Alec MacGillis, TNR
President Obama's decision to agree to a "fiscal cliff" deal that doesn't address the debt ceiling was premised on the thinking that congressional Republicans will not be as successful at holding the economy hostage in the coming months as they were in the summer of 2011. For one thing, the administration believes the business community, and elite opinion more broadly, will be much more vocal than they were last time around in cautioning Republicans against debt-ceiling hijinx.Is this a fair assumption to make? Well, there are already signs that business leaders...
The Spending Cliff
On January - 3 - 2013 ADD COMMENTS
Michael Tanner, National Review
Twenty-three point nine trillion dollars.That will be our national debt in 2022 under the fiscal-cliff bill that just passed Congress. That's nearly $4 trillion more than the current-law baseline, and while most of that comes from making the Bush tax cuts permanent for most Americans without offsetting the loss of revenue through spending cuts, at least $330 billion of the new debt results from the increased spending that was part of the deal. Our government debt will amount to more than 118 percent of GDP.So the deal not only fails to cut spending, it also simply tosses more money on...
Twenty-three point nine trillion dollars.That will be our national debt in 2022 under the fiscal-cliff bill that just passed Congress. That's nearly $4 trillion more than the current-law baseline, and while most of that comes from making the Bush tax cuts permanent for most Americans without offsetting the loss of revenue through spending cuts, at least $330 billion of the new debt results from the increased spending that was part of the deal. Our government debt will amount to more than 118 percent of GDP.So the deal not only fails to cut spending, it also simply tosses more money on...
Deja Vu: Congress Raises Taxes, Won’t Cut Spending
On December - 31 - 2012 ADD COMMENTS
Erick Erickson, RS
Conservatives within the Republican Conference should kill the compromise plan for the fiscal cliff.For years, squishy folks on both sides and lots of think tankers have told us that we needed a “balanced” approach to solve our debt and deficit problems. A “balanced” approached included both tax increases and spending cuts. In other words, a “balanced” approach looked a lot like the so called fiscal cliff.But today Congress is negotiating away the spending cuts component. Word coming from Capitol Hill is that there will be tax...
Conservatives within the Republican Conference should kill the compromise plan for the fiscal cliff.For years, squishy folks on both sides and lots of think tankers have told us that we needed a “balanced” approach to solve our debt and deficit problems. A “balanced” approached included both tax increases and spending cuts. In other words, a “balanced” approach looked a lot like the so called fiscal cliff.But today Congress is negotiating away the spending cuts component. Word coming from Capitol Hill is that there will be tax...
Will Dying States Start to Levy Tax on Fleeing Citizens?
On December - 18 - 2012 ADD COMMENTS
Bill Frezza, RCM
One of the most fascinating characteristics of government borrowing - whether at the local, state, or federal level - is that debts contracted over time are obligations tied to specific geographical boundaries but not to the citizens living there when those debts were incurred. For example, while it's customary to say that each of the 210,000 residents of Stockton, California, are on the hook for their share of the bankrupt municipality's estimated $700 million in unpaid bills, the day one of them picks up and moves, personal responsibility for that debt drops to zero.Imagine if...
One of the most fascinating characteristics of government borrowing - whether at the local, state, or federal level - is that debts contracted over time are obligations tied to specific geographical boundaries but not to the citizens living there when those debts were incurred. For example, while it's customary to say that each of the 210,000 residents of Stockton, California, are on the hook for their share of the bankrupt municipality's estimated $700 million in unpaid bills, the day one of them picks up and moves, personal responsibility for that debt drops to zero.Imagine if...
Real "Fiscal Cliff" Comes From Massive Debt
On December - 10 - 2012 ADD COMMENTS
Jack Kelly, Pitt Post-Gazette
What will happen if we go over the fiscal cliff?That depends on which "fiscal cliff." The term has been applied to two very different economic events.Journalists now are calling the "fiscal cliff" what will happen in January if Democrats and Republicans in Washington don't make a budget deal this month:
What will happen if we go over the fiscal cliff?That depends on which "fiscal cliff." The term has been applied to two very different economic events.Journalists now are calling the "fiscal cliff" what will happen in January if Democrats and Republicans in Washington don't make a budget deal this month:
Why Lefties Back Welfare for the Rich
On December - 8 - 2012 ADD COMMENTS
Jacob Sullum, New York Post
Since Republicans are pushing entitlement reform and Democrats like taking money from rich people, you might think they could agree on means-testing Medicare and Social Security as part of a deficit reduction deal. Yet many Democrats are surprisingly hostile to the idea of tailoring these programs to help people who actually need them.There are two main reasons for this resistance — one strategic, the other ideological. Neither is persuasive, even from a progressive point of view, at a time when trillion-dollar deficits are the norm and publicly held federal debt is projected to...
Since Republicans are pushing entitlement reform and Democrats like taking money from rich people, you might think they could agree on means-testing Medicare and Social Security as part of a deficit reduction deal. Yet many Democrats are surprisingly hostile to the idea of tailoring these programs to help people who actually need them.There are two main reasons for this resistance — one strategic, the other ideological. Neither is persuasive, even from a progressive point of view, at a time when trillion-dollar deficits are the norm and publicly held federal debt is projected to...
The Geithner Plan’s Assault on Small Business
On December - 5 - 2012 ADD COMMENTS
Rep. Kevin McCarthy, RCP
Last Thursday, the White House proposed their "solution" to address our country's debt crisis in the form of a widely panned plan delivered to Capitol Hill by Treasury Secretary Timothy Geithner. Openly mocked as "absurd" and "unserious," this plan and its messenger reveal more about the true priorities of the administration than they may have realized it would. While Republicans have offered proposals to protect small businesses (and the Americans they employ) from tax rate increases, Geithner -- the champion of Wall Street whose...
Last Thursday, the White House proposed their "solution" to address our country's debt crisis in the form of a widely panned plan delivered to Capitol Hill by Treasury Secretary Timothy Geithner. Openly mocked as "absurd" and "unserious," this plan and its messenger reveal more about the true priorities of the administration than they may have realized it would. While Republicans have offered proposals to protect small businesses (and the Americans they employ) from tax rate increases, Geithner -- the champion of Wall Street whose...
The Fed’s Role in the Debt Debate
On December - 4 - 2012 ADD COMMENTS
Charles Lane, Washington Post
Give Spending Cuts a Chance
On December - 1 - 2012 ADD COMMENTS
Veronique de Rugy, Washington Examiner
A few days ago, the president announced that he would be holding firm on his demand for $1.6 trillion in new tax revenue from the rich as part of any deal he would make to address the "fiscal cliff" and our debt problem. In theory, the president promises some spending cuts. That's what he calls the "balanced approach," and it is a recipe for disaster because it will both fail to address our debt problem and hurt the economy.
A few days ago, the president announced that he would be holding firm on his demand for $1.6 trillion in new tax revenue from the rich as part of any deal he would make to address the "fiscal cliff" and our debt problem. In theory, the president promises some spending cuts. That's what he calls the "balanced approach," and it is a recipe for disaster because it will both fail to address our debt problem and hurt the economy.
If Obama Won’t Cut Spending, What’s the Point?
On December - 1 - 2012 ADD COMMENTS
Mark Steyn, OC Register
Last year, our plucky heroine, the wholesome apple-cheeked American republic, was trapped in an express elevator hurtling out of control toward the debt ceiling. Would she crash into it? Or would she make some miraculous escape?
Last year, our plucky heroine, the wholesome apple-cheeked American republic, was trapped in an express elevator hurtling out of control toward the debt ceiling. Would she crash into it? Or would she make some miraculous escape?
How Often Has Real Spending Declined Since 1980?
On November - 26 - 2012 ADD COMMENTS
Nick Gillespie, Reason
All the signs are pointing toward some sort of late-minute, ill-conceived deal to avoid the "fiscal cliff" at year's end.This fiscal cliff is that dreaded Witching Hour come midnight on Jan. 1, 2013 at which the Bush tax rates expire (meaning a reversion to higher rates in place under Bill Clinton), Obama's payroll tax "holiday" ends, the debt ceiling might need upping (again), and "sequestration" kicks in, thereby cutting $110 billion in 2013's estimated spending tab (currently assumed to be about $3.8 trillion). The fiscal cliff, we're told,...
All the signs are pointing toward some sort of late-minute, ill-conceived deal to avoid the "fiscal cliff" at year's end.This fiscal cliff is that dreaded Witching Hour come midnight on Jan. 1, 2013 at which the Bush tax rates expire (meaning a reversion to higher rates in place under Bill Clinton), Obama's payroll tax "holiday" ends, the debt ceiling might need upping (again), and "sequestration" kicks in, thereby cutting $110 billion in 2013's estimated spending tab (currently assumed to be about $3.8 trillion). The fiscal cliff, we're told,...
Why ObamaCare Has to Go
On November - 21 - 2012 ADD COMMENTS
Rep. John Boehner, Cincinnati Enquirer
President Obama has won re-election, but his health care law is still driving up costs and making it harder for small businesses to hire workers. As was the case before the election, Obamacare has to go.The tactics of our repeal efforts will have to change. But the strategic imperative remains the same. If we’re serious about getting our economy moving again, solving our debt and restoring prosperity for American families, we need to repeal Obamacare and enact common-sense, step-by-step reforms that start with lowering the cost of health care.
President Obama has won re-election, but his health care law is still driving up costs and making it harder for small businesses to hire workers. As was the case before the election, Obamacare has to go.The tactics of our repeal efforts will have to change. But the strategic imperative remains the same. If we’re serious about getting our economy moving again, solving our debt and restoring prosperity for American families, we need to repeal Obamacare and enact common-sense, step-by-step reforms that start with lowering the cost of health care.
The Freedom Movement Must Man Up
On November - 14 - 2012 ADD COMMENTS
Brad Lips, The Atlas Network
The past week has felt like “Mourning in America.” In conservative ranks, there is disbelief that a plurality of voters accept the diminished expectations of our “New Normal.” A serious debt crisis looms on the horizon, but voters were more concerned about protecting lady parts from imaginary foes and keeping taxpayer money flowing to muppets.There has been plenty of second-guessing of candidate Romney as well. But all of this misses the point.
The past week has felt like “Mourning in America.” In conservative ranks, there is disbelief that a plurality of voters accept the diminished expectations of our “New Normal.” A serious debt crisis looms on the horizon, but voters were more concerned about protecting lady parts from imaginary foes and keeping taxpayer money flowing to muppets.There has been plenty of second-guessing of candidate Romney as well. But all of this misses the point.
U.S. Faces Four More Years of Decline
On November - 9 - 2012 ADD COMMENTS
Nile Gardiner, Daily Telegraph
The world needs powerful American leadership, the bedrock of which rest upon a sound economy, limited government and free enterprise, as well as a strong national defence. But it certainly won't be provided by Obama's imperial presidency. In his first term of office, an administration that worshipped bailouts and big government built up staggering levels of debt that threaten to saddle future generations with the profligate spending of their forefathers. Instead of hope, President Obama offered only the heavy fist of government intervention, rising taxes, increasing poverty and...
The world needs powerful American leadership, the bedrock of which rest upon a sound economy, limited government and free enterprise, as well as a strong national defence. But it certainly won't be provided by Obama's imperial presidency. In his first term of office, an administration that worshipped bailouts and big government built up staggering levels of debt that threaten to saddle future generations with the profligate spending of their forefathers. Instead of hope, President Obama offered only the heavy fist of government intervention, rising taxes, increasing poverty and...
Why Obama Failed–and How to Fix It
On November - 1 - 2012 ADD COMMENTS
John Taylor, Defining Ideas
When people ask me how the Romney economic program works, I focus on three points.First, the American economy is in bad shape. Persistently high unemployment and slow economic growth are causing pain for many Americans. Economic growth so far this year has averaged only 1.7 percent, which is even lower than the paltry 2 percent last year and the 2.4 percent the year before that. Median household income is declining sharply and the federal debt, which burdens both current and future generations, is exploding.
When people ask me how the Romney economic program works, I focus on three points.First, the American economy is in bad shape. Persistently high unemployment and slow economic growth are causing pain for many Americans. Economic growth so far this year has averaged only 1.7 percent, which is even lower than the paltry 2 percent last year and the 2.4 percent the year before that. Median household income is declining sharply and the federal debt, which burdens both current and future generations, is exploding.
U.S. Needs a Turnaround: Why I’m for Romney
On October - 19 - 2012 ADD COMMENTS
Lee Iacocca, Detroit News
I've seen a lot of situations that needed a turnaround in my time, and I know one when I see one. Trust me, America needs a turnaround.America is in deep trouble. After four years, economic growth is still anemic, our annual deficits were not cut in half as promised, and our staggering $16 trillion federal debt hangs over us and our kids like the plague. Our people are hurting, they can't find jobs, they have lost a major part of their net worth, the number of Americans living in poverty is at unacceptable levels, and we just aren't doing the things that would get our country...
I've seen a lot of situations that needed a turnaround in my time, and I know one when I see one. Trust me, America needs a turnaround.America is in deep trouble. After four years, economic growth is still anemic, our annual deficits were not cut in half as promised, and our staggering $16 trillion federal debt hangs over us and our kids like the plague. Our people are hurting, they can't find jobs, they have lost a major part of their net worth, the number of Americans living in poverty is at unacceptable levels, and we just aren't doing the things that would get our country...
Biden, Ryan Trade Sharp Words
On October - 11 - 2012 ADD COMMENTS
Fahrenthold & Sonmez, Washington Post
Vice President Biden and Rep. Paul Ryan clashed over Libya, Afghanistan and the economy in the campaign’s only vice-presidential debate Thursday, interrupting and re-interrupting one another during a 90-minute exchange shaped by Biden’s aggressive tone.Ryan picked up themes used by his running mate, Mitt Romney, in last week’s presidential debate. He criticized the Obama Administration for its handling of an attack in Libya, and accused it of dodging hard questions about the debt.
Vice President Biden and Rep. Paul Ryan clashed over Libya, Afghanistan and the economy in the campaign’s only vice-presidential debate Thursday, interrupting and re-interrupting one another during a 90-minute exchange shaped by Biden’s aggressive tone.Ryan picked up themes used by his running mate, Mitt Romney, in last week’s presidential debate. He criticized the Obama Administration for its handling of an attack in Libya, and accused it of dodging hard questions about the debt.
American Crossroads: President Barack Obama’s "spending drove us $5 trillion deeper in debt."
On October - 9 - 2012 ADD COMMENTS
The Truth-o-Meter says: Half-True | Ad says Barack 'Obama’s spending drove us $5 trillion deeper in debt.'
In a new ad, the pro-Republican group American Crossroads takes aim at President Barack Obama’s economic policies. At one point, the narrator says, that "Obama’s spending drove us $5 trillion deeper in debt." We previously examined a similar -- but opposite claim -- when Obama said that "over the last four years, the deficit has gone up, but 90 percent of that is as a consequence of" President George W. Bush’s policies and the recession. We ruled Obama’s claim False, and a recalculation of the same numbers can shed some light ...
>> MoreAmerican Future Fund: Under Barack Obama, the U.S. now has the "lowest workforce since (President Jimmy) Carter."
On October - 8 - 2012 ADD COMMENTS
The Truth-o-Meter says: Mostly False | Ad says workforce smaller under Barack Obama than any time since Jimmy Carter
The American Future Fund, a group that advocates "conservative and free-market" principles, has released an advertisement that -- like other ads and Web videos in this election cycle -- seeks to compare President Barack Obama to his one-term Democratic predecessor, Jimmy Carter. "Remember where we were four years ago: 11 million people out of work, a $10 trillion debt," the narrator says in the ad, which was released Oct. 1. "But four years later, 13 million people out of work, $16 trillion debt, and now the lowest workforce in 31 years." As ...
>> MoreHow Obama Can Win the Next Debate
On October - 7 - 2012 ADD COMMENTS
Robert Kuttner, Huffington Post
I was pleased to see the unemployment rate come down to 7.8 percent. But honestly, that's not nearly good enough.Too many of the jobs don't pay a decent wage. And they won't pay decently until we get unemployment down to about 4 percent, as it was in the 1990s.Our kids are saddled with a trillion dollars of student debt, and they are going out into a very weak job market. 30 percent of recent college grads move back in with their parents.
I was pleased to see the unemployment rate come down to 7.8 percent. But honestly, that's not nearly good enough.Too many of the jobs don't pay a decent wage. And they won't pay decently until we get unemployment down to about 4 percent, as it was in the 1990s.Our kids are saddled with a trillion dollars of student debt, and they are going out into a very weak job market. 30 percent of recent college grads move back in with their parents.
Mitt Romney: College tuition "costs have risen by 25 percent under the Democrats."
On September - 25 - 2012 ADD COMMENTS
The Truth-o-Meter says: Mostly False | Mitt Romney, in Spanish-language ad, says college costs are up 25 percent under Barack Obama
In a recent Spanish-language television ad, Mitt Romney criticizes President Barack Obama’s record on higher education. A translation provided by the campaign has the narrator saying, "Four years ago, Hispanics hoped Democrats would get an ‘A’ in improving our education. The reality is that more than 75 percent of the population thinks that college is not affordable. Tuition costs have increased 25 percent under Obama and the Democrats, and total student debt has reached a trillion dollars." After a clip of Obama saying he wants to be held accountable on education, the narrator continues in ...
>> MoreQE3 Is Just a Bailout for Government
On September - 20 - 2012 ADD COMMENTS
Jeremy Warner, Daily Telegraph
In the land of the setting sun, QE is now such an everyday part of the economic landscape that it would barely have warranted a mention, let alone an entire column, but for the fact that the latest dollop of “unconventional” policy action appears to be part of a co-ordinated, global response to the economic slowdown .Like big deficits and mountainous public debt, in Japan, QE no longer generates the same agonised debate it does in the West. It just is. For Japan, the “unconventional” is now very much the conventional.
In the land of the setting sun, QE is now such an everyday part of the economic landscape that it would barely have warranted a mention, let alone an entire column, but for the fact that the latest dollop of “unconventional” policy action appears to be part of a co-ordinated, global response to the economic slowdown .Like big deficits and mountainous public debt, in Japan, QE no longer generates the same agonised debate it does in the West. It just is. For Japan, the “unconventional” is now very much the conventional.
