Category Archives: spending out of control

Open letter to President Obama (Part 134)

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. Below is an article from the Heritage Foundation:

Washington also misuses taxpayer dollars in less blatant ways. Take the 47 federal job training programs the federal government runs, for example. Or the 15 agencies involved in food safety and inspection. Congress ought to identify areas of program duplication and fragmentation and then consolidate or eliminate unnecessary ones. This recent Government Accountability Office report offers a myriad of programs to cut, combine, or restructure.

Don’t be fooled, though, by thinking that tackling waste alone or combining a handful of programs will solve the country’s twin crises of spending and debt. Waste is deplorable and unacceptable, yet it is small in comparison to the trillion-dollar-plus deficits recorded in recent years. More importantly, it is not the main contributor to Washington’s spending problem. The three major entitlement programs—Medicare, Medicaid, and Social Security—constitute the lion’s share of current spending.

The future portends an even more oppressive burden from entitlement spending. The first baby boomers have reached retirement already, and millions more will become eligible for Medicare and Social Security benefits. Entitlement spending is on track to eclipse all tax revenues, meaning at that point the federal government would have to tax or borrow money to fund all other programs.

Congress and the President are expected to spend today’s taxpayer dollars wisely. They can accomplish this by rooting out waste, eliminating duplicative programs, and returning to a more limited government at the federal level. All of this will help restore Americans’ trust in their government. But to assure Americans that their children can have an even more prosperous future than they had, Congress should do the hard work of proposing entitlement program reforms—reforms that will get spending under control and unshackle future generations from crushing levels of taxes and debt.

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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

Videos by Cato Institute on failed stimulus plans

In this post I have gathered several videos from the Cato Institute concerning the subject of failed stimulus plans.

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Government Spending Doesn’t Create Jobs

Uploaded by on Sep 7, 2011

Share this on Facebook: http://on.fb.me/qnjkn9 Tweet it: http://tiny.cc/o9v9t

In the debate of job creation and how best to pursue it as a policy goal, one point is forgotten: Government doesn’t create jobs. Government only diverts resources from one use to another, which doesn’t create new employment.

Video produced by Caleb Brown and Austin Bragg.

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Keynesian Catastrophe: Big Money, Big Government & Big Lies

Uploaded by on Jan 19, 2012

The Cato Institute’s Dan Mitchell explains why Obama’s stimulus was a flop! With Glenn Reynolds.

See more at http://www.pjtv.com and http://www.cato.org

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Keynesian Economics Is Wrong: Bigger Gov’t Is Not Stimulus

Uploaded by on Dec 15, 2008

Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.

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Obama’s So-Called Stimulus: Good For Government, Bad For the Economy

Uploaded by on Jan 26, 2009

President Obama wants Congress to dramatically expand the burden of government spending. This CF&P Foundation mini-documentary explains why such a policy, based on the discredited Keynesian theory of economics, will not be successful. Indeed, the video demonstrates that Obama is proposing – for all intents and purposes – to repeat Bush’s mistakes. Government will be bigger, even though global evidence shows that nations with small governments are more prosperous.

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Big Government Is Not Stimulus: Why Keynes Was Wrong (The Condensed Version)

Uploaded by on Jan 13, 2009

The CF&P Foundation has released a condensed version of our successful mini-documentary explaining why so-called stimulus schemes do not work. Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.

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Eight Reasons Why Big Government Hurts Economic Growth

Uploaded by on Aug 17, 2009

This Center for Freedom and Prosperity Foundation video analyzes how excessive government spending undermines economic performance. While acknowledging that a very modest level of government spending on things such as “public goods” can facilitate growth, the video outlines eight different ways that that big government hinders prosperity. This video focuses on theory and will be augmented by a second video looking at the empirical evidence favoring smaller government.

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Keynesian Economics Is Wrong: Economic Growth Causes Consumer Spending, Not the Other Way

Uploaded by on Nov 29, 2010

Politicians and journalists who fixate on consumer spending are putting the cart before the horse. Consumer spending generally is a consequence of growth, not the cause of growth. This Center for Freedom and Prosperity video helps explain how to achieve more prosperity by looking at the differences between gross domestic product and gross domestic income. www.freedomandprosperity.org

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Deficits, Debts and Unfunded Liabilities: The Consequences of Excessive Government Spending

Uploaded by on May 10, 2010

Huge budget deficits and record levels of national debt are getting a lot of attention, but this video explains that unfunded liabilities for entitlement programs are Americas real red-ink challenge. More important, this CF&P mini-documentary reveals that deficits and debt are symptoms of the real problem of an excessive burden of government spending. www.freedomandprosperity.org

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Now that I have been critical of the Democrat President, I wanted to show that I am not concerned about taking up for Republicans but looking at the facts. President Clinton did increase government spending at a slower rate than many other presidents. Here are two  videos that praise both Reagan and Clinton for both accomplished this feat.

Spending Restraint, Part I: Lessons from Ronald Reagan and Bill Clinton

Uploaded by on Feb 14, 2011

Ronald Reagan and Bill Clinton both reduced the relative burden of government, largely because they were able to restrain the growth of domestic spending. The mini-documentary from the Center for Freedom and Prosperity uses data from the Historical Tables of the Budget to show how Reagan and Clinton succeeded and compares their record to the fiscal profligacy of the Bush-Obama years.

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Spending Restraint, Part II: Lessons from Canada, Ireland, Slovakia, and New Zealand

Uploaded by on Feb 22, 2011

Nations can make remarkable fiscal progress if policy makers simply limit the growth of government spending. This video, which is Part II of a series, uses examples from recent history in Canada, Ireland, Slovakia, and New Zealand to demonstrate how it is possible to achieve rapid improvements in fiscal policy by restraining the burden of government spending. Part I of the series examined how Ronald Reagan and Bill Clinton were successful in controlling government outlays — particularly the burden of domestic spending programs. www.freedomandprosperity.org

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It seems that liberals will never wake up. On 3-8-12 a Arkansas Times blogger pointed out that Obama’s stimulus in 2009 was not made up of just increased but also tax cuts. That is true but the real truth is that there have been about 1/2 dozen stimulus efforts by President Obama and all of them have failed.  Over and over they have tried stimulus plans but they don’t work. Take a look at this excellent article from the Cato Institute:

Keynesian Policies Have Failed

by Chris Edwards

Chris Edwards is the director of tax policy studies at the Cato Institute and the editor of Downsizing Government.org.

Added to cato.org on December 2, 2011

This article appeared on U.S. News & World Report Online on December 2, 2011

Lawmakers are considering extending temporary payroll tax cuts. But the policy is based on faulty Keynesian theories and misplaced confidence in the government’s ability to micromanage short-run growth.

In textbook Keynesian terms, federal deficits stimulate growth by goosing “aggregate demand,” or consumer spending. Since the recession began, we’ve had a lot of goosing — deficits were $459 billion in 2008, $1.4 trillion in 2009, $1.3 trillion in 2010, and $1.3 trillion in 2011. Despite that huge supposed stimulus, unemployment remains remarkably high and the recovery has been the slowest since World War II.

Policymakers should ignore the Keynesians and their faulty models, and instead focus on reforms to aid long-run growth…

Yet supporters of extending payroll tax cuts think that adding another $265 billion to the deficit next year will somehow spur growth. That “stimulus” would be on top of the $1 trillion in deficit spending that is already expected in 2012. Far from helping the economy, all this deficit spending is destabilizing financial markets, scaring businesses away from investing, and imposing crushing debt burdens on young people.

For three years, policymakers have tried to manipulate short-run economic growth, and they have failed. They have put too much trust in macroeconomists, who are frankly lousy at modeling the complex workings of the short-run economy. In early 2008, the Congressional Budget Office projected that economic growth would strengthen in subsequent years, and thus completely missed the deep recession that had already begun. And then there was the infamously bad projection by Obama’s macroeconomists that unemployment would peak at 8 percent and then fall steadily if the 2009 stimulus plan was passed.

Chris Edwards is the director of tax policy studies at the Cato Institute and the editor of Downsizing Government.org.

 

More by Chris Edwards

Some of the same Keynesian macroeconomists who got it wrong on the recession and stimulus are now claiming that a temporary payroll tax break would boost growth. But as Stanford University economist John Taylor has argued, the supposed benefits of government stimulus have been “built in” or predetermined by the underlying assumptions of the Keynesian models.

Policymakers should ignore the Keynesians and their faulty models, and instead focus on reforms to aid long-run growth, which economists know a lot more about. Cutting the corporate tax rate, for example, is an overdue reform with bipartisan support that would enhance America’s long-run productivity and competitiveness.

If Congress is intent on cutting payroll taxes, it should do so within the context of long-run fiscal reforms. One idea is to allow workers to steer a portion of their payroll taxes into personal retirement accounts, as Chile and other nations have done. That reform would feel like a tax cut to workers because they would retain ownership of the funds, and it would begin solving the long-term budget crisis that looms over the economy.

Related posts:

Stimulus plans do not work (part 2)

Dan Mitchell discusses the effectiveness of the stimulus Uploaded by catoinstitutevideo on Nov 3, 2009 11-2-09 When I think of all our hard earned money that has been wasted on stimulus programs it makes me sad. It has never worked and will not in the future too. Take a look at a few thoughts from […]

Stimulus plans do not work (Part 1)

Government Spending Doesn’t Create Jobs Uploaded by catoinstitutevideo on Sep 7, 2011 Share this on Facebook: http://on.fb.me/qnjkn9 Tweet it: http://tiny.cc/o9v9t In the debate of job creation and how best to pursue it as a policy goal, one point is forgotten: Government doesn’t create jobs. Government only diverts resources from one use to another, which doesn’t […]

Dumas thinks we don’t need Balanced Budget Amendment but should balance it on our own

In his recent article Ernie Dumas sticks to his guns that we should balance the budget without being forced to with a “Balanced Budget Amendment,” but I wonder how well that has worked so far? I have made this a key issue for this blog in the past as you can tell below: Dear Senator […]

Maybe the “Occupy Wall Street” crowd should be angry at Obama

(Picture from Arkansas Times Blog) When I think about all the anger and hate coming from the Occupy Wall Street crowd, I wonder if they have read this story below? Solyndra: Crooked Politics or Just Bad Economics? Posted by David Boaz Amy Harder has a good take on the Solyndra issue in National Journal Daily […]

Dear Senator Pryor, why not pass the Balanced Budget Amendment? (Part 13 Thirsty Thursday, Open letter to Senator Pryor)

Dear Senator Pryor, why not pass the Balanced Budget Amendment? (Part 13 Thirsty Thursday, Open letter to Senator Pryor) Office of the Majority Whip | Balanced Budget Amendment Video In 1995, Congress nearly passed a constitutional amendment mandating a balanced budget. The Balanced Budget Amendment would have forced the federal government to live within its […]

Mark Pryor not for President’s job bill even though he voted for it

Andrew Demillo pointed this out  and also Jason Tolbert noted: PRYOR OPPOSES THE OBAMA JOBS BILL THAT HE VOTED TO ADVANCE  Sen. Mark Pryor has been traveling around the state touting a six-part jobs plan that he says “includes a number of bipartisan initiatives, is aimed at creating jobs by setting the table for growth, encouraging new […]

Is a lack of money the problem for our public schools?

Is a lack of money the problem for our public schools? Everything You Need to Know About Public School Spending in Less Than 2½ Minutes Posted by Adam Schaeffer Neal McCluskey gutted the President’s new “Save the Teachers” American Jobs Act sales pitch a good while back, as did Andrew Coulson here. Thankfully, it seems […]

Open letter to President Obama (Part 133)

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.

I wish the federal government would go back to spending less than 5% of GDP like they did the first 150 years of our country’s history. We could cut down on a lot of wasteful spending if we did that.

Mike Brownfield

April 19, 2012 at 8:57 am

In a speech yesterday in Elyria, Ohio — a small town just outside Cleveland sitting at the forks of the Black River — President Barack Obama delivered a politically charged speech in which he hearkened back to the country’s roots, saying that his opponents “don’t seem to remember how America was built.” In his view, taxpayers want their money spent in ways that will help further “the larger project we call America.” In other words, more spending and bigger government paid for with higher taxes.

In a city quite unlike Elyria, thousands of miles west, sprawling forth from the desert just east of Death Valley, officials from this federal government provided the latest example of what happens when the president’s philosophy succeeds — when layer upon layer of government grows so big that it begins to serve the interests of a ruling class, rather than the people from whom it derives its power. Two years ago in Las Vegas, the General Services Administration (GSA) — a little-known federal agency that helps manage other federal agencies — blew through $820,000 in taxpayer funds for a lavish, booze-fueled conference for 300 employees, complete with magic shows, margaritas, and a self-produced rap video making fun of the spending. (It’s worth mentioning that in 2009, Senate Majority Leader Harry Reid (D-NV) asked White House Chief of Staff Rahm Emanuel for help in encouraging government meetings to be held in Nevada.)

That’s just the giant tip of the iceberg for this wasteful behemoth, as reports have emerged of other taxpayer-financed “business trips,” including junkets to Hawaii, South Pacific islands, California’s Napa Valley and Palm Springs. A hotline has been set up for employee tips on wrongdoing, and this week the House is conducting hearings on the GSA’s gross abuse of taxpayer funds.

Sadly, government waste, fraud and abuse isn’t limited to just one agency. Look no further than the Department of Energy (DOE) whose inspector general said yesterday that he’s overseeing 250 to 300 open criminal investigations into the “entire spectrum of DOE activities,” including 100 reviews involving more than $35 billion in stimulus dollars, according to Politico. In addition, it was reported that the investigators are looking into the “use of thousands of outside contractors, federal money being diverted for personal use, false data in grant and loan applications, conflicts of interest and incomplete and inferior work from DOE weatherization grant winners.” To date, those investigations have led to eight criminal prosecutions and the recovery of $2.3 million.

How commonplace is this waste? Given the sheer size and scope of the government — which is set to spend $6.3 trillion this year — it’s impossible to say. But just as pernicious as the countless billions that have been squandered is the cancerous attitude that has taken hold in Washington and that is metastasizing across the land. It’s one of thoughtless entitlement in which individuals who live off the bureaucratic beast reflexively take and spend more all while doing less, giving no consideration to those who fuel their appetites.

Of course, that mindset is not exclusive to the federal level, and examples abound of government employees taking from the public coffers. Just this week in our nation’s capital, 90 city employees were suspended for receiving unemployment benefits while still holding city jobs, and 40 former city workers cashed unemployment checks that they weren’t entitled to. All told, the city paid out some $800,000 in illegitimate benefits. But it’s not just about outright theft. It’s also about out-of-whack expectations that one is entitled to receive without doing. In Michigan, for example, a public school teacher is advising her students not to become teachers because under a new state law, she won’t be able to retire at age 47 as she hoped.

Contrary to what those on the left might believe, this swollen government is not what was intended.

Flowing from the  Declaration of Independence and embodied in the Constitution, the federal government was designed on the principle that the ultimate authority of a legitimate government depends on the consent of a free people. As Former Attorney General Edwin Meese III writes in The Heritage Guide to the Constitution, “Nature does not single out who is to govern and who is to be governed; there is no divine right of kings. Nor are rights a matter of legal privilege or the benevolence of some ruling class.” Yet in this government, a privileged few are acting outside those bounds with the expectation that they have the right to do as they please, unfettered by any obligation to the people.

Under the Obama Administration, the situation has gotten worse. The president turns to bigger government and higher taxes as a solution to every problem. On health care, unemployment, education and energy, Obama has reflexively pursued a policy of more is more — more spending paid for with more taxes. This week served up another prime example when the president called for increased regulations and $52 million in spending to combat high gas prices — even though he admitted that the measures wouldn’t have any immediate impact on the price at the pump.

As the people lose control over this unrestrained government, those with the most cash are the ones with a voice. In an interview last week with The New York Times, former Democratic congressman Patrick Kennedy revealed that access to the Obama White House is a “quid pro quo” based on how much money one contributes to the president’s campaign. That news, though, likely is not a shock to an American people who have come to expect the worst, not the best, from Washington. However, that is not how America was built, it’s not the government we must have, nor is it the one that the Founders envisioned.

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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

Open letter to President Obama (Part 132 B)

Rep. Quayle on Fox News with Neil Cavuto

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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.

We have to get people to realize that the most important issue is the debt!!! Recently I read a comment by Congressman Ben Quayle (R-AZ) made  after voting against the amended Budget Control Act on August 1, 2011. He said it was important to compel “Congressional Democrats and the Obama Administration to finally recognize how central America’s debt problem truly is.”

I can not agree more. I am glad that Rep. Quayle was brave enough to vote against this bill and I wish more were brave like him.

Michael Tanner of the Cato Institute in his article, “Hitting the Ceiling,” National Review Online, March 7, 2012 noted:

After all, despite all the sturm und drang about spending cuts as part of last year’s debt-ceiling deal, federal spending not only increased from 2011 to 2012, it rose faster than inflation and population growth combined.

We need some national statesmen (and ladies) who are willing to stop running up the nation’s credit card.

Ted DeHaven noted his his article, “Freshman Republicans switch from Tea to Kool-Aid,”  Cato Institute Blog, May 17, 2012:

This week the Club for Growth released a study of votes cast in 2011 by the 87 Republicans elected to the House in November 2010. The Club found that “In many cases, the rhetoric of the so-called “Tea Party” freshmen simply didn’t match their records.” Particularly disconcerting is the fact that so many GOP newcomers cast votes against spending cuts.

The study comes on the heels of three telling votes taken last week in the House that should have been slam-dunks for members who possess the slightest regard for limited government and free markets. Alas, only 26 of the 87 members of the “Tea Party class” voted to defund both the Economic Development Administration and the president’s new Advanced Manufacturing Technology Consortia program (see my previous discussion of these votes here) and against reauthorizing the Export-Import Bank (see my colleague Sallie James’s excoriation of that vote here).

One of those Tea Party heroes was Congressman Ben Quayle of Arizona. Last year I posted this below concerning his conservative views and his willingness to vote against the debt ceiling increase:

Rep. Quayle Votes No on Final Debt Ceiling Deal

Monday August 01, 2011

FOR IMMEDIATE RELEASE

Contact: Richard Cullen

202-225-3361

WASHINGTON (DC) Congressman Ben Quayle (R-AZ) released the following statement Monday after voting against the amended Budget Control Act:  

 “Last week I voted for the Boehner plan because— while imperfect—it made adequate strides to get our fiscal House in order. The final debt-ceiling bill, however, goes in a direction that I cannot support. Due to the design of the bill’s trigger mechanism, I am concerned that President Obama will be able to use the threat of tax hikes and drastic defense cuts to continue to amass record levels of spending.

 “Though I didn’t support today’s bill, I want to commend Speaker Boehner and the House Republican Leadership for changing the culture in Washington and compelling Congressional Democrats and the Obama Administration to finally recognize how central America’s debt problem truly is.

 “On another note, it was a very special moment seeing Congresswoman Gabby Giffords cast her vote on the House Floor tonight. Both sides of the aisle greeted her with a loud standing ovation. It was a nice way to end what has been a very tense few days in the House.”

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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

 

Dan Mitchell of the Cato Institute takes on entitlement reform

It is the elephant in the room that nobody wants to talk about. Here Dan Mitchell takes it on.

Most people have a vague understanding that America has a huge long-run fiscal problem.

They’re right, though they probably don’t realize the seriousness of that looming crisis.

Here’s what you need to know: America’s fiscal crisis is actually a spending crisis, and that spending crisis is driven by entitlements.

More specifically, the vast majority of the problem is the result of Medicaid, Medicare, and Social Security, programs that are poorly designed and unsustainable.

America needs to fix these programs…or eventually become another Greece.

Fortunately, all of the problems can be solved, as these three videos demonstrate.

The first video explains how to fix Medicaid.

Promote Federalism and Replicate the Success of Welfare Reform with Medicaid Block Grants

Uploaded by on Jun 26, 2011

The Medicaid program imposes high costs while generating poor results. This Center for Freedom and Prosperity Foundation video explains how block grants, such as the one proposed by Congressman Paul Ryan, will save money and improve healthcare by giving states the freedom to innovate and compete.

The second video shows how to fix Medicare.

Saving Medicare: Free Market Reforms Are Better than Bureaucratic Rationing

Uploaded by on May 17, 2011

This Center for Freedom and Prosperity Foundation video explains how a “premium-support” plan would solve Medicare’s fiscal crisis and improve the overall healthcare system. This voucher-based system also would protect seniors from bureaucratic rationing. http://www.freedomandprosperity.org

And the final video shows how to fix Social Security.

Saving Social Security with Personal Retirement Accounts

Uploaded by on Jan 10, 2011

There are two crises facing Social Security. First the program has a gigantic unfunded liability, largely thanks to demographics. Second, the program is a very bad deal for younger workers, making them pay record amounts of tax in exchange for comparatively meager benefits. This video explains how personal accounts can solve both problems, and also notes that nations as varied as Australia, Chile, Sweden, and Hong Kong have implemented this pro-growth reform. www.freedomandprosperity.org

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Regular readers know I’m fairly gloomy about the future of liberty, but this is one area where there is a glimmer of hope.

The Chairman of the House Budget Committee actually put together a plan that addresses the two biggest problems (Medicare and Medicaid) and the House of Representatives actually adopted the proposal.

The Senate didn’t act, of course, and Obama would veto any good legislation anyhow, so I don’t want to be crazy optimistic. Depending on how things play out politically in the next six years, I’ll say there’s actually a 20 percent chance to save America.

Videos by Dan Mitchell of the Cato Institute found here on www.thedailyhatch.org

Dan Mitchell of the Cato Institute has some great videos and I have posted lots of them on my blog. I like to go to Dan’s blog too. Take a look at some of them below and then the links to my blog.

It’s Simple to Balance The Budget Without Higher Taxes

Uploaded by on Oct 4, 2010

Politicians and interest groups claim higher taxes are necessary because it would be impossible to cut spending by enough to get rid of red ink. This Center for Freedom and Prosperity video shows that these assertions are nonsense. The budget can be balanced very quickly by simply limiting the annual growth of federal spending.

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Six Reasons Why the Capital Gains Tax Should Be Abolished

Uploaded by on May 3, 2010

The correct capital gains tax rate is zero because there should be no double taxation of income that is saved and invested. This is why all pro-growth tax reform plans, such as the flat tax and national sales tax, eliminate the capital gains tax. Unfortunately, the President wants to boost the official capital gains tax rate to 20 percent, and that is in addition to the higher tax rate on capital gains included in the government-run healthcare legislation. http://www.freedomandprosperity.org

 

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Keynesian Economics Is Wrong: Bigger Gov’t Is Not Stimulus

Uploaded by on Dec 15, 2008

Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.

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Obama’s So-Called Stimulus: Good For Government, Bad For the Economy

Uploaded by on Jan 26, 2009

President Obama wants Congress to dramatically expand the burden of government spending. This CF&P Foundation mini-documentary explains why such a policy, based on the discredited Keynesian theory of economics, will not be successful. Indeed, the video demonstrates that Obama is proposing – for all intents and purposes – to repeat Bush’s mistakes. Government will be bigger, even though global evidence shows that nations with small governments are more prosperous.

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Big Government Is Not Stimulus: Why Keynes Was Wrong (The Condensed Version)

Uploaded by on Jan 13, 2009

The CF&P Foundation has released a condensed version of our successful mini-documentary explaining why so-called stimulus schemes do not work. Based on a theory known as Keynesianism, politicians are resuscitating the notion that more government spending can stimulate an economy. This mini-documentary produced by the Center for Freedom and Prosperity Foundation examines both theory and evidence and finds that allowing politicians to spend more money is not a recipe for better economic performance.

_________________

Eight Reasons Why Big Government Hurts Economic Growth

Uploaded by on Aug 17, 2009

This Center for Freedom and Prosperity Foundation video analyzes how excessive government spending undermines economic performance. While acknowledging that a very modest level of government spending on things such as “public goods” can facilitate growth, the video outlines eight different ways that that big government hinders prosperity. This video focuses on theory and will be augmented by a second video looking at the empirical evidence favoring smaller government.

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Now that I have been critical of the Democrat President, I wanted to show that I am not concerned about taking up for Republicans but looking at the facts. President Clinton did increase government spending at a slower rate than many other presidents. Here are two  videos that praise both Reagan and Clinton for both accomplished this feat.

Spending Restraint, Part I: Lessons from Ronald Reagan and Bill Clinton

Uploaded by on Feb 14, 2011

Ronald Reagan and Bill Clinton both reduced the relative burden of government, largely because they were able to restrain the growth of domestic spending. The mini-documentary from the Center for Freedom and Prosperity uses data from the Historical Tables of the Budget to show how Reagan and Clinton succeeded and compares their record to the fiscal profligacy of the Bush-Obama years.

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Spending Restraint, Part II: Lessons from Canada, Ireland, Slovakia, and New Zealand

Uploaded by on Feb 22, 2011

Nations can make remarkable fiscal progress if policy makers simply limit the growth of government spending. This video, which is Part II of a series, uses examples from recent history in Canada, Ireland, Slovakia, and New Zealand to demonstrate how it is possible to achieve rapid improvements in fiscal policy by restraining the burden of government spending. Part I of the series examined how Ronald Reagan and Bill Clinton were successful in controlling government outlays — particularly the burden of domestic spending programs. www.freedomandprosperity.org

Here are some posts that include videos from Dan Mitchell:

Videos by Cato Institute on failed stimulus plans

In this post I have gathered several videos from the Cato Institute concerning the subject of failed stimulus plans. _____ Government Spending Doesn’t Create Jobs Uploaded by catoinstitutevideo on Sep 7, 2011 Share this on Facebook: http://on.fb.me/qnjkn9 Tweet it: http://tiny.cc/o9v9t In the debate of job creation and how best to pursue it as a policy […]

Balanced Budget Amendment the answer? Boozman says yes, Pryor no, Part 28 (Input from Norm Coleman, former Republican Senator from MN)

  It’s Simple to Balance The Budget Without Higher Taxes Steve Brawner in his article “Safer roads and balanced budgets,” Arkansas News Bureau, April 13, 2011, noted: The disagreement is over the solutions — on what spending to cut; what taxes to raise (basically none ever, according to Boozman); whether or not to enact a […]

Obama’s plan is not too smart on taxes

Dan Mitchell did a great article concerning the affect of raising taxes in these two areas and horrible results: How Can Obama Look at these Two Charts and Conclude that America Should Have Higher Double Taxation of Dividends and Capital Gains? Posted by Daniel J. Mitchell As discussed yesterday, the most important number in Obama’s […]

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Open letter to President Obama (Part 132)

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.

If you look at the first 150 years of our nation’s history you will find practically no welfare or assistance to the poor coming from the government. In fact, most of the help came from local churches. During the last few decades the government had created the welfare trap that robs people of responsibility to better themselves. Many in the welfare trap feel they are being treated like children.

With all that in mind I found this article below very helpful.

U.S. Conference of Catholic Bishops and Spending Cuts

Posted by Tad DeHaven

House Budget Committee chairman Paul Ryan (R-WI) and Speaker John Boehner (R-OH) are pushing back against criticism from the U.S. Conference of Catholic Bishops over the GOP’s proposed cuts to domestic spending programs. They should.

The USCCB’s criticism comes at a time when it’s appropriately fighting the Obama administration’s mandate that Church-affiliated employers must provide health insurance that covers birth control. As a Catholic, it pains me that the bishops apparently do not recognize that a central government that is big and powerful enough to spend billions of other people’s dollars on housing, food, and health care programs, which the bishops support, is inevitably going to shove its tentacles into areas where they’re not wanted. In other words, if you play with fire, there’s a good chance you’re going to get burnt.

The bishops have now sent four letters to Congress that call on policymakers to “create a ‘circle of protection’ around poor and vulnerable people and programs that meet their basic needs and protect their lives and dignity.” Oh please. Even if it were the proper role of the federal government to fund such programs, the government’s efforts have been inefficient and often counterproductive. If anything, the massive federal welfare state that has sprung up over the past five decades has stripped countless Americans of their dignity by making them reliant on the cold hand of the bureaucrat.

Note this paragraph from a USCCB letter that argues against cuts to housing programs:

As bishops, we see firsthand the pain and suffering in our communities and in our parishes caused by homelessness and lack of affordable housing. The Catholic community is one of the largest private providers of housing services for the poor and vulnerable in the country. We shelter the homeless, develop affordable housing for families and people with disabilities, counsel families at risk of foreclosure, and provide housing and care for those at the end of life. At a time when the need for assistance from HUD programs is growing, cutting funds for them could cause thousands of individuals and families to lose their housing and worsen the hardship of thousands more in need of affordable housing. 

The responsibility for addressing such concerns properly belongs to the Church and other organizations that possess that “firsthand” view of the struggles many people face. I won’t get into a discussion on Catholic social teaching, but it’s impossible for me to imagine that the perpetual mess that is the Department of Housing & Urban Development comports with the principles of subsidiarity.

The Catholic Church could do a lot more for the poor if its parishioners were able to put more into the collection plate instead of rendering it unto Caesar. Thus, it’s pretty sad that the bishops see this as a “time when the need for assistance from HUD programs is growing” rather than a time for the Church to reassert its traditional role in taking care of those in need—a role that is hindered by the welfare state that the bishops embrace.

_______________

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

Dear Senator Pryor, why not pass the Balanced Budget Amendment? (“Thirsty Thursday”, Open letter to Senator Pryor)

Dear Senator Pryor,

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

On my blog www.HaltingArkansasLiberalswithTruth.com I took you at your word and sent you over 100 emails with specific spending cut ideas. However, I did not see any of them in the recent debt deal that Congress adopted. Now I am trying another approach. Every week from now on I will send you an email explaining different reasons why we need the Balanced Budget Amendment. It will appear on my blog on “Thirsty Thursday” because the government is always thirsty for more money to spend.

____________

(CNSNews.com) – Rep. Louie Gohmert (R-Texas) will not vote for a balanced budget amendment proposal unless it includes a cap on federal spending. However, he is undecided whether the amendment absolutely must require a supermajority of Congress to approve a tax hike for him to support it.

“The most important element is the cap on spending,” Gohmert told CNSNews.com. “If there is no cap on spending, then the balanced budget amendment is a formula for ever- increasing spending and ever-increasing taxing that will just spiral upward and upward again. So there’s got to be included a cap on spending, and best if it’s related to a percentage of GDP. But, absolutely, if there is no cap on spending, I could not vote for it.”

The actual language of the balanced budget amendment that Congress will vote on before the end of the year has not yet been determined. However, many conservatives fear that Republican leaders may agree to vote on a stripped down amendment that requires Congress to balance the budget but does not cap spending as a percentage of GDP or require supermajorities to raise taxes. They fear that an amendment of that nature–which might win the backing of some incumbent congressional liberals–would become a constitutional lever for sustaining big government via ever-escalating federal taxation.

When the Republican-controlled-House approved the cut, cap and balance plan last on July 19 in 234-190 vote, it included a version of the balanced budget amendment to cap federal spending at 19.9 percent of GDP. The GOP originally sought to hold federal spending to 18 percent of GDP.

The version of the balanced budget amendment in the cut, cap and balance plan also required two-thirds majorities in both houses to approve a tax increase. The amendment also would have prohibited deficit spending unless there was a national security emergency or a supermajority of Congress voted for it. On July 22, the Senate voted 51-46 to approve a procedural motion that blocked substantive consideration of the cut, cap and balance bill in that body.

The debt-limit deal reached by President Barack Obama, House Speaker John Boehner (R-Ohio) and Senate Majority Leader Harry Reid (D-Nev.) requires that both houses of Congress give an up or down vote to a balanced budget amendment before the end of the year. However, it does not specify what the language of the amendment would be.

If two-thirds of Congress votes to approve a balanced budget amendment, it would then have to be ratified by 38 states, or three-fourths.

The House passed that debt-limit deal by a 269-161 vote on Aug. 1. Gohmert was one of 66 Republicans who voted against it.

“As far as the supermajority to raise taxes, that’s our preference, but the key element, the most important element is the cap on spending,” Gohmert said. “If there is no supermajority to raise taxes then I’d just have to look at it more closely to see what all was there to see if it was something I could vote for or not.”

Gohmert believes this is a winning issue for Republicans.

“Well, I think it’s like this: We either have a legitimate Balanced Budget Amendment pass with a cap on spending, or I really believe if it does not pass, you will see many of those who voted against it turned out both in the House and Senate in the next election,” Gohmert said. “So I think it’s an either/or. Either people vote for it and it passes, or we have a significant change in the people that are in the House and Senate that voted against it.”

Who appointed Obama king? “We Can’t Wait” effort suggests he doesn’t have to wait for the throne to show up!!!

Dan Mitchell Talking about China, Regulation, and Wealth with Cavuto

Published on Mar 21, 2012 by

No description available.

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We should reduce government’s influence on our lives and that can only be done if Washington gets spending under control and balances the budget and shrinks out debt without increasing taxes. I am upset that the “We Can’t Wait”  effort (started in early 2012) suggests that the office of President does not have to wait for the other branches of government to do their part in order for laws to be inacted. This is a power grab pure and simple and this effort doesn’t respect what our government is all about.

Matthew Spalding, Ph.D.

June 5, 2012 at 9:23 am

There’s no way to predict how the 2012 elections will turn out. But it will be a turning point in American history: Either our leaders will guide the country even further along the road to “progressivism” or they will begin a long, slow turn back toward the principles of the American Founding. To help our leaders make the correct choices, The Heritage Foundation is putting a marker down with a publication called Changing America’s Course that gives our political leaders recommendations on how to stay within the limits of the Constitution.

You’ve probably read Heritage’s financial proposal, Saving the American Dream, and our prescription for a Conservative foreign policy. Those ideas are crucial building blocks in our approach. But they are only parts of the larger crisis facing Americans today–the crisis of constitutional government–that Saving the American Dream deals with.

The United States is unique. Ours is a republic dedicated to the universal principles of human liberty: that all are fundamentally equal and equally endowed with unalienable rights to life, liberty and the pursuit of happiness.

Our government exists to secure these God-given rights, deriving its just powers from the consent of the governed. Our Constitution limits the power of government under the rule of law, creating a vigorous framework for expanding economic opportunity, protecting national independence, and securing liberty and justice for all.

Today, though, the federal government has acquired an all but unquestioned dominance over virtually every area of American life. It acts without constitutional limits and is restricted only by expediency, political will, and (less and less) budget constraints.

The unlimited scope and depth of its rules means that the federal government increasingly regulates more and more of our most basic activities, from how much water is in our toilets to what kind of light bulbs we can buy. This is a government that is unlimited by any organizing principle, increasingly undemocratic and damaging to popular self-government.

For example, as part of his reelection campaign, Obama has launched an effort called “We Can’t Wait“ to highlight his actions independent of Congress. This is more than the usual politics of a president running for reelection against Congress. Obama’s idea seems to be that the president, charged with the execution of the laws, doesn’t have to wait for the lawmaking branch to make, amend or abolish the laws but that he can and should act on his own.

This violates the spirit–and potentially the letter–of the Constitution’s separation of the legislative and executive powers of Congress and the president.

For its part Congress has also failed to fulfill its constitutional duties. Under the current Democratic party leadership, it’s been more than three years since the U.S. Senate even passed a budget. And under Republican leadership in 2003, the House of Representatives unethically kept a voting window open for three hours (instead of the scheduled 15 minutes) so party leaders could twist arms, change minds and ram through Medicare Part D.

Even worse, Congress has fallen into the habit of legislating without regard to any limits on its powers. Although the Constitution vests legislative powers in Congress, the majority of “laws” are actually promulgated by agencies and bureaucracies in the guise of “regulations.” Recent examples include the massive Dodd-Frank financial regulation and, of course, ObamaCare.

As a result, key policy decisions which were previously the constitutional responsibility of elected legislators are delegated to executive branch administrators whose rules have the full force and effect of laws passed by Congress. Having passed massive, broadly written pieces of legislation with little serious deliberation, Congress is increasingly an administrative body overseeing a vast array of bureaucratic policymakers and rule-making bodies.

Changing America’s Course charts a constitutional path to a brighter future of opportunity and independence. If our political leaders follow its recommendations and begin confining themselves to the limited powers the Constitution gives them, America will once again be on the principled path to liberty, opportunity and constitutional self-government.

The first step is to reduce the size and scope of government and unleash the engines of economic productivity and the institutions of cultural renewal. Only then can we change America’s course, begin to get spending under control, balance the budget, and shrink our debt without increasing taxes.

Matthew Spalding, Ph.D., is Vice President, American Studies and Director, B. Kenneth Simon Center for Principles and Politics B. Kenneth Simon Center for Principles and Politics at The Heritage Foundation.

Open letter to President Obama (Part 131 B)

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.

We need to cut taxes and not raise them if we want the economy to grow. Sweden is a good example of that lately.

David Weinberger

May 11, 2012 at 10:00 am

Since the beginning of the recession, academics, authoritative international institutions, and most government officials pushed for massive stimulus spending. Sweden bucked the trend, focusing instead on slashing marginal tax rates and peeling government back. How did it fare?

The Spectator reports:

While most countries in Europeborrowed massively, Borg did not. Since becoming Sweden’s finance minister, his mission has been to pare back government. His ‘stimulus’ was a permanent tax cut. To critics, this was fiscal lunacy — the so-called ‘punk tax cutting’ agenda. Borg, on the other hand, thought lunacy meant repeating the economics of the 1970s and expecting a different result.

Three years on, it’s pretty clear who was right. ‘Look atSpain,Portugalor theUK, whose governments were arguing for large temporary stimulus,’ he says. ‘Well, we can see that very little of the stimulus went to the economy. But they are stuck with the debt.’ Tax-cuttingSweden, by contrast, had the fastest growth inEuropelast year, when it also celebrated the abolition of its deficit.

Too bad the U.S. decided against Sweden’s advice. Still, missing one opportunity doesn’t mean we have to miss another: Tax reform is calling.   

______________

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