Category Archives: spending out of control

51 Examples of Government Waste

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51 Examples of Government Waste

Mismanagement

  1. Medicare Part B paid nearly six times more than Medicare Part D for the same drugs and equipment to treat cancer. Medicare Part B paid $132.9 million for the same medical supplies for cancer treatment for which Medicare Part D paid $22 million.
  2. Two federal projects, one concerning the creation of a facility to produce fuel for nuclear reactors, and the other concerning a building to dispose of liquid waste from the first facility, remain incomplete. The National Nuclear Security Administration has already spent nearly $7 billion on these two unfinished projects, which were supposed to cost only $4 billion overall.
  3. The construction of the Department of Homeland Security (DHS) headquarters was supposed to be complete in 2003. It is nowhere near completion and has already cost taxpayers nearly $4.5 billion.
  4. $2.4 million intended for cotton subsidies was misused by Department of Agriculture employees to purchase laptops, two Ford Explorers, and office artwork, among other items.
  5. The Department of Defense is set to destroy $1.2 billion worth of ammunition because it does not have an effective inventory system to track supplies across the military services. The services each use different inventory systems, preventing proper data sharing and leading to excess materials.
  6. The Department of the Treasury spent $112.7 million on a public relations firm to raise domestic and international public awareness of the new dollar bill’s minor design changes.
  7. The Drug Enforcement Administration (DEA) paid an informant working for Amtrak $854,460 over 20 years to disclose passenger names. The DEA could have received this information free since the Amtrak Police Department, which has access to passengers’ names, is willing to share information with law enforcement partners.
  8. After Hurricane Sandy, the National Oceanic and Atmospheric Administration (NOAA) spent $500,000 to completely replace equipment that was not damaged beyond repair. Instead of repairing the equipment at lower cost, NOAA used the opportunity to purchase brand new equipment.
  9. The Internal Revenue Service will reportedly pay Microsoft $500,000 for one more year of custom support for Windows XP after failing to meet a deadline that would have secured its operating systems. The IRS is still paying for support for the outdated Windows XP, because it failed to complete the software move to Windows 7.
  10. The Metropolitan Washington Airports Authority (MWAA) has been accused of multiple cases of fraud in the development of the Washington, D.C.–area’s light-rail line to Dulles International Airport in northern Virginia. This includes nearly $139 million in purchases for which the MWAA cannot provide documentation.
  11. The Department of Defense spent nearly $500 million to purchase military transport planes for the Afghan Air Force, which have since been scrapped. The planes did not meet operational requirements, and the maintenance of the planes was too expensive for the Afghan Air Force.
  12. The Defense Department overpaid by $3.3 million for radios for the Afghan Army because the Defense Department did not follow contracting procedures, which would have prevented overpayment.
  13. The Department of Homeland Security has one of the largest vehicle fleets of any federal government agency, but according to a recent report by the DHS inspector general, 59 percent of the vehicles are driven less than 12,000 miles a year. In 2012 alone, these underused vehicles cost taxpayers between $35 million and $49 million overall.
  14. The Postal Service lost or cannot confirm receiving 37 trailers from a leasing company. The Postal Service continued to pay the lease for the trailers—despite the fact that they were missing—for two years before deciding to buy the titles for the missing trailers. The leasing and the titles purchase cost $287,000 for trailers that remain missing.
  15. The IRS bought $11.6 million worth of computer software that remains unused because the IRS did not have the space for it. This happened because the IRS did not have an effective way of keeping inventory for computer software.
  16. For more than $6 million annually, the Social Security Administration (SSA) is renting office spaces that remain largely unused or are being misused as storage spaces. According to an Office of the Inspector General report, several of the SSA’s offices are less than 50 percent occupied.
  17. Federal agencies paid nearly $50 million to the Department of Commerce’s National Technical Information Service for information that is mostly available free online.
  18. During the last few days of the 2014 fiscal year, the State Department purchased a $24,969 LED HD TV for the U.S. embassy in Kabul, Afghanistan.
  19. According to an Environmental Protection Agency (EPA) Inspector General report, employees at the EPA had used government credit cards to purchase $79,300 worth of “prohibited, improper, and erroneous” goods and services. Included in the purchases were gym memberships for EPA employees and their family members, DVDs, and academic memberships.
  20. The Mark Twain National Forest in Missouri received up to $100,000 from the U.S. Forest Service to add a 23rd bike trail to the park.
  21. The Denver Museum of Miniature Dolls and Toys was awarded $40,810 from the federal Institute of Museum and Library Services to create a digital inventory of its items.
  22. Grandiose oil portraits of former government agency heads continue to cost taxpayers roughly $20,000 for each new painting.
  23. U.S. Marshals Service wasted $2 million on “swag” gifts, like golf balls, mine-footballs, police-car-shaped stress toys, golf towels, and poker chips in order to build cooperation and camaraderie within the office.
  24. According to the Government Accountability Office, duplication of federal programs and services costs taxpayers $45 billion annually.
  25. Paralegals at the Patent Trial and Appeal Board were paid $5.1 million over four years as they watched Netflix, shopped online, and used social media while on the clock.
  26. The National Endowment for the Humanities provided $47,000 for undergraduate classes that teach students about laughing and the nature of humor. The classes will focus on how humor differs between cultures and how it can be used to deal with tragedies.

Corporate Welfare

  1. The Department of Agriculture’s Market Access Program provided $400,000 to the liquor lobby, which used part of those funds to transport foreign journalists to different breweries and distilleries in the southeastern United States.
  2. The International Trade Administration spent $284,300 to send American indie music executives on an international tour to promote the “independent” music industry.
  3. The U.S. Enrichment Corporation received $60 million from the federal government despite the company announcing plans to declare bankruptcy.
  4. One coffee plantation in Hawaii received a $25,000 grant from the Department of Agriculture to use solar power to dry coffee beans. Coffee bean farmers have been using the sun, in one way or another, to dry their beans for centuries.
  5. The Department of Agriculture awarded a $37,475 grant to teach northern Nevada farmers what kind of fruits and vegetables the Hispanic community enjoys and how to market them to Hispanics.
  6. The Department of Agriculture awarded a $50,000 grant to “Mary’s Alpaca,” an alpaca farm in The Plains, Virginia. This grant came from the Agriculture Department’s “rural development funds” and is intended to support the farm’s business of packaging, selling, and marketing alpaca manure.
  7. In an attempt to create more jobs in butterfly farming, the Department of Agriculture granted $500,000 to the Euchee Butterfly Farm to train Native American members of the Thlopthlocco Tribal Town in butterfly farming.

Questionable Federal Research

  1. In an attempt to fight childhood obesity and type II diabetes, the National Institutes of Health has granted more than $10 million toward the creation of video games that they hope will encourage children to eat healthier and exercise more. One of the games, “Escape from Diab,” is about five children who must get healthy enough to escape from a town full of obese people and their evil king.
  2. The National Institutes of Health spent $466,642 to research whether a lack of social skills is the reason why obese girls are asked on fewer dates, yet engage in more risky sexual behaviors than slimmer girls.
  3. The National Institutes of Health spent more than $2 million to study how singing in a choir affects the health of “minority elders,” including how choir singing promotes body strength and reduces falling incidents among the elderly.
  4. In an effort to understand whether gay men in Peru test positive for syphilis after treatment due to treatment failure or re-infection, the National Institutes of Health spent $330,000 to study the lifestyle and health of men who have sex with men and transgender persons in Peru.
  5. The National Institutes of Health spent $374,000 to study whether preschoolers will eat more vegetables after watching a puppet show about fruits and vegetables.
  6. The National Science Foundation granted more than $200,000 to a Yale University research project that is trying to determine how and why Wikipedia has a systematic gender bias. Researchers believe this is a step toward understanding and addressing gender disparities in academia.
  7. The U.S. Army awarded a $91,318 grant to the Virginia Department of Conservation and Recreation to count and determine the population of “little brown bats” in and around Fort Belvoir, Virginia. The Army hopes this survey will determine whether the bats should be added to the endangered species list.
  8. The National Institutes of Health spent $484,000 to study whether hypnosis can reduce the number and intensity of hot flashes in postmenopausal women and breast cancer survivors.
  9. The National Science Foundation spent $300,000 to study how bicycles work and how humans interact with them. The goal of the study was to find a way to make bike riding a more attractive method of travel in order to reduce society’s carbon footprint.
  10. NASA spent $360,000 for people to stay in slightly declined beds for 70 days to test the effects of gravity on humans over long durations of time. NASA had already conducted this experiment many times since the 1960s.
  11. NASA gave two grants totaling $237,205 to the University of Washington to study how rainfall effects the red crab’s annual migration to Christmas Island. Researchers hope this study will help them better understand the potential consequences of climate change for the red crabs.
  12. The Department of Agriculture’s Sustainable Agriculture Research and Education program awarded a $15,000 grant to the Rich Earth Institute in Vermont, which specializes in using human urine as fertilizer. This specific grant was to study if human urine could be a fertilizer for hay fields.
  13. The National Science Foundation granted $2.9 million to Butler University to create arts, dances, and poems at specific waterways in Indianapolis. The goal of the project is to educate citizens about their city’s urban waterways through artistic expression.
  14. The National Institutes of Health’s Center for Complementary and Alternative Medicine spent $387,000 to study the healing effects of Swedish massage on rabbits.
  15. The Department of the Interior’s U.S. Fish and Wildlife Service spent $10,000 to monitor the growth rate of saltmarsh cordgrass in an attempt to better understand how cordgrass should be treated and how it can be used to protect marshes.
  16. The National Institutes of Health’s Center for Research Resources spent $371,026 for a study to determine if mothers have the same neurological reaction when looking at pictures of their children and their dogs.
  17. The National Science Foundation spent $856,000 to study the wildlife habits of mountains lions through a scientific collar. The study included teaching mountain lions how to walk on treadmills and monitoring the amount of energy used in a mountain lion’s pounce.
  18. The National Institutes of Health spent $1,552,145 on the development of a smartphone game called “Kiddio: Food Fight.” The game is intended to teach parents how to convince their children to eat healthier foods.

Source information on file with The Heritage Foundation.

______________

Related posts:

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(Emailed to White House on 3-15-13.) 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 every day. I really do respect you for trying to get a pulse on what is […]

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 […]

If you really want to cut wasteful spending then why not shut down Dept of Housing and Urban Development, Dept of Education and SBA?

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

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President Obama and government spending (GSA Govt waste tip of iceberg)

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Open letter to President Obama (Part 711) Lawmakers need to encourage self-sufficiency and work through food assistance programs and not laziness!!

Open letter to President Obama (Part 711) (Emailed to White House on July 29, 2013)

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 every day. I really do respect you for trying to get a pulse on what is going on out here.

The federal government debt is growing so much that it is endangering us because if things keep going like they are now we will not have any money left for the national defense because we are so far in debt as a nation. We have been spending so much on our welfare state through food stamps and other programs that I am worrying that many of our citizens are becoming more dependent on government and in many cases they are losing their incentive to work hard because of the welfare trap the government has put in place. Other nations in Europe have gone down this road and we see what mess this has gotten them in. People really are losing their faith in big government and they want more liberty back. It seems to me we have to get back to the founding  principles that made our country great.  We also need to realize that a big government will encourage waste and corruptionThe recent scandals in our government have proved my point. In fact, the jokes you made at Ohio State about possibly auditing them are not so funny now that reality shows how the IRS was acting more like a monster out of control. Also raising taxes on the job creators is a very bad idea too. The Laffer Curve clearly demonstrates that when the tax rates are raised many individuals will move their investments to places where they will not get taxed as much.

______________________________

Lawmakers need to encourage self-sufficiency and work through food assistance programs and not laziness.

101 Million Americans Received Food Aid Last Year

July 18, 2013 at 5:35 pm

Medicaid Food Stamps Waiting Room

Newscom

Nearly one-third of Americans received government-funded food aid in 2012, according to a new report from the U.S. Department of Agriculture (USDA).

As Heritage Foundation expert Robert Rector has explained, there are roughly a dozen federal food assistance programs operating today. The USDA reports that 59 percent of households that participated in one of the four largest food assistance programs—food stamps, school breakfasts, school lunches, and WIC—end up receiving benefits from “two or more programs.” This indicates significant duplication, “providing participants total benefits in excess of 100 percent of daily nutritional needs.”

The welfare system also operates many means-tested welfare programs beyond food assistance. The federal government funds roughly 80 welfare programs, including 12 providing social services, 12 educational assistance programs, and 11 housing assistance programs—at a cost of nearly $1 trillion a year.

The size of today’s welfare system demonstrates the need for both opportunity-based economic policies and critical reforms to promote self-sufficiency through work. For decades, the federal government has been pouring taxpayer dollars into an increasing number of welfare programs in an attempt to tackle poverty.

Yet this system has proven ineffective at helping individuals and families reach self-sufficiency. As Heritage expert Robert Rector writes, “Except in very limited cases, such as those involving serious malnutrition, welfare programs do not yield fewer problems and better life outcomes for children.” Welfare can even have harmful consequences for families, eroding personal responsibility across multiple generations. Heritage experts David Azerrad and Rea Hederman explain that welfare

takes away a crucial ingredient of happiness: the incentive to work, to save, to improve oneself.… It fosters dependence in welfare recipients, which in turn often carries over to children. Studies have shown—not surprisingly but nonetheless quite tragically—that welfare is increasingly intergenerational.

Lawmakers have a duty to American families and to the next generation. Policymakers should transform these programs into vehicles of self-sufficiency, personal responsibility, and human dignity through positive reforms that encourage work. Such reforms will begin lifting America from a welfare state where 101 million receive government support to the opportunity society envisioned by the men and women who founded this nation.

 

___________________________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

Related posts:

If increase in food stamps was just because of recession then why spending go from $19.8 billion in 2000 to $37.9 billion in 2007?

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Tell the 48 million food stamps users to eat more broccoli!!!!

Welfare Can And Must Be Reformed             Uploaded on Jun 29, 2010 If America does not get welfare reform under control, it will bankrupt America. But the Heritage Foundation’s Robert Rector has a five-step plan to reform welfare while protecting our most vulnerable. __________________________ We got to slow down the growth of Food Stamps. One […]

Republicans for more food stamps?

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Obama promotes food stamps but Milton Friedman had a better suggestion

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400% increase in food stamps since 2000

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Why can’t we cut the Food Stamp budget?

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Food stamp spending has doubled under the Obama Administration

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Which states are the leaders in food stamp consumption?

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Why not cancel the foodstamp program and let the churches step in?

Government Must Cut Spending Uploaded by HeritageFoundation on Dec 2, 2010 The government can cut roughly $343 billion from the federal budget and they can do so immediately. __________ We are becoming a country filled with people that dependent on the federal government when we should be growing our economy by lowering taxes and putting […]

Food Stamp Program is constantly ripped off and should be discontinued

Uploaded by oversightandreform on Mar 6, 2012 Learn More at http://oversight.house.gov The Oversight Committee is examining reports of food stamp merchants previously disqualified who continue to defraud the program. According to a Scripps Howard News Service report, food stamp fraud costs taxpayers hundreds of millions every year. Watch the Oversight hearing live tomorrow at 930 […]

By Everette Hatcher III | Posted in spending out of control | Edit | Comments (0)

Open letter to President Obama (Part 707) 7 reasons to reform Food Stamps!!!

Open letter to President Obama (Part 707) (Emailed to White House on July 29, 2013)

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 every day. I really do respect you for trying to get a pulse on what is going on out here.

The federal government debt is growing so much that it is endangering us because if things keep going like they are now we will not have any money left for the national defense because we are so far in debt as a nation. We have been spending so much on our welfare state through food stamps and other programs that I am worrying that many of our citizens are becoming more dependent on government and in many cases they are losing their incentive to work hard because of the welfare trap the government has put in place. Other nations in Europe have gone down this road and we see what mess this has gotten them in. People really are losing their faith in big government and they want more liberty back. It seems to me we have to get back to the founding  principles that made our country great.  We also need to realize that a big government will encourage waste and corruptionThe recent scandals in our government have proved my point. In fact, the jokes you made at Ohio State about possibly auditing them are not so funny now that reality shows how the IRS was acting more like a monster out of control. Also raising taxes on the job creators is a very bad idea too. The Laffer Curve clearly demonstrates that when the tax rates are raised many individuals will move their investments to places where they will not get taxed as much.

______________________________

We don’t need to recruit people to be on food stamps but kick people off!!!

Seven Reasons to Reform Food Stamps

July 4, 2013 at 12:00 pm

Newscom

Newscom

Food stamps were a popular topic of conversation last month as Congress debated the farm bill. This decades-old Great Society program is in much need of reform for at least seven reasons:

  1. Food stamp spending has surged. Costs have been climbing since the program began in the 1960s, recession or not. Over roughly the past decade, food stamp spending jumped from $19.8 billion in 2000 to $84.6 billion in 2011.
  2. Food stamp rolls have also been climbing for decades, regardless of the economic situation. Today, food stamp use is at an all-time high, with the most recent data showing that about one in seven people participate in the program. This is a 140 percent increase since 1990.
  3. Government has vastly expanded food stamp eligibility. “Broad-based categorical eligibility,” put in place under the Clinton Administration and heavily pushed by the Obama Administration, loosens income and asset limits. That the number of households receiving food stamps has increased faster than households near the poverty line indicates that changes in food stamp policy helped boost the rolls.
  4. States are spending taxpayer money to “recruit” food stamp participants who might not otherwise choose to use them. From advertisements, aggressive tactics, and enrollment quotas used by recruitment agents, it seems like Uncle Sam wants you on food stamps.
  5. Despite what the left claims, food stamps don’t stimulate the economy. Every dollar spent on food stamps is a dollar that would otherwise be spent elsewhere. Therefore, it simply shuffles resources rather than adding economic growth.
  6. Even in good economic times, many food stamp recipients don’t work. In 2010, among the roughly 10.5 million households receiving food stamps that contained an able-bodied, non-elderly adult, 5.5 million did not perform any work. Of those who did work, 1.5 million to 2 million worked less than 30 hours per week.
  7. Food stamps discourage work and self-sufficiency. “The more income that a person receives when not working, the less is the reward to working,” University of Chicago Professor Casey Mulligan testified before Congress earlier this year. “In such cases, a person might have more resources available to use or save as a consequence of working less.” Because food stamp benefits are reduced by 30 cents for each dollar of net income a recipient earns, the program behaves like an income tax paid by recipients via reduced benefits. Thus, food stamps can often act as a disincentive to work. Mulligan estimates that this disincentive has actually prolonged the weak labor market recovery.

Policymakers should reform food stamps to promote self-sufficiency through work and roll back food stamp spending when employment rates improve. These changes would promote not only fiscal responsibility but, more importantly, personal responsibility and human dignity.

 

___________________________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

Related posts:

If increase in food stamps was just because of recession then why spending go from $19.8 billion in 2000 to $37.9 billion in 2007?

If the increase in food stamps was just because of the recession then why did the spending go from $19.8 billion in 2000 to $37.9 billion in 2007? The Facts about Food Stamps Everyone Should Hear Rachel Sheffield and T. Elliot Gaiser May 27, 2013 at 12:00 pm (7) Newscom A recent US News & […]

Tell the 48 million food stamps users to eat more broccoli!!!!

Welfare Can And Must Be Reformed             Uploaded on Jun 29, 2010 If America does not get welfare reform under control, it will bankrupt America. But the Heritage Foundation’s Robert Rector has a five-step plan to reform welfare while protecting our most vulnerable. __________________________ We got to slow down the growth of Food Stamps. One […]

Republicans for more food stamps?

Eight Reasons Why Big Government Hurts Economic Growth __________________ We got to cut spending and we must first start with food stamp program and we need some Senators that are willing to make the tough cuts. Food Stamp Republicans Posted by Chris Edwards Newt Gingrich had fun calling President Obama the “food stamp president,” but […]

Obama promotes food stamps but Milton Friedman had a better suggestion

Milton Friedman’s negative income tax explained by Friedman in 1968: We need to cut back on the Food Stamp program and not try to increase it. What really upsets me is that when the government gets involved in welfare there is a welfare trap created for those who become dependent on the program. Once they […]

400% increase in food stamps since 2000

Welfare Can And Must Be Reformed Uploaded by HeritageFoundation on Jun 29, 2010 If America does not get welfare reform under control, it will bankrupt America. But the Heritage Foundation’s Robert Rector has a five-step plan to reform welfare while protecting our most vulnerable. __________________________ If welfare increases as much as it has in the […]

Why can’t we cut the Food Stamp budget?

Why can’t we cut the Food Stamp budget? Should Food Stamps Be in Farm Bill? Congressman Seeks to Split Legislation Kelsey Harris June 17, 2013 at 10:38 pm Bill Clark/Roll Call Photos/Newscom Representative Marlin Stutzman (R-IN), a fourth-generation farmer, is asking his House colleagues to separate the food stamp program from the “farm” bill. Stutzman […]

Food stamp spending has doubled under the Obama Administration

The sad fact is that Food stamp spending has doubled under the Obama Administration. A Bumper Crop of Food Stamps Amy Payne May 21, 2013 at 7:01 am Tweet this Where do food stamps come from? They come from taxpayers—certainly not from family farms. Yet the “farm” bill, a recurring subsidy-fest in Congress, is actually […]

Which states are the leaders in food stamp consumption?

I am glad that my state of Arkansas is not the leader in food stamps!!! Mirror, Mirror, on the Wall, Which State Has the Highest Food Stamp Usage of All? March 19, 2013 by Dan Mitchell The food stamp program seems to be a breeding ground of waste, fraud, and abuse. Some of the horror stories […]

Why not cancel the foodstamp program and let the churches step in?

Government Must Cut Spending Uploaded by HeritageFoundation on Dec 2, 2010 The government can cut roughly $343 billion from the federal budget and they can do so immediately. __________ We are becoming a country filled with people that dependent on the federal government when we should be growing our economy by lowering taxes and putting […]

Food Stamp Program is constantly ripped off and should be discontinued

Uploaded by oversightandreform on Mar 6, 2012 Learn More at http://oversight.house.gov The Oversight Committee is examining reports of food stamp merchants previously disqualified who continue to defraud the program. According to a Scripps Howard News Service report, food stamp fraud costs taxpayers hundreds of millions every year. Watch the Oversight hearing live tomorrow at 930 […]

By Everette Hatcher III | Posted in spending out of control | Edit | Comments (0)

Open letter to President Obama (Part 685) We got to cut corporate welfare!!!

Open letter to President Obama (Part 685) (Emailed to White House on July 29, 2013)

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 every day. I really do respect you for trying to get a pulse on what is going on out here.

The federal government debt is growing so much that it is endangering us because if things keep going like they are now we will not have any money left for the national defense because we are so far in debt as a nation. We have been spending so much on our welfare state through food stamps and other programs that I am worrying that many of our citizens are becoming more dependent on government and in many cases they are losing their incentive to work hard because of the welfare trap the government has put in place. Other nations in Europe have gone down this road and we see what mess this has gotten them in. People really are losing their faith in big government and they want more liberty back. It seems to me we have to get back to the founding  principles that made our country great.  We also need to realize that a big government will encourage waste and corruptionThe recent scandals in our government have proved my point. In fact, the jokes you made at Ohio State about possibly auditing them are not so funny now that reality shows how the IRS was acting more like a monster out of control. Also raising taxes on the job creators is a very bad idea too. The Laffer Curve clearly demonstrates that when the tax rates are raised many individuals will move their investments to places where they will not get taxed as much.

______________________________

We got to cut corporate welfare out of the budget too!!!

JULY 23, 2013 5:40PM

Feds and the States Tag-Teaming on Corporate Welfare

In a recent op-ed for the Indianapolis Star I discussed the symbiotic relationship between federal and state government when it comes to doling out corporate welfare subsidies. The focus was primarily on Indiana, but the issue is a national concern. 

A good example is the $2 billion Shepherd’s Flat wind farm in Oregon that was largely financed with federal and state taxpayer support. Ted Sickinger, a reporter for theOregonian, has done an excellent job of digging into details behind the project (see here thenhere then here) and it appears that Shepherd’s Flat was one big taxpayer handout. In fact, the Obama administration signed off on the federal government’s share of the subsidies even though it knew the project didn’t need any support from taxpayers: 

In 2010, Shepherd’s Flat attracted national notoriety for its subsidies. In a briefing memo for the President leaked to the media, Obama’s top advisors worried that the U.S. Department of Energy’s loan guarantee program was subsidizing projects that didn’t need it. 

Shepherd’s Flat was their case in point. 

Treasury Secretary Larry Summers, energy czar Carol Browner, and Vice President Joe Biden’s chief of staff Ron Klain said Shepherd’s Flat was “double-dipping” on $1.2 billion in federal and state subsidies – 65 percent of its projected cost. The incentives included a $500 million federal grant, $200 million in federal and state tax benefits from accelerated depreciation, $220 million in premium power prices attributed to state renewable energy mandates, and a $1 billion loan guarantee with a value of $300 million to the developers. 

They concluded that Caithness has “little skin in the game” – about 10 percent of the project’s cost – but stood to earn a 30 percent return on its investment. It also speculated that Shepherd’s Flat would likely go ahead without the federal loan guarantee because “the economics are favorable for wind investment given tax credits and state renewable energy standards.” 

Caithness Energy is the wind farm’s owner and operator. General Electric supplied the wind turbines (a $1.4 billion contract with Caithness) and part of the financing – financing backed by the federal loan guarantee. Both companies made sure they had Washington’s attention: 

Nationally, powerful interests were pushing in the same direction. A new president’s desire to build environmental credibility became an economic keystone to restore the collapsed economy. The Obama administration fast tracked loan guarantees to pump stimulus money into job-generating projects. Meanwhile, deep-pocketed companies with powerful lobbying arms were busy greasing the skids. 

The political action committee, employees and affiliates of General Electric – Shepherds Flat’s turbine supplier and an equity investor – gave more than a half million dollars to Obama’s 2008 campaign. The PACs for both GE and Caithness also have sprinkled sprinkled money among Oregon’s congressional delegation during the last five years, including Sens. Ron Wyden and Jeff Merkley, Reps. Earl Blumenauer, Greg Walden and Peter DeFazio. 

According to e-mails released by the House Oversight Committee investigating federal subsidies after the bankruptcy of solar startup Solyndra, the Obama administration pushed hard on incentives for Shepherds Flat. Months before officials at the U.S. Department of Energy approved a loan guarantee for the project, General Electric was being told it was a done deal. 

In April 2010, Kevin Walsh, managing director of GE’s renewables business, emailed the director of the U.S. DOE’s loan program: “We have been advised by the White House and other sources that we are likely to get the “green light” this week to move forward with the Shepherds Flat wind project…Les Gelber (a partner at Caithness Energy) and I will be in DC tomorrow and would like to stop by any time between noon and 2pm to briefly discuss.” 

The deal took more time to fully bake. Four months later, DOE Loan Program Office Credit Advisor Jim McCrea emailed a contractor: “Pressure is on real heavy on SF due to interest from VP.” 

Later that day, McCrea sent staff an all points bulletin to promptly provide answers on Shepherds Flat: “To do otherwise would leave us firmly on the political path and give agencies an opportunity to blame us when they are pressures (sic) to make decisions. As you all know, the pressures to make decisions on this transaction are high so speed is of the essence.” 

But the shenanigans don’t stop at the federal level. 

Even though the wind farm is clearly a single entity, it somehow managed to qualify for three separate $10 million state tax credits after the Oregon Department of Energy (ODOE) agreed with Caithness’s claim that Shepherd’s Flat was three separate entities. According to Sickinger, the ODOE’s decision was bogus: 

Yet limited and often non-responsive information about the review provided to The Oregonian suggests it was neither rigorous nor consistent with state rules governing tax credits. In its review, ODOE ignored clear evidence in its own files and additional records identified by The Oregonian that should have disqualified $20 million of the $30 million in tax credits. It failed to ask for contracts or other documentation to answer fundamental questions that state rules pose about ownership, financing, construction, operation and maintenance.

Instead, ODOE made assumptions, relied again on statements made by developers before the project was built, and reversed its own analysts’ earlier conclusions. Its review apparently tapped only one new source: a report by ODOE’s own staff for an entirely different purpose and largely irrelevant regarding tax credit eligibility. In the end, ODOE failed to apply its rules on separate and distinct facilities to Shepherd’s Flat. 

The result: “free” money for Caithness: 

The company, like many other tax credit recipients, received approval to sell the credit in exchange for cash. The pass-through option will net Caithness $20 million, but leave the state’s general fund out the full $30 million. 

There are more stories like the crony Shepherd’s Flat deal out there waiting to be uncovered. More state and local reporters should follow Sickinger’s example and start digging into these shady government-private collaborations that politicians and the financially-benefitting interests want the public to believe are so critical for “creating jobs.”

___________________________

Thank you so much for your time. I know how valuable it is. I also appreciate the fine family that you have and your commitment as a father and a husband.

Sincerely,

Everette Hatcher III, 13900 Cottontail Lane, Alexander, AR 72002, ph 501-920-5733, lowcostsqueegees@yahoo.com

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The War on Poverty has been a miserable failure!!

_________

Debate: What To Do About Poverty | Learn Liberty

Published on Jan 22, 2014

“Debate: What To Do About Poverty” by @LearnLiberty
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This Learn Liberty debate presents arguments for and against more government assistance to help the poor in the United States. Prof. Steven Horwitz argues that the government has created too many problems and that lifting government-imposed barriers to the poor will go a long way toward solving the problems of inequality in the United States. Prof. Jeffrey Reiman takes the view that government, while not perfect, will have a key role to play in creating better programs to help the poor. What do you think?

* This debate was filmed in front of a live audience at the 2013 International Students for Liberty Conference in Washington, DC

► Learn More

http://bleedingheartlibertarians.com/… [article]: Steve Horwitz breaks down the economic condition of the poor and whether markets work to benefit the least advantaged

http://www.washingtonpost.com/wp-dyn/… [article]: Stephen Rose of the Washington Post presents a variety of evidence to show that the declining numbers of middle class Americans is mostly due to many of them getting richer

http://www.fee.org/the_freeman/detail… [article]: Walter E. Williams of The Foundation for Economic Education explains what poverty is and why there is poverty in the first place

http://mises.org/daily/2526 [article]: Henry Hazlitt questions whether the government can truly reduce poverty

http://www.ted.com/playlists/67/the_q… : TED combines eight of their videos on different ideas of how to end poverty

http://www.economist.com/news/leaders…
out-extreme-poverty-20-years-world-shoul­d-aim [article]: Jon Berkeley of The Economist explains that we are towards the end of poverty and explains what factors played out in this reduction

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The War on Poverty has been a miserable failure!!

We’ve Spent $22 Trillion on War on Poverty. What Have We Achieved?

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It’s been 50 years now since the federal government launched its “War on Poverty.” But the numbers just released by the Census Bureau suggest we’re in a losing battle.

The poverty rate now stands at 14.5 percent. That’s a drop from the previous rate of 15 percent. But don’t celebrate too quickly. The new rate is almost exactly the poverty rate we had in 1967, only three years after President Lyndon Johnson announced his war.

To put it in further perspective: The poverty rate in 1950 was 32.2 percent. It dropped steadily throughout the ’50s, and had been nearly cut in half before the War on Poverty began. After that, the rate declined slightly, then leveled out.

More than 100 million — about one third of the U.S. population — receives aid from at least one welfare program.

That was $22 trillion ago. That’s right, trillion with a “t.” A 22 with 12 zeros behind it. To understand how much that is, if you laid a trillion $1 bills end to end, they would reach the sun. Now multiply that by 22. That’s enough for 11 round trips.

In short, it’s a lot of money. Yet the poverty rate is essentially the same as it was 50 years ago.

The federal government runs more than 80 means-tested welfare programs that provide cash, food, housing and medical care to low-income Americans. Federal and state spending on these programs last year was $943 billion (not counting Social Security, Medicare or unemployment insurance).

This money is going to a lot of people. More than 100 million — about one third of the U.S. population — receives aid from at least one welfare program. The average cost per recipient in 2013? $9,000. If converted into cash, current means-tested spending is five times what’s needed to eliminate all poverty in the United States.

So how can the poverty rate be practically the same? You have to understand two things.

Infographic by Kelsey Harris/The Daily Signal

One is that, incredibly, the Census Bureau counts almost none of the $943 billion in yearly welfare spending as family “income.” It acts as though that money doesn’t exist. And because the government counts a family as poor if its income falls below specified thresholds, a lot of people are being, in essence, mislabeled as poor.

That leads to the second thing we have to understand. When most people hear that a family is living in poverty, they naturally picture people suffering from significant material deprivation. They imagine people without enough food or clothing, or without a decent roof over their heads.

Sadly, of course, such conditions do exist for some Americans. But government surveys show that many of those officially designated as poor are surprisingly well-off.

Less than 2 percent are homeless, and only one in 10 live in mobile homes. The typical house or apartment of the poor is in good repair and uncrowded. Indeed, the typical “poor” family has air conditioning, cable or satellite TV, and a computer in the home. Forty percent have a wide-screen HDTV. Another 40 percent have Internet access.

So should we consider War on Poverty to be a success? Hardly. It was designed, according to Johnson, to increase self-sufficiency. Individuals and families who needed a hand up would get it, but the ultimate goal was to shrink the welfare rolls and transform the poor, Johnson said, from “tax-eaters” to “taxpayers.”

“Judged by that standard, the War on Poverty has been a colossal flop,” writes poverty expert Robert Rector of the Heritage Foundation. “The welfare state has undermined self-sufficiency by discouraging work and penalizing marriage.”

Fifty years ago, only 7 percent of children were born outside of marriage, which remains the single greatest weapon against child poverty. Today, it’s 41 percent.

Yet President Obama plans to spend $13 trillion over the next decade on welfare programs that discourage work and marriage.

It’s time to turn this around. According to Mr. Rector, able-bodied recipients of cash, food and housing should be required to work or prepare for work as condition of receiving aid. Welfare’s penalties against marriage should be reduced.

In short, it’s time to return to Johnson’s original vision to “replace their despair with opportunity.”

Originally appeared in the Washington Times.

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The Welfare State in USA has slowed the progress of the poor!!!!

___

The Welfare State in USA has slowed the progress of the poor!!!! Robert Rector noted, “Johnson’s aim was to make poor families self-sufficient — able to rise above poverty through their own earnings without dependence on welfare. The exact opposite happened. For a decade-and-a-half before the War on Poverty began, self-sufficiency in America improved dramatically. For the past 45 years, though, there has been no improvement at all.”

We know the welfare state is good news for people inside government. Lots of bureaucrats are required, after all, to oversee a plethora of redistribution programs.

Walter Williams refers to these paper pushers as poverty pimps, and there’s even a ranking showing which states have the greatest number of these folks who profit by creating dependency.

But does anybody else benefit from welfare programs?

Robert Rector of the Heritage Foundation explains in the Washington Times that the War on Poverty certainly hasn’t been a success for taxpayers or poor people. Instead, it’s created a costly web of dependency.

This year marks the 50th anniversary of President Lyndon Johnson’s launch of the War on Poverty. …Since then, the taxpayers have spent $22 trillion on Johnson’s war. Adjusted for inflation, that’s three times the cost of all military wars since the American Revolution. Last year, government spent $943 billion providing cash, food, housing and medical care to poor and low-income Americans. …More than 100 million people, or one third of Americans, received some type of welfare aid, at an average cost of $9,000 per recipient.

Here are some of the unpleasant details.

The U.S. Census Bureau has just released its annual poverty report. The report claims that in 2013, 14.5 percent of Americans were poor. Remarkably, that’s almost the same poverty rate as in 1967, three years after the War on Poverty started. How can that be? …When Johnson launched the War on Poverty, he wanted to give the poor a “hand up, not a hand out.” He stated that his war would shrink welfare rolls and turn the poor from “tax-eaters” into “taxpayers.” Johnson’s aim was to make poor families self-sufficient — able to rise above poverty through their own earnings without dependence on welfare. The exact opposite happened. For a decade-and-a-half before the War on Poverty began, self-sufficiency in America improved dramatically. For the past 45 years, though, there has been no improvement at all.

The final two sentences of that excerpt are the most important words in Robert’s column.

We were making lots of progress in the fight against poverty in the 1950s. That’s because we relied on the private economy and self sufficiency, as seen on the right side of this Chuck Asay cartoon..

But once politicians decided government was responsible for fighting poverty, progress ceased.

Why did progress stop? Because, as Robert explains, the welfare state creates a dependency trap and enables self-destructive behavior.

The culprit is, in part, the welfare system itself, which discourages work and penalizes marriage. …The welfare state is self-perpetuating. By undermining the social norms necessary for self-reliance, welfare creates a need for even greater assistance in the future. President Obama plans to spend $13 trillion over the next decade on welfare programs that will discourage work, penalize marriage and undermine self-sufficiency.

By the way, being “poor” in America rarely means material deprivation.

Most Americans who live in “poverty” have much higher living standards that people elsewhere in the world.

The actual living conditions of households labeled as poor by Census are surprising to most people. According to the government’s own surveys, 80 percent of poor households have air conditioning; nearly two-thirds have cable or satellite television; half have a personal computer; 40 percent have a wide-screen HDTV. Three-quarters own a car or truck; nearly a third has two or more vehicles. Ninety-six percent of poor parents state that their children were never hungry at any time during the year because they could not afford food. …As a group, poor children are far from being chronically undernourished. The average consumption of protein, vitamins and minerals is virtually the same for poor and middle-class children, and in most cases is well above recommended norms. …the average poor American has more living space than the typical nonpoor individual living in Sweden, France, Germany or the United Kingdom.

By the way, don’t be surprised by the final sentence in that excerpt. Most people have no idea that Americans have far higher living standards than their cousins in Europe.

For more information on how best to help the poor, watch this video from the Center for Freedom and Prosperity.

Free Markets, Not Redistribution, Is Best Way to Reduce Poverty

Uploaded on Oct 3, 2011

The so-called War on Poverty has failed. Making government bigger and creating more federal redistribution programs has been bad news for taxpayers. But the welfare state also has been a disaster for the less fortunate, creating a flypaper effect that makes it difficult for people to lead independent and self-reliant lives. This Center for Freedom and Prosperity Foundation video shows how the poverty rate was falling after World War II — but then stagnated once the federal government got involved. http://www.freedomandprosperity.org

____________________________

Bono actually agrees that capitalism is the best approach to fighting poverty. Too bad the Pope lacks the same insight.

P.S. Here’s a map showing which states have the biggest welfare benefits.

P.P.S. If you want to see an utterly dishonest approach to public policy, read how the OECD tried to exaggerate poverty in the United States, so much so that it even tried to imply that there was more poverty in America than Greece.

P.P.P.S. Thomas Sowell has wise thoughts on how the welfare state hurts the less fortunate.

P.P.P.P.S. Some libertarians have suggested a “basic income” to replace the dozens of inefficient and failed welfare programs in Washington. For what it’s worth, I think there’s a better alternative.

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Liberals tell us that 1/3 of the U.S. population received aid from at least one welfare program at an average cost of $9,000 per recipient in 2013 but that is not enough!!!!

_____

Liberals tell us that 1/3 of the U.S. population received aid from at least one welfare program at an average cost of $9,000 per recipient in 2013 but that is not enough!!!!

_________

Societycommentary

The War on Poverty Has Been a Colossal Flop

Today, the U.S. Census Bureau will release its annual report on poverty. This report is noteworthy because this year marks the 50th anniversary of President Lyndon Johnson’s launch of the War on Poverty. Liberals claim that the War on Poverty has failed because we didn’t spend enough money. Their answer is just to spend more. But the facts show otherwise.

Since its beginning, U.S. taxpayers have spent $22 trillion on Johnson’s War on Poverty (in constant 2012 dollars). Adjusting for inflation, that’s three times more than was spent on all military wars since the American Revolution.

One third of the U.S. population received aid from at least one welfare program at an average cost of $9,000 per recipient in 2013.

The federal government currently runs more than 80 means-tested welfare programs. These programs provide cash, food, housing and medical care to low-income Americans. Federal and state spending on these programs last year was $943 billion. (These figures do not include Social Security, Medicare, or Unemployment Insurance.)

>>> INFOGRAPHIC: 9 Facts About How the Poor in America Live

Over 100 million people, about one third of the U.S. population, received aid from at least one welfare program at an average cost of $9,000 per recipient in 2013. If converted into cash, current means-tested spending is five times the amount needed to eliminate all poverty in the U.S.

rectorchart

But today the Census will almost certainly proclaim that around 14 percent of Americans are still poor. The present poverty rate is almost exactly the same as it was in 1967 a few years after the War on Poverty started. Census data actually shows that poverty has gotten worse over the last 40 years.

How is this possible? How can the taxpayers spend $22 trillion on welfare while poverty gets worse?

The typical family that Census identifies as poor has air conditioning, cable or satellite TV, and a computer in its home.

The answer is it isn’t possible.  Census counts a family as poor if its income falls below specified thresholds. But in counting family “income,” Census ignores nearly the entire $943 billion welfare state.

For most Americans, the word “poverty” means significant material deprivation, an inability to provide a family with adequate nutritious food, reasonable shelter and clothing. But only a small portion of the more than 40 million people labelled as poor by Census fit that description.

The media frequently associate the idea of poverty with being homeless. But less than two percent of the poor are homeless.  Only one in ten live in mobile homes. The typical house or apartment of the poor is in good repair and uncrowded; it is actually larger than the average dwelling of non-poor French, Germans or English.

According to government surveys, the typical family that Census identifies as poor has air conditioning, cable or satellite TV, and a computer in his home. Forty percent have a wide screen HDTV and another 40 percent have internet access. Three quarters of the poor own a car and roughly a third have two or more cars. (These numbers are not the result of the current bad economy pushing middle class families into poverty; instead, they reflect a steady improvement in living conditions among the poor for many decades.)

The intake of protein, vitamins and minerals by poor children is virtually identical with upper middle class kids. According to surveys by the U.S. Department of Agriculture, the overwhelming majority of poor people report they were not hungry even for a single day during the prior year.

Bono Quote, free enterprise

We can be grateful that the living standards of all Americans, including the poor, have risen in the past half century, but the War on Poverty has not succeeded according to Johnson’s original goal. Johnson’s aim was not to prop up living standards by making more and more people dependent on an ever larger welfare state. Instead, Johnson sought to increase self-sufficiency, the ability of a family to support itself out of poverty without dependence on welfare aid. Johnson asserted that the War on Poverty would actually shrink the welfare rolls and transform the poor from “taxeaters” into “taxpayers.”

Judged by that standard, the War on Poverty has been a colossal flop. The welfare state has undermined self-sufficiency by discouraging work and penalizing marriage. When the War on Poverty began seven percent of children were born outside marriage. Today, 42 percent of children are. By eroding marriage, the welfare state has made many Americans less capable of self-support than they were when the War on Poverty began.

President Obama plans to spend $13 trillion dollars on means-tested welfare over the next decade. Most of this spending will flow through traditional welfare programs that discourage the keys to self-sufficiency: work and marriage.

Rather than doubling down on the mistakes of the past, we should restructure the welfare state around Johnson’s original goal: increasing Americans capacity for self-support. Welfare should no longer be a one way hand out; able-bodied recipients of cash, food and housing should be required to work or prepare for work as condition of receiving aid. Welfare’s penalties against marriage should be reduced. By returning to the original vision of aiding the poor to aid themselves, we can begin, in Johnson’s words, to “replace their despair with opportunity.”

Related posts:

Open letter to President Obama (Part 648) The human cost of the Welfare State

Open letter to President Obama (Part 648) (Emailed to White House on 6-10-13.) 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 every day. I really do respect you for trying to get […]

Open letter to President Obama (Part 618) FREE TO CHOOSE “Who protects the worker?” Video and Transcript Part 5 of 7 “With a welfare system of the kind we have, you have the problem that people immigrate in order to get welfare, not in order to get employment”

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“Friedman Friday” Milton Friedman had a solution to the welfare state!!!

I have written about the tremendous increase in the food stamp program the last 9 years before and that means that both President Obama and Bush were guilty of not trying to slow down it’s growth. Furthermore, Republicans have been some of the biggest supporters of the food stamp program. Milton Friedman had a good […]

Open letter to President Obama (Part 536) If America does not get welfare reform under control, it will bankrupt America

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The Founders desired to limit government power and constrain politicians and they knew where the welfare state would lead!!!!

  Welfare Can And Must Be Reformed             Uploaded on Jun 29, 2010 If America does not get welfare reform under control, it will bankrupt America. But the Heritage Foundation’s Robert Rector has a five-step plan to reform welfare while protecting our most vulnerable. __________________________ The Founders desired to limit government power and constrain politicians and […]

Open letter to President Obama (Part 516) (Welfare state erodes social capital)

Open letter to President Obama (Part 516) (Emailed to White House on 5-3-13.) 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 every day. I really do respect you for trying to get […]

Since 2000 USA expanded the welfare state faster than almost every European nation!!!

____________ Dan Mitchell Discussing Food Stamps, Dependency and Faux Compassion on Kudlow’s CNBC Show ________________ Since 2000 USA expanded the welfare state faster than almost every European nation!!! Mirror, Mirror, on the Wall, Which Nation Has Increased Welfare Spending the Fastest of All? January 18, 2014 by Dan Mitchell There’s an old joke about two guys camping […]

Shouldn’t we eliminate welfare programs that deepen, prolong and institutionalize poverty?

___________ Shouldn’t we eliminate welfare programs that deepen, prolong and institutionalize poverty?   Senator Mike Lee: Time to Rethink the War on Poverty Mike Gonzalez November 13, 2013 at 6:31 pm (0) Share on facebookShare Progressives sometimes accuse conservatives of not caring about the poor. But it’s liberal policies that deepen, prolong, and institutionalize poverty. […]

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

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

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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 […]

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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 […]

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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 […]

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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 […]