Category Archives: spending out of control

May 31, 2022 READING A PROVERB A DAY (PROVERBS 31) Adrian Rogers on Alcohol THE BATTLE OF THE BOTTLE

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Proverbs 31:4 “It is not for kings, O Lemuel, it is not for kings to drink wine, or for rulers to take strong drink,”BUT WASHINGTON’S STATE DEPT RUNS UP TAB OF $180,000 FOR MONTH OF SEPTEMBER!!!

The Sayings of King Lemuel

31 The sayings of King Lemuel contain this message,[a] which his mother taught him.

O my son, O son of my womb,
    O son of my vows,
do not waste your strength on women,
    on those who ruin kings.

It is not for kings, O Lemuel, to guzzle wine.
    Rulers should not crave alcohol.
For if they drink, they may forget the law
    and not give justice to the oppressed.
Alcohol is for the dying,
    and wine for those in bitter distress.
Let them drink to forget their poverty
    and remember their troubles no more.

Speak up for those who cannot speak for themselves;
    ensure justice for those being crushed.
Yes, speak up for the poor and helpless,
    and see that they get justice.

A Wife of Noble Character

10 [b]Who can find a virtuous and capable wife?
    She is more precious than rubies.
11 Her husband can trust her,
    and she will greatly enrich his life.
12 She brings him good, not harm,
    all the days of her life.

13 She finds wool and flax
    and busily spins it.
14 She is like a merchant’s ship,
    bringing her food from afar.
15 She gets up before dawn to prepare breakfast for her household
    and plan the day’s work for her servant girls.

16 She goes to inspect a field and buys it;
    with her earnings she plants a vineyard.
17 She is energetic and strong,
    a hard worker.
18 She makes sure her dealings are profitable;
    her lamp burns late into the night.

19 Her hands are busy spinning thread,
    her fingers twisting fiber.
20 She extends a helping hand to the poor
    and opens her arms to the needy.
21 She has no fear of winter for her household,
    for everyone has warm[c] clothes.

22 She makes her own bedspreads.
    She dresses in fine linen and purple gowns.
23 Her husband is well known at the city gates,
    where he sits with the other civic leaders.
24 She makes belted linen garments
    and sashes to sell to the merchants.

25 She is clothed with strength and dignity,
    and she laughs without fear of the future.
26 When she speaks, her words are wise,
    and she gives instructions with kindness.
27 She carefully watches everything in her household
    and suffers nothing from laziness.

28 Her children stand and bless her.
    Her husband praises her:
29 “There are many virtuous and capable women in the world,
    but you surpass them all!”

30 Charm is deceptive, and beauty does not last;
    but a woman who fears the Lord will be greatly praised.
31 Reward her for all she has done.
    Let her deeds publicly declare her praise.

State Department Waste: Booze, Crystal, and a Million-Dollar Stack of Rocks

December 9, 2013 at 11:55 am

Walter Bibikow / DanitaDelimont.com Danita Delimont Photography/Newscom

On the eve of the government shutdown, the State Department was consumed with a very different budget crisis of its own: purchasing vast amounts of booze for American embassies around the globe.

According to Jim McElhatton of The Washington Times, the embassy in Moscow splurged on $15,900 in bourbon and whiskey; the Tokyo embassy, partial to wine, placed an order for $22,416. The embassy in Rio de Janeiro spent $5,625 on gratuity wine on September 29 and, on the day of the shutdown, opted for stronger gratuity whisky at $5,925.

The booze buying binge ran up a tab of $180,000 for the month of September. Alcohol is a fixture at diplomatic functions, and it is appropriate to have a stock on hand, but the State Department’s booze budget has ballooned since 2009—tripling in cost during President Obama’s tenure.

The Washington Times reported that the annual budget for 2008 was $118,000 and jumped to nearly $300,000 in 2011. It peaked at $415,000 in 2012, with the total for 2013 coming in at $400,000.

All this liquor and wine requires proper drinkware, of course. Thus, the State Department raced to fill an order of $5 million just hours before the shutdown, buying 12,000 pieces of hand-blown crystal glassware—retailing up to $85 per glass.

Senator Patrick Leahy (D–VT), the chairman of the subcommittee that exercises oversight on the State Department’s funding, said of the purchase that “it is wonderful to have such an exquisite example of Vermont craftsmanship on display and in use in our embassies around the world.”

The State Department fully embraced the spirit of “use it or lose it” season in Washington when it awarded a contract to American Sean Scully to install a $1 million granite statue at the London embassy. The British are not impressed, with the Daily Mail suggesting that Scully’s work “resembles stacked piles of paving stones.”

The mission of the State Department, as defined on the agency’s website, is to “[c]reate a more secure, democratic, and prosperous world for the benefit of the American people and the international community.” It is hard to see how the recent spending surge is critical to that mission. Americans have traditionally valued thriftiness—a practice that is much in need of revival considering our budgetary woes. Considering the above expenditures, a good place for Congress to start might be the State Department.

Matthew Sabas is currently a member of the Young Leaders Program at The Heritage Foundation. For more information on interning at Heritage, please click here.

The Battle of The Bottle part 1 Adrian Rogers

Uploaded by on Jun 23, 2011

The famous preacher Adrian Rogers gives a phenomenal message about alcohol. One of my favorite sermons of all time.

When I was growing up I admit there were times that I did not listen to my pastor’s sermon at church as attentively as I should have. However, there were times that he gave real life examples from the pulpit that caught my attention. One of those examples was the statistic that over 50% of deaths on the highway included a driver where alcohol was involved.

My pastor’s name was Adrian Rogers of Bellevue Baptist of Cordova, Tennessee and sadly one of Bellevue’s members, Billy Penn, was killed on Wednesday night September 26th by a drunk driver after leaving Wednesday night services.

My three sisters and I went to high school at Evangelical Christian School (ECS) in Cordova with Penn’s three children and my father had known Billy for forty years. Actually my father had left the same church parking lot on September 26th that Billy was in and Penn was killed just a mile away from the church.

At our family Sunday lunch on September 30, 2012, my father used the opportunity to discuss the dangers of alcohol with his grandchildren and that is exactly what I wanted to share today.

My father asked what is to come of 21-year-old Jordan Stonebrook who was the other driver? According to WMC-TV in Memphis Stonebrook slammed head on into Penn’s Buick Park Avenue around 9 p.m., Wednesday, September 26. Investigators say Stonebrook, who was driving a Chevy Tahoe was going the wrong way on Cordova Road.

Witnesses said Stonebrook apparently started driving the wrong way. For about half of a mile, other cars were dodging him going into the other lane and some even driving up on the curb.

Police said Stonebrook appeared intoxicated. Investigators said Stonebrook later said he started drinking a few hours earlier, downing seven shots of rum. Stonebrook was not seriously hurt in the crash.

WREG-TV reported that the Collierville man accused of drinking and driving just turned 21 -years-old last month.

Now, he’s charged with vehicular homicide.

“He’s got a life ahead of him and he’s got that burden on him for the rest of his days,” said Cordova resident Lisa Douba.  “He’ll never be able to forget that.”

Stonebrook faces up to 30 years in prison for this crime.

Right now, he is being held on a $100,000 bond.

Here are some of the details I remember from my pastor’s sermons on alcohol. Here is a story Adrian Rogers used in his sermon on alcohol:

Billy Sunday told of the man over here in the Blue Ridge Mountains who caught rattlesnakes for a living. One day, he caught a huge rattler, a rattlesnake that had 14 rattlers. He put it in a box, and put a glass top on the box, was out in the fields plowing, when his little boy slid the top off of that box where that rattler was coiled. And that rattlesnake sprung out of that box and planted his fangs in the cheek of that little boy. The little boy ran out of the house into the yard to tell his father what had happened. The father came in, saw that snake, and hewed it to pieces. Then, he took his pocket knife and cut a big chunk out of that little boy’s cheek—that’s all he knew to do—and put his mouth up there to try to suck the poison out of the face of that little boy. He watched that little boy’s face begin to swell and swell. It looked like several times its normal size, and the little boy stiffened and died. That man lifted up his voice in anguish and said, “Oh, I would not trade my son for all the rattlesnakes in the Blue Ridge Mountains.”

The father took him in his arms, carried him over by the side of the rattler, got on his knees and said, “God, I would not give little Jim for all the rattlers that ever crawled over the Blue Ridge mountains.”

That is the question that must be answered by everyone no matter what their religious beliefs. Is the pleasure of drinking alcohol worth the life of one of your children?

Here is a scripture that describes what will happen to a person under the influence of alcohol:

Proverbs 23:29-32
(29) Who hath woe? who hath sorrow? who hath contentions? who hath babbling? who hath wounds without cause? who hath redness of eyes?
(30) They that tarry long at the wine; they that go to seek mixed wine.
(31) Look not thou upon the wine when it is red, when it giveth his color in the cup, when it moveth itself aright.
(32) At the last it biteth like a serpent, and stingeth like an adder.

Jordan Stonebrook told the policemen on the scene that he was fed up and decided to get drunk. The results were much the same as the scripture indicated.

There have been several high-profile deaths recently where alcohol was involved. Ryan Dunn was a reality tv star and his untimely death on June 20, 2011 was also caused by drunk driving. Dunn actually tweeted a picture of himself drinking just moments before he left the bar and crashed his car killing everyone in his car.

The Huffington Post reported on October 26, 2011, “Amy Winehouse drank herself to death. That was the ruling of a coroner’s inquest into the death of the Grammy-winning soul singer, who died with empty vodka bottles in her room and lethal amounts of alcohol in her blood – more than five times the British drunk driving limit.”

I didn’t know it was possible to drink yourself to death in one day, but I discovered that also AC/DC’s lead singer Bon Scott also drank himself to death back on February 19, 1980.

Those are several cases of famous people dying because of alcohol use, but it touches almost every family at some point. If sharing this with the readers of the Saline Courier would help even one person to avoid this same fate then it has been well worth writing this article.

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Everette Hatcher is a regular contributor to The Saline Courier. He is the fourth generation in his family to work in the broom manufacturing business. Everette and his wife Jill have four children and live in Alexander.

Ryan Dunn and his friends moments before they died.

Flickr user Eric Lewis posted the image below with a caption that says the photo shows what’s left of Dunn’s car.

Ryan Dunn (on left) seen moments before his wreck. This shot was removed from his tumblr site.

The Battle of The Bottle part 2 Adrian Rogers

Uploaded by on Jun 23, 2011

The famous preacher Adrian Rogers gives a phenomenal message about alcohol. One of my favorite sermons of all time.

Amy Winehouse
Singer Amy Winehouse

The Battle of The Bottle part 4 Adrian Rogers

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10 Ways to cut spending in Washington suggested by the Cato Institute!!!

____________ 10 Ways to cut spending in Washington suggested by the Cato Institute!!! A MESSAGE FROM THE CATO INSTITUTEON SPENDING: NO SACRED COWS We face another budget crisis and possible government shutdown as early as January, unless Congress can come together on a bipartisan basis to cut spending. The Affordable Care Act is far from […]

The Dysfunction in Washington is Republicans and Democrats that are unwilling to cut spending in order to vote for more programs (Democrats want more food stamps etc but Republicans vote for their pet programs and wars too like No Child Left Behind Act, the Iraq war, the prescription drug entitlement, and the TARP bailout).

The Dysfunction in Washington is Republicans and Democrats that are unwilling to cut spending in order to vote for more programs (Democrats want more food stamps etc but Republicans vote for their pet programs and wars too like No Child Left Behind Act, the Iraq war, the prescription drug entitlement, and the TARP bailout). If […]

Washington better wake up and cut spending or the USA will end up bankrupt like Detroit!!!

Washington better wake up and cut spending or the USA will end up bankrupt like Detroit!!! Atlas Shrugs in Detroit July 25, 2013 by Dan Mitchell About two weeks ago, while making an important point about the Laffer Curve, here’s what I wrote about the fiscal disaster in Detroit. Detroit’s problems are the completely predictable result […]

Lessons from Canada:CUT SPENDING AND LOWER TAXES AND GIVE MORE CONTROL BACK TO THE LOCAL GOVERNMENTS!!!!

When Governments Cut Spending Uploaded on Sep 28, 2011 Do governments ever cut spending? According to Dr. Stephen Davies, there are historical examples of government spending cuts in Canada, New Zealand, Sweden, and America. In these cases, despite popular belief, the government spending cuts did not cause economic stagnation. In fact, the spending cuts often […]

We got to cut spending and this farm bill is the perfect place to start!!!

We got to cut spending and this farm bill is the perfect place to start!!! May 29, 2013 12:33PM Farm Bill Would Increase Spending 47% By Chris Edwards Share House and Senate farm subsidy supporters are pushing to enact the first big farm bill since 2008. Democratic and Republican supporters say that this year’s legislation […]

President Obama will not cut spending ever it appears

President Obama will not cut spending ever it appears. Early Details Show Obama Will Propose a Bait-and-Switch Budget Plan Containing Higher Taxes and More Spending April 5, 2013 by Dan Mitchell Are we about to see a new kinder-and-gentler Obama? Has the tax-and-spend President of the past four years been replaced by a fiscal moderate? That’s […]

We got to cut spending and stop raising the debt ceiling!!!

  We got to cut spending and stop raising the debt ceiling!!! When Governments Cut Spending Uploaded on Sep 28, 2011 Do governments ever cut spending? According to Dr. Stephen Davies, there are historical examples of government spending cuts in Canada, New Zealand, Sweden, and America. In these cases, despite popular belief, the government spending […]

To save the USA from Greece’s fate we must cut spending

Maybe Romney will focus on cutting spending now that Ryan is on board. Is the American Electorate that Dumb? Posted by Roger Pilon Today POLITICO Arena asks: Can Ryan boost Romney’s poll numbers? My response: Ryan is the shot in the arm that Romney needed. If last night’s “60 Minutes” interview of the two is […]

The USA must cut spending and balance budget or end up like Greece

Why can’t we learn the lesson from Europe that we must start to cut spending and balance our budget or we will end up like Greece? Europe’s Crisis Is Because of Too Much Government, Not the Euro Currency July 19, 2012 by Dan Mitchell The mess in Europe has been rather frustrating, largely because almost everybody […]

An award to the person who cut spending by our federal governement the most ($47)

A funny carton. Finally, Some Government Workers Who Want to Cut Spending April 23, 2012 by Dan Mitchell In recent years, taxpayers have been victimized by huge expansions in the burden of government spending. Among the highlights (lowlights would be a much better word): A corrupt bailout of politically connected Wall Street insiders. A bloated healthcare […]

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

Dan Mitchell article: Debunking Biden’s Absurd “Cut the Deficit” Claim

A.F. Branco for Oct 21, 2021

Debunking Biden’s Absurd “Cut the Deficit” Claim

After almost 16 months in office, what is President Biden’s track record on fiscal policy?

The good news is that his big tax-and-spend plan to “build back better” has not been approved by Congress (and fingers crossed that it stays that way).

The bad news is that he has done other things, such as getting a fake stimulus though Congress, as well as a so-called infrastructure package.

The Committee for a Responsible Federal Budget put together an estimate of his major initiatives.

By the way, the CRFB folks fixate on how these initiative impact the deficit. What we really should be concerned about is how much money is being spent.

But let’s set that aside and focus instead on a jaw-dropping claim from the White House.

Even though all of his major initiatives have increased red ink, he is patting himself on the backfor lower deficits.

For what it is worth, Biden’s claim is semi-accurate. It is true that budget deficits are temporarily falling.

But not because of him. Instead, red ink is falling because there was massive, one-time, multi-trillion dollar emergency spending for the COVID pandemic in 2020. That spending began to wind down in 2021 and it has mostly dissipated this year, so of course deficits have fallen.

For Biden to take credit for this drop would be akin to Truman taking credit for the big drop in red ink after World War II ended.

Eric Boehm of Reason wrote a column that debunks Biden’s ludicrous claim.

…this year’s budget deficit is forecasted to be the third or fourth-largest in American history—but President Joe Biden claims…his administration is overseeing a period of fiscal austerity. …Here are some words that actually tumbled out of the president’s mouth at a press conference… “We’re on track to cut the federal deficit by another $1.5 trillion by the end of this fiscal year. …on top of us having a $350 billion drop in the deficit last year, my first year as president,” Biden continued.…Those facts, however, exclude a few key details. …Biden took office the year after the budget deficit hit previously unimaginable highs due to a completely unprecedented spending binge triggered by a once-in-a-generation public health disaster. …if you look at the actual budgetary baselines published by the Congressional Budget Office—that is, the ongoing amount of annual federal spending absent any emergency stimulus bills like the ones passed on several occasions during the height of the pandemic—Biden has overseen a noticeable increase in the deficit above the pre-pandemic baseline. According to the Committee for a Responsible Federal Budget, a fiscal watchdog group that advocates for lower deficits, Biden’s policies have added about $2.5 trillion to the deficit over the next 10 years.

Brian Riedl is now with the Manhattan Institute, but we used to work together earlier this century at the Heritage Foundation. One of his admirable traits is that he hasn’t lost the ability to be outraged.

That comes through in his tweet about Biden’s supposed accomplishment.

By the way, I’m not making a partisan point. I have no doubt Trump would have done the same thing.

After all, politicians are probably the least ethical people in the nation. And Washington brings out the worst of the worst.

Biden talks up deficit reduction, as watchdog says it’s ‘highly misleading’

Last Updated: May 4, 2022 at 11:50 a.m. ETFirst Published: May 4, 2022 at 10:22 a.m. ET

President: ‘Bringing down the deficit is one way to ease inflationary pressures’

President Joe Biden speaks Wednesday about the economy at the White House. Also pictured (L-R) are Shalanda Young, director of the Office of Management and Budget; Cecilia Rouse, chair of the Council of Economic Advisers; and Brian Deese, director of the National Economic Council.

AFP/GETTY IMAGES

President Joe Biden on Wednesday delivered an economic speech that highlighted cuts to the federal deficit, even as some watchdogs have criticized his rhetoric around reducing red ink.

“The bottom line is the deficit went up every year under my predecessor, before the pandemic and during the pandemic, and it’s gone down both years since I’ve been here. Period. They’re the facts,” Biden said at the White House.

“Why is it important? Because bringing down the deficit is one way to ease inflationary pressures.”

The president has been talking up fiscal deficit reduction as a way to win over a key Democratic senator — West Virginia’s Joe Manchin — who has blocked Biden’s Build Back Better spending plan and wants to see Washington focused on closing the budget gap and fighting high inflation.

Biden’s rhetoric on eliminating red ink has drawn flak from the Committee for a Responsible Federal Budget, a nonpartisan watchdog organization.

“While President Biden’s Fiscal Year (FY) 2023 budget calls for $1.05 trillion of welcomed deficit reduction, the administration has largely been focused on taking credit for the expected $1.3 trillion fall in the deficit between FY 2021 and 2022,” the organization said in a blog post last month.

“The administration touting this victory is highly misleading; deficits are falling mainly because COVID relief is ending, and deficits will remain high even after this decline.”

Biden on Thursday said his administration revealed this week that it’s on track to cut the federal deficit by $1.5 trillion by the end of the current fiscal year, adding that it’s “the biggest decline in a single year ever in American history.”

The president’s remarks come after his Treasury Department on Monday surprised observers by announcing that it plans to pay down $26 billion in debt in the second quarter.

“For the first time since 2016, the Treasury Department is planning to pay down the national debt issued to the public this quarter,” he said on Wednesday. “For all the talk Republicans make about deficits, it didn’t happen a single quarter under my predecessor, not once.”

Biden’s speech initially had been planned for 2 p.m. Eastern, but the White House moved up the scheduled time for his remarks by three hours.

The Federal Reserve at 2 p.m. Eastern is expected to announce its biggest hike in interest rates in 20 years — a half-percentage-point rise — as the American central bank aims to combat the highest U.S. inflation in 40 years. Fed Chairman Jerome Powell is due to speak at a news conference at 2:30 p.m.

March 31, 2021

President Biden  c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

Please explain to me if you ever do plan to balance the budget while you are President? I have written these things below about you and I really do think that you don’t want to cut spending in order to balance the budget. It seems you ever are daring the Congress to stop you from spending more.

President Barack Obama speaks about the debt limit in the East Room of the White House in Washington. | AP Photo

“The credit of the United States ‘is not a bargaining chip,’ Obama said on 1-14-13. However, President Obama keeps getting our country’s credit rating downgraded as he raises the debt ceiling higher and higher!!!!

Washington Could Learn a Lot from a Drug Addict

Just spend more, don’t know how to cut!!! Really!!! That is not living in the real world is it?

Making more dependent on government is not the way to go!!

Why is our government in over 16 trillion dollars in debt? There are many reasons for this but the biggest reason is people say “Let’s spend someone else’s money to solve our problems.” Liberals like Max Brantley have talked this way for years. Brantley will say that conservatives are being harsh when they don’t want the government out encouraging people to be dependent on the government. The Obama adminstration has even promoted a plan for young people to follow like Julia the Moocher.  

David Ramsey demonstrates in his Arkansas Times Blog post of 1-14-13 that very point:

Arkansas Politics / Health Care Arkansas’s share of Medicaid expansion and the national debt

Posted by on Mon, Jan 14, 2013 at 1:02 PM

Baby carrot Arkansas Medicaid expansion image

Imagine standing a baby carrot up next to the 25-story Stephens building in Little Rock. That gives you a picture of the impact on the national debt that federal spending in Arkansas on Medicaid expansion would have, while here at home expansion would give coverage to more than 200,000 of our neediest citizens, create jobs, and save money for the state.

Here’s the thing: while more than a billion dollars a year in federal spending would represent a big-time stimulus for Arkansas, it’s not even a drop in the bucket when it comes to the national debt.

Currently, the national debt is around $16.4 trillion. In fiscal year 2015, the federal government would spend somewhere in the neighborhood of $1.2 billion to fund Medicaid expansion in Arkansas if we say yes. That’s about 1/13,700th of the debt.

It’s hard to get a handle on numbers that big, so to put that in perspective, let’s get back to the baby carrot. Imagine that the height of the Stephens building (365 feet) is the $16 trillion national debt. That $1.2 billion would be the length of a ladybug. Of course, we’re not just talking about one year if we expand. Between now and 2021, the federal government projects to contribute around $10 billion. The federal debt is projected to be around $25 trillion by then, so we’re talking about 1/2,500th of the debt. Compared to the Stephens building? That’s a baby carrot.

______________

Here is how it will all end if everyone feels they should be allowed to have their “baby carrot.”

How sad it is that liberals just don’t get this reality.

Here is what the Founding Fathers had to say about welfare. David Weinberger noted:

While living in Europe in the 1760s, Franklin observed: “in different countries … the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.”

Alexander Fraser Tytler, Lord Woodhouselee (15 October 1747 – 5 January 1813) was a Scottish lawyer, writer, and professor. Tytler was also a historian, and he noted, “A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.”

Thomas Jefferson to Joseph Milligan

April 6, 1816

[Jefferson affirms that the main purpose of society is to enable human beings to keep the fruits of their labor. — TGW]

To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, “the guarantee to every one of a free exercise of his industry, and the fruits acquired by it.” If the overgrown wealth of an individual be deemed dangerous to the State, the best corrective is the law of equal inheritance to all in equal degree; and the better, as this enforces a law of nature, while extra taxation violates it.

[From Writings of Thomas Jefferson, ed. Albert E. Bergh (Washington: Thomas Jefferson Memorial Association, 1904), 14:466.]

_______

Jefferson pointed out that to take from the rich and give to the poor through government is just wrong. Franklin knew the poor would have a better path upward without government welfare coming their way. Milton Friedman’s negative income tax is the best method for doing that and by taking away all welfare programs and letting them go to the churches for charity.

_____________

_________

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

Williams with Sowell – Minimum Wage

Thomas Sowell

Thomas Sowell – Reducing Black Unemployment

By WALTER WILLIAMS

—-

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Welfare Spending Shattering All-Time Highs

  We got to act fast and get off this path of socialism. Morning Bell: Welfare Spending Shattering All-Time Highs Robert Rector and Amy Payne October 18, 2012 at 9:03 am It’s been a pretty big year for welfare—and a new report shows welfare is bigger than ever. The Obama Administration turned a giant spotlight […]

We need more brave souls that will vote against Washington welfare programs

We need to cut Food Stamp program and not extend it. However, it seems that people tell the taxpayers back home they are going to Washington and cut government spending but once they get up there they just fall in line with  everyone else that keeps spending our money. I am glad that at least […]

Welfare programs are not the answer for the poor

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. __________ Liberals argue that the poor need more welfare programs, but I have always argued that these programs enslave the poor to the government. Food Stamps Growth […]

Private charities are best solution and not government welfare

Milton Friedman – The Negative Income Tax Published on May 11, 2012 by LibertyPen In this 1968 interview, Milton Friedman explained the negative income tax, a proposal that at minimum would save taxpayers the 72 percent of our current welfare budget spent on administration. http://www.LibertyPen.com Source: Firing Line with William F Buckley Jr. ________________ Milton […]

The book “After the Welfare State”

Dan Mitchell Commenting on Obama’s Failure to Propose a Fiscal Plan Published on Aug 16, 2012 by danmitchellcato No description available. ___________ After the Welfare State Posted by David Boaz Cato senior fellow Tom G. Palmer, who is lecturing about freedom in Slovenia and Tbilisi this week, asked me to post this announcement of his […]

President Obama responds to Heritage Foundation critics on welfare reform waivers

Is President Obama gutting the welfare reform that Bill Clinton signed into law? Morning Bell: Obama Denies Gutting Welfare Reform Amy Payne August 8, 2012 at 9:15 am The Obama Administration came out swinging against its critics on welfare reform yesterday, with Press Secretary Jay Carney saying the charge that the Administration gutted the successful […]

Welfare reform part 3

Thomas Sowell – Welfare Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. The Continuing Good News About Welfare Reform By Robert Rector and Patrick Fagan, Ph.D. February 6, 2003 Six years ago, President Bill Clinton signed legislation overhauling part of the nation’s welfare system. […]

Welfare reform part 2

Uploaded by ForaTv on May 29, 2009 Complete video at: http://fora.tv/2009/05/18/James_Bartholomew_The_Welfare_State_Were_In Author James Bartholomew argues that welfare benefits actually increase government handouts by ‘ruining’ ambition. He compares welfare to a humane mousetrap. —– Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. In the controversial […]

Why did Obama stop the Welfare Reform that Clinton put in?

Thomas Sowell If the welfare reform law was successful then why change it? Wasn’t Bill Clinton the president that signed into law? Obama Guts Welfare Reform Robert Rector and Kiki Bradley July 12, 2012 at 4:10 pm Today, the Obama Department of Health and Human Services (HHS) released an official policy directive rewriting the welfare […]

“Feedback Friday” Letter to White House generated form letter response July 10,2012 on welfare, etc (part 14)

I have been writing President Obama letters and have not received a personal response yet.  (He reads 10 letters a day personally and responds to each of them.) However, I did receive a form letter in the form of an email on July 10, 2012. I don’t know which letter of mine generated this response so I have […]

Biden talks up deficit reduction, as watchdog says it’s ‘highly misleading’

A.F. Branco for Oct 21, 2021

Biden talks up deficit reduction, as watchdog says it’s ‘highly misleading’

Last Updated: May 4, 2022 at 11:50 a.m. ETFirst Published: May 4, 2022 at 10:22 a.m. ET

President: ‘Bringing down the deficit is one way to ease inflationary pressures’

President Joe Biden speaks Wednesday about the economy at the White House. Also pictured (L-R) are Shalanda Young, director of the Office of Management and Budget; Cecilia Rouse, chair of the Council of Economic Advisers; and Brian Deese, director of the National Economic Council.

AFP/GETTY IMAGES

President Joe Biden on Wednesday delivered an economic speech that highlighted cuts to the federal deficit, even as some watchdogs have criticized his rhetoric around reducing red ink.

“The bottom line is the deficit went up every year under my predecessor, before the pandemic and during the pandemic, and it’s gone down both years since I’ve been here. Period. They’re the facts,” Biden said at the White House.

“Why is it important? Because bringing down the deficit is one way to ease inflationary pressures.”

The president has been talking up fiscal deficit reduction as a way to win over a key Democratic senator — West Virginia’s Joe Manchin — who has blocked Biden’s Build Back Better spending plan and wants to see Washington focused on closing the budget gap and fighting high inflation.

Biden’s rhetoric on eliminating red ink has drawn flak from the Committee for a Responsible Federal Budget, a nonpartisan watchdog organization.

“While President Biden’s Fiscal Year (FY) 2023 budget calls for $1.05 trillion of welcomed deficit reduction, the administration has largely been focused on taking credit for the expected $1.3 trillion fall in the deficit between FY 2021 and 2022,” the organization said in a blog post last month.

“The administration touting this victory is highly misleading; deficits are falling mainly because COVID relief is ending, and deficits will remain high even after this decline.”

Biden on Thursday said his administration revealed this week that it’s on track to cut the federal deficit by $1.5 trillion by the end of the current fiscal year, adding that it’s “the biggest decline in a single year ever in American history.”

The president’s remarks come after his Treasury Department on Monday surprised observers by announcing that it plans to pay down $26 billion in debt in the second quarter.

“For the first time since 2016, the Treasury Department is planning to pay down the national debt issued to the public this quarter,” he said on Wednesday. “For all the talk Republicans make about deficits, it didn’t happen a single quarter under my predecessor, not once.”

Biden’s speech initially had been planned for 2 p.m. Eastern, but the White House moved up the scheduled time for his remarks by three hours.

The Federal Reserve at 2 p.m. Eastern is expected to announce its biggest hike in interest rates in 20 years — a half-percentage-point rise — as the American central bank aims to combat the highest U.S. inflation in 40 years. Fed Chairman Jerome Powell is due to speak at a news conference at 2:30 p.m.

March 31, 2021

President Biden  c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

Please explain to me if you ever do plan to balance the budget while you are President? I have written these things below about you and I really do think that you don’t want to cut spending in order to balance the budget. It seems you ever are daring the Congress to stop you from spending more.

President Barack Obama speaks about the debt limit in the East Room of the White House in Washington. | AP Photo

“The credit of the United States ‘is not a bargaining chip,’ Obama said on 1-14-13. However, President Obama keeps getting our country’s credit rating downgraded as he raises the debt ceiling higher and higher!!!!

Washington Could Learn a Lot from a Drug Addict

Just spend more, don’t know how to cut!!! Really!!! That is not living in the real world is it?

Making more dependent on government is not the way to go!!

Why is our government in over 16 trillion dollars in debt? There are many reasons for this but the biggest reason is people say “Let’s spend someone else’s money to solve our problems.” Liberals like Max Brantley have talked this way for years. Brantley will say that conservatives are being harsh when they don’t want the government out encouraging people to be dependent on the government. The Obama adminstration has even promoted a plan for young people to follow like Julia the Moocher.  

David Ramsey demonstrates in his Arkansas Times Blog post of 1-14-13 that very point:

Arkansas Politics / Health Care Arkansas’s share of Medicaid expansion and the national debt

Posted by on Mon, Jan 14, 2013 at 1:02 PM

Baby carrot Arkansas Medicaid expansion image

Imagine standing a baby carrot up next to the 25-story Stephens building in Little Rock. That gives you a picture of the impact on the national debt that federal spending in Arkansas on Medicaid expansion would have, while here at home expansion would give coverage to more than 200,000 of our neediest citizens, create jobs, and save money for the state.

Here’s the thing: while more than a billion dollars a year in federal spending would represent a big-time stimulus for Arkansas, it’s not even a drop in the bucket when it comes to the national debt.

Currently, the national debt is around $16.4 trillion. In fiscal year 2015, the federal government would spend somewhere in the neighborhood of $1.2 billion to fund Medicaid expansion in Arkansas if we say yes. That’s about 1/13,700th of the debt.

It’s hard to get a handle on numbers that big, so to put that in perspective, let’s get back to the baby carrot. Imagine that the height of the Stephens building (365 feet) is the $16 trillion national debt. That $1.2 billion would be the length of a ladybug. Of course, we’re not just talking about one year if we expand. Between now and 2021, the federal government projects to contribute around $10 billion. The federal debt is projected to be around $25 trillion by then, so we’re talking about 1/2,500th of the debt. Compared to the Stephens building? That’s a baby carrot.

______________

Here is how it will all end if everyone feels they should be allowed to have their “baby carrot.”

How sad it is that liberals just don’t get this reality.

Here is what the Founding Fathers had to say about welfare. David Weinberger noted:

While living in Europe in the 1760s, Franklin observed: “in different countries … the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.”

Alexander Fraser Tytler, Lord Woodhouselee (15 October 1747 – 5 January 1813) was a Scottish lawyer, writer, and professor. Tytler was also a historian, and he noted, “A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.”

Thomas Jefferson to Joseph Milligan

April 6, 1816

[Jefferson affirms that the main purpose of society is to enable human beings to keep the fruits of their labor. — TGW]

To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, “the guarantee to every one of a free exercise of his industry, and the fruits acquired by it.” If the overgrown wealth of an individual be deemed dangerous to the State, the best corrective is the law of equal inheritance to all in equal degree; and the better, as this enforces a law of nature, while extra taxation violates it.

[From Writings of Thomas Jefferson, ed. Albert E. Bergh (Washington: Thomas Jefferson Memorial Association, 1904), 14:466.]

_______

Jefferson pointed out that to take from the rich and give to the poor through government is just wrong. Franklin knew the poor would have a better path upward without government welfare coming their way. Milton Friedman’s negative income tax is the best method for doing that and by taking away all welfare programs and letting them go to the churches for charity.

_____________

_________

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

Williams with Sowell – Minimum Wage

Thomas Sowell

Thomas Sowell – Reducing Black Unemployment

By WALTER WILLIAMS

—-

Ronald Reagan with Milton Friedman
Milton Friedman The Power of the Market 2-5

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Welfare Spending Shattering All-Time Highs

  We got to act fast and get off this path of socialism. Morning Bell: Welfare Spending Shattering All-Time Highs Robert Rector and Amy Payne October 18, 2012 at 9:03 am It’s been a pretty big year for welfare—and a new report shows welfare is bigger than ever. The Obama Administration turned a giant spotlight […]

We need more brave souls that will vote against Washington welfare programs

We need to cut Food Stamp program and not extend it. However, it seems that people tell the taxpayers back home they are going to Washington and cut government spending but once they get up there they just fall in line with  everyone else that keeps spending our money. I am glad that at least […]

Welfare programs are not the answer for the poor

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Private charities are best solution and not government welfare

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The book “After the Welfare State”

Dan Mitchell Commenting on Obama’s Failure to Propose a Fiscal Plan Published on Aug 16, 2012 by danmitchellcato No description available. ___________ After the Welfare State Posted by David Boaz Cato senior fellow Tom G. Palmer, who is lecturing about freedom in Slovenia and Tbilisi this week, asked me to post this announcement of his […]

President Obama responds to Heritage Foundation critics on welfare reform waivers

Is President Obama gutting the welfare reform that Bill Clinton signed into law? Morning Bell: Obama Denies Gutting Welfare Reform Amy Payne August 8, 2012 at 9:15 am The Obama Administration came out swinging against its critics on welfare reform yesterday, with Press Secretary Jay Carney saying the charge that the Administration gutted the successful […]

Welfare reform part 3

Thomas Sowell – Welfare Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. The Continuing Good News About Welfare Reform By Robert Rector and Patrick Fagan, Ph.D. February 6, 2003 Six years ago, President Bill Clinton signed legislation overhauling part of the nation’s welfare system. […]

Welfare reform part 2

Uploaded by ForaTv on May 29, 2009 Complete video at: http://fora.tv/2009/05/18/James_Bartholomew_The_Welfare_State_Were_In Author James Bartholomew argues that welfare benefits actually increase government handouts by ‘ruining’ ambition. He compares welfare to a humane mousetrap. —– Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. In the controversial […]

Why did Obama stop the Welfare Reform that Clinton put in?

Thomas Sowell If the welfare reform law was successful then why change it? Wasn’t Bill Clinton the president that signed into law? Obama Guts Welfare Reform Robert Rector and Kiki Bradley July 12, 2012 at 4:10 pm Today, the Obama Department of Health and Human Services (HHS) released an official policy directive rewriting the welfare […]

“Feedback Friday” Letter to White House generated form letter response July 10,2012 on welfare, etc (part 14)

I have been writing President Obama letters and have not received a personal response yet.  (He reads 10 letters a day personally and responds to each of them.) However, I did receive a form letter in the form of an email on July 10, 2012. I don’t know which letter of mine generated this response so I have […]

Dan Mitchell: As Professor Friedman explained, the economics of price controls are very clear. When politicians and bureaucrats suppress prices, you get shortages (as all students should learn in their introductory economics classes)

<img srcset="https://s-libertaddigital-com.cdn.ampproject.org/i/s/s.libertaddigital.com/2022/01/04/300/0/miltonfriedman.jpg.webp 300w, https://s-libertaddigital-com.cdn.ampproject.org/i/s/s.libertaddigital.com/2022/01/04/600/0/miltonfriedman.jpg.webp 600w, https://s-libertaddigital-com.cdn.ampproject.org/i/s/s.libertaddigital.com/2022/01/04/1200/0/miltonfriedman.jpg.webp 1200w" alt="El economista, Milton Friedman (1912-2006) | <span>Alamy

Portrait of Milton Friedman.jpg

 

The Case Against Price Controls, Part III

In Part I of this series, Professor Don Boudreaux explained the folly of price controls, and Professor Antony Davies was featured in Part II.

Now let’s see some commentary from the late, great, Milton Friedman.

As Professor Friedman explained, the economics of price controls are very clear.

When politicians and bureaucrats suppress prices, you get shortages (as all students should learn in their introductory economics classes).

Sometimes that happens with price controls on specific sectors, such as rental housing in poorly governed cities.

Sometimes it happens because of economy-wide price controls, as we saw during Richard Nixon’s disastrous presidency.

In all cases, price controls are imposed by politicians who are stupid or evil. That’s blunt language, but it’s the only explanation.

Sadly, there will never be a shortage of those kinds of politicians, as can be seen from this column in the Wall Street Journal by Andy Kessler.

Here are some excerpts.

On the 2020 campaign trail, Joe Biden declared, “ Milton Friedman isn’t running the show anymore.” Wrong! …Lo and behold, inflation is running at 7.9%, supply chains are tight, and many store shelves are empty. Friedman’s adage “Inflation is always and everywhere a monetary phenomenon” has stood the test of time. But what scares me most is the likely policy responses by the Biden administration that would pour salt into this self-inflicted wound.It feels as if price controls are coming. …Prices set by producers are signals, and consumers whisper feedback billions of times a day by buying or not buying products. Mess with prices and the economy has no guide. The Soviets instituted price controls on everything from subsidized “red bread” to meat, often resulting in empty shelves. President Franklin D. Roosevelt’s National Recovery Agency fixed prices, prolonging the Depression, all in the name of “fair competition.” …Price controls don’t work. Never have, never will. But we keep instituting them. Try finding a cheap apartment in rent-controlled New York City. …Sen. Elizabeth Warren, a leader among our economic illiterate, noted in February that high prices are caused in part by “giant corporations…”

He closes with a very succinct and sensible observation.

Want to whip inflation now? Forget all the Band-Aids and government controls. Instead, as Friedman suggests, stop printing money.

In other words, Mr. Kessler is suggesting that politicians do the opposite of Mitchell’s Law.

Instead of using one bad policy (inflation) as an excuse to impose a second bad policy (price controls), he wants them to undo the original mistake.

Will Joe Biden and Elizabeth Warren take his advice?

That’s doubtful, but I’m hoping there are more rational people in the rooms where these decisions get made.

Maybe some of them will have read this column from Professor Boudreaux.

Prices are among the visible results of the invisible hand’s successful operation, as well as the single most important source of this success. Each price objectively summarizes an inconceivably large number of details that must be taken account of if the economy is to perform even moderately well. Consider the price of a loaf of a particular kind and brand of bread.…The price at the supermarket of a loaf of bread, a straightforward $4.99, is the distillation of the economic results of the interaction of an unfathomably large number of details from around the globe about opportunities, trade-offs, and preferences. The invisible hand of the market causes these details to be visibly summarized not only in the price of bread, but in the prices of all other consumer goods and services, as well as in the prices of each of the inputs used in production. …These market prices also give investors and entrepreneurs guidance on how to deploy scarce resources in ways that produce that particular mix of goods and services that will today be of greatest benefit for consumers.

I have two comments.

First, Don obviously buys fancier bread than my $1.29-a-loaf store brand (used to be 99 cents, so thanks for nothing to the Federal Reserve).

Second, and far more important, he’s pointing out that market-based prices play an absolutely critical role in coordinating the desires of consumers and producers.

When politicians interfere with prices, it’s akin to throwing sand in the gears of a machine.

For more information on the role of prices, I strongly recommend these videos from Professors Russ Roberts, Howard Baetjer, and Alex Tabarrok.

By Ryan Bourne and Brad Subramaniam

Anti‐​price gouging laws prolonged shortages of certain goods that were in high demand early in the pandemic. Some analysis suggests these laws even worsened public health outcomes, because ongoing shortages of, say, hand sanitizer and toilet paper, led to consumers in states with these regulations searching for them more at physical retailers, actually increasing transmission of the virus.

But there’s an interesting question that’s often underexplored in regard to these laws: how does the expectation that these price controls will be triggered shape people’s beliefs about products’ availability and so customer search behavior?

That’s the topic of another fascinating new paper by economists Rik Chakraborti and Gavin Roberts. Using data for online searches for hand sanitizer and toilet paper across states, they harness the variation in when laws were introduced to research the question: is consumer search behaviour different in states with new anti‐​price gouging legislation introduced during the pandemic from states with pre‐​existing anti‐​price gouging laws?

Economic theory would suggest that any anti‐​price gouging legislation, whenever introduced, would lead to more consumer search for goods, due to the induced shortages. And, sure enough, after controlling for the effects of lockdowns, rising infections, and declines in travel which plagued the early stages of the pandemic, consumers in states with anti‐​price gouging laws were significantly more likely to search online for toilet paper and hand sanitizer than those in states without such laws.

More searching presumably reflects higher levels of hoarding and panic‐​buying creating the shortages—after all, having to resort to online shopping for goods that are commonly bought in stores means the local grocery or drug store has probably been emptied already.

But theory would also suggest that customers in states with past experience of anti‐​price gouging laws might search even more intensely, because people come to expect shortages again when crises hit. In other words, those who have experienced shortages before might be more likely to hoard and panic buy this time around, leading to even higher online search than in situations where new laws are introduced for the first time.

Again, Chakraborti and Roberts’ paper suggests economic theory is correct. States with anti‐​price gouging regulations on the books before the pandemic saw Google Shopping searches for hand sanitizer jump by 153 percent and toilet paper searches nearly double (a 99 percent increase) relative to states without anti‐​price gouging laws. This uplift was much larger than in states where the laws were introduced during the pandemic (100 percent and 46 percent, respectively).

The long and short is that consumers in states with pre‐​existing price controls searched most intensely online for hand sanitizer and toilet paper. This suggests customers learned from previous experience of these price regulations’ effects, with the higher search levels reflecting greater hoarding and panic buying in anticipation of shortages to come. As the authors state, this implies that longstanding anti‐​price gouging legislation is even worse for economic welfare than we might think. The anticipation of shortages actually compounds shortages as consumers become more “experienced,” with excessive and fruitless searching for products the wasteful result.

For more on the basics of anti‐​price gouging legislation in the pandemic, see my book Economics In One Virus. Other Cato pieces can be found here, here, and here.

Government, Markets, and the Supply Chain

Way back in 2009, I shared a meme that succinctly summarizes how Washington operates.

It’s basically a version of Mitchell’s Law. To elaborate, governments cause problems and politicians then use those problems as an excuse to make government even bigger.

Lather, rinse, repeat.

I worry the same thing may be about to happen because of the current concern about “supply chain” issues, perhaps best illustrated by the backlog of ships at key ports, leading to shortages of key goods.

Some of this mess is fallout from the coronavirus pandemic, but it’s being exacerbated by bad policy.

In a column for Reason, J.D. Tuccille points out that government is the problem, not the solution.

…supply-chain issues…create shortages and push prices up around the world. …Lockdowns also changed people’s lives, closing offices and factories and confining people at home. That resulted in massive and unpredictable shifts in demand and unreliable supply. …”Market economies tend to be pretty good at getting food on the supermarket shelves and fuel in petrol stations, if left to themselves,” agrees Pilkington. “That last part is key: if left to themselves. Heavy-handed interference in market economies tends to produce the same pathologies we see in socialist economies, including shortages and inflation. That has been the unintended consequence of lockdown.” …The danger is that people see economic problems caused by earlier fiddling and then demand even more government intervention. …if the government were to further meddle in the market to allocate products made scarce by earlier actions, it’s hard to see how the result wouldn’t be anything other than increased supply chain chaos.

Allysia Finley opines for the Wall Street Journal about California’s role in the supply-chain mess.

The backup of container ships at the Long Beach and Los Angeles ports has grown in recent weeks… The two Southern California ports handle only about 40% of containers entering the U.S., mostly from Asia. Yet ports in other states seem to be handling the surge better. Gov. Ron DeSantis said last month that Florida’s seaports had open capacity.So what’s the matter with California? State labor and environmental policies. …business groups recently asked Gov. Gavin Newsom to declare a state of emergency and suspend labor and environmental laws that are interfering with the movement of goods. …One barrier is a law known as AB5. …Trucking companies warned that the law could put small carriers out of business and cause drivers to leave the state. …there’s little doubt the law hinders efficiency and productivity. …State officials have also pressed localities to attach green mandates to permits for new warehouses, which can be poison pills. …This boatload of regulations is making it more expensive and difficult to store goods arriving at California ports.

Needless to say, I’m not surprised California is making things worse.

The state seems to have some of the nation’s worst politicians.

But let’s set that aside and close with some discussion about one of the differences between government and the private sector.

This may surprise some readers, but people and businesses in the private sector make mistakes all the time.

So part of the supply-chain mess presumably is a result of companies and entrepreneurs making bad guesses.

That being said, there’s a big feedback mechanism in the private sector. It’s called profit and loss.

So when mistakes are made, there’s a big incentive to quickly change.

With government, by contrast, there’s very little flexibility (as we saw during the pandemic). And when politicians and bureaucrats do act, they often respond to political incentives that lead them to make things worse.

Big-Government Republicans Enable Big-Government Democrats

I get asked why I frequently criticize Republicans.

My response is easy. I care about results rather than rhetoric. And while GOP politicians often pay lip service to the principles of limited government,they usually increase spending even faster than Democrats.

Indeed, Republicans are even worse than Democrats when measuring the growth of domestic spending!

This is bad news because it means the burden of government expands when Republicans are in charge.

And, as Gary Abernathy points out in a column for the Washington Post, Republicans then don’t have the moral authority to complain when Democrats engage in spending binges.

President Biden is proposing another $3 trillion in spending… There are objections, but none that can be taken seriously. …Republicans had lost their standing as the party of fiscal responsibility when most of them succumbed to the political virus of covid fever and rubber-stamped around $4 trillion in “covid relief,”… With Trump out and Biden in, Republicans suddenly pretended that their 2020 spending spree happened in some alternate universe.But the GOP’s united opposition to Biden’s $1.9 trillion package won’t wash off the stench of the hypocrisy. …I noted a year ago that we had crossed the Rubicon, that our longtime flirtation with socialism had become a permanent relationship. Congratulations, Bernie Sanders. The GOP won’t become irrelevant because of its association with Trump, as some predict. It will diminish because it is bizarrely opposing now that which it helped make palatable just last year. Fiscal responsibility is dead, and Republicans helped bury it. Put the shovels away, there’s no digging it up now.

For what it’s worth, I hope genuine fiscal responsibility isn’t dead.

Maybe it’s been hibernating ever since Reagan left office (like Pepperidge Farm, I’m old enough to remember those wonderful years).

Subsequent Republican presidents liked to copy Reagan’s rhetoric, but they definitely didn’t copy his policies.

  • Spending restraint was hibernating during the presidency of George H.W. Bush.
  • Spending restraint also was hibernating during the presidency of George W. Bush.
  • And spending restraint was hibernating during the presidency of Donald Trump.

I’m not the only one to notice GOP hypocrisy.

Here are some excerpts from a 2019 column in the Washington Post by Fareed Zakaria.

In what Republicans used to call the core of their agenda — limited government — Trump has been profoundly unconservative. …Trump has now added more than $88 billion in taxes in the form of tariffs, according to the right-leaning Tax Foundation. (Despite what the president says, tariffs are taxes on foreign goods paid by U.S. consumers.) This has had the effect of reducing gross domestic product and denting the wages of Americans.…For decades, conservatives including Margaret Thatcher and Ronald Reagan preached to the world the virtues of free trade. But perhaps even more, they believed in the idea that governments should not pick winners and losers in the economy… Yet the Trump administration…behaved like a Central Planning Agency, granting exemptions on tariffs to favored companies and industries, while refusing them to others. …In true Soviet style, lobbyists, lawyers and corporate executives now line up to petition government officials for these treasured waivers, which are granted in an opaque process… On the core issue that used to define the GOP — economics — the party’s agenda today is state planning and crony capitalism.

Zakaria is right about Republicans going along with most of Trump’s bad policies (as illustrated by this cartoon strip).*

The bottom line is that Republicans would be much more effective arguing against Biden’s spending orgy had they also argued for spending restraint when Trump was in the White House.

P.S. It will be interesting to see what happens in the near future. Will the GOP be a small-government Reagan party or a big-government Trump party?

Or maybe it will go back to being a Nixon-type party, which would mean bigger government but without mean tweets. And there are plenty of options.

If they make the wrong choice (anything other than Reaganism), Margaret Thatcher has already warned us about the consequences.

*To be fair, Republicans also went along with Trump’s good policies. It’s just unfortunate that spending restraint wasn’t one of them.

—-

March 31, 2021

President Biden  c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

Please explain to me if you ever do plan to balance the budget while you are President? I have written these things below about you and I really do think that you don’t want to cut spending in order to balance the budget. It seems you ever are daring the Congress to stop you from spending more.

President Barack Obama speaks about the debt limit in the East Room of the White House in Washington. | AP Photo

 

“The credit of the United States ‘is not a bargaining chip,’ Obama said on 1-14-13. However, President Obama keeps getting our country’s credit rating downgraded as he raises the debt ceiling higher and higher!!!!

Washington Could Learn a Lot from a Drug Addict

Just spend more, don’t know how to cut!!! Really!!! That is not living in the real world is it?

Making more dependent on government is not the way to go!!

Why is our government in over 16 trillion dollars in debt? There are many reasons for this but the biggest reason is people say “Let’s spend someone else’s money to solve our problems.” Liberals like Max Brantley have talked this way for years. Brantley will say that conservatives are being harsh when they don’t want the government out encouraging people to be dependent on the government. The Obama adminstration has even promoted a plan for young people to follow like Julia the Moocher.  

David Ramsey demonstrates in his Arkansas Times Blog post of 1-14-13 that very point:

Arkansas Politics / Health Care Arkansas’s share of Medicaid expansion and the national debt

Posted by on Mon, Jan 14, 2013 at 1:02 PM

Baby carrot Arkansas Medicaid expansion image

 

Imagine standing a baby carrot up next to the 25-story Stephens building in Little Rock. That gives you a picture of the impact on the national debt that federal spending in Arkansas on Medicaid expansion would have, while here at home expansion would give coverage to more than 200,000 of our neediest citizens, create jobs, and save money for the state.

Here’s the thing: while more than a billion dollars a year in federal spending would represent a big-time stimulus for Arkansas, it’s not even a drop in the bucket when it comes to the national debt.

Currently, the national debt is around $16.4 trillion. In fiscal year 2015, the federal government would spend somewhere in the neighborhood of $1.2 billion to fund Medicaid expansion in Arkansas if we say yes. That’s about 1/13,700th of the debt.

It’s hard to get a handle on numbers that big, so to put that in perspective, let’s get back to the baby carrot. Imagine that the height of the Stephens building (365 feet) is the $16 trillion national debt. That $1.2 billion would be the length of a ladybug. Of course, we’re not just talking about one year if we expand. Between now and 2021, the federal government projects to contribute around $10 billion. The federal debt is projected to be around $25 trillion by then, so we’re talking about 1/2,500th of the debt. Compared to the Stephens building? That’s a baby carrot.

______________

Here is how it will all end if everyone feels they should be allowed to have their “baby carrot.”

How sad it is that liberals just don’t get this reality.

Here is what the Founding Fathers had to say about welfare. David Weinberger noted:

While living in Europe in the 1760s, Franklin observed: “in different countries … the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.”

Alexander Fraser Tytler, Lord Woodhouselee (15 October 1747 – 5 January 1813) was a Scottish lawyer, writer, and professor. Tytler was also a historian, and he noted, “A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.”

Thomas Jefferson to Joseph Milligan

April 6, 1816

[Jefferson affirms that the main purpose of society is to enable human beings to keep the fruits of their labor. — TGW]

To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, “the guarantee to every one of a free exercise of his industry, and the fruits acquired by it.” If the overgrown wealth of an individual be deemed dangerous to the State, the best corrective is the law of equal inheritance to all in equal degree; and the better, as this enforces a law of nature, while extra taxation violates it.

[From Writings of Thomas Jefferson, ed. Albert E. Bergh (Washington: Thomas Jefferson Memorial Association, 1904), 14:466.]

_______

Jefferson pointed out that to take from the rich and give to the poor through government is just wrong. Franklin knew the poor would have a better path upward without government welfare coming their way. Milton Friedman’s negative income tax is the best method for doing that and by taking away all welfare programs and letting them go to the churches for charity.

_____________

_________

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

Williams with Sowell – Minimum Wage

Thomas Sowell

Thomas Sowell – Reducing Black Unemployment

By WALTER WILLIAMS

—-

Ronald Reagan with Milton Friedman
Milton Friedman The Power of the Market 2-5

Related posts:

Welfare Spending Shattering All-Time Highs

  We got to act fast and get off this path of socialism. Morning Bell: Welfare Spending Shattering All-Time Highs Robert Rector and Amy Payne October 18, 2012 at 9:03 am It’s been a pretty big year for welfare—and a new report shows welfare is bigger than ever. The Obama Administration turned a giant spotlight […]

We need more brave souls that will vote against Washington welfare programs

We need to cut Food Stamp program and not extend it. However, it seems that people tell the taxpayers back home they are going to Washington and cut government spending but once they get up there they just fall in line with  everyone else that keeps spending our money. I am glad that at least […]

Welfare programs are not the answer for the poor

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. __________ Liberals argue that the poor need more welfare programs, but I have always argued that these programs enslave the poor to the government. Food Stamps Growth […]

Private charities are best solution and not government welfare

Milton Friedman – The Negative Income Tax Published on May 11, 2012 by LibertyPen In this 1968 interview, Milton Friedman explained the negative income tax, a proposal that at minimum would save taxpayers the 72 percent of our current welfare budget spent on administration. http://www.LibertyPen.com Source: Firing Line with William F Buckley Jr. ________________ Milton […]

The book “After the Welfare State”

Dan Mitchell Commenting on Obama’s Failure to Propose a Fiscal Plan Published on Aug 16, 2012 by danmitchellcato No description available. ___________ After the Welfare State Posted by David Boaz Cato senior fellow Tom G. Palmer, who is lecturing about freedom in Slovenia and Tbilisi this week, asked me to post this announcement of his […]

President Obama responds to Heritage Foundation critics on welfare reform waivers

Is President Obama gutting the welfare reform that Bill Clinton signed into law? Morning Bell: Obama Denies Gutting Welfare Reform Amy Payne August 8, 2012 at 9:15 am The Obama Administration came out swinging against its critics on welfare reform yesterday, with Press Secretary Jay Carney saying the charge that the Administration gutted the successful […]

Welfare reform part 3

Thomas Sowell – Welfare Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. The Continuing Good News About Welfare Reform By Robert Rector and Patrick Fagan, Ph.D. February 6, 2003 Six years ago, President Bill Clinton signed legislation overhauling part of the nation’s welfare system. […]

Welfare reform part 2

Uploaded by ForaTv on May 29, 2009 Complete video at: http://fora.tv/2009/05/18/James_Bartholomew_The_Welfare_State_Were_In Author James Bartholomew argues that welfare benefits actually increase government handouts by ‘ruining’ ambition. He compares welfare to a humane mousetrap. —– Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. In the controversial […]

Why did Obama stop the Welfare Reform that Clinton put in?

Thomas Sowell If the welfare reform law was successful then why change it? Wasn’t Bill Clinton the president that signed into law? Obama Guts Welfare Reform Robert Rector and Kiki Bradley July 12, 2012 at 4:10 pm Today, the Obama Department of Health and Human Services (HHS) released an official policy directive rewriting the welfare […]

“Feedback Friday” Letter to White House generated form letter response July 10,2012 on welfare, etc (part 14)

I have been writing President Obama letters and have not received a personal response yet.  (He reads 10 letters a day personally and responds to each of them.) However, I did receive a form letter in the form of an email on July 10, 2012. I don’t know which letter of mine generated this response so I have […]

March 31, 2022 READING A PROVERB A DAY (PROVERBS 31) Adrian Rogers on Alcohol

__________

Proverbs 31:4 “It is not for kings, O Lemuel, it is not for kings to drink wine, or for rulers to take strong drink,”BUT WASHINGTON’S STATE DEPT RUNS UP TAB OF $180,000 FOR MONTH OF SEPTEMBER!!!

The Sayings of King Lemuel

31 The sayings of King Lemuel contain this message,[a] which his mother taught him.

O my son, O son of my womb,
    O son of my vows,
do not waste your strength on women,
    on those who ruin kings.

It is not for kings, O Lemuel, to guzzle wine.
    Rulers should not crave alcohol.
For if they drink, they may forget the law
    and not give justice to the oppressed.
Alcohol is for the dying,
    and wine for those in bitter distress.
Let them drink to forget their poverty
    and remember their troubles no more.

Speak up for those who cannot speak for themselves;
    ensure justice for those being crushed.
Yes, speak up for the poor and helpless,
    and see that they get justice.

A Wife of Noble Character

10 [b]Who can find a virtuous and capable wife?
    She is more precious than rubies.
11 Her husband can trust her,
    and she will greatly enrich his life.
12 She brings him good, not harm,
    all the days of her life.

13 She finds wool and flax
    and busily spins it.
14 She is like a merchant’s ship,
    bringing her food from afar.
15 She gets up before dawn to prepare breakfast for her household
    and plan the day’s work for her servant girls.

16 She goes to inspect a field and buys it;
    with her earnings she plants a vineyard.
17 She is energetic and strong,
    a hard worker.
18 She makes sure her dealings are profitable;
    her lamp burns late into the night.

19 Her hands are busy spinning thread,
    her fingers twisting fiber.
20 She extends a helping hand to the poor
    and opens her arms to the needy.
21 She has no fear of winter for her household,
    for everyone has warm[c] clothes.

22 She makes her own bedspreads.
    She dresses in fine linen and purple gowns.
23 Her husband is well known at the city gates,
    where he sits with the other civic leaders.
24 She makes belted linen garments
    and sashes to sell to the merchants.

25 She is clothed with strength and dignity,
    and she laughs without fear of the future.
26 When she speaks, her words are wise,
    and she gives instructions with kindness.
27 She carefully watches everything in her household
    and suffers nothing from laziness.

28 Her children stand and bless her.
    Her husband praises her:
29 “There are many virtuous and capable women in the world,
    but you surpass them all!”

30 Charm is deceptive, and beauty does not last;
    but a woman who fears the Lord will be greatly praised.
31 Reward her for all she has done.
    Let her deeds publicly declare her praise.

State Department Waste: Booze, Crystal, and a Million-Dollar Stack of Rocks

December 9, 2013 at 11:55 am

Walter Bibikow / DanitaDelimont.com Danita Delimont Photography/Newscom

On the eve of the government shutdown, the State Department was consumed with a very different budget crisis of its own: purchasing vast amounts of booze for American embassies around the globe.

According to Jim McElhatton of The Washington Times, the embassy in Moscow splurged on $15,900 in bourbon and whiskey; the Tokyo embassy, partial to wine, placed an order for $22,416. The embassy in Rio de Janeiro spent $5,625 on gratuity wine on September 29 and, on the day of the shutdown, opted for stronger gratuity whisky at $5,925.

The booze buying binge ran up a tab of $180,000 for the month of September. Alcohol is a fixture at diplomatic functions, and it is appropriate to have a stock on hand, but the State Department’s booze budget has ballooned since 2009—tripling in cost during President Obama’s tenure.

The Washington Times reported that the annual budget for 2008 was $118,000 and jumped to nearly $300,000 in 2011. It peaked at $415,000 in 2012, with the total for 2013 coming in at $400,000.

All this liquor and wine requires proper drinkware, of course. Thus, the State Department raced to fill an order of $5 million just hours before the shutdown, buying 12,000 pieces of hand-blown crystal glassware—retailing up to $85 per glass.

Senator Patrick Leahy (D–VT), the chairman of the subcommittee that exercises oversight on the State Department’s funding, said of the purchase that “it is wonderful to have such an exquisite example of Vermont craftsmanship on display and in use in our embassies around the world.”

The State Department fully embraced the spirit of “use it or lose it” season in Washington when it awarded a contract to American Sean Scully to install a $1 million granite statue at the London embassy. The British are not impressed, with the Daily Mail suggesting that Scully’s work “resembles stacked piles of paving stones.”

The mission of the State Department, as defined on the agency’s website, is to “[c]reate a more secure, democratic, and prosperous world for the benefit of the American people and the international community.” It is hard to see how the recent spending surge is critical to that mission. Americans have traditionally valued thriftiness—a practice that is much in need of revival considering our budgetary woes. Considering the above expenditures, a good place for Congress to start might be the State Department.

Matthew Sabas is currently a member of the Young Leaders Program at The Heritage Foundation. For more information on interning at Heritage, please click here.

The Battle of The Bottle part 1 Adrian Rogers

Uploaded by on Jun 23, 2011

The famous preacher Adrian Rogers gives a phenomenal message about alcohol. One of my favorite sermons of all time.

When I was growing up I admit there were times that I did not listen to my pastor’s sermon at church as attentively as I should have. However, there were times that he gave real life examples from the pulpit that caught my attention. One of those examples was the statistic that over 50% of deaths on the highway included a driver where alcohol was involved.

My pastor’s name was Adrian Rogers of Bellevue Baptist of Cordova, Tennessee and sadly one of Bellevue’s members, Billy Penn, was killed on Wednesday night September 26th by a drunk driver after leaving Wednesday night services.

My three sisters and I went to high school at Evangelical Christian School (ECS) in Cordova with Penn’s three children and my father had known Billy for forty years. Actually my father had left the same church parking lot on September 26th that Billy was in and Penn was killed just a mile away from the church.

At our family Sunday lunch on September 30, 2012, my father used the opportunity to discuss the dangers of alcohol with his grandchildren and that is exactly what I wanted to share today.

My father asked what is to come of 21-year-old Jordan Stonebrook who was the other driver? According to WMC-TV in Memphis Stonebrook slammed head on into Penn’s Buick Park Avenue around 9 p.m., Wednesday, September 26. Investigators say Stonebrook, who was driving a Chevy Tahoe was going the wrong way on Cordova Road.

Witnesses said Stonebrook apparently started driving the wrong way. For about half of a mile, other cars were dodging him going into the other lane and some even driving up on the curb.

Police said Stonebrook appeared intoxicated. Investigators said Stonebrook later said he started drinking a few hours earlier, downing seven shots of rum. Stonebrook was not seriously hurt in the crash.

WREG-TV reported that the Collierville man accused of drinking and driving just turned 21 -years-old last month.

Now, he’s charged with vehicular homicide.

“He’s got a life ahead of him and he’s got that burden on him for the rest of his days,” said Cordova resident Lisa Douba.  “He’ll never be able to forget that.”

Stonebrook faces up to 30 years in prison for this crime.

Right now, he is being held on a $100,000 bond.

Here are some of the details I remember from my pastor’s sermons on alcohol. Here is a story Adrian Rogers used in his sermon on alcohol:

Billy Sunday told of the man over here in the Blue Ridge Mountains who caught rattlesnakes for a living. One day, he caught a huge rattler, a rattlesnake that had 14 rattlers. He put it in a box, and put a glass top on the box, was out in the fields plowing, when his little boy slid the top off of that box where that rattler was coiled. And that rattlesnake sprung out of that box and planted his fangs in the cheek of that little boy. The little boy ran out of the house into the yard to tell his father what had happened. The father came in, saw that snake, and hewed it to pieces. Then, he took his pocket knife and cut a big chunk out of that little boy’s cheek—that’s all he knew to do—and put his mouth up there to try to suck the poison out of the face of that little boy. He watched that little boy’s face begin to swell and swell. It looked like several times its normal size, and the little boy stiffened and died. That man lifted up his voice in anguish and said, “Oh, I would not trade my son for all the rattlesnakes in the Blue Ridge Mountains.”

The father took him in his arms, carried him over by the side of the rattler, got on his knees and said, “God, I would not give little Jim for all the rattlers that ever crawled over the Blue Ridge mountains.”

That is the question that must be answered by everyone no matter what their religious beliefs. Is the pleasure of drinking alcohol worth the life of one of your children?

Here is a scripture that describes what will happen to a person under the influence of alcohol:

Proverbs 23:29-32
(29) Who hath woe? who hath sorrow? who hath contentions? who hath babbling? who hath wounds without cause? who hath redness of eyes?
(30) They that tarry long at the wine; they that go to seek mixed wine.
(31) Look not thou upon the wine when it is red, when it giveth his color in the cup, when it moveth itself aright.
(32) At the last it biteth like a serpent, and stingeth like an adder.

Jordan Stonebrook told the policemen on the scene that he was fed up and decided to get drunk. The results were much the same as the scripture indicated.

There have been several high-profile deaths recently where alcohol was involved. Ryan Dunn was a reality tv star and his untimely death on June 20, 2011 was also caused by drunk driving. Dunn actually tweeted a picture of himself drinking just moments before he left the bar and crashed his car killing everyone in his car.

The Huffington Post reported on October 26, 2011, “Amy Winehouse drank herself to death. That was the ruling of a coroner’s inquest into the death of the Grammy-winning soul singer, who died with empty vodka bottles in her room and lethal amounts of alcohol in her blood – more than five times the British drunk driving limit.”

I didn’t know it was possible to drink yourself to death in one day, but I discovered that also AC/DC’s lead singer Bon Scott also drank himself to death back on February 19, 1980.

Those are several cases of famous people dying because of alcohol use, but it touches almost every family at some point. If sharing this with the readers of the Saline Courier would help even one person to avoid this same fate then it has been well worth writing this article.

_____

Everette Hatcher is a regular contributor to The Saline Courier. He is the fourth generation in his family to work in the broom manufacturing business. Everette and his wife Jill have four children and live in Alexander.

Ryan Dunn and his friends moments before they died.

Flickr user Eric Lewis posted the image below with a caption that says the photo shows what’s left of Dunn’s car.

Ryan Dunn (on left) seen moments before his wreck. This shot was removed from his tumblr site.

The Battle of The Bottle part 2 Adrian Rogers

Uploaded by on Jun 23, 2011

The famous preacher Adrian Rogers gives a phenomenal message about alcohol. One of my favorite sermons of all time.

Amy Winehouse
Singer Amy Winehouse

The Battle of The Bottle part 4 Adrian Rogers

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10 Ways to cut spending in Washington suggested by the Cato Institute!!!

____________ 10 Ways to cut spending in Washington suggested by the Cato Institute!!! A MESSAGE FROM THE CATO INSTITUTEON SPENDING: NO SACRED COWS We face another budget crisis and possible government shutdown as early as January, unless Congress can come together on a bipartisan basis to cut spending. The Affordable Care Act is far from […]

The Dysfunction in Washington is Republicans and Democrats that are unwilling to cut spending in order to vote for more programs (Democrats want more food stamps etc but Republicans vote for their pet programs and wars too like No Child Left Behind Act, the Iraq war, the prescription drug entitlement, and the TARP bailout).

The Dysfunction in Washington is Republicans and Democrats that are unwilling to cut spending in order to vote for more programs (Democrats want more food stamps etc but Republicans vote for their pet programs and wars too like No Child Left Behind Act, the Iraq war, the prescription drug entitlement, and the TARP bailout). If […]

Washington better wake up and cut spending or the USA will end up bankrupt like Detroit!!!

Washington better wake up and cut spending or the USA will end up bankrupt like Detroit!!! Atlas Shrugs in Detroit July 25, 2013 by Dan Mitchell About two weeks ago, while making an important point about the Laffer Curve, here’s what I wrote about the fiscal disaster in Detroit. Detroit’s problems are the completely predictable result […]

Lessons from Canada:CUT SPENDING AND LOWER TAXES AND GIVE MORE CONTROL BACK TO THE LOCAL GOVERNMENTS!!!!

When Governments Cut Spending Uploaded on Sep 28, 2011 Do governments ever cut spending? According to Dr. Stephen Davies, there are historical examples of government spending cuts in Canada, New Zealand, Sweden, and America. In these cases, despite popular belief, the government spending cuts did not cause economic stagnation. In fact, the spending cuts often […]

We got to cut spending and this farm bill is the perfect place to start!!!

We got to cut spending and this farm bill is the perfect place to start!!! May 29, 2013 12:33PM Farm Bill Would Increase Spending 47% By Chris Edwards Share House and Senate farm subsidy supporters are pushing to enact the first big farm bill since 2008. Democratic and Republican supporters say that this year’s legislation […]

President Obama will not cut spending ever it appears

President Obama will not cut spending ever it appears. Early Details Show Obama Will Propose a Bait-and-Switch Budget Plan Containing Higher Taxes and More Spending April 5, 2013 by Dan Mitchell Are we about to see a new kinder-and-gentler Obama? Has the tax-and-spend President of the past four years been replaced by a fiscal moderate? That’s […]

We got to cut spending and stop raising the debt ceiling!!!

  We got to cut spending and stop raising the debt ceiling!!! When Governments Cut Spending Uploaded on Sep 28, 2011 Do governments ever cut spending? According to Dr. Stephen Davies, there are historical examples of government spending cuts in Canada, New Zealand, Sweden, and America. In these cases, despite popular belief, the government spending […]

To save the USA from Greece’s fate we must cut spending

Maybe Romney will focus on cutting spending now that Ryan is on board. Is the American Electorate that Dumb? Posted by Roger Pilon Today POLITICO Arena asks: Can Ryan boost Romney’s poll numbers? My response: Ryan is the shot in the arm that Romney needed. If last night’s “60 Minutes” interview of the two is […]

The USA must cut spending and balance budget or end up like Greece

Why can’t we learn the lesson from Europe that we must start to cut spending and balance our budget or we will end up like Greece? Europe’s Crisis Is Because of Too Much Government, Not the Euro Currency July 19, 2012 by Dan Mitchell The mess in Europe has been rather frustrating, largely because almost everybody […]

An award to the person who cut spending by our federal governement the most ($47)

A funny carton. Finally, Some Government Workers Who Want to Cut Spending April 23, 2012 by Dan Mitchell In recent years, taxpayers have been victimized by huge expansions in the burden of government spending. Among the highlights (lowlights would be a much better word): A corrupt bailout of politically connected Wall Street insiders. A bloated healthcare […]

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

Biden’s Budget Deficits 

A.F. Branco for Oct 21, 2021


The Biden administration has released its federal budget for 2023. One of the themes is deficit reduction. The president says the budget “keeps us on track to reduce the deficit this year to less than half of what it was before I took office.” The administration will be “the first in history to reduce the deficit by more than $1 trillion in a single year.”

Finally, someone is taking an axe to the bloated federal budget!

Or maybe not. Under the Biden budget:

  • Deficits are currently falling, but would start rising again in 2024, as shown in the chart.
  • Spending would rise from $5.85 trillion this year to $8.87 trillion in 2032.
  • Debt held by the public would rise from $24.8 trillion this year to $39.5 trillion in 2032, or 102.4 percent of GDP to 106.7 percent.
  • Taxes would be increased $2.5 trillion over 10 years, but these hikes likely won’t pass Congress, so deficits would be higher than proposed unless spending is restrained.
  • Interest rates on federal debt are projected to remain low, with the rate on 10‐​year debt only rising to 3.3 percent by 2032. Thus the budget says the “burden of debt would stay low,” which seems very optimistic. Every 1 percentage point increase in average borrowing costs on $25 trillion of federal debt is $250 billion in added annual interest outlays.
d

March 31, 2021

President Biden  c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

Please explain to me if you ever do plan to balance the budget while you are President? I have written these things below about you and I really do think that you don’t want to cut spending in order to balance the budget. It seems you ever are daring the Congress to stop you from spending more.

President Barack Obama speaks about the debt limit in the East Room of the White House in Washington. | AP Photo

“The credit of the United States ‘is not a bargaining chip,’ Obama said on 1-14-13. However, President Obama keeps getting our country’s credit rating downgraded as he raises the debt ceiling higher and higher!!!!

Washington Could Learn a Lot from a Drug Addict

Just spend more, don’t know how to cut!!! Really!!! That is not living in the real world is it?

Making more dependent on government is not the way to go!!

Why is our government in over 16 trillion dollars in debt? There are many reasons for this but the biggest reason is people say “Let’s spend someone else’s money to solve our problems.” Liberals like Max Brantley have talked this way for years. Brantley will say that conservatives are being harsh when they don’t want the government out encouraging people to be dependent on the government. The Obama adminstration has even promoted a plan for young people to follow like Julia the Moocher.  

David Ramsey demonstrates in his Arkansas Times Blog post of 1-14-13 that very point:

Arkansas Politics / Health Care Arkansas’s share of Medicaid expansion and the national debt

Posted by on Mon, Jan 14, 2013 at 1:02 PM

Baby carrot Arkansas Medicaid expansion image

Imagine standing a baby carrot up next to the 25-story Stephens building in Little Rock. That gives you a picture of the impact on the national debt that federal spending in Arkansas on Medicaid expansion would have, while here at home expansion would give coverage to more than 200,000 of our neediest citizens, create jobs, and save money for the state.

Here’s the thing: while more than a billion dollars a year in federal spending would represent a big-time stimulus for Arkansas, it’s not even a drop in the bucket when it comes to the national debt.

Currently, the national debt is around $16.4 trillion. In fiscal year 2015, the federal government would spend somewhere in the neighborhood of $1.2 billion to fund Medicaid expansion in Arkansas if we say yes. That’s about 1/13,700th of the debt.

It’s hard to get a handle on numbers that big, so to put that in perspective, let’s get back to the baby carrot. Imagine that the height of the Stephens building (365 feet) is the $16 trillion national debt. That $1.2 billion would be the length of a ladybug. Of course, we’re not just talking about one year if we expand. Between now and 2021, the federal government projects to contribute around $10 billion. The federal debt is projected to be around $25 trillion by then, so we’re talking about 1/2,500th of the debt. Compared to the Stephens building? That’s a baby carrot.

______________

Here is how it will all end if everyone feels they should be allowed to have their “baby carrot.”

How sad it is that liberals just don’t get this reality.

Here is what the Founding Fathers had to say about welfare. David Weinberger noted:

While living in Europe in the 1760s, Franklin observed: “in different countries … the more public provisions were made for the poor, the less they provided for themselves, and of course became poorer. And, on the contrary, the less was done for them, the more they did for themselves, and became richer.”

Alexander Fraser Tytler, Lord Woodhouselee (15 October 1747 – 5 January 1813) was a Scottish lawyer, writer, and professor. Tytler was also a historian, and he noted, “A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury. After that, the majority always votes for the candidate promising the most benefits with the result the democracy collapses because of the loose fiscal policy ensuing, always to be followed by a dictatorship, then a monarchy.”

Thomas Jefferson to Joseph Milligan

April 6, 1816

[Jefferson affirms that the main purpose of society is to enable human beings to keep the fruits of their labor. — TGW]

To take from one, because it is thought that his own industry and that of his fathers has acquired too much, in order to spare to others, who, or whose fathers have not exercised equal industry and skill, is to violate arbitrarily the first principle of association, “the guarantee to every one of a free exercise of his industry, and the fruits acquired by it.” If the overgrown wealth of an individual be deemed dangerous to the State, the best corrective is the law of equal inheritance to all in equal degree; and the better, as this enforces a law of nature, while extra taxation violates it.

[From Writings of Thomas Jefferson, ed. Albert E. Bergh (Washington: Thomas Jefferson Memorial Association, 1904), 14:466.]

_______

Jefferson pointed out that to take from the rich and give to the poor through government is just wrong. Franklin knew the poor would have a better path upward without government welfare coming their way. Milton Friedman’s negative income tax is the best method for doing that and by taking away all welfare programs and letting them go to the churches for charity.

_____________

_________

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

Williams with Sowell – Minimum Wage

Thomas Sowell

Thomas Sowell – Reducing Black Unemployment

By WALTER WILLIAMS

—-

Ronald Reagan with Milton Friedman
Milton Friedman The Power of the Market 2-5

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Welfare Spending Shattering All-Time Highs

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We need more brave souls that will vote against Washington welfare programs

We need to cut Food Stamp program and not extend it. However, it seems that people tell the taxpayers back home they are going to Washington and cut government spending but once they get up there they just fall in line with  everyone else that keeps spending our money. I am glad that at least […]

Welfare programs are not the answer for the poor

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Private charities are best solution and not government welfare

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The book “After the Welfare State”

Dan Mitchell Commenting on Obama’s Failure to Propose a Fiscal Plan Published on Aug 16, 2012 by danmitchellcato No description available. ___________ After the Welfare State Posted by David Boaz Cato senior fellow Tom G. Palmer, who is lecturing about freedom in Slovenia and Tbilisi this week, asked me to post this announcement of his […]

President Obama responds to Heritage Foundation critics on welfare reform waivers

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Welfare reform part 3

Thomas Sowell – Welfare Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. The Continuing Good News About Welfare Reform By Robert Rector and Patrick Fagan, Ph.D. February 6, 2003 Six years ago, President Bill Clinton signed legislation overhauling part of the nation’s welfare system. […]

Welfare reform part 2

Uploaded by ForaTv on May 29, 2009 Complete video at: http://fora.tv/2009/05/18/James_Bartholomew_The_Welfare_State_Were_In Author James Bartholomew argues that welfare benefits actually increase government handouts by ‘ruining’ ambition. He compares welfare to a humane mousetrap. —– Welfare reform was working so good. Why did we have to abandon it? Look at this article from 2003. In the controversial […]

Why did Obama stop the Welfare Reform that Clinton put in?

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“Feedback Friday” Letter to White House generated form letter response July 10,2012 on welfare, etc (part 14)

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President Biden wants to increase size of Government! Dan Mitchell: Get rid of the Department of Housing and Urban Development.

 

 

The Worst Part of Biden’s New Budget?

Since the economy suffers when tax rates go up and the burden of government spending increases, there obviously are plenty of awful features in President Biden’s newly released budget.

If I had to select a worst feature, though, I’d be tempted to pick the proposed spending hikes that Biden is seeking for some of Washington’s most-wasteful bureaucracies.

Here’s a chart from a story in today’s Washington Post (based on Table S-8 in the budget), which summarizes how much additional “discretionary spending” Biden is seeking.

Why am I upset about these proposed spending increases?

From a big-picture economic perspective, it’s bad fiscal policy to allow the burden of government spending to grow faster than the private sector.

And since Biden is projecting that real GDP will grown by 2.8 percent next year and inflation will be 2.1 percent during the same period (see Table S-9 of the budget), he obviously wants all these bureaucracies to enjoy big increases (unlike families, who are losing ground compared to inflation).

But I’m also irked from a targeted fiscal perspective. That’s because Biden wants giant spending increases for bureaucracies that should not even exist.

Here’s what I’ve written about some of them.

By the way, “worst feature” is not the same as most economically damaging feature.

There are two other parts of Biden’s budget that definitely will cause more harm.

These tax increases and entitlement expansions will do considerably more damage than the discretionary spending increases excerpted above.

But it’s still an outrage that Biden is shoveling more money at some of Washington’s most wasteful and counterproductivebureaucracies.

 

 


Ep. 4 – From Cradle to Grave [6/7]. Milton Friedman’s Free to Choose (1980)

March 1, 2021

President Biden c/o The White House
1600 Pennsylvania Avenue NW
Washington, DC 20500

Dear Mr. President,

Thank you for taking time to have your office try and get a pulse on what is going on out here in the country. I wanted to let you know what I think about the minimum wage increase you have proposed for the whole country and I wanted to quote Milton Friedman who you are familiar with and you made it clear in July that you didn’t care for his views! Let me challenge you to take a closer look at what he had to say!

Four Progressive Minimum Wage Myths Debunked

Democrats are just making things up to advance their job-killing cause.

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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

Williams with Sowell – Minimum Wage

Thomas Sowell

Thomas Sowell – Reducing Black Unemployment

By WALTER WILLIAMS

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Ronald Reagan with Milton Friedman
Milton Friedman The Power of the Market 2-5

Dan Mitchell “Greg Ip of the Wall Street Journal wrote about this issue a couple of years ago and included this chart showing that cronyism is a small problem in the United States but a big problem in Russia!”

Very Little Sympathy for Russian Oligarchs

I enjoy defending rich people. In part, that’s because I appreciatehow rich entrepreneurs make life better for me and everybody else.

But I also defend rich people because of my deep disdain for the policy agenda of empty-suit politicians and envy-wracked demagogues.

If we want outcomes that are better for society and the economy, I’m 100-percent confident that Jeff Bezos and Elon Musk can spend their wealth better than the hacks and clownsin Washington.

But what if rich people get money from government cronyism? What if they became wealthy because of special favors from politicians?

Greg Ip of the Wall Street Journal wrote about this issue a couple of years ago and included this chart showing that cronyism is a small problem in the United States but a big problem in Russia.

Here’s some of what Mr. Ip wrote about Russia’s cronyism.

How a billionaire earns his or her fortune matters, of course. Some are “rent seekers,” meaning they skim off the productive efforts of others via corruption, royal prerogative or control of some valuable market or resource. That’s why Russia is an outlier in Ms. Freund’s research: lots of oligarchs, with not much economic benefit to show for it.

Since he wrote that article well before Russia’s invasion of Ukraine, he wasn’t focused on the geopolitical considerations that are dominating the discussion today.

So now let’s look at a very recent report from the U.K.-based Economist. Here are some key excerpts.

…the sanctions levied at Russian oligarchs have intensified scrutiny on the origins of tycoons’ wealth. …Rent-seeking entrepreneurs tend to use their relationships with the state to maximise profits. …Our index uses 25 years of data from Forbes’s annual stock-take of the world’s billionaires. …We have classified the main source of each billionaire’s wealth into crony and non-crony sectors. …Russia’s crony economy sticks out like a blinged-up Muscovite… Some 70% of the 120 Russian billionaires, who together hold 80% of its billionaire wealth, fall within our crony-capitalist definition. Wealth equivalent to 28% of Russia’s gdp in 2021 came from crony sectors, up from 18% in 2016.

The bottom line is that Russia’s “oligarchs” are not like the self-made billionaires that we’re fortunate to have in the United States.

Here’s the accompanying chart from the article. Russia does stand out…in a very bad way. If the numbers are accurate, getting in bed with politicians is the way to get rich.

Now that we’ve established that Russian billionaires generally don’t earn their money, this leads us to the more challenging issue of whether nations such as the United States should freeze and/or expropriate the wealth of the oligarchs in response to Putin’s invasion of Ukraine?

Since I’m not a lawyer or an expert on foreign and defense issues, I don’t pretend to know the best approach. I want Putin and his cronies to suffer, but I also have some qualms about the current approach.

  • Is the “rule of law” being overlooked and “due process” getting trampled in the rush to go after the assets of wealthy Russians, some of whom may have emigrated because of their opposition to Putin?
  • Are people being targeted simply because of their Russian ethnicity, just as an awful president targeted Americans of Japanese descent during World War II?
  • If getting rich through cronyism is a sufficient pretext to confiscate wealth, does that mean it’s okay to seize the assets of ethanol producers and stockholders of Fannie Mae and Freddie Mac?

P.S. For what it’s worth, my gut instinct is that cronyism is a much bigger problem in China’s economy that we see in the data from the WSJ and the Economist.

P.P.S. Click here to learn more about “rent seeking.”

“Is Capitalism “Pro-Business?”

Published on Aug 7, 2012

Find LearnLiberty on Facebook: http://on.fb.me/X9qijG

In this video, Professor Steve Horwitz advocates for free market economic policy. He refutes the often recited claim that “What is good for General Motors is good for America” by explaining that pro-business legislation encourages behavior that is not beneficial to society or the business itself. He suggests that, in a free market, factors such as profit and competition encourage behavior that ultimately benefits society. Professor Horwitz illustrates that pro-business legislation restricts progress and therefore caters to the interests of industry rather than to consumers, whereas “supporters of free markets are ultimately pro-human and pro-people because it is through markets that we get the most innovation and we get the most goods and the cheapest prices.”

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Our Website: http://bit.ly/RBl3FH

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Big Government cronyism lines the pockets of dishonest companies!!!!

A bunch of well-connected rich people and government officials are descending upon Switzerland for the annual World Economic Forum meeting in Davos.

This upsets many people, and perhaps with some justification. After all, bad things often happen when big business and big government intersect.

But some folks reflexively think that wealth is bad and they would like us to believe that the economy is a fixed pie, meaning that the rich have more money because the poor have less money.

If you think I’m exaggerating, check out a new report from Oxfam, a UK-based group that was created to alleviate poverty but has largely morphed into a left-wing pressure group.

The folks at Oxfam complain about the supposed “capture of opportunities by the rich at the expense of the poor and middle classes” and that “tax rates for the richest have fallen in 29 of the 30 countries.”

Here are some excerpts from a report in the EU Observer.

As the world’s richest and most powerful men and women prepare to meet in the Swiss resort of Davos for the annual World Economic Forum on Wednesday (22 January), the British development charity, Oxfam, has issued a new report on global inequality. According to its findings, the wealth of the world’s 85 richest people – €81.2 trillion – amounts to that of the poorest half of the world population, or 3.5 billion people. …”In Europe, austerity has been imposed on the poor and middle classes under huge pressure from financial markets whose wealthy investors have benefited from state bailouts of financial institutions,” the charity said. Financial deregulation in the US has contributed to the situation, in which the richest one percent of the population has more money than ever since 1933.  …The charity said Davos participants should reverse the trend and pledge to support higher taxes for the rich, while refraining from using their wealth to seek political favours.

There are several parts of this excerpt that deserve attention, including passages that are correct (such as bailouts giving undeserved money to the rich) and passages that are nonsensical (the financial crisis was caused by intervention, not deregulation).

But I want to focus solely on the inequality issue. Let’s assume Oxfam is right and that the world’s 85 richest people have $81.2 trillion of wealth. The group obviously wants us to think this accumulation of wealth is bad and that it somehow comes at the expense of the rest of us.

Tim Carney of the Washington Examiner hits the nail on the head, explaining that there’s a big difference between honest wealth and riches obtained through government coercion.

…is it a bad thing for a country to have some really rich people? Again, it depends on how they got rich. Sutirtha Bagchi of the University of Michigan’s business school and Jan Svejnar of Columbia’s School of International and Public Affairs studied how inequality correlates with economic growth. In general, more inequality meant slower growth, and less inequality meant faster growth. But in many countries, over various time periods, growing inequality had no effect on economic growth. The new study suggests that an increase in inequality hurt the economy when the rich were getting rich through political connections. That is, inequality hurts the economy when “a large share of the national wealth is held by a small number of politically connected families,” as the authors put it. …Bagchi and Svenjar took pains to classify political billionaires as narrowly as possible. …The political billionaires were only people who “would not have become a billionaire in the absence of political connections that resulted in favoritism and/or explicit government support.”

The oft-missed lesson here is that undeserving wealth generally is obtained because of big government.

Which reminds me of a very astute observation by a former Cato colleague, who wrote that, “…the more power the government has to pick winners and losers, the more power rich people will have relative to poor people.”

Carney continues, pointing out that wealth obtained through markets is good. Such success creates a bigger pie and helps boost living standards for everyone.

But wealth achieved via government is cronyism, and that contributes to economic stagnation.

When a country’s wealthiest got wealthy through market means, the resulting inequality has no negative effect on economic growth. This jibes with what we know about free markets. If people can get rich by providing valuable things at good prices, then society will get more valuable things at good prices—and people across the income spectrum benefit. But if people get rich by pocketing subsidies and using the state to crush competitors, then they gained their wealth at the expense of everyone else. Bill Gates became a billionaire by making and selling something that makes regular people more productive and more connected. Buffett got rich largely by providing capital to underfunded but well-run businesses. If Bagchi’s and Svejnar’s findings are correct, then the bottom line is this: Inequality itself doesn’t hurt the economy. Cronyism hurts the economy.

I fully agree with Tim’s analysis, though I would have drawn a distinction between the younger Warren Buffett, who was a savvy investor and the older Buffett, who has climbed into bed with the political elite.

The bottom line is that the poor aren’t poor because of honest rich people. The poor are suffering because of big government, including the cronyism that lines the pockets of dishonest companies and individuals that feed at the public trough.

Unfortunately, many insider leftists are perfectly content with those policies and they use inequality to distract voters from the real problem.

There are honest leftists, of course, and they presumably would be outraged by the sleaze in national capitals. Their problem is that they genuinely think the economic is fixed pie. Or they think that inequality is such a bad thing that they would be willing to reduce incomes for the poor if it meant the rich suffered even more.

If you don’t believe me, watch this marvelous video of Margaret Thatcher debunking the left.

And my old grad school colleague Steve Horwitz also has some very sage observations on income inequality and class warfare.

P.S. In its report on inequality, Oxfam also went after tax havens and said more revenue for government would help reduce poverty.

Oxfam also estimated that €15.5 trillion of the wealth is hidden from the taxman in offshore accounts, at a time when governments are cutting public spending. …tax avoidance by EU and US corporations in Africa is depriving its governments from resources which could be use to fight poverty.

I wrote a study years ago exposing Oxfam’s sloppy methodology on tax competition issues. No wonder they’ve been labeled as being part of the “tax taliban.”

But what really irks me about that passage is the assumption that bigger government reduces poverty. That’s nonsense. The data shows that growth is the best way of helping the poor.

Christie JokeP.S. I wrote yesterday about Chris Christie’s problems in New Jersey. I said his real challenge was the need to reduce the burden of government, not the bridge scandal.

But I’m a sucker for good political humor, so enjoy this image that appeared in my inbox.

P.P.S. Since Oxfam criticized tax havens, I can’t resist calling your attention to my video tutorial on tax competition and tax haven.

Simply stated, we need some external check on the greed of the political class.

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________ Dan Mitchell is right and we must reduce the size and power of Government!!!! Thanks to Obamacare and the IRS, You’re at Risk of Having Your Identity Stolen and Your Bank Account Emptied December 3, 2013 by Dan Mitchell There are many reason I don’t like Obamacare, including its punitive impact on taxpayers and the […]

Dan Mitchell of the Cato Institute has noted, “I’m all in favor of bringing federal government spending back down to about 18 percent of GDP, which is where it was when Bill Clinton left office.”

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Dan Mitchell article Tax Policy, Tax Reform, and State Competitiveness

Tax Policy, Tax Reform, and State Competitiveness

I wrote two months ago about Iowa lawmakers voting for a simple and fair flat tax.

I explained how this reform would make the state more competitive, but I want to build upon that argument with some of the Tax Foundation’s data.

Starting with this map from the State Business Tax Climate Index, which shows Iowa in 38th place for individual income taxes.

That low ranking is where the state’s tax code was as of July 1, 2021, so it obviously doesn’t reflect the reforms enacted earlier this year.

So where will the state rank with the new flat tax?

The Tax Foundation crunched the data and shows the state will jump to #15 in the rankings.

The above table shows that the jump is even more impressive when you factor in some modest pro-growth changes that took place a few years ago.

What a huge improvement over just a few years. The only state that may beat Iowa for fastest and biggest increase in tax competitiveness is North Carolina, which jumped 30 spots in just one year.

P.S. Politicians in New York must be upset that there’s no way for them to drop lower than #50. But at least they can take comfort in the fact that they are worse than California.

We should lower federal taxes because jobs are going to states like Texas that have low taxes. (We should lower state taxes too!!)

One of the great things about federalism, above and beyond the fact that it both constrains the power of governments and is faithful to the Constitution, is that is turns every state into an experiment.

We can learn what works best (though the President seems incapable of learning the right lesson).

We know, for instance, that people are leaving high-tax states and migrating to low-tax states.

We also know that low-tax states grow faster and create more jobs.

I particularly enjoy comparisons between Texas and California. Michael Barone, for instance, documented how the Lone Star State is kicking the you-know-what out of the Golden State in terms of overall economic performance.

I also shared a specific example of high-quality jobs moving from San Francisco to Houston. And I was also greatly amused by this story (and accompanying cartoons) about Texas “poaching” jobs from California.

In this discussion with Stuart Varney of Fox News, we discuss how Texas is leading the nation in job creation.

But there’s another part of this discussion that is very much worth highlighting.

As illustrated by the chart, we are enduring the worst overall job performance in any business cycle since the end of World War II.

I note in the interview that Obama inherited a bad economy and that Bush got us in the ditch in the first place with all his wasteful spending and misguided intervention.

But Obama also deserves criticism for doubling down on those failed policies.

His so-called stimulus was a flop. Dodd-Frank is a regulatory nightmare. Obamacare is looking worse and worse every day.

No wonder job creation is so anemic.

The real moral of the story, though, is that the poor are the biggest victims of Obama’s statism. They’re the ones who have been most likely to lose jobs. They’ve been the ones to suffer because of stagnant incomes.

Sort of brings to mind the old joke that leftists must really like poor people because they create more of them whenever they’re in charge.

P.S. Speaking of jokes, here’s an amusing comparison of Texas and California. If you want some California-specific humor, this Chuck Asay cartoon is great. And to maintain balance, here’s a Texas-specific joke on how to respond to an attacker.

P.P.S. To close on a serious point, California would be deteriorating even faster if it wasn’t for the fact that the state and local tax deduction basically means that the rest of the country is subsidizing the high tax rates in the not-so-Golden State. Another good argument for the flat tax.

P.P.P.S. At the bottom of this post, you’ll find a great Kevin Williamson column dismantling some sloppy anti-Texas analysis by Paul Krugman.

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Even though Chuck Asay is one of my favorite cartoonists (see herehereherehere, and here), I was not a big fan of one of his recent two-frame cartoons.

But he has more than made up for that slight transgression with this new gem.

I’m biased, of course, since I’ve already written about California being the Greece of America, but there’s plenty of evidence to justify Asay’s cartoon.

Dan Mitchell: The failure of Obama’s stimulus should have been a learning moment for Washington politicians. But Joe Biden must have slept through that lesson because his first big move after taking office was to saddle the nation with a $1.9 trillion “stimulus” package!

Biden’s “Stimulus” Failure

At the risk of understatement, economists are not good forecasters.

And they are especially incompetent when they make forecasts based on bad policy, such as when the Obama White House projected that his so-called stimulus would quickly lead to falling unemployment.

In reality, the jobless rate immediately increased and then remained much higher than projected for the remainder of the five-year forecast.

The failure of Obama’s stimulus should have been a learning moment for Washington politicians.

But Joe Biden must have slept through that lesson because his first big move after taking office was to saddle the nation with a $1.9 trillion “stimulus” package.

The White House claimed this orgy of new spending would lead to four million additional jobs in 2021, on top of the six million new jobs that already were expected.

So what happened? Matt Weidinger of the American Enterprise Institute looked at the final numbers for 2021 and discovered that employment actually fell compared to pre-stimulus baseline projection.

The nonpartisan Congressional Budget Office projected on February 1, 2021…a gain of 6.252 million jobs over…2021…we now know payroll employment in the fourth quarter of 2021 averaged 148.735 million — an increase of 6.116 million compared with the average of 142.619 million in the fourth quarter of 2020. That means the job growth the President praised this week has fallen 136,000 jobs short of what was expected under the policies he inherited. …President Biden and congressional Democrats promised their $1.9 trillion American Rescue Plan would create millions of additional new jobs this year — on top of what White House economists called the “dire” baseline of 6.252 million new jobs reflected in CBO’s projection without that enormous legislation. …House Speaker Nancy Pelosi (D-CA) repeated that claim, stating that “if we do not enact this package, the results could be catastrophic,” including “4 million fewer jobs.” Yet…not one of those four million additional jobs supposedly resulting from that $1.9 trillion spending plan has appeared, as job creation in 2021 did not even match CBO’s projection without that legislation.

Below you’ll see the chart that accompanied the article.

As you can see, the White House projected more than 10 million new jobs (right bar).

Yet we would up with 6.1 million new jobs (left bar), about 140,000 less than we were projected to get (center bar) without wasting $1.9 trillion.

If pressed, I’m sure the Biden Administration would use the same excuse that we got from the Obama White House (and from the Congressional Budget Office), which is that the initial forecast was wrong and that the so-called stimulus did create jobs.

In other words, the Biden economists now would say they should have projected 2 million new jobs, which means that the $1.9 trillion spending spree added 4 million jobs, for a net increase of 6 million.

You may think I’m joking, but that is exactly how the Keynesian economists tried to justify Obama’s stimulus failure.

The moral of the story is that the best way to really create jobs is to get government out of the way rather than adding new burdens.

 

 


Emailed to White House on 3-20-13.)

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 going on out here.

Stimulus spending back in 2009 did not help at all.

Does Stimulus Spending Work?

After the housing bubble burst, the Bush and Obama administrations turned to stimulus in an effort to “create jobs.” Does such spending lead to economic improvement? Prof. Antony Davies examines the data to see how increases in federal spending relate to economic growth from 1955 to the present. The evidence shows that there is no connection between federal spending and economic improvement; instead, stimulus money only increases government debt. After three years of stimulus spending, the unemployment rate remains at 9 percent. “One thing that has changed,” Davies says, “is that our government is now $4.6 trillion further in debt than it was before the stimulus efforts.”

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We have tried it over and over and it never works!!!

People often ask why I put so much political humor on this site. The easy answer is that I like a good joke.

But I also find that some cartoons and jokes do a very good job of helping people understand economics. I’ve always liked this cartoon, for instance, because it cleverly illustrates the impact of government handouts on the labor market. And looking at that cartoon is a lot quicker than taking a class about labor economics.

Well, you can also skip the class about public finance. Here’s a cartoon that shows the economic burden of government “stimulus” spending.

Very funny and very intellectually sound. Indeed, the only thing that would have made the cartoon even better would have been showing that the jockey became bloated by eating the horse’s food. But I reckon it’s not easy making multiple points with one picture.

Anyhow, I’m disappointed that I didn’t notice it at Reason.com a couple of years ago when the debate on the faux stimulus was taking place. It probably would have helped more people understand that you don’t boost economic performance by draining resources from the productive sector of the economy to finance a larger government.

By the way, if you want to understand in greater detail why the cartoon is accurate, this video on Keynesian economics is helpful, as is this video explaining the failure of Obama’s $1 trillion boondoggle.

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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