUDGET AND BALANCE THE BUDGET THEN SUBMIT THESE POTENTIAL BUDGET CUTS PRESENTED BELOW!!

___________

Obamacare will explode the budget and we must eliminate it!!!

I wrote a few weeks ago about the hidden economic damage of Obamacare, particularly the harm to the job market.

Today, let’s get further depressed by looking at the ever-worsening fiscal damage of the law.

Here’s some of what Chuck Blahous of Mercatus wrote about this costly new entitlement.

The ACA was enacted in 2010 with the promise of reducing the federal budget deficit while expanding health insurance coverage. Nearly lost amid the recent press cheerleading over ACA enrollment figures is that this promise has disintegrated, and now no one…can say how much fiscal damage the ACA will ultimately cause. …CBO currently estimates that the ACA’s coverage provisions will cost the federal government $92 billion a year by FY2015. This is roughly 0.5 percent of projected U.S. economic output for 2015, well exceeding the relative costs of Social Security and Medicaid at similar points in their histories. (The amount falls just short of the proportion of GDP absorbed by all of early Medicare.) Worse, the federal fiscal position was far weaker when the ACA was passed than when Social Security, Medicare, and Medicaid were created.

That’s bad news, but things will get even worse in coming years.

Troubling though the ACA’s startup costs are, they represent only the tip of the fiscal iceberg that will be the fully phased-in law. CBO projects that its annual costs will hit $200 billion by FY2020, or nearly 0.9 percent of GDP. Yet this assumes that lawmakers will be content to allow the ACA’s health insurance subsidies to grow more slowly than low-income beneficiaries’ health care costs, as the law now stipulates. Thus there is every reason to believe that the ACA’s eventual costs will far exceed initial estimates, as happened with Social Security, Medicare, and Medicaid. …Also unclear is whether the ACA’s reinsurance and “risk corridor” provisions will produce unexpected federal budget costs; these provisions were included in the ACA to protect insurers… the Obama administration continues to promise both participating health insurers and taxpayers that they will each be protected from loss under the risk corridor provisions.

The potential bailout for insurance companies is bad news for taxpayers, but it’s even more upsetting for moral and practical reasons.

The big insurance companies got into bed with the White House, figuring it was a good idea for the federal government to coerce Americans into buying their product. As far as I’m concerned, they should swallow heavy losses.

But in Washington, there’s rarely a downside for doing the wrong thing. Instead, this could be like TARP. A reward for bad behavior.

By the way, it’s not just policy wonks who are concerned about the fiscal burden of Obamacare. According to Roll Call, the Congressional Budget Office has – for all intents and purposes – given up trying to estimate the fiscal burden of the legislation.

For Democratic lawmakers who were hesitant to sign onto the sweeping 2010 health care law, one of the most powerful selling points was that the Affordable Care Act would actually reduce the federal budget deficit…the answer to that question has become something of a mystery. In its latest report on the law, the Congressional Budget Office said it is no longer possible to assess the overall fiscal impact of the law. That conclusion came as a surprise to some fiscal experts in Washington and is drawing concern. …In a little-noticed footnote to a report issued in April, “Updated Estimates of the Effects of the Insurance Coverage Provisions of the Affordable Care Act,” the CBO wrote that it and the Joint Committee on Taxation “can no longer determine exactly how the provisions of the ACA that are not related to the expansion of health insurance coverage have affected their projections of direct spending and revenues.”

Translated into plain English, Obamacare is a budgetary black hole.

If only somebody could have predicted that this would happen. But actually, many people did. The history of entitlement programs is that they are bad news in theory and even worse news in reality.

Indeed, even I warned that Obamacare was going to be a bigger fiscal nightmare than originally predicted, as seen in this video.

A Red-Ink Train Wreck: The Real Fiscal Cost of Government-Run Healthcare

Uploaded on Nov 9, 2009

This CF&P Foundation video explains why healthcare proposals in Washington will result in bloated government and higher deficits. This mini-documentary exposes the pervasive inaccuracy of congressional forecasts and succinctly lists 12 reasons why Obamacare will be a budget buster. For more information: http://www.freedomandprosperity.org

________________________

This Eric Allie cartoon doesn’t focus on the fiscal problems of Obamacare, but it’s worth sharing because the entire law is a mess.

Too bad the American people are the guinea pigs for this experiment in statism.

Wouldn’t it be nice if instead we had the freedom to experiment with market-based healthcare?

_______________

The Balanced Budget Amendment is the only thing I can think of that would force Washington to cut spending. We have only a handful of balanced budgets in the last 60 years, so obviously what we are doing is not working. We are passing along this debt to the next generation. YOUR APPROACH HAS BEEN TO REJECT THE BALANCED BUDGET “BECAUSE WE SHOULD CUT THE BUDGET OURSELF,” WELL THEN HERE IS YOUR CHANCE!!!! SUBMIT THESE CUTS!!!!

Thank you for this opportunity to share my ideas with you.

Sincerely,

Everette Hatcher, everettehatcher@gmail.com  www.thedailyhatch.org, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733

 

Related posts:

A suggestion to cut some wasteful spending out of the government Part 6 (includes editorial cartoon)

Funding Government by the Minute Published on Mar 28, 2012 At the rate the federal government spends, it runs out of money on July 31. What programs should be cut to balance the budget and fund the government for the remaining five months of the year? Cutting NASA might buy two days; cutting the Navy […]

A suggestion to cut some wasteful spending out of the government Part 5 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 4 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

A suggestion to cut some wasteful spending out of the government Part 3 (includes editorial cartoon)

What Can We Cut to Balance the Budget Published on Oct 16, 2012 Will Rogers has a great quote that I love. He noted, “Lord, the money we do spend on Government and it’s not one bit better than the government we got for one-third the money twenty years ago”(Paula McSpadden Love, The Will Rogers Book, (1972) […]

A suggestion to cut some wasteful spending out of the government Part 2 (includes editorial cartoon)

Does Government Have a Revenue or Spending Problem? People say the government has a debt problem. Debt is caused by deficits, which is the difference between what the government collects in tax revenue and the amount of government spending. Every time the government runs a deficit, the government debt increases. So what’s to blame: too […]

A suggestion to cut some wasteful spending out of the government Part 1 (includes editorial cartoon)

What Are the Dangers of Too Much Debt? Published on Mar 20, 2012 Interest payments on U.S. government debt are three times spending in the Iraq and Afghanistan wars already, and that is with the lowest interest rate we have seen since the 1960s. A rise in interest rates would increase interest payments dramatically. What […]

Wasteful spending again from Washington

I have been emailing Senator Mark Pryor over and over again about places to cut spending out of our federal government and I will email him about this too. Great Moments in Government Waste March 25, 2013 by Dan Mitchell Taxpayers all across America send lots of money to Washington, DC, in part because we’re supposed […]

Lots of wasteful spending by federal government

I wish the federal government would go back to spending less than 5% of GDP like they did the first 150 years of our country’s history. We could cut down on a lot of wasteful spending if we did that. Morning Bell: The Governing Class and Us Mike Brownfield April 19, 2012 at 8:57 am […]

We need to stop wasteful government spending by privatizing the post office!!

We need to stop wasteful government spending by privatizing the post office!! Postal Service Won’t Shut Down but Will Default on Its Debt James Gattuso October 1, 2013 at 9:30 am Newscom The U.S. Postal Service (USPS) defaulted on its debt last night. No, it has nothing to do with the partial shutdown of the […]

We got to cut spending because real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014!!!

____________ We got to cut spending because real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014!!! July 2, 2014 11:56AM Federal Highway Spending By Chris Edwards Share The federal Highway Trust Fund (HTF) is running out of money. Congress will likely […]

 

AN EXCELLENT ARTICLE: Government Overspending: An Economic and Moral Problem Posted on 2 July 2012 by Josiah Kollmeyer

____________

Josiah Kollmeyer is the 2014 Teresa L. Olson Scholar at the Mackinac Center and was a summer research intern in 2011 and 2012. Kollmeyer is a graduate of Hillsdale College, where he studied history.

__________________________________

We got to stop overspending. The Founding Fathers were against the federal government acting like Santa Claus. Josiah Kollmeyer of Michigan wrote an excellent paper a couple of years ago that I wanted to share with you today.

 

Related posts:

Conan hires comics to invent mythical wasteful programs

Sometimes it is tragic that you got to laugh about it. Dear Conan, Reckless Government Spending Is Worse Than You Think Brandon Stewart August 10, 2011 at 7:31 pm Late-night comedian Conan O’Brien’s blog has a new post parodying Washington’s excessive spending. “Team Coco has found out why our government is so broke,” the blog explains, “They’ve […]

If you want to cut wasteful spending then the disability program must be reformed radically!!!

If you want to cut wasteful spending then the disability program must be reformed radically!!! October 7, 2013 1:19PM 60 Minutes Disability Investigation By Chris Edwards Share The abuse and overspending in government disability programs is so bad that even National Public Radio and 60 Minutes have taken notice. On the heels of this excellent […]

Conan creates examples of wasteful government programs, but why make up examples?

Sometimes it is tragic that you got to laugh about it. Dear Conan, Reckless Government Spending Is Worse Than You Think Brandon Stewart August 10, 2011 at 7:31 pm Late-night comedian Conan O’Brien’s blog has a new post parodying Washington’s excessive spending. “Team Coco has found out why our government is so broke,” the blog explains, “They’ve […]

Shouldn’t we cut subsidy programs that are exploded the debt?

_____________ Shouldn’t we cut subsidy programs that are exploded the debt? July 3, 2014 2:02PM Independence in 1776; Dependence in 2014 By Chris Edwards Share Since the 1960s, the Catalog of Federal Domestic Assistance (CFDA) has provided a list of all federal subsidy programs. That includes subsidies to individuals, businesses, nonprofit groups, and state and […]

We must cut the size of Government because the number of federal subsidy programs has almost doubled since 1990, reaching 2,282 today!!!!

___________ We must cut the size of Government because the number of federal subsidy programs has almost doubled since 1990, reaching 2,282 today!!!! July 3, 2014 2:02PM Independence in 1776; Dependence in 2014 By Chris Edwards Share Since the 1960s, the Catalog of Federal Domestic Assistance (CFDA) has provided a list of all federal subsidy […]

The Milwaukee school choice program increased academic performance, graduation rates and college enrollment and was half the cost per pupil!

  The Milwaukee school choice program increased academic performance, graduation rates and college enrollment and was half the cost per pupil! February 25, 2014 9:01AM Pounding the Table, Not the Facts, on School Choice             By   Jason Bedrick Share Tweet Like Share Plus There’s an old legal proverb about how to win a court case: […]

National Flood Insurance Program (NFIP) has encouraged people to build in flood-prone areas!

  National Flood Insurance Program (NFIP) has encouraged people to build in flood-prone areas! This is a program that needs to be eliminated. February 26, 2014 11:29AM Folly of Federal Flood Insurance             By   Chris Edwards Share Tweet Like Share Plus Subsidized flood insurance is one of the many federal programs that is counter to […]

Cutting aid programs would be a great way to reduce government waste!!!

______________________________ Cutting aid programs would be a great way to reduce government waste!!! JANUARY 14, 2014 10:52AM Wasteful Federal Aid to the States By CHRIS EDWARDS SHARE Photo credit: House Committee on Oversight and Government Reform In my testimony last week to the House Oversight Committee, I focused on aid-to-state programs as a major source of waste in […]

It’s time for citizens to hold elected officials accountable about spending – even if that means their favorite government-funded program gets axed

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The Sugar Program costs our customers money and should be eliminated!!!

_____________ The Sugar Program costs our customers money and should be eliminated!!! November 7, 2013 5:15PM The Sugar Program Is Central Planning By Chris Edwards Share House and Senate negotiators are working out details of a big farm bill that may pass this year. No industry in America is as coddled as farming, and no […]

Shouldn’t we cut subsidy programs that are exploded the debt?

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Shouldn’t we cut subsidy programs that are exploded the debt?

July 3, 2014 2:02PM

Independence in 1776; Dependence in 2014

Since the 1960s, the Catalog of Federal Domestic Assistance (CFDA) has provided a list of all federal subsidy programs. That includes subsidies to individuals, businesses, nonprofit groups, and state and local governments. The CFDA includes subsidies for farmers, retirees, school lunches, rural utilities, the energy industry, rental housing, public broadcasting, job training, foreign aid, urban transit, and much more.

The chart below shows that the number of federal subsidy programs has almost doubled since 1990, reaching 2,282 today. The genesis of the CFDA was the explosion of hand-out programs under President Lyndon Johnson. Members of Congress needed a handy guide to inform their constituents about all the new freebies.

The growth in subsidies may be good for the politicians, but it is terribly corrosive for American society. Each subsidy program costs money and creates economic distortions. Each program generates a bureaucracy, spawns lobby groups, and encourages more people to demand further benefits from the government.

Individuals, businesses, and nonprofit groups that become hooked on subsidies essentially become tools of the state. They have less incentive to innovate, and they shy away from criticizing the hand that feeds them. Government subsidies are like an addictive drug, undermining American traditions of individual reliance, voluntary charity, and entrepreneurialism.

The rise in the size and scope of federal subsidies means that Americans are steadily losing their independence. That is something sobering to think about on July 4.

Which subsidies should we cut? We should start with these.

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Obamacare increased government spending by expanding Medicaid and big subsidies for private insurance and it will bankrupt country eventually!!!

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Obamacare increased government spending by expanding Medicaid and big subsidies for private insurance and it will bankrupt country eventually!!!

Obamacare resulted in big increases in the fiscal burden of government (ironically, it would be even worse if Obama hadn’t unilaterally suspended parts of the law).

The legislation increased government spending, mostly for expanded Medicaid and big subsidies for private insurance.

There were also several tax hikes, with targeted levies on medical device makers and tanning beds, as well as some soak-the-rich taxes on upper-income taxpayers.

These various policies are bad news for economic performance, but the damage of Obamacare goes well beyond these provisions.

Writing for Real Clear Markets, Professor Casey Mulligan of the University of Chicago explains that Obamacare contains huge implicit tax hikes on work and other forms of productive behavior.

…can we begin to take seriously the idea that the fiscal policies and regulations hidden in the Affordable Care Act are shrinking our economy? …Politicians and journalists use the term tax more narrowly than economists do, but the economic definition is needed to understand the economic effects of the ACA. …Withholding benefits from people who work or earn is hardly different than telling them to pay a tax. For this reason, economists refer to benefits withheld as “implicit taxes.” What really matters for labor market performance is the reward to working inclusive of implicit taxes, and not the amount of revenue delivered to the government treasury… The ACA…is full of implicit taxes. Many of them have remained hidden in the “fog of controversy” surrounding the law and their effects excluded from economic analyses of it.

In other words, his basic message is that the government reduces incentives to be more productive and earn more money when it provides handouts that are based on people earning less money.

Indeed, click here to see a remarkable chart showing how redistribution programs discourage work.

And speaking of charts, here’s one from Professor Mulligan’s article, and it shows the nation’s largest tax hikes based on what happened to the marginal tax rate on working.

Wow. No wonder we’re suffering from a very anemic recovery.

Professor Mulligan elaborates.

During a period that included more than a dozen tax increases, the ACA is arguably the largest as a single piece of legislation, adding about six percentage points to the marginal tax rate faced, on average, by workers in the economy. The only way to cite larger marginal tax increases would be to combine multiple coincident laws, such as the Revenue Acts of 1950 and 1951 and the new payroll tax rate that went into effect in 1950. Even with these adjustments, the ACA is still the third largest marginal tax rate hike during the seventy years. …Let’s not be surprised that, as we implement a new law that taxes jobs and incomes, we are ending up with fewer jobs and less income.

By the way, other academics also have found that Obamacare will lure many people out of the workforce and into government dependency.

The White House actually wants us to believe this is a good thing, as humorously depicted by this Glenn McCoy cartoon.

But rational people understand that our economic output is a function of how much labor and capital are being productively utilized.

In other words, Obamacare is a mess. It’s hurting the economy and should be repealed as the first step in a long journey back to market-based healthcare.

P.S. Mulligan’s chart also re-confirms that unemployment benefits increase unemployment. Heck, that’s such a simple and obvious concept that it’s easily explained in this Wizard-of-Id parody and this Michael Ramirez cartoon.

 

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Obamacare will explode the budget and we must eliminate it!!!

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Obamacare will explode the budget and we must eliminate it!!!

I wrote a few weeks ago about the hidden economic damage of Obamacare, particularly the harm to the job market.

Today, let’s get further depressed by looking at the ever-worsening fiscal damage of the law.

Here’s some of what Chuck Blahous of Mercatus wrote about this costly new entitlement.

The ACA was enacted in 2010 with the promise of reducing the federal budget deficit while expanding health insurance coverage. Nearly lost amid the recent press cheerleading over ACA enrollment figures is that this promise has disintegrated, and now no one…can say how much fiscal damage the ACA will ultimately cause. …CBO currently estimates that the ACA’s coverage provisions will cost the federal government $92 billion a year by FY2015. This is roughly 0.5 percent of projected U.S. economic output for 2015, well exceeding the relative costs of Social Security and Medicaid at similar points in their histories. (The amount falls just short of the proportion of GDP absorbed by all of early Medicare.) Worse, the federal fiscal position was far weaker when the ACA was passed than when Social Security, Medicare, and Medicaid were created.

That’s bad news, but things will get even worse in coming years.

Troubling though the ACA’s startup costs are, they represent only the tip of the fiscal iceberg that will be the fully phased-in law. CBO projects that its annual costs will hit $200 billion by FY2020, or nearly 0.9 percent of GDP. Yet this assumes that lawmakers will be content to allow the ACA’s health insurance subsidies to grow more slowly than low-income beneficiaries’ health care costs, as the law now stipulates. Thus there is every reason to believe that the ACA’s eventual costs will far exceed initial estimates, as happened with Social Security, Medicare, and Medicaid. …Also unclear is whether the ACA’s reinsurance and “risk corridor” provisions will produce unexpected federal budget costs; these provisions were included in the ACA to protect insurers… the Obama administration continues to promise both participating health insurers and taxpayers that they will each be protected from loss under the risk corridor provisions.

The potential bailout for insurance companies is bad news for taxpayers, but it’s even more upsetting for moral and practical reasons.

The big insurance companies got into bed with the White House, figuring it was a good idea for the federal government to coerce Americans into buying their product. As far as I’m concerned, they should swallow heavy losses.

But in Washington, there’s rarely a downside for doing the wrong thing. Instead, this could be like TARP. A reward for bad behavior.

By the way, it’s not just policy wonks who are concerned about the fiscal burden of Obamacare. According to Roll Call, the Congressional Budget Office has – for all intents and purposes – given up trying to estimate the fiscal burden of the legislation.

For Democratic lawmakers who were hesitant to sign onto the sweeping 2010 health care law, one of the most powerful selling points was that the Affordable Care Act would actually reduce the federal budget deficit…the answer to that question has become something of a mystery. In its latest report on the law, the Congressional Budget Office said it is no longer possible to assess the overall fiscal impact of the law. That conclusion came as a surprise to some fiscal experts in Washington and is drawing concern. …In a little-noticed footnote to a report issued in April, “Updated Estimates of the Effects of the Insurance Coverage Provisions of the Affordable Care Act,” the CBO wrote that it and the Joint Committee on Taxation “can no longer determine exactly how the provisions of the ACA that are not related to the expansion of health insurance coverage have affected their projections of direct spending and revenues.”

Translated into plain English, Obamacare is a budgetary black hole.

If only somebody could have predicted that this would happen. But actually, many people did. The history of entitlement programs is that they are bad news in theory and even worse news in reality.

Indeed, even I warned that Obamacare was going to be a bigger fiscal nightmare than originally predicted, as seen in this video.

A Red-Ink Train Wreck: The Real Fiscal Cost of Government-Run Healthcare

Uploaded on Nov 9, 2009

This CF&P Foundation video explains why healthcare proposals in Washington will result in bloated government and higher deficits. This mini-documentary exposes the pervasive inaccuracy of congressional forecasts and succinctly lists 12 reasons why Obamacare will be a budget buster. For more information: http://www.freedomandprosperity.org

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This Eric Allie cartoon doesn’t focus on the fiscal problems of Obamacare, but it’s worth sharing because the entire law is a mess.

Too bad the American people are the guinea pigs for this experiment in statism.

Wouldn’t it be nice if instead we had the freedom to experiment with market-based healthcare?

 

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Dear Senator Pryor, here are some spending cut suggestions (“Thirsty Thursday”, Open letter to Senator Pryor)

 

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Senator Pryor pictured below:

Why do I keep writing and emailing Senator Pryor suggestions on how to cut our budget? I gave him hundreds of ideas about how to cut spending and as far as I can tell he has taken none of my suggestions. You can find some of my suggestions herehereherehere, hereherehereherehere, herehereherehereherehereherehereherehere,  here, and  here, and they all were emailed to him. In fact, I have written 13 posts pointing out reasons why I believe Senator Pryor’s re-election attempt will be unsuccessful. HERE I GO AGAIN WITH ANOTHER EMAIL I JUST SENT TO SENATOR PRYOR!!!

Dear Senator Pryor,

Why not pass the Balanced  Budget amendment? As you know that federal deficit is at all time high (1.6 trillion deficit with revenues of 2.2 trillion and spending at 3.8 trillion).

On my blog www.thedailyhatch.org . I took you at your word and sent you over 100 emails with specific spending cut ideas. (Actually there were over 160 emails with specific spending cut suggestions.) However, I did not see any of them in the recent debt deal that Congress adopted although you did respond to me several times. Now I am trying another approach. Every week from now on I will send you an email explaining different reasons why we need the Balanced Budget Amendment. It will appear on my blog on “Thirsty Thursday” because the government is always thirsty for more money to spend. Today I actually have included a great article below from the Heritage Foundation concerning an area of our federal budget that needs to be cut down to size. The funny thing about the Sequester and the 2.4% of cuts in future increases is that President Obama set these up and then he acted like the sky was falling in as the cartoons indicate in the newspapers.

IF YOU TRULY WANT TO CUT THE BUDGET AND BALANCE THE BUDGET THEN SUBMIT THESE POTENTIAL BUDGET CUTS PRESENTED BELOW!!

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We need to cut radically the number of people working for the federal government. These government jobs encourage people in many cases to be lazy!!!! We need to send a lot of these people back to private sector to work where they will have to carry their own weight.

In this piece below Dan Mitchell puts forth the theory that bureaucrats are more lazy than those that are working in the private sector and that this is a behavior that is acquired over time after working in government for some time. Let me put forth a couple more observations which I got from King Solomon was the wisest man who ever lived. Proverbs 26: 16 says, “THE SLUGGARD IS WISER IN HIS OWN EYES THAN SEVEN MEN WHO ANSWER DISCREETLY.”It is my view that government workers are more arrogant and have a overinflated opinion of their selves.

Secondly, many government workers will come up with excuses to pass work down the line to other bureaucrats so they don’t have to do the work. In other words they think up excuses why their department does not have to handle a request and they send it over to another department. I have seen this myself when I needed a ruling or an opinion from a government office and they kept sending me over to another department which in turn would send me to a third department. This reminds me of the quick thinking sluggard noted by King Solomon, “The loafer says, ‘There’s a lion on the loose!  If I go out I’ll be eaten alive!’ ”  WHAT A GREAT EXCUSE MAKER A SLUGGARD CAN BE!!!!

I’ve shared some remarkable data showing that bureaucrats get paid more than people in the private sector.

JOLTS dataI’ve also dug into the Department of Labor’s JOLTS data to debunk those who argue bureaucrats aren’t overpaid.

I’ve even showed that they work fewer hours (though that’s probably a good thing since presumably the nation will be in better shape if bureaucrats are out of the office rather than molesting people in the economy’s productive sector).

Well, now we can add something else to the list, though it won’t surprise anybody who has been to the Post Office, DMV, or tried to generate any sort of action from a government agency. It turns out that bureaucrats are lazy. Here are some interesting excerpts from a National Post column from Canada.

Who says civil servants are lazy? Well, they do actually. The study that finds these effects is based on a social survey that asked people to agree or disagree, on a scale of one to seven, with the statement “I see myself as someone who tends to be lazy,” with the endpoint options being “Does not apply to me at all” and “Applies to me perfectly.” …the survey in question was for Germany for the years 2004-5. (The just-published analysis of its results has been done by Robert Dur and Robin Zoutenbier, economists at the Erasmus University Rotterdam.) …if there was a country where you’d think people would be ashamed to admitting to laziness, it’s probably Germany. So if the story holds there, it probably holds everywhere. …What results do the Rotterdam economists get? When they control for other things that are both correlated with self-declarations of…laziness and also differ systematically across sectors, such as age, gender, education, family status and so on, it does turn out that public-sector workers tend to be…more lazy than private-sector workers. A one-unit increase in self-declared laziness on that seven-unit scale increases the likelihood of a person’s being in the public sector by almost one per cent. …Turning the data around, the results suggest that workers who are…lazy have a probability of almost exactly one-third of working in the public sector. By contrast, workers who self-declare as…energetic have only about a one-fifth chance of ending up in the public sector.

Gee, knock me over with a feather. Lazy people are more likely to work for the government. And they even admit it!

 

However, it seems that there are some causation/correlation issues. It may be that you don’t work for the government because you’re lazy. Instead, working for the government may make you lazy.

When the researchers looked only at younger workers they found that…there was no difference in laziness. Only with people further along in their careers did the correlation between laziness and the public sector show up. Either it takes time for lazy people to find their public sector niche or naturally energetic people get worn down by the bureaucracy. They learn laziness.

As a taxpayer, I confess this causes me some mixed feelings. I’m irked that bureaucrats are getting lavishly compensated at my expense. And I don’t like the idea of them goofing off while playing Solitaire or updating their Facebook pages.

But then I remind myself that this may be the least-destructive way for them to occupy their time. Sure beats them being hard at work coming up with crazy new regulations.

In any event, this chart shows that American taxpayers at least can be thankful we’re not in Denmark.

Or any of the Nordic countries. I don’t know if bureaucrats in those nations are lazy, but they sure are expensive.

And I’m surprised that Japanese bureaucrats are relatively inexpensive, particularly when the nation’s long-run fiscal outlook is so bad.

P.S. Since we’re making fun of bureaucrats, here’s a good jab at the Post Office from Jimmy Kimmel. And to see how government operates, we have the Fable of the Ant. But this Pearls before Swine cartoon strip is my favorite.

 

 

 

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The Balanced Budget Amendment is the only thing I can think of that would force Washington to cut spending. We have only a handful of balanced budgets in the last 60 years, so obviously what we are doing is not working. We are passing along this debt to the next generation. YOUR APPROACH HAS BEEN TO REJECT THE BALANCED BUDGET “BECAUSE WE SHOULD CUT THE BUDGET OURSELF,” WELL THEN HERE IS YOUR CHANCE!!!! SUBMIT THESE CUTS!!!!

Thank you for this opportunity to share my ideas with you.

Sincerely,

Everette Hatcher, everettehatcher@gmail.com  www.thedailyhatch.org, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733

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Milton Friedman’s FREE TO CHOOSE “How to Stay Free,” Transcript and Video (60 Minutes)

Milton Friedman’s FREE TO CHOOSE “How to Stay Free,” Transcript and Video (60 Minutes) In 1980 I read the book FREE TO CHOOSE by Milton Friedman and it really enlightened me a tremendous amount.  I suggest checking out these episodes and transcripts of Milton Friedman’s film series FREE TO CHOOSE: “The Failure of Socialism” and […]

Open letter to President Obama (Part 390)

Dan Mitchell Talking about China, Regulation, and Wealth with Cavuto Published on Mar 21, 2012 by danmitchellcato No description available. ___________________   President Obama c/o The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear Mr. President, I know that you receive 20,000 letters a day and that you actually read 10 of them […]

No wonder Obama won the election since it pays more to be on welfare than to work in the USA!!!!

No wonder Obama won the election since it pays more to be on welfare than to work in the USA!!!! Mirror, Mirror, on the Wall, Which States Provide the Most Handouts of All? August 20, 2013 by Dan Mitchell About two years ago, I shared a map put together by a pro-statism organization that supposedly showed that welfare benefits […]

By Everette Hatcher III | Posted in Cato Institute, Economist Dan Mitchell, President Obama, spending out of control | Edit | Comments (0)

We got to cut spending because real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014!!!

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We got to cut spending because real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014!!!

July 2, 2014 11:56AM

Federal Highway Spending

The federal Highway Trust Fund (HTF) is running out of money. Congress will likely pass a short-term fix for the program in coming weeks. Over the longer term, many policymakers favor raising taxes to close the $14 billion annual gap between HTF spending and revenues.

Tax-hike advocates say the gap is caused by insufficient gas tax revenues. It is true that the value of the federal gas tax rate has been eroded by inflation since it was last raised two decades ago. But the gas tax rate was more than quadrupled between 1982 and 1994 from 4 cents per gallon to 18.4 cents. So if you look at the whole period since 1982, gas tax revenues have risen at a robust annual average rate of 6.1 percent (see data here).

In recent years, gas tax revenues have flat-lined. But the source of the HTF gap was highway and transit spending getting ahead of revenues, and then staying at elevated levels.

The chart below (from DownsizingGovernment.org/charts) shows real federal highway and transit spending since 1970. Real highway spending (red line) has almost doubled over the last two decades, from $29.1 billion in 1994 to $56.2 billion in 2014. Real transit spending (green line) has also risen since the mid-1990s. (If you visit the /charts page, you can see the dollar values by hovering the mouse over the lines.)

For more, see my congressional testimony and also recent items by Emily Goff.

 

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We must cut the size of Government because the number of federal subsidy programs has almost doubled since 1990, reaching 2,282 today!!!!

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We must cut the size of Government because the number of federal subsidy programs has almost doubled since 1990, reaching 2,282 today!!!!

July 3, 2014 2:02PM

Independence in 1776; Dependence in 2014

Since the 1960s, the Catalog of Federal Domestic Assistance (CFDA) has provided a list of all federal subsidy programs. That includes subsidies to individuals, businesses, nonprofit groups, and state and local governments. The CFDA includes subsidies for farmers, retirees, school lunches, rural utilities, the energy industry, rental housing, public broadcasting, job training, foreign aid, urban transit, and much more.

The chart below shows that the number of federal subsidy programs has almost doubled since 1990, reaching 2,282 today. The genesis of the CFDA was the explosion of hand-out programs under President Lyndon Johnson. Members of Congress needed a handy guide to inform their constituents about all the new freebies.

The growth in subsidies may be good for the politicians, but it is terribly corrosive for American society. Each subsidy program costs money and creates economic distortions. Each program generates a bureaucracy, spawns lobby groups, and encourages more people to demand further benefits from the government.

Individuals, businesses, and nonprofit groups that become hooked on subsidies essentially become tools of the state. They have less incentive to innovate, and they shy away from criticizing the hand that feeds them. Government subsidies are like an addictive drug, undermining American traditions of individual reliance, voluntary charity, and entrepreneurialism.

The rise in the size and scope of federal subsidies means that Americans are steadily losing their independence. That is something sobering to think about on July 4.

Which subsidies should we cut? We should start with these.

 

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