Category Archives: spending out of control

Open letter to President Obama (Part 380)

Milton Friedman said that getting George Bush I to be his vice president was his biggest mistake because he knew that Bush was not a true conservative and sure enough George Bush did raise taxes when he later became President. Below is a speech by George W. Bush honoring Milton Friedman:

Milton Friedman Honored for Lifetime Achievements 2002/5/9

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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.

Bipartisanship has not served us well in the past. It has resulted in going further and further in debt. We need conservatives who know what the problem is and are willing to cut spending no matter what in order to balance the budget and get our percentage of federal spending under 18% of GDP like it has been the last 50 years and not at 24.8% like it is now.

Bipartisanship versus Taxpayers

Posted by David Boaz

Last month George Will pushed back against the bipartisan Washington wish for bipartisanship:

Bipartisanship, the supposed scarcity of which so distresses the high-minded, actually is disastrously prevalent.

Since 2001, it has produced No Child Left Behind, a counterproductive federal intrusion in primary and secondary education; the McCain-Feingold speech rationing law (the Bipartisan Campaign Reform Act); an unfunded prescription drug entitlement; troublemaking by Fannie Mae and Freddie Mac; government-directed capitalism from the Export-Import Bank; crony capitalism from energy subsidies; unseemly agriculture and transportation bills; continuous bailouts of an unreformed Postal Service; housing subsidies; subsidies for state and local governments; and many other bipartisan deeds, including most appropriations bills.

And today I see this banner headline in the (actual paper edition of the) Washington Post:

In Senate, farm bill produces a rarity: cooperation
Some see signs of renewed bipartisanship

Paul Kane reports:

To the purported short­list of certainties in life — death and taxes — add large, bipartisan support in the Senate for the farm bill.

Despite the pattern in recent years of intense partisan acrimony, backroom bickering and publicly staged fights over nearly every piece of legislation, the Senate has begun to plod through a nearly $1 trillion farm bill that is likely to get a bipartisan vote for its approval by week’s end.

A trillion dollars. For a farm bill. Have we become so accustomed to throwing around the phrase “a trillion dollars” that this isn’t headline news?  Not to worry, though, Congress is thinking of the taxpayers: They say they’ve cut $23 billion out of the trillion. Sure, let’s look back in a decade and see if those cuts really happened.

Meanwhile, shoveling out money to the farmers isn’t the only time Congress can be bipartisan. There’s also shoveling out money to Boeing and a handful of other big companies with the Export-Import Bank, as the Los Angeles Times reported on May 30:

President Obama has signed into law a bill reauthorizing the Export-Import Bank, saying the rare example of bipartisan cooperation should be a model for a future legislation.

Yessiree, as George Will said, the one thing Congress can join hands and agree on is giving taxpayers’ money to interest groups — whether it’s farmers or airplane manufacturers or college students and their parents or Medicare recipients. Bipartisanship is typically a conspiracy against the taxpayers.

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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

Why does the federal government think up ways to spend money?

The Government Episode 1

Published on Jul 24, 2013

Follow the day-to-day office life of a federal agency trying desperately to spend their way to a bigger budget.

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Why does the federal government think up ways to spend money?

Energy “Race to the Top” Is a Race to the Trough

July 26, 2013 at 9:00 am

Newscom

Newscom

Advocacy groups are pushing to include the State Energy Race to the Top Initiative Act of 2013 legislation as an amendment to the Shaheen–Portman efficiency bill. But the “race to the top” idea amounts to nothing more than a subsidy-filled race to the trough for companies that are hungry to gobble up taxpayer dollars.

Proposed by President Obama in his State of the Union speech and more recently in legislation introduced by Senators Mark Warner (D–VA) and Joe Manchin (D–WV), the race to the top is a $200 million grant program to promote energy efficiency that adds even more taxpayer money to existing federal and state efficiency subsidies and mandates.

States and qualifying entities would submit proposals to the Department of Energy (DOE) for efficiency upgrades such as building retrofits for public and private commercial buildings, schools, hospitals, and residential buildings as well as industrial efficiency, demand-side management, and more. The DOE would provide a first phase of funding to no more than 25 states and a second round of much larger grants to no more than six states based on the project proposal, geography, and likelihood of success.

If spending on efficiency increases competitiveness or saves businesses and manufacturers money, they should make those investments on their own. In fact, companies invest in innovative technologies that conserve energy all the time, because such investments do save money and make their products more competitive. They do not need the federal government to prod them with taxpayer-funded subsidies.

Energy efficiency per dollar of gross domestic product has improved dramatically over the past 60 years. Some might wrongly suggest that this was the result of efficiency standards, but technological improvements and consumer preference are the cause, and energy intensity has been in decline long before a national energy efficiency policy.

The race to the top program duplicates the many existing state and federal efficiency programs that already exist. It would provide another incentive for companies to build business models around government programs to collect taxpayer cash rather than competing in the marketplace. Government mandates, rebate programs, or spending initiatives to make businesses and homeowners more energy efficient take choices away from families and businesses and skew the rules of free enterprise.

We do not need a race to the top energy initiative funded by the government. Good ideas, competitive technologies, and profitable ventures will rise to the top without the taxpayers’ help

Related posts:

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

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

We want to be protected but is the government going too far?

We want to be protected but is the government going too far? Crime Fighting or Corporate Welfare? July 18, 2013 by Dan Mitchell I want government to successfully and rationally fight crime and stop terrorism. That’s a perfectly appropriate libertarian sentiment since protecting life, liberty, and property are among the few legitimate roles for government. But […]

John Stossel notes how good intentions lead to bad results when the government is involved

John Stossel notes how good intentions lead to bad results when the government is involved. Why do we keep on giving the government more money when they waste so much? We should be putting more time in staying out of the small businessperson’s way!!!! The Reverse Midas Touch of Government January 6, 2013 by Dan Mitchell […]

Milton Friedman: “Nothing is so permanent as a temporary government program”

______________________________________ Milton Friedman On Charlie Rose (Part One) The late Milton Friedman discusses economics and otherwise with Charlie Rose. _________________________________________ Milton Friedman: Life and ideas – Part 01 Milton Friedman: Life and ideas A brief biography of Milton Friedman _____________________________________ Stossel – “Free to Choose” (Milton Friedman) 1/6 6-10-10. pt.1 of 6. Stossel discusses Milton […]

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

I wish President Obama would try to cut spending instead of increasing spending and our debt. Two Very Good GSA Waste Cartoons April 21, 2012 by Dan Mitchell One of my first blog posts back in 2009 featured a column about the Social Security Administration squandering $750,000 on a “conference” at a fancy golf resort in […]

A suggestion to cut some wasteful spending out of the government Part 8 (includes editorial cartoon)

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

A suggestion to cut some wasteful spending out of the government Part 7 (includes editorial cartoon)

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

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

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

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

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

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

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

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

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

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

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

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

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

Lots of wasteful spending by federal government

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

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

Senator Pryor pictured below:

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

Dear Senator Pryor,

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

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

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

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Funding Government by the Minute

Published on Mar 28, 2012

At the rate the federal government spends, it runs out of money on July 31. What programs should be cut to balance the budget and fund the government for the remaining five months of the year? Cutting NASA might buy two days; cutting the Navy could buy fifteen. It seems that balancing the budget may require more than just cutting government programs. What should be done?

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We got to cut wasteful spending out of the government and here is another fine suggestion from the Heritage Foundation.

Todd Thurman

March 12, 2013 at 5:40 pm

Newscom

The massive spending bill, or continuing resolution, released by the Senate this week continues spending on programs which are inappropriate or wasteful and fails to adopt good policies in many areas. Here’s a rundown of some of the worst offenders in the Senate bill:

Postal Service Saturday delivery: $2 billion. The Senate CR continues—by omission—the prior year’s ban on using the Postal Service’s small appropriation to reduce service levels, effectively mandating Saturday service. This, along with other such congressional restriction, limits the Postal Service’s ability to reduce costs and increases the risk of massive federal subsidies in the near future.

—James Gattuso, Senior Research Fellow in Regulatory Policy

NASA Manned Spacecraft: $1.2 billion. The Orion Multi-Purpose Crew Vehicle is the new manned spacecraft NASA is developing for exploration of the Moon and Mars and for other purposes. Manned space flight is vastly more expensive than robotic exploration and is largely a public relations showcase for NASA to market itself to the American people. NASA’s budget should be pared back to a tight focus on cost-effective projects to advance its core missions.

—J. D. Foster, Norman B. Ture Senior Fellow in the Economics of Fiscal Policy

Regular readers know that I get very excited when I see signs that more and more people are realizing that the real fiscal problem is big government. Even if the sound analysis comes from foreigners or international bureaucracies.

Deficits and debt are bad, to be sure, but they are best understood as symptoms of the underlying disease of excessive spending.

With that in mind, we have two cartoons that correctly identify the real threat to America’s future.

Here’s Lisa Benson showing the President enjoying a dance with his first love at the inaugural.

Big Government Dance Cartoon

And here’s a Jerry Holbert cartoon capturing the rapacious appetite of a bloated public sector and the impact on society.

Big Government Child Cartoon

As you can see here and here, it’s quite similar to the theme used with great effectiveness by Eric Allie.

Except Holbert seems to emphasize deliberate destructiveness, rather than the blundering incompetence in the Allie cartoons.

But the net effect is still the same. Big government is counter-productive government.

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

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

Sincerely,

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

Related posts:

Mark Pryor responds to me concerning Debt Ceiling email (Part 1)

The problem with the debt ceiling is very clear to me. We need to get serious about cutting federal spending. I am so upset about it that I have emailed over 100 emails to Senator Pryor concerning specific spending suggestions. I get emails from back from Senator Pryor like the one below. This means that […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 164)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 164) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 163)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 163) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 162)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 162) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Capitol Tours with Senator Mark Pryor

Three very good video tours below from Senator Mark Pryor. Published on Jun 13, 2012 by SenatorPryor Episode 1: Arkansans in the Capitol Published on Jul 9, 2012 by SenatorPryor Episode 2: The Crypt and the Old Supreme Court Published on Aug 20, 2012 by SenatorPryor Episode 3: The Senate Chamber If you want to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 161)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 161) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Mark Pryor responds to my email

Senator Mark Pryor wants our ideas on how to cut federal spending and I sent them to him but he didn’t take any of my suggestions. However, he did take time to get back to me today, but I am not too impressed with Senator Pryor’s response. I gave him hundreds of ideas about how […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 160)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 160) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 159)

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 159) Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to […]

Senator Pryor asks for Spending Cut Suggestions! Here are a few!(Part 158)

Senator Mark Pryor wants our ideas on how to cut federal spending. Take a look at this video clip below: Senator Pryor has asked us to send our ideas to him at cutspending@pryor.senate.gov and I have done so in the past and will continue to do so in the future. On May 11, 2011,  I emailed to […]

Dear Senator Pryor, why not pass the Balanced Budget Amendment? (“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 means. This Balanced Budget Amendment failed by one vote. 16 years later, Congress has the chance to get it […]

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

Sadly Senator Pryor has voted against the Balanced Budget Amendment over and over in his long time in the Senate. Senator Pryor: “There are a lot of people who think a balanced-budget amendment solves all the fiscal problems. I completely disagree.” (Peter Urban, Pryor Tilts Balanced Budget, Southwest Times Record, 11/17/11) Dear Senator Pryor, Why […]

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

Mark Levin and Senator Hatch discuss the balanced budget amendment and it’s importance. Uploaded by loveconstitution on Jan 28, 2011 Mark Levin interviews Senator Hatch 1/27/2011 about the balanced budget amendment. Mark is very excited about the balanced budget amendment being proposed by Senator Orin Hatch and John Cornyn and he discusses the amendment with […]

Will Senator Pryor be re-elected in 2014? (Part 4)(Royal Wedding Part 5)

Dr. Jay Barth with Hendrix College comments on our latest poll results on Arkansas politics (clip from Talkbusiness) Talk Business reported today in the article “Poll Shows Beebe Strength, Pryor Shaky,” the following: A new Talk Business-Hendrix College Poll shows Gov. Mike Beebe (D) maintaining his high job approval rating, while Sen. Mark Pryor (D) […]

Will Senator Pryor be re-elected in 2014? Part 3 (The Conspirator Part 16)

U.S. Sen. Mark Pryor at the 2009 Democratic Party Jefferson Jackson Dinner, Arkansas’s largest annual political event. Mark Pryor is up for re-election to the Senate in 2014. It is my opinion that the only reason he did not have an opponent in 2008 was because the Republicans in Arkansas did not want to go […]

Will Senator Pryor be re-elected or not? (Part 3)

Michael Tanner, a senior fellow at the CATO institute, explains that the rate of return on social security will be much lower for todays youth. Steve Brawner wrote in his article “Tiptoeing toward the third rail,” (Arkansas News Bureau, Jan 9,): Social Security has long been considered the “third rail” for American politicians, meaning it’s […]

Will Senator Pryor be re-elected or not? Part 2

HALT:HaltingArkansasLiberalswithTruth.com   CBS — October 19, 2010 — New York Times’ Jeff Zeleny talks to Jan Crawford about the state of Democrats in the South… Are they a dying species? In the article “Southern Democrat much closer to extinction after GOP wave,” (Washington Times, Nov 4, 2010), Ben Evans notes: After this week’s elections, the […]

Will Senator Pryor be re-elected or not? Part 1

HALT:HaltingArkansasLiberalswithTruth.com Roland Martin appears on Rick’s List with Rick Sanchez and the Best Political Team on television (Candy Crowley, John King, Jeffery Toobin, Ed Rollins, Gloria Borger and Victoria Toensing) to discuss day two of the Elena Kagan Supreme Court confirmation hearings. During the analysis, Senator Graham and Elena Kagan had an interesting exchange over […]

Are the states of Illinois and California going to join Detroit in Bankruptcy one day?

Dan Mitchell Commenting on Detroit’s Bankruptcy

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Are the states of Illinois and California going to join Detroit in Bankruptcy one day?

 

One of the funniest cartoons I have see is one below about the states of Illinois, and California joining Detroit in bankruptcy some day.

In an interview last week about Detroit’s bankruptcy, I explained that the city got in trouble because of growing dependency and an ever-rising burden of government spending.

I also warned that the federal government faces the same challenge. Washington is in trouble mostly because of poorly designed entitlement programs rather than excessive compensation for a bloated bureaucracy, but the end result is the same. Or, to be more accurate, the end result will be the same in the absence of genuine entitlement reform.

As I said in the interview, fiscal crisis was “the most predictable crisis in the world for Detroit [and] it’s the most predictable crisis for America.”

The Washington Examiner has the same assessment. Here’s how they conclude a recent editorial.

More than anywhere else in America (with the possible exception of Chicago) Detroit has been a one-party union city. Democratic politicians backed by the United Auto Workers and public employees unions have ruled virtually as they pleased. Along the way, many of the politicians ended up in jail on corruption charges and the bureaucrats made out with sweetheart deals on pensions and health benefits. Those sweetheart deals now account for most of the $20 billion in debt that put the city into bankruptcy. There are too many disturbing parallels between Detroit and America. The national debt of $17 trillion gets a lot of attention, but the reality is the government’s actual debt, counting the unfunded liabilities of Social Security, Medicare and federal employee and retiree benefits, exceeds $86 trillion, according to former congressmen Chris Cox and Bill Archer. As they say, things that can’t go on forever, won’t.

I used to warn that America was on a path to becoming Greece, but maybe now I should use Detroit as an example.

Some of America’s best political cartoonists already are using this theme.

Here’s one from Glenn McCoy. Since I’m not overly optimist about either Illinoisor California, I also think it’s just a matter of time before this happens.

Detroit Cartoon 1

Keep in mind, however, that there was plenty of wasteful spending in both Illinois and California under Republican governors, so this is a bipartisan problem.

Speaking of California, here’s a good cartoon by Lisa Benson.

Detroit Cartoon 2

Amazingly, some people think California’s no longer in trouble because a retroactive tax hike collected more tax revenue. Yeah, good luck with that.

Next we have a cartoon by Rob Rogers of the Pittsburgh Post-Gazette.

Detroit Cartoon 3

And last but not least, Eric Allie weighs in with a cartoon comparing Texas and Detroit.

Detroit Cartoon 4

On a serious note, it would be interesting to see how Detroit looks compared to cities in Texas, such as Dallas and Houston.

But let’s end with something that’s really hilarious, albeit by accident rather than on purpose.

A few people want to enable Detroit’s profligacy. Here are some excerpts from a story in The Hill about union bosses wanting a federal-state bailout of Detroit.

Union leaders are calling on Congress and President Obama to provide a federal bailout to the city of Detroit. The executive council of the AFL-CIO, the nation’s largest labor federation, called for an “immediate infusion of federal assistance for Detroit” to be matched by Michigan, which they say has not done enough to keep the city from going through bankruptcy. …“It appears that Governor [Rick] Snyder and [Emergency Financial Manager] Kevyn Orr are pushing Detroit into bankruptcy to gut the modest benefits received by Detroit’s retired public service employees,” the AFL-CIO’s statement reads.

I suppose I could make some snarky comments, but I’ll close with two vaguely sympathetic responses.

First, there’s no way a bailout of Detroit goes through the House of Representatives. Heck, I don’t even think it could make it through the Senate. So some folks on the left would be justified if they asked why the high rollers on Wall Street supposedly deserved a bailout a few years ago but they don’t get one today.

The answer, of course, is discrimination by color. But I’m not talking black vs white. The color that matters in politics is green. The financial industry dispenses huge campaign contributions to both sides of the aisle, and thebailout was their payoff. Public employee unions, by contrast, give almost every penny of their money to Democrats, so there’s no incentive for GOPers to do the wrong thing.

Second, I have no idea whether retired bureaucrats in Detroit get “modest benefits.” I’m skeptical for very obvious reasons, but the real problem is that the city screwed up by having too many people riding in the wagon without paying attention to whether there were enough people producing in the private sector to pull the wagon.

Is that the fault of the garbage men, clerks, secretaries, and other municipal employees? That’s a hard question to answer. They obviously weren’t calling the shots, but they were happy to go along for the ride.

At some point, they should have paid attention to the message in this Chuck Asay cartoon.

P.S. For readers in New Jersey (and also New York City), I’ll be speaking this Wednesday, July 31, at the Friedman Day luncheon sponsored by Americans for Prosperity.

 

 

Related posts:

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 […]

Milton Friedman and the proper functions of government

Milton Friedman – The Proper Role of Government Uploaded on Oct 8, 2010 Professor Friedman lectures on the proper role of government in a free society Here are the proper functions of government according to Milton Friedman: Friedman states that the basic essential functions of government are to: (1) to defend the nation from coercion […]

Dan Mitchell shows how ignoring the Laffer Curve is like running a stop sign!!!!

Dan Mitchell shows how ignoring the Laffer Curve is like running a stop sign!!!! Can You Spell L-A-F-F-E-R C-U-R-V-E? July 12, 2013 by Dan Mitchell I’m thinking of inventing a game, sort of a fiscal version of Pin the Tail on the Donkey. Only the way it will work is that there will be a map of […]

Funny new video about Reckless Government Spending!!!!

Reckless Government Spending Isn’t Funny, But This New Sitcom Is

July 25, 2013

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Media Contact: Public Notice Press Office | 571.970.6490 | Press@ThePublicNotice.org

Bankrupting America Launches New Web Series “The Government”

Arlington, Va.– Bankrupting America, a project of Public Notice, today launched the pilot episode of a multi-part web series titled, “The Government,” which follows the day-to-day office life of a federal agency trying desperately to spend their way to a bigger budget.

It’s the fourth quarter at the Department of Every Bureaucratic Transaction (DEBT) and the race is on to use every last dime of taxpayer money. If they don’t spend it, they lose it. And with just a few weeks before the fiscal year ends, DEBT is under-budget and time is running out.

The Government Episode 1

Published on Jul 24, 2013

Follow the day-to-day office life of a federal agency trying desperately to spend their way to a bigger budget.

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Reports show that government agencies have wasted millions of dollars on happiness experts, romance novels, portrait artists, lavish conferences and other frivolous perks. In addition, an agency inside the Department of Defense recently issued a memo underscoring the importance of meeting their spending targets and exhausting 100 percent of their resources at a time when hundreds of thousands of employees are facing furloughs.

Gretchen Hamel, executive director of Public Notice, issued the following statement on “The Government”:

“The broken budgeting system in Washington rewards waste and abuse with more tax dollars and creates a spend-it-or-lose-it culture that has spread throughout every agency. This web series highlights the serious problem of spend-it-or-lose-it by exposing the absurdity of how the federal government is operating and urging lawmakers to push for reform.  The president speaks frequently about being responsible stewards of the taxpayer dollar.  That won’t happen until we end spend-it-or-lose-it.”

“The Government” is part of Bankrupting America’s Spend It Or Lose It campaign, which includes an online petition calling on Washington to revamp the budgeting process and stop wasting tax dollars by rewarding fiscally irresponsible behavior.  The campaign was launched last week to coincide with the explosion of government spending that occurs each fiscal year in the fourth quarter.

Click here to sign the Spend It Or Lose It Petition and take a stand against Washington’s broken budgeting process.

Check out the conversation on Twitter using the hashtag #CutItOut.

Click here to learn more about the history of “spend it or lose it” budgeting and here for a full weekly breakdown of government spending from 2010-2012.

Background:

IRS Division Managers Defend Spending Because Unused Funds Would Have Lapsed: “The [IG] report found IRS officials paid thousands of dollars to pay motivational speakers, who were flown to the conference on the taxpayer dime, sometimes in first class. … The funds came from a $132.7 million pool that division received to hire about 1,300 employees. Division managers told TIGTA that they actually made over 1,500 hires during that fiscal year, the majority of which were front-line employee.  But since the hires had not been on board for the full year, the division had unused funds that would have lapsed at the close of fiscal 2010.”(Peter Schroeder And Bernie Becker, “IG Report Finds Broad, Wasteful Spending On IRS Conferences,” The Hill, 6/5/13)

IRS Video Production Unit Costs Taxpayers $4 Million A Year: “The Senate’s top tax-writer wants answers from the IRS about a‘Star

Trek’ spoof that the tax-collecting agency has now apologized for making. … Baucus also questioned why the IRS had a video production unit at all — especially at its reported $4 million a year price tag. The ‘Star Trek” parody and a separate takeoff on “Gilligan’s Island” cost around $60,000 in tandem, the IRS has said.” (Bernie Becker, “Baucus to IRS: How did the ‘Star Trek’ video happen? Who’s responsible?,” The Hill, 3/27/13)

IRS Spent $11K On A “Happiness Expert” To Lead A 90 Minute Workshop: “The IRS hired 15 speakers to present at the conference in Anaheim, Calif., including $11,430 for positive psychology guru Shawn Achor — referred to as a ‘happiness expert’ by the sources — to lead a 90-minute workshop” (Kelly O’Donnell and Andrew Rafferty, “2010 IRS Conference Featured ‘Happiness Expert,’ $17K Art Session,” CNBC, 6/4/13)

IRS Credit Cards Used For Wine, Romance Novels, Diet Pills And Pornography. (Stephen Ohlemacher,”IRS Credit Cards Used For Wine, Pornography,” The Associated Press, 6/25/13)

Lavish Spending At GSA Commissioners Reception:  “Tangherlini, who is conducting an extensive review of GSA’s day-to-day operations, became alarmed by the cost of the Nov. 17, 2010, event and referred it to Miller for review. The Arlington celebration pulled out all the stops: a $7,697.22 ‘commissioners reception’ for high-ranking officials; 4,000 picture frames showing time and temperature at a cost of $28,364,45 to taxpayers; five passenger buses, two minibuses and a van for $5,390. And a whopping $20,578. 24 paid for 4,000 drumsticks for a team-building exercise.” (Lisa Rein, “GSA spent more than $270,000 to entertain employees who got performance awards,” The Washington Post, 7/19/12)

DOD Agency Races To Achieve Its Goal Of Spending 100% Of Available Resources This Fiscal Year. “‘Our available funding balances remain large in all appropriations — too large to spend’ just on small supplemental funds often required by existing contracts, the June 27 e-mail said. DISA’s budget is $2 billion. ‘It is critical in our efforts to [spend] 100% of our available resources this fiscal year,’ said the e-mail from budget officer Sannadean Sims and procurement officer Kathleen Miller. ‘It is also imperative that your organization meets its projected spending goal for June. . .’” (Al Kamen, “Defense Agency Looking For Ways To Spend,” The Washington Post’s In The Loop Blog, 7/10/13)

Emails Encouraging Spending Are “Common Practice Among Government Agencies.” “A DISA spokesperson e-mailed to say that these e-mails are ‘common practice among government agencies’ and that many congressional “financial and procurement timelines . . .are designed to ensure that agencies” spend 80 percent of their funds before the last two months of the fiscal year, or by August 1.” (Al Kamen, “Defense Agency Looking For Ways To Spend,”The Washington Post’s In The Loop Blog, 7/10/13)

To schedule an interview, please contact Public Notice Press Office at (571) 970-6490 or e-mail Press@ThePublicNotice.org.

###

BankruptingAmerica.org is an educational project of Public Notice, an independent, nonpartisan, non-profit, 501(c)(4) organization dedicated to providing facts and insight on the effects public policy has on Americans’ financial well-being.

– See more at: http://www.bankruptingamerica.org/release/bankrupting-america-launches-new-web-series-the-government/#.UfJkXo3rzkm

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We need deeper cuts than the Sequester!!! (Cartoons included)

What Can Washington Politicians Learn From America’s Moms?

Published on Apr 2, 2013

We asked folks what Washington politicians can learn from America’s moms

___________________
We need deeper cuts than the Sequester!!! Below are some very funny cartoons from Dan Mitchell’s blog on the Sequester.

Tetra Images Tetra Images/Newscom

Tetra Images Tetra Images/Newscom

In his speech yesterday, President Barack Obama referred to sequestration as a “meat cleaver” again, when news reports in fact show that the cuts have been much more targeted and much less devastating than he claims.

“Then, rather than reduce our deficits with a scalpel, by cutting out programs we don’t need, fixing ones that we do need that maybe are in need of a reform—making government more efficient—instead of doing that, we’ve got folks who have insisted on leaving in place a meat cleaver called the sequester that’s cost jobs,” President Obama said.

Before sequestration hit, the White House sounded multiple alarms, predicting widespread calamity and extreme consequences if it was allowed to take effect. However, only about one-fifth of those predictions have remotely come to pass, as reported by The Washington Post.

So what happened instead? Many agencies suddenly found millions of dollars to cut from less-critical programs. Congress helped, too, taking a hard look at unnecessary programs and helping agencies reduce expenses. Sequestration turned out to be not as scary, allowing flexibility between agencies to reach the desired amount of cuts.

“In the process, the ‘meat cleaver’ of sequestration often became a scalpel. It spared crucial programs but cut second-tier priorities such as maintenance, information technology, employee travel and scientific conferences,” says the Post.

That’s not to say there haven’t been some adverse effects. Sequestration disproportionally affects national defense, and military readiness has been hurt by decreases in training. But especially on the domestic side, the President’s warnings rang hollow.

Obama also claimed, “Almost every credible economist will tell you it’s been a huge drag on this recovery.” In fact, the economy has absorbed the cuts quite well. Moody’s says the U.S. economy “has demonstrated a degree of resilience to major reductions in the growth of government spending.”

Additionally, at about 2.5 percent of projected spending over the next decade, the cuts barely even make a dent in overall spending.

“Sequestration barely even slows the growth in spending, let alone cuts any spending out of the overall budget. Neither does sequestration rein in chronic deficits. Sequestration trims only 12 percent off cumulative deficits over the decade, while U.S. debt held by the public continues growing to economically damaging levels,” explains Heritage’s Romina Boccia.

President Obama’s 2013 tax hikes are nearly double the size of sequestration. The Federal Reserve Bank of San Francisco concludes that uncertainty over these tax hikes is among the largest factors in depressing job growth. Uncertainty over Obamacare and the Dodd–Frank financial regulation is also hampering growth. If the President wants to help the economy, he should start by taking a “meat cleaver” to his tax increases and regulations instead and work with Congress to resolve the looming spending and debt crisis.

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

Here are some fine cartoons I got from Dan Mitchell’s blog:

et’s start with Michael Ramirez. You can see why he’s currently leading in the best-cartoonist poll.

Sequester Cartoon Ramirez 4

Nate Beeler also has a good contribution to the debate. The President is acting like the world is going to end because spending is going to be “slashed” by 1.2 percent, which means – gasp! – that spending will “only” grow by $2.4 trillion over the next 10 years.

Yet somehow Armageddon has not occurred.

Sequester Cartoon Beeler 4

Indeed, the worst possible outcome for Obama and the other statists is that people notice zero negative impact when spending is restrained.

This Steve Kelley cartoon is very appealing to me because it shows the President going after the sequester when the real problem is an excessive burden of government spending.

Sequester Cartoon Kelley 4

Last but not least, we have a very good Scott Stantis cartoon.

Sequester Cartoon Stantis 4

The Stantis cartoon is particularly insightful because the GOP has won the battle, but the war is not over.

This first cartoon, from Chip Bok, captures his sullen mood.

Cartoon Sequester 1

The second cartoon, by Jerry Holbert, has the same these, showing that the American people have learned to ignore Obama’s demagoguery.

Cartoon Sequester 2

 

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Obama wants to expand government’s powers when the government is the cause of lots of our problems!!!

Obama wants to expand government’s powers when the government is the cause of lots of our problems!!!

I suggested last year that President Obama adopt “my work here is done” as a campaign slogan.

Admittedly, that was merely an excuse to share this rather amusing poster (and you can see the same hands-on-hips pose, by the way, in this clever Michael Ramirez cartoon).

But I want to make a serious point.

For those of us who want the prosperity and liberty made possible by smaller government and free markets, it would be ideal if the President actually did think his work was done. If that was the case, presumably he wouldn’t propose new schemes to expand the size and scope of the public sector.

Unfortunately, that’s not the case. Indeed, he bragged about providing handouts, subsidies, and bailouts for housing in his recent pivot-to-the-economy speech and he specifically stated “We’re not done yet.”

As I said in this interview on FBN, that phrase could replace “I’m from Washington and I’m here to help you” as the most frightening sentence in the English language.

_______

Obama’s phrase is particularly distressing since he wants more intervention in housing markets – yet it was misguided government intervention that caused the housing bubble and financial crisis in the first place!

Simply stated, you don’t solve the problems caused by the Fed’s easy-money policy with more government. And you don’t solve the problems caused by corrupt Fannie Mae-Freddie Mac subsidies with more government.

The right approach is to get government out of housing altogether. That means getting rid of the Department of Housing and Urban Development. It means privatizing Fannie Mae and Freddie Mac. It even means eliminating preferences for housing in the tax code as part of a shift to a simple and fair system like the flat tax.

Once we achieve all these goals, then we can say “we’re done”…and move on to our other objectives, like dealing with the damage caused by government in the health sector, the education sector, the financial markets sector, etc, etc…

P.S. Some people doubtlessly will complain that bad things will happen if the government no longer is involved in housing, but I think we’ll survive just fine without bureaucrats screwing over poor people and mandating “emotional support” animals in college dorms.

_______________

Last year, I shared a potential slogan for Obama’s re-election campaign (followed by a warning about the big challenge he would face if victorious).

Now we have a new Michael Ramirez cartoon that has a similar theme.

Super-Obama Cartoon

___________

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We got to stop wasting money on stupid federal government programs!!

We got to stop wasting money on stupid federal government programs!!

Animated Squirrels, Prunes, and Doggie Hair Gel: Your Tax Dollars at Work

Ingram Publishing/Newscom

Ingram Publishing/Newscom

The federal government has spent more than $3 billion over the past 35 years to help multinational agriculture businesses with their overseas marketing. Taxpayers pay about $200 million per year to fund these business activities, which companies could do on their own.

Apparently, at least to most House Members, the proper role of federal government is to help fund reality shows and dinner parties featuring California prunes.

A few weeks ago, the House had an opportunity to repeal the Market Access Program, one of the most egregious corporate welfare programs, when it voted on a key amendment during its original farm bill debate. But by an astonishing 322–98 vote, the House rejected this amendment.

Here are just some things that taxpayer dollars have helped pay for through the Market Access Program:

  • International wine tastings in places such as London and Denmark. To be fair, at least one of the wine tastings was “educational,” according to the Department of Agriculture.
  • Whiskey tasting in Hong Kong.
  • Japanese “Tweet While You Eat” campaign to promote U.S. beef.
  • Dinner party for food critics in New Delhi to discuss prunes.
  • Animated series to promote California walnuts in Spain. The series features a squirrel named Super Twiggy who throws walnuts at his enemy, the Colesterator. The animated series may not increase walnut consumption, but in the event anyone watches, it has a chance of increasing the number of Spanish children who throw walnuts at each other.
  • Let’s Design, a reality series in India where fashion designers use cotton for their outfits. According to the Cotton Council International, which received the money, the program was designed to promote cotton in general, not U.S. cotton—so American taxpayers get to promote commodities for other countries too.
  • Organic hair products for cats and dogs.

The Market Access Program is the epitome of corporate welfare and fiscal irresponsibility. Even Super Twiggy and the Colesterator would likely agree that the Market Access Program needs to be repealed.

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A suggestion to cut some wasteful spending out of the government Part 7 (includes editorial cartoon)

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

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

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

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

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

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

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

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

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

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

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

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

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

Lots of wasteful spending by federal government

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

Obama cartoons on spending too much!!!

Why do we have to spend so much?

Let me start this post by stating that George W. Bush was a bigger spender than Barack Obama (though the numbers are somewhat distorted by TARP, which caused a big increase in the burden of spending during Bush’s last fiscal year and artificially dampened outlays in Obama’s first fiscal year since repayments from the banks counted as negative spending).

So I’m not trying to make a partisan point by sharing these cartoons. I don’t like it when Democrats increase the burden of government spending and I’m equally dismayed when Republicans engage in same type of profligacy.

That being said, I was a big dumbfounded when President Obama recently claimed that there’s not a spending problem in Washington.

We know that the United States has a huge long-run problem with deficits and debt according to both the Bank for International Settlements and the Organization for Economic Cooperation and Development.

We also know that tax revenues, measured as a share of GDP, will soon be above their post-World War II average and that the tax burden is expected to increase in coming decades.

So a person would have to be in serious denial to claim that spending isn’t a problem.

Which is the point Eric Allie makes in this cartoon.

Spending Problem Cartoon 1

And the point Robet Ariail makes in this cartoon.

Spending Problem Cartoon 2

Ditto for Bob Gorrell.

Spending Problem Cartoon 3

And Gary Varvel.

Spending Problem Cartoon 4

Last but not least, the great Michael Ramirez.

Spending Problem Cartoon 5.jpg

Gee, it’s almost like we’re seeing a pattern.

And if you like this spendaholic-in-denial theme, you can click here and here for further amusement.

P.S. Oh, by the way, if anybody’s actually interested in how to solve the spending problem (you know, the one that doesn’t exist), we do know the answer.

P.P.S. Remember when Obama claimed the private sector was doing fine? Well, here’s how cartoonists mocked him for that absurd comment.

_________

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.”

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!!!

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 of excessive government. Just as statism explains the problems of Greece. And the problems of California. And the problems of Cyprus. And the problems of Illinois. …Simply stated, as the size and scope of the public sector increased, that created very destructive economic and political dynamics. More and more people got lured into the wagon of government dependency, which puts an ever-increasing burden on a shrinking pool of producers. Meanwhile, organized interest groups such as government bureaucrats used their political muscle to extract absurdly excessive compensation packages, putting an even larger burden of the dwindling supply of taxpayers.

And in this Fox News interview, I elaborate on these arguments and warned that federal government profligacy – if unchecked – will lead to similarly dismal results for the entire United States.

Dan Mitchell Commenting on Detroit’s Bankruptcy

I want to augment on a couple of my points.

First, I explained that Detroit’s bankruptcy won’t have any major and long-lasting ripple effects – assuming politicians on the state or national level don’t encourage more bad policy with bailouts. If you’re a creditor, it’s not good news that the city owes you money, and it’s also not a cheerful time if you’re a retired bureaucrat hoping for years and years of pension payments and healthcare subsidies, but there’s no reason to expect that Detroit’s problems will impose significant damage on Michigan – particularly compared to the harm that would be caused if Detroit was allowed to continue with business as usual.

Similarly, the United States wouldn’t suffer major consequences if (probably when) California no longer can pay its bills. On the other hand, the European Union and the euro currency are being weakened by the mess in Greece, though that’s because they’ve been subsidizing bad fiscal policy with bailouts.

Second, I made the argument for entitlement reform, specifically the “pre-funding” version of Social Security reform that’s been adopted in nations as diverse as Australia and Chile.

Incidentally, this approach is even bolder than the Medicaid and Medicare reforms in the GOP budgets.

Third, I expressed some optimism that the United States has a chance to implement these much-needed reforms, in part because countries such as France and Japan will blow up before America.

And each time another nation, state, or city gets into trouble, it will strengthen our arguments to put the federal government on a long-overdue diet.

Big problems for America if politicians leave government on auto-pilot

Having a strong argument, though, is not the same as having an argument that will prevail. So even though America still has some breathing room, and even though the economic and moral case for spending restraint is very powerful, we’re in the unfortunate situation of having to rely on politicians in Washington.

So keep places such as Australia in mind just in case you need to escape when America’s fiscal chickens come home to roost.

In conclusion, I can’t resist drawing your attention to something I wrote back in 2011, when I showed the eerie similarity of Detroit’s collapse with the “blighted areas” in Ayn Rand’s classic novel, Atlas Shrugged.

 

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