Category Archives: spending out of control

Open letter to President Obama (Part 109)

Government Spending Doesn’t Create Jobs

Uploaded by on Sep 7, 2011

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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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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.

Judging from what you had to say in your State of the Union address you haven’t changed at all. You still believe we should make “investments” but what you really mean is that government can provide everyone jobs. I just don’t believe that and I don’t believe you are brave enough to make the tough cuts in government spending to bring down out federal spending from almost 25% of GDP to more acceptable levels like under 19% under Clinton.

After saddling the nation with trillion-dollar boondoggles like the faux stimulus and Obamacare, I’m not sure it’s possible for Obama to reinvent himself as a budget cutter before the election.

But I welcome converts, even ones that are insincere, so I’m happy he’s at least pretending to want to deal with waste and duplication in the federal budget.

Here’s a blurb from the Daily Beast about his new idea.

President Barack Obama is seeking the power to merge agencies in a bid to shrink the federal government in a sweeping move. Obama will ask Congress to give him authority to consolidate six trade and commerce agencies that have overlapping programs, cutting up to 2,000 jobs and saving $3 billion over 10 years. He’ll call for a vote by Congress within 90 days.

But I’ll definitely wait to see the fine print. After all, the President claimed in 2009 that he was directing his Cabinet to find $100 million of budget cuts.

“I hate pretending to be a fiscal conservative”

But even that trivial gesture (almost immeasurably small compared to t a$3.6 trillion budget) turned out to be empty rhetoric.

And even if he’s serious about this latest plan, $3 billion of saving over 10 years is chicken feed compared to all of his new spending.

But if you allow me to modify an old saying, a journey of tens of trillions of dollars begins with the first $3 billion.

__________

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 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.

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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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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 105)

Obama on Ryan Plan: “It’s Laughable. It Is a Trojan Horse. It’s Thinly-Veiled Social Darwinism.”

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.

Dan Mitchell of the Cato Institute has hit a home run with this post. If Congressman Paul Ryan could get criticized for wanting to bring down our federal spending to around 20% in 11 years  and earn the label of “social darwinist” from you  then surely you would have thought President Clinton’s effort to cut spending to 18.2 % of GDP in 2001 as extremely devilish.

President Obama Accuses Bill Clinton of “Thinly Veiled Social Darwinism”

April 3, 2012 by Dan Mitchell

Actually, Bill Clinton must be something even worse than a social Darwinist. That’s because the title of this post is wrong. Obama said that Paul Ryan’s plan (which allows spending to grow by an average of 3.1 percent per year over the next decade) is a form of “social Darwinism.”

Proponent of social Darwinism?

But the proposal from the House Budget Committee Chairman only reduces the burden of federal spending to 20.25 percent of GDP by the year 2023.

Yet when Bill Clinton left office in 2001, following several years of spending restraint, the federal government was consuming 18.2 percent of economic output.

And by the President’s reasoning, this must make Clinton something worse than a Darwinist. Perhaps Marquis de Sade or Hannibal Lecter.

Here’s a blurb from the New York Times on Obama’s speech.

Mr. Obama’s attack, in a speech during a lunch with editors and reporters from The Associated Press, was part of a broader indictment of the Republican economic blueprint for the nation. The Republican budget, and the philosophy it represents, he said in remarks prepared for delivery, is “antithetical to our entire history as a land of opportunity and upward mobility for everyone who’s willing to work for it.” …“Disguised as a deficit reduction plan, it’s really an attempt to impose a radical vision on our country. It’s nothing but thinly veiled social Darwinism,” Mr. Obama said. “By gutting the very things we need to grow an economy that’s built to last — education and training, research and development — it’s a prescription for decline.”

I’m particularly amused by the President’s demagoguery that Ryan’s plan is “antithetical to our entire history” and “a radical vision.”

Is he really unaware that a small and constrained central government is part of America’s history and vision? Doesn’t he know that the federal government, for two-thirds of our nation’s history, consumed less than 5 percent of GDP?

Of course, that was back in the dark ages when people in Washington actually believed that the Constitution’s list of enumerated powers in Article 1, Section 8, actually enumerated the powers of the federal government. How quaint.

No wonder this Ramirez cartoon is so effectively amusing. It certainly seems to capture the President’s view of America’s founding principles.

_______________

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 104)

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.

Class warfare is not going to help anybody. The best policy is to lower government spending and lower taxes. Take a look at the comments by Dan Mitchell of the Cato Institute.

I’ve already explained why Warren Buffett is either dishonest or clueless about tax policy. Today, on CNBC, I got to debate the tax scheme that President Obama has named after the Omaha investor.

One of my big points was that the United States already has a self-destructive set of tax laws for investment. As such, it would be very foolish to increase the double taxation of income that is saved and invested.

Dan Mitchell Debating the Buffett Rule on CNBC

Published on Apr 10, 2012 by

No description available.

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And my closing point, which I snuck in before they could go off air, was that the left should want lower tax rates if they want more revenue from the rich. It’s called the Laffer Curve.

___________

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

More Than Half of the President’s Budget Would Be Spent on Entitlement Programs

More Than Half of the President’s Budget Would Be Spent on Entitlement Programs

Everyone wants to know more about the budget and here is some key information with a chart from the Heritage Foundation and a video from the Cato Institute.

In combination with other entitlements, such as food stamps, unemployment, and housing assistance,MedicareMedicaid, and Social Security constitute the lion’s share of President Obama’s 2012 budget. In contrast, spending on foreign aid represents 2 percent.

PERCENTAGE OF THE PRESIDENT’S FY2012 BUDGET

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More Than Half of the President's Budget Would Be Spent on Entitlement Programs

Source: White House Office of Management and Budget.

Chart 9 of 42

In Depth

  • Policy Papers for Researchers

  • Technical Notes

    The charts in this book are based primarily on data available as of March 2011 from the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO). The charts using OMB data display the historical growth of the federal government to 2010 while the charts using CBO data display both historical and projected growth from as early as 1940 to 2084. Projections based on OMB data are taken from the White House Fiscal Year 2012 budget. The charts provide data on an annual basis except… Read More

  • Authors

    Emily GoffResearch Assistant
    Thomas A. Roe Institute for Economic Policy StudiesKathryn NixPolicy Analyst
    Center for Health Policy StudiesJohn FlemingSenior Data Graphics Editor

“Feedback Friday” Letter to White House generated form letter response (on government spending) July 6, 2012 (part 10)

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 July 6,  2012. I don’t know which letter of mine generated this response, but if I had to guess then I think it would be this one below.

Obama on Ryan Plan: “It’s Laughable. It Is a Trojan Horse. It’s Thinly-Veiled Social Darwinism.”

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.

Dan Mitchell of the Cato Institute has hit a home run with this post. If Congressman Paul Ryan could get criticized for wanting to bring down our federal spending to around 20% in 11 years  and earn the label of “social darwinist” from you  then surely you would have thought President Clinton’s effort to cut spending to 18.2 % of GDP in 2001 as extremely devilish.

President Obama Accuses Bill Clinton of “Thinly Veiled Social Darwinism”

April 3, 2012 by Dan Mitchell

Actually, Bill Clinton must be something even worse than a social Darwinist. That’s because the title of this post is wrong. Obama said that Paul Ryan’s plan (which allows spending to grow by an average of 3.1 percent per year over the next decade) is a form of “social Darwinism.”

Proponent of social Darwinism?

But the proposal from the House Budget Committee Chairman only reduces the burden of federal spending to 20.25 percent of GDP by the year 2023.

Yet when Bill Clinton left office in 2001, following several years of spending restraint, the federal government was consuming 18.2 percent of economic output.

And by the President’s reasoning, this must make Clinton something worse than a Darwinist. Perhaps Marquis de Sade or Hannibal Lecter.

Here’s a blurb from the New York Times on Obama’s speech.

Mr. Obama’s attack, in a speech during a lunch with editors and reporters from The Associated Press, was part of a broader indictment of the Republican economic blueprint for the nation. The Republican budget, and the philosophy it represents, he said in remarks prepared for delivery, is “antithetical to our entire history as a land of opportunity and upward mobility for everyone who’s willing to work for it.” …“Disguised as a deficit reduction plan, it’s really an attempt to impose a radical vision on our country. It’s nothing but thinly veiled social Darwinism,” Mr. Obama said. “By gutting the very things we need to grow an economy that’s built to last — education and training, research and development — it’s a prescription for decline.”

I’m particularly amused by the President’s demagoguery that Ryan’s plan is “antithetical to our entire history” and “a radical vision.”

Is he really unaware that a small and constrained central government is part of America’s history and vision? Doesn’t he know that the federal government, for two-thirds of our nation’s history, consumed less than 5 percent of GDP?

Of course, that was back in the dark ages when people in Washington actually believed that the Constitution’s list of enumerated powers in Article 1, Section 8, actually enumerated the powers of the federal government. How quaint.

No wonder this Ramirez cartoon is so effectively amusing. It certainly seems to capture the President’s view of America’s founding principles.

_______________

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

The White House, Washington

July 6, 2012

Dear Everette:

Thank you for writing.  I have heard from many Americans about Government spending and our national debt.  I appreciate your perspective. 

I am committed to working in a bipartisan way to solve the financial challenges before us and to construct an economy where every hard-working American gets a fair shot, does their fair share, and plays by the same rules.  By focusing on job creation, security for working families, and fiscal responsibility, we can get people the help they need, prepare for the future, and reduce the Federal deficit. 

This is a make-or-break moment for the middle class and those trying to reach it.  After decades of eroding middle-class security and after a recession that plunged our economy into a crisis from which we are still fighting to recover, it is time to construct an economy built to last.  To put our Nation back on a path of living within our means, we must cut wasteful spending, ask all Americans to shoulder their fair share, and make tough choices on some things we cannot afford.  The Federal Government, like families across America, is going to have to cut spending while protecting investments that are vital to growing our economy and creating jobs.  My proposed budget for Fiscal Year 2013 targets scarce Federal resources to the areas critical to growing our economy and restoring middle-class security:  education and skills for American workers, innovation and manufacturing, clean energy, and infrastructure.  This proposal will reduce our deficit by $4 trillion by 2022 and will help put our country back on a more sustainable fiscal path.    

An economy built to last also demands we renew the American values of fair play and shared responsibility—principles that must guide our approach to solving our Nation’s deficit problem.  As we extend middle-class tax cuts to help working families, I am pursuing the end of costly tax breaks and special deductions for the wealthiest Americans and biggest corporations.  I have repeatedly called on Congress to stop giving away $4 billion a year in oil subsidies to an industry that has never been more profitable, and instead, to pass clean energy tax credits to cultivate a market for innovation in clean energy technology.  I also proposed a fee on big banks and other major financial institutions to recoup taxpayer assistance that was crucial to saving the economy. 

To prevent Congress from worsening our deficit outlook, I pushed for and signed into law pay-as-you-go rules for Congress—rules critical to creating the surpluses of the 1990s.  Additionally, I established the Campaign to Cut Waste, which is aggressively rooting out misspent tax dollars, and sent Congress the Consolidating and Reforming Government Act to reinstate the authority past presidents have had to streamline the Executive Branch and create a leaner, more efficient Federal Government.  Through these and other efforts, we can reduce the deficit and ensure a more stable future for our children.  

To learn more about our budget, please visit www.Budget.gov.  Thank you, again, for writing.

Sincerely,

Barack Obama

Cartoons on Obama’s budget math

Dan Mitchell Discussing Dishonest Budget Numbers with John Stossel

Uploaded by on Feb 11, 2012

No description available.

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Dan Mitchell of the Cato Institute has shown before how excessive spending at the federal level has increased in recent years.

I’ve been quite involved in the debate over which Presidents were big spenders.

I started with an analytical post that crunched the data from the Office of Management and Budget, and I showed that Obama was only a fiscal conservative if you ignored the budget impact of the TARP bailout.

I then augmented that analysis with a second post showing in more detail that Obama deserves a bad grade because of spending on social welfare programs.

Last but not least, my most recent post stated that Bush also was a big spender and I cited Jonah Goldberg’s excellent column suggesting that Romney should admit that Republicans bear some blame for the fiscal mess in Washington.

So we’ve been entirely too serious about this topic. Time for some cartoons! We’ll start with this gem from Eric Allie.

Now let’s look at a good one from Lisa Benson. The dirt being swept under the carpet is TARP, of course.

I think that’s the first cartoon I’ve used from Mr. Allie, but I have shared Ms. Benson’s work before. You can find some of my favorites here, herehere and here.

P.S. Getting back to the serious issue, much of the debate over Obama’s spending record revolves around TARP, but there’s also some discussion of how to divvy up blame for spending in Bush’s last fiscal year (FY2009, which began October 1, 2008). You can find some of my analysis on that issue here and here.

Open letter to President Obama (Part 100)

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.

__________________

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 really think that Dan Mitchell of the Cato Institute is one of the best at explaining conservative economic policies and how they would benefit us all. Here he takes a look at your economic policies.

In a recent post comparing Reaganomics and Obamanomics, I explained why I think Barack Obama’s policies have been hurting the economy.

In today’s New York Post, I do a full-scale indictment. Here are my bullet points.

* The unemployment rate is still above 8 percent, even though the White House promised it would drop to about 6 percent today if the stimulus was enacted.

* Several million fewer Americans have jobs today than five years ago.

* The poverty rate has jumped to more than 15 percent, with a record number of Americans living below the poverty level of income.

* According to the most recent data, median household income is lower than when the recession began.

* The burden of government spending remains high, and record levels of red ink are a symptom of that bloat in Washington.

* The threat of higher taxes is omnipresent, serving as a Sword of Damocles over the economy’s neck.

* Continued weakness in the housing and financial sectors reminds people that bailouts and intervention have left lots of problems unsolved.

I also explain that some of  the recent good news is in spite of the President’s statist policies.

* The recovery began just as Obama’s stimulus spending ended, thus confirming suspicions that lots of money was wasted as part of a process that hindered the economy’s growth.

* The job numbers only began to improve at the end of 2010, right as Republicans took control of the House and presumably ended Obama’s ability to further shift the nation’s course.

The final point is one deserving of elaboration. People in the private sector necessarily have to make educated guesses about the future economic environment. With this in mind, I think it’s quite reasonable – as I commented last month – to argue that the GOP takeover on Capitol Hill boosted the economy since entrepreneurs could feel more comfortable that the federal government wasn’t going to be imposing additional burdens.

This indictment of Obama’s dismal economic track record does not suggest, I should hasten to add, that Mitt Romney or Rick Santorum would be any better. Both of them seem closer to Bush than Reagan, so it’s not clear they would make any substantive changes in the burden of the federal government.

__________

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

Sincerely,

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

Related posts:

John Brummett and Rick Crawford don’t see that the real problem is how much government spends!!!!!

Washington Could Learn a Lot from a Drug Addict The problem with Washington is they are addicted to overspending our money and the problem is not that the government needs more money to waste. They survived on less than 4% of GDP the first 150 years that our nation existed (except in wartimes), but this […]

Tea Party solutions versus Occupy Wall Street

Dan Mitchell is right about the “Occupy Wall St crowd” The Arkansas Times Blog reported: Occupy Little Rock occupies Clinton Library parking lot Gabe Gentry Members of the Occupy Little Rock group have set up camp outside the Clinton Library, video contributor Gabe Gentry reports. Around 65 are gathered currently with chimineas and grills and pizzas. Thirty […]

Bigger government hurts economic growth

The Cato Institute videos are always good and these are no different. New Video Has Important Message: Freedom and Prosperity vs. Big Government and Stagnation Posted by Daniel J. Mitchell The folks from the Koch Institute put together a great video a couple of months ago looking at why some nations are rich and others […]

President Obama’s good advice does not apply to USA

Uploaded by WSJDigitalNetwork on Feb 23, 2012 Editorial board member Steve Moore breaks down Mitt Romney’s and President Obama’s tax plans. _____________________ Here is an excellent article by Dan Mitchell of the Cato Institute concerning President Obama great advice for another country. When Obama Rejects Government Intervention and Says It Is Better to “Let the […]

Updated version:Rick Crawford falls for Democrats’ trick:raise taxes first and we will cut spending later

RAISE TAXES: Report says Rick Crawford will break from GOP and back millionaires’ tax. The Arkansas Times reported that Congressman Rick Crawford has a plan that includes raising taxes for 5 years if there is an agreement to pass the Balanced Budget Amendment. However, if after 5 years the Balanced Budget Amendment does not get […]

Ronald Wilson Reagan versus Barrack Obama

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 […]

Cato Institute:Spending is our problem Part 6

But we also know that it is difficult to convince politicians to do what’s right for the nation. And if they don’t change the course of fiscal policy, and we leave the federal government on autopilot, then America is doomed to become another Greece. The combination of poorly designed entitlement programs (mostly Medicare and Medicaid) and an aging population […]

Cato Institute:Spending is our problem Part 5

Uploaded by NatlTaxpayersUnion on Feb 15, 2011 Dan Mitchell, Senior Fellow at the Cato Institute, speaks at Moving Forward on Entitlements: Practical Steps to Reform, NTUF’s entitlement reform event at CPAC, on Feb. 11, 2011. People think that we need to raise more revenue but I say we need to cut spending. Take a look […]

Cato Institute:Spending is our problem Part 3

Uploaded by NatlTaxpayersUnion on Feb 15, 2011 Dan Mitchell, Senior Fellow at the Cato Institute, speaks at Moving Forward on Entitlements: Practical Steps to Reform, NTUF’s entitlement reform event at CPAC, on Feb. 11, 2011. ____________________ People think that we need to raise more revenue but I say we need to cut spending. Take a […]

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 […]

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.

Marco Rubio is one of your fellow citizens and he noted:

A balanced budget amendment would be a necessary step in reversing Washington’s tax-borrow-spend mantra. It would force Congress to balance its budget each year – not allow it to pass our problems on to the next generation any longer.

The Balanced Budget Amendment is the only thing I can think of that would force Washington to cut spending. We have only a handful of balanced budgets in the last 60 years, so obviously what we are doing is not working. We are passing along this debt to the next generation.

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

Sincerely,

Everette Hatcher, lowcostsqueegees@yahoo.com

 In my two short months in office, it has become clear to me that the spending problem in Washington is far worse than many of us feared. For years, politicians have blindly poured more and more borrowed money into ineffective government programs, leaving us with trillion dollar deficits and a crippling debt burden that threatens prosperity and economic growth.

In the Florida House of Representatives, where a balanced budget is a requirement, we had to make the tough choices to cut spending where necessary because it was required by state law. By no means was this an easy process, but it was our duty as elected officials to be accountable to our constituents and to future generations of Floridians. In Washington, a balanced budget amendment is not just a fiscally-responsible proposal, it’s a necessary step to curb politicians’ decades-long penchant for overspending.

Several senators have proposed balanced budget amendments that ensure Congress will not spend a penny more than we take in, while setting a high hurdle for future tax hikes. I am a co-sponsor of two balanced budget amendments, since it is clear that these measures would go a long way to reversing the spending gusher we’ve seen from Washington in recent years.

During my Senate campaign, while surrounded by the employees of Jacksonville’s Meridian Technologies, I proposed 12 simple ways to cut spending in Washington. That company, founded 13 years ago, has grown into a 200-employee, high-tech business, and the ideas I proposed would help ensure that similar companies have the opportunity to start or expand just like Meridian did.

To be clear, our unsustainable debt and deficits are threatening companies like Meridian and impeding job creation. In addition to proposing a balanced budget amendment, I recommended canceling unspent “stimulus” funds, banning all earmarks and returning discretionary spending to 2008 levels.

Fortunately, some of my ideas have found their way to the Senate chamber. The first bill I co-sponsored in the Senate was to repeal ObamaCare, the costly overhaul of our nation’s health care system that destroys jobs and impedes our economic recovery. Democratic leaders in the Senate have expressed their willingness to ban earmarks for two years after the Senate Republican conference adopted a moratorium. I have also co-sponsored the REINS Act, a common-sense measure that would increase accountability and transparency in our outdated and burdensome regulatory process. These bills, along with a balanced budget amendment, would help get our country back on a sustainable path and provide certainty to job creators.

While Republicans are proposing a variety of ideas to rein in Washington’s out-of-control spending, unfortunately, President Obama’s budget for the upcoming fiscal year proposes to spend $46 trillion, and even in its best year, the deficit would remain above $600 billion. Worst of all, the President’s budget completely avoids addressing the biggest drivers of our long-term debt – Social Security, Medicare and Medicaid.

Rather than tackle these tough, serious issues, President Obama is proposing a litany of tax hikes on small businesses and entrepreneurs, to the tune of more than $1.6 trillion. These tax increases destroy jobs, make us less competitive internationally and hurt our efforts to grow the economy and get our fiscal house in order.

A balanced budget amendment would be a necessary step in reversing Washington’s tax-borrow-spend mantra. It would force Congress to balance its budget each year – not allow it to pass our problems on to the next generation any longer.

Marco Rubio

Marco Rubio, a Republican, is a U.S. senator from Florida and former speaker of the Florida House of Representatives.

Federal Revenues Have More Than Tripled Since 1965

Federal Revenues Have More Than Tripled Since 1965

Overall tax revenues have risen despite a recent decline due to the recession. Congress cut income taxes and the death tax in 2001 and capital gains taxes and dividends in 2003, yet revenues continued to surge even after the tax cuts were passed.

INFLATION-ADJUSTED DOLLARS (2010)

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Federal Revenues Have More Than Tripled Since 1965

Source: White House Office of Management and Budget.

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In Depth

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  • Technical Notes

    The charts in this book are based primarily on data available as of March 2011 from the Office of Management and Budget (OMB) and the Congressional Budget Office (CBO). The charts using OMB data display the historical growth of the federal government to 2010 while the charts using CBO data display both historical and projected growth from as early as 1940 to 2084. Projections based on OMB data are taken from the White House Fiscal Year 2012 budget. The charts provide data on an annual basis except… Read More

  • Authors

    Emily GoffResearch Assistant
    Thomas A. Roe Institute for Economic Policy StudiesKathryn NixPolicy Analyst
    Center for Health Policy StudiesJohn FlemingSenior Data Graphics Edito