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The Onion’s American Voices: Should sugar be regulated?

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“A woman in Illinois is auctioning off a 2005 Chrysler that once belonged to President Obama. You could tell it was Obama’s car because it gets off to a fast start and then stalls for the next three years.” –Jimmy Fallon

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“It’s being reported that California needs to raise $3 billion by March. This according to California State Treasurer Nicolas Cage.” –Conan O’Brien

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Cartoon: State of the Deficit

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“A new report found that Facebook has created more than 450,000 jobs. Unfortunately, photos posted on Facebook have ended 550,000 jobs.” –Jimmy Fallon

Today, the Bureau of Labor Statistics reported 243,000 jobs have been added to the economy in the month of January, dropping the current unemployment rate to 8.3% from 8.5%. This marks the fifth straight month of job growth. The release detailed accelerated job growth across widespread industries and salary ranges, showing a marked improvement from past months.

Though the unemployment drop is a sign of improvement, the economy still has a lot of work to do. Numbers prior to the beginning of the recession in 2007, show a deficit of 5.6 million fewer jobs today. With so much more to go, we can wonder why our leaders are only focusing on the .2% decrease in jobs over one month. The Associated Press reports that at this moment 12.8 million Americans are out of work, with another 11 million either working part time and would like to work full time, or have given up looking for work all together. When you take into account these numbers we reach a real unemployment rate of around 15%.

While our elected leaders focus on a small decrease in the reportable unemployment rate, Americans are feeling the effects of a $15 trillion national debt and a slowly rebounding jobs market. With economists expecting a slower rate of growth this year, we can only hope that our representatives take action soon.

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Here’s a roundup of this morning’s must-read budget and economic stories:

The Bureau of Labor Statistics reported this morning that the unemployment rate dropped to 8.3% in last month. This marks the fifth straight month the nation’s jobless rate has declined.

ABC News reports on Republican lawmakers’ plans to avoid the automatic defense spending cuts mandated by the Budget Control Act. The Hill says Republican senators have a plan to cut the federal workforce instead of defense spending.

Bloomberg, The Wall Street Journal and The Washington Post provide overviews of Federal Reserve Chairman Ben Bernanke’s Capitol Hill testimony yesterday on the budget deficit and overall economy.

Politico updates readers on negotiations to extend the 2011 payroll tax cut for one more year.

The New York Times examines the President’s plan to help the manufacturing industry.

Politico looks at the prospects for passing infrastructure reauthorization and spending bills this legislative session.

Today is Groundhog Day. This morning, Punxsutawney Phil emerged from his hole and saw his shadow – indicating we’re in for another six weeks of winter.

But in Washington, it seems like everyday is Groundhog Day. It seems like everyday we hear about plans to cut spending and restore fiscal responsibility. But every time we end up disappointed. This week, the Congressional Budget Office released its Budget and Economic Outlook that projected the deficit for fiscal 2012 would exceed $1 trillion for the fourth year in a row.

In the latest manifestation of lawmakers’ unwillingness to make the difficult decisions, a group of Senators is exploring ways to put off the automatic cuts triggered by the supercommittee’s failure. This morning, Senators Jon Kyl (AZ), John McCain (AZ), Lindsey Graham (SC), John Cornyn (TX) and Kelly Ayotte (NH) introduced a plan to “delay for a year more than $1 trillion in mandatory cuts – half of which would come from the Pentagon — by trimming the federal workforce and extending a pay freeze for federal employees imposed by the Obama administration.”

The automatic cuts that are currently scheduled to go into effect in January 2013 have raised concerns among some that it would hollow out the Pentagon’s budget and put our national security at risk. While we agree cuts to defense spending must be done carefully, there are few that will argue there is no room for cutbacks in the DoD’s budget.

Furthermore, it’s important to remember why the automatic cuts were put into place – to provide some incentive for the bipartisan supercommittee to produce a credible deficit reduction plan. And the automatic cuts can still be reversed if lawmakers are able to put together a proposal to reduce the deficit by $1.2 trillion over the next 10 years. Consider that our deficit for the next year alone is projected to reach $1.08 trillion and that requirement doesn’t seem quite so insurmountable.

It’s time for Washington to get serious about fixing our economy. Congress must stop playing politics with the nation’s bottom line and start proposing real solutions that will lead to real growth.

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Here’s a roundup of this morning’s must-read budget and economic stories:

Roll Call reports Senate Republicans will offer a plan today that replaces upcoming automatic defense spending cuts with cuts to other programs.

On Wednesday the U.S. voted to freeze pay for federal workers. The Hill, National Journal, Politico have the details.

Also on Wednesday, President Obama offered a plan to help homeowners refinance their mortgages. CNN, The Hill, The New York Times, Reuters, USA Today, The Wall Street Journal and The Washington Times have the details of that plan.

Politico says forces are already lining up against a massive transportation spending reauthorization bill that could come up this year.

The Hill reports eight House members returned about $1.4 million to the U.S. Treasury from their office budget.

The Associated Press previews Federal Reserve Chairman Ben Bernanke’s testimony today on the economy and the budget deficit. Fox News reviews the Congressional Budget Office Director’s dim view of the same issues.

The Associated Press has the details of a House Republican plan to offer tax cuts to small businesses.

American Outrage – Watch the video!

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Over the past year or so, there has been a lot of talk about earmarks. The House passed a moratorium on earmarks, but legislation to permanently ban them hasn’t been yet garnered the necessary widespread support.

Opponents slam earmarks as a way to push through pet projects, wasting already scarce taxpayer money. Supporters contend they only represent less than 1% of federal spending and say earmarks are an important way secure funding for essential projects all across the country.

Most recently, Senators Claire McCaskill (D-MO) and Pat Toomey (R-PA) introduced a permanent earmark ban as an amendment to an insider-trading bill. The bipartisan amendment quickly received a bipartisan lukewarm reception. Sen. John Cornyn (R-TX) non-committedly remarked, “I am not sure we need it, but I am open to it.” Senate Minority Leader Harry Reid contended, “I’ve done earmarks all my career, and I’m happy I’ve done earmarks all my career. They’ve helped my state, and they’ve helped different projects around the country.”

Explaining the reasoning behind a permanent ban, Sen. Toomey said, “There is an opportunity for corruption. A process like that is badly flawed and should be remedied.”

The amendment could be voted on this week.

Do you think earmarks should be permanently banned in an effort to reduce wasteful spending? Or should they be maintained as a way to fund necessary projects across the country? Let us know in the comments!

As we noted yesterday, the Congressional Budget Office (CBO) released its Budget and Economic Outlook for fiscal years 2012 to 2022. Be sure to check out yesterday’s post for a more nuanced background of the report. Today, we’re giving you some of what we think are the most important take-aways from the report. Check out the highlights – or lowlights – below.

Federal spending increased by four percent in 2011, to $3.6 trillion. Spending is projected to increase by $3 billion in 2012.

Federal revenues increased by $140 billion, or six percent in 2011.

The cost of the stimulus has grown. CBO originally projected it would cost $787 billion. It is now projected to cost $831 billion.

Interest spending is expected to rise significantly – from $224 billion projected in 2012 to $624 billion projected in 2022.

The number of people age 65 or older will increase by about one-third between 2012 and 2022 (from 14 to 17 percent of the population). This will greatly impact Social Security and health care spending.

“Because of the aging of the population and rising costs for health care, the set of budget policies that were in effect in the past cannot be maintained in the future.”

Over the next ten years, spending is expected to rise “because of increasing expenses generated by the aging of the population and rising costs for health care.”

“A significant worsening of the banking and fiscal problems in Europe could lead to further turmoil in international financial markets that could spill over to those in the United States and greatly weaken the economy here.”

Here’s a roundup of this morning’s must-read budget and economic stories:

The Congressional Budget Office said Tuesday it expects the deficit for fiscal year 2012 to be above $1 trillion. The Associated Press, Bloomberg, The Wall Street Journal and The Washington Post report. The Washington Post’s Ezra Klein attempts to decipher who is responsible for the high deficits and increasing national debt.

The New York Post reports that if current tax laws are allowed to expire, Americans’ tax bills will go up about 30 percent in the next few years.

The Hill says the U.S. House is trying to prevent welfare payments from going to strip clubs.

Roll Call reports the U.S. Senate is again exploring a permanent ban on earmarks. According to Politico, Senate Majority Leader Harry Reid defended the earmarking process.

BusinessWeek reports that small business’ share of the economy has declined over the past few years. Bloomberg reports a recent downturn in consumer confidence could indicate the overall economy is slowing.

A group of Occupy Wall Street protesters disrupted a Right to Life rally and threw condoms on Catholic school girls inside the Rhode Island state capitol building.

GET TODD’S NEW BOOK ON THE CULTURE WAR – “DISPATCHES FROM BITTER AMERICA”

Barth Bracy, executive director of Rhode Island Right to Life, said their rally had to be cut short after the Occupiers began screaming and refused to allow a Catholic priest to deliver a prayer.

“This is their idea of civil speech but we believe it’s an outrage,” Bracy told Fox News & Commentary “They started heckling, chanting and blowing whistles. They shouted down a priest.”

Last week’s rally was held inside the rotunda of the state capitol in Providence. Bracy said the Occupiers, along with some pro-choice demonstrators, infiltrated the crowd of some 150 pro-lifers. He said the pro-life crowd was made up of senior citizens, mothers with young children, Cub Scouts, and school kids.

Bracy said one of the most egregious incidents occurred when an Occupier climbed to the third floor balcony and dumped a box of condoms on girls from a Catholic school.

“What kind of individual throw condoms at Catholic school girls,” Bracy asked.

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Bracy said capitol police were outnumbered and overwhelmed by the protesters. At one point they even attacked State. Rep. Doreen Costa.

“This was one of the most disturbing sights I’ve ever seen,” Costa told Fox News & Commentary. “It was horrendous. “

Costa said a female Occupier hit her on the head with a sign and shoved her “moppy” hair in the lawmaker’s face.

“I told her that she really stunk bad and needed to take a bath,” Costa said.

Costa said she was “speechless” when they showered the young girls with condoms. So was Father Bernard Healey, the executive director of the Rhode Island Catholic Conference.

“It’s disgraceful behavior,” Healey said. “The week before, the pro-abortion people had their rally and no one bothered them. Apparently freedom of speech only applies to those who agree with you.”

Healey called the protesters “mean-spirited” and “ugly.”

He was trying to deliver a blessing to the crowd when the demonstrators shouted him down.

“I led the crowd in singing ‘God Bless America’ to try and down out their awful chants,” he said.

Joseph Little, the chief of the capitol police, told Fox News & Commentary that he did not receive any reports of condoms being dropped on children. He also said to his knowledge, nothing happened to that rose to the level of needing to call in additional support.

Little said no one was arrested.

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Is the key to balancing Washington’s politics found on the playground? This morning, our executive director, Gretchen Hamel joined the Opinionated MAMA’s, Michelle Tingler and Debbie Divine, for her first of three appearances on Lifetime Television’s The Balancing Act. Gretchen explained a little about Public Notice and went on the describe what we strive to do everyday here at Bankrupting America: lay out what the country’s top economic issues mean for you.

Check it out below!

Be sure to check back to see Gretchen’s other appearances on The Balancing Act.

Careful what you tweet.

Two 20-somethings arriving from the U.K. learned a harsh lesson about the American government’s sense of humor on Monday, Jan. 23, when they were detained and then forced to return home due to comments they made on Twitter.

According to the Daily Mail, Leigh Van Bryan, 26, and Emily Bunting, 24, were going through Customs when they were detained.

The two spend the next 12 hours locked up in a cell and being grilled by Homeland Security officials. Bryan was charged with intending to come to the U.S. to commit crimes, while Bunting was charged for traveling with him.

Paperwork for the incident indicates that Bryan’s name was on a “One Day Lookout” list maintained by Homeland Security.

According to the New York Post and World News Daily, this refers to an auto-generated temporary list of inbound travelers that are already in the official terror watch list database.

The paperwork also referred to Bryan’s tweets, incorrectly stating they came from his account on “Tweeter.”

From the official paperwork:

During secondary examination, Mr. Bryan was placed under oath and his sworn statement was taken by CBP Officer Wahmann, Mr. Bryan confirmed that he had posted on his Tweeter [sic] website account that he was coming to the United States to dig up the grave of Marilyn Monroe. Also the tweeter account of Mr. Bryan posted that he was coming to destroy America.

The tweets had been sent a week before their trip, indicating the U.S. government had flagged the pair well before their arrival.

Both claimed the messages were lost in translation.

“They asked why we wanted to destroy America and we tried to explain ['destroy'] meant to get trashed and party,” Bunting told the Daily Mail.

Bryan also said he was asked about a tweet that he says is a quote from the television show ‘Family Guy’ that read, “3 weeks today, we’re totally in LA p***** people off on Hollywood Blvd and diggin’ Marilyn Monroe up!”

“I almost burst out laughing when they asked me if I was going to be Leigh’s lookout while he dug up Marilyn Monroe,” Bunting told the Daily Mail. “It got even more ridiculous because the officials searched our suitcases and said they were looking for spades and shovels.”

But things quickly became less humorous to Bryan and Bunting.

Speaking with the Daily Mail, Bryan said officials told him, “You really f***** up with that tweet, boy,” before handcuffing and putting him in what Bryan described as a “cage” inside of a van. He said he was then transported to a prison with other border offenders.

“It’s just so ridiculous it’s almost funny but at the time it was really scary. The Homeland Security agents were treating me like some kind of terrorist,” Bryan told the Mail.

“We just wanted to have a good time on holiday. That was all Leigh meant in his tweets,” Bunting told The Sun.

This isn’t the first time a tweet has gotten someone in trouble with the U.S. government.

And other social media outlets, such as Facebook, have also been used by police to prevent potential crimes. Just last week, an Arizona policeman drew a Secret Service probe for posting a photo of a man holding a T-shirt with the image of President Obama riddled with bullet holes.

This news comes at a time when Internet privacy and censorship are hot issues. Just last week, controversy erupted when Twitter revealed it would comply with censorship laws in countries like China and Thailand where much of the content on the internet is restricted.

Take a look at the tweets that got the couple in hot water (below):

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Today, the Congressional Budget Office (CBO) released their forecast for projections in federal spending, tax revenues, and deficits. The CBO is required to produce a forecast of the U.S.’ finances based upon current law.  However, it is important to keep a few things in mind when examining these numbers. The problem with releasing these projections under current law is that many “temporary” provisions passed by Congress aren’t really temporary – they are regularly extended by Congress on a “temporary” basis.

Because of this, the CBO creates an alternative baseline, which assumes many temporary provisions are permanent.  This year’s alternative baseline assumes, among other things, that “temporary” provisions such as the 2001 tax cut are extended, the automatic spending cuts in the Budget Control Act never take effect, and payments to doctors under Medicare remain constant.  In general, the numbers of the alternative baseline are much more important than the actual baseline because the alternative baseline is more likely to reflect policies that Congress actually passes into law.

But regardless of how you look at the numbers – the baseline or the alternative baseline – they aren’t good.  Under the CBO baseline, the deficit grows by $3.1 trillion over the next ten years.  Under the alternative baseline, the deficit grows by a staggering $10.98 trillion.  Considering the current national debt is over $15 trillion, both baselines represent a dangerous growth in the national debt – with the country running unsustainable deficits for the foreseeable future.

On a positive note, it’s reassuring to see the CBO warn Congress about the effects of digging deeper into an economic hole, something we’ve been doing for years at Bankrupting America.  In the report, the CBO says:  ”A rising amount of federal debt would increasingly restrict policymakers’ ability to use tax and spending policies to respond to unexpected challenges, such as economic downturns or financial crises. Burgeoning debt also would boost the likelihood of a sudden fiscal crisis, during which investors would lose confidence in the government’s ability to manage its budget and the government would lose its ability to borrow at affordable rates.”

Washington must take note.  While the numbers may be hard to put into perspective, the consequences are all too real. We only have to look to Greece to see what happens when investors lose confidence in a government’s ability to manage its budget – and subsequently lose its ability to borrow at affordable rates.

The time to act is now. Americans need real solutions that lead to real economic growth.

According to Pew, 69% of adults would make reducing the budget deficit a top priority.

According to NBC, 37% of adults think the economy will be better one year from now. 17% think it will be worse and 44% think it will be the same. In five years, 53% of adults think the things in the U.S. will be better; 19% say they will be worse; and 20% say they will be the same.

According to CBS, 40% of adults believe they pay more than their fair share in federal income taxes. 2% believe they pay less than their fair share and 52% believe they pay about the right amount.

According to Gallup, 69% of Americans are dissatisfied with the size of the federal government.

CBO: BUDGET DEFICIT TO RISE MORE THAN ONE TRILLION FY12 & INCREASE TRILLIONS MORE IN YEARS TO COME

More Liabilities, Higher Unemployment Projection Demands Immediate Action

Arlington, VA – This morning, the Congressional Budget Office [CBO] released its annual report, which unfortunately, yet predictably, states that the budget deficit will increase to $1.08 trillion in 2012, and the jobless rate will increase to 8.9 percent by the end of 2012 and 9.2 percent in 2013.  The report also shows that the deficit will grow by trillions more in the years to come and the rising amount of debt will constrain the ability of elected officials to respond to national challenges and crises as they arise.

Gretchen Hamel, Executive Director of Public Notice, said the following:

“Today’s report makes clear what the American people have been telling Washington for years: the current rate of spending is irresponsible and unsustainable.  We cannot continue to add trillions to the federal deficit and expect to grow jobs and have enough money left over to meet the needs of the country.

“The fact that the report shows we will be less able to protect our nation or respond to a national crises in the future due to the reckless and careless actions of politicians today should be deeply disturbing to everyone.  The lunacy must stop now.  Real reforms are required if there is any hope we can move toward a path of fiscal sanity and sustainability.”

To interview Gretchen Hamel, Executive Director of Public Notice,
please contact Kate Pomeroy or Victoria Coley 571.970.6490 press@thepublicnotice.org

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Public Notice is an independent, nonpartisan, non-profit, 501(c)(4) organization dedicated to providing the facts and insights on the affects public policy has on American’s financial well being.

Here’s a roundup of this morning’s must-read budget and economic stories:

The Congressional Budget Office projected this morning the budget deficit will hit $1.08 trillion in fiscal 2012.

The Washington Post reports European leaders have adopted a debt reduction treaty.

Politico reveals some senators have returned funding earmarked for their offices to the U.S. Treasury.

The Hill reports federal workers get better benefits than their private sector counterparts.

The Hill and Los Angeles Times says Democrats are pressing ahead with the party’s proposal to increase taxes on Americans earning more than $1 million.

The Hill reports most lawmakers are opposed to military base closures.

Politico looks at negotiations over the transportation funding and reauthorization bill. The Associated Press has more.

Bloomberg reports that consumer spending was flat in December 2011.

Bloomberg updates readers on the EU negotiations over a bailout for Greece. According to The Wall Street Journal, debt problems in Europe have harmed U.S. loans.

FOR IMMEDIATE RELEASE
January 30, 2012

 
Lifetime TV: Is the Key to Balancing Washington’s Politics Found on the Playground?
The Balancing Act Answers this Question with Three Diverse Blogettes

Arlington, VA — Tune in tomorrow morning at 7:00am ET/PT to Lifetime Television’s The Balancing Act as host, Kristy Villa, sits down with a panel of diverse women bloggers for the latest segment focusing on playground politics.

Panel to include Gretchen Hamel, Executive Director of Bankrupting America, and the Opinionated MAMA’s, Michelle Tingler and Debbie Divine.

Together these women will discuss the importance of bringing our nation together by focusing on how parenting on the playground can be applied to Washington’s politics.

This is the first of three segments featuring these three diverse blogettes on The Balancing Act. 

To interview Gretchen Hamel, Executive Director of Public Notice,
please contact Kate Pomeroy or Victoria Coley 571.970.6490 press@thepublicnotice.org

Bankrupting America is a 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 American’s financial well being.

The Balancing Act is a TV show that airs on Lifetime Television at 7:00am (ET/PT) it’s America’s premier morning show that’s about women, for women, and trusted by women.

Opinionated MAMA’s work to engage America’s moms in our country’s most important conversations by using parenting analogies, instead of politics as usual, to discuss the news and events of the day.

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Capitol Hill was relatively quiet again last week with the exception of President Obama’s State of the Union address. Members of the House and Senate gathered Tuesday to hear the remarks. You can find our take on it here.

On Thursday, according to The New York Times, the Senate voted to let President Obama’s requested $1.2 trillion increase in the debt limit to go forward. Under the debt limit compromise worked out last summer, this is the third and final increase that will take effect upon the President’s request unless the Congress expressly disapproves.

According to The Hill, the House voted to instruct the chamber’s conferees to work to find a compromise for extending the 2011 payroll tax cut by the end of February. A Congressional Budget Office summary of the bill to extend the cut for another year can be found here.

Check below for more of last week’s House and Senate action.

What you paid
Last week taxpayers spent roughly $100 million on Congress.

Salaries of Members of Congress and their allowances/week:

Speaker of the House: $223,500/52 = $4,299
House and Senate Majority and Minority Leaders: ($193,400/52) x 4 = $14,877
Other Representatives and Senators: ($174,000/52) x 530 = $1,773,462

Average weekly budget for all House offices: ($1,446,009/52) x 435 = $2,096,421

Average weekly budget for all Senate offices: ($3,409,093/52) x 100 = $6,555,958

Non-salary money allocated for Congress: $4.656 billion/52 = $89,538,462

What you got
In addition to the payroll tax extension noted above, the House voted to approve six bills and resolutions that would cost taxpayers approximately $600,000:

H.R. 3801, Ultralight Aircraft Smuggling Prevention Act. COST: Unknown

H.R. 1022, Buffalo Soldiers in the National Parks Study Act. COST: $400,000 over three years

H.R. 2070, World War II Memorial Prayer Act of 2011. COST: “Insignificant”

H. Res. 516, Expressing the sense of the House of Representatives that the passage of a fiscal year 2013 Federal budget is of national importance. COST: $0

H.R. 1141, Rota Cultural and Natural Resources Study Act. COST: $200,000 over three years

H.R. 3117, Permanent Electronic Duck Stamp Act. COST: “Insignificant”

In addition to rejecting a proposal to disapprove of President Obama’s requested debt limit increase, the Senate voted to confirm John M. Gerrard to be U.S. District Judge for the District of Nebraska.

VIDEO: Stop the rhetoric. It’s time to act.

Friday Funnies: 5 jokes about the economy

Memorandum: Americans speak ahead of State of the Union

Here’s a roundup of this morning’s must-read budget and economic stories:

National Journal says Senate Minority Leader Mitch McConnell (R-KY) may be open to raising other taxes in order to pay for extending the 2011 payroll tax cut.

The New York Times reports U.S. banks are trying to assess the risks Europe’s debt problem presents to them. Meanwhile, Reuters and The Wall Street Journal say European leaders are close to approving a permanent rescue fund.

The New York Times has the latest on the Greek government’s negotiations with their private sector creditors on a debt buy down. In a separate story, The New York Times also reports Greek leaders may be willing to accept more austerity measures.

On the opinion pages: Fred Hiatt says U.S. leaders must tackle the country’s debt problems.