Tag Archives: spending

Wrong Answer

Posted on by
Reply

Treasury Secretary Janet Yellen wants Congress’ authority over the debt ceiling abolished.

She argued Congress makes the decisions on taxes and spending, so it should also provide the ability to pay those obligations.
“If to finance those spending and tax decisions, it’s necessary to issue additional debt, I believe it’s very disruptive to put the president and myself, the Treasury secretary, in a situation where we might be unable to pay the bills that result from those past decisions[.]”

This would, of course, mean that the concept of a debt ceiling itself would be removed.

Wrong answer.

The right answer, which would make a debt ceiling unnecessary (although not abolish it), is to limit spending to within revenues.

Of course, to prevent Congress from running away with tax rates, as the current Progressive-Democrat-run Congress is attempting to do, it would be necessary to limit Congress’ ability to raise tax and fee rates or to create new taxes or fees. One way to achieve that would be to define a priori the specific purpose of each individual tax or fee increase and each individual new tax or fee and then put each one, individually and separately, to a national plebiscite. If the plebiscite rejects the proposition, then the associated spending cannot occur and existing spending must remain within existing revenues.

A fillip: financial planners recommend individual families each maintain a rainy day/emergency fund of some months’ worth of expenses. Texas, and some other States, also do this at the State level. It would be useful if Federal spending were required to be limited to 90% of Federal revenues until a national level emergency fund were accumulated—say an amount equal to a year’s worth of established Federal spending. A year, rather than the several months that planners recommend for individuals, because of the Federal government’s empirically demonstrated profligacy.

Another fillip: index the size of the Federal Emergency Fund to positive inflation as measured by the Producer Price Index or its successor. Positive inflation: the required level of the FEF could never decrease, even in a deflationary environment.

Of course, this would require a Constitutional Amendment in order to be permanent.

Oh, and never mind the horror of Yellen being inconvenienced by the tasks of her job.

Worrying about the Wrong Time Frame

Posted on by
Reply

A Wall Street Journal opinion piece subheadline well summarizes the piece itself:

the Speaker pushes Democrats to take votes that will end careers in 2022

The WSJ‘s Editors write this as if they take the matter seriously. But they, and far too many others who also should know better, are taking far too short a view.

“Career ending” votes were taken in favor of Obamacare, too. Obamacare survives, and here is the Progressive-Democratic Party back in power.

So it will be with the Progressive-Democrat reconciliation bill and the pre-amendment to it that is the “infrastructure” bill. A few Progressive-Democrats might lose their seats as they vote to force passage, but these two destructive bills will live on.

And, dangerously, the Progressive-Democratic Party will recover.

This is Backwards

Posted on by
Reply

In a Wall Street Journal article on the difficulty of estimating ridership on roads and highways to be built in the future and so the need for them, and the poor allocations of costs and Federal dollars that result from the inaccuracies, there was this statement.

If lawmakers enact the $550 billion bipartisan infrastructure bill now before the House, state and local officials will have to decide which projects to spend money on.

This is backwards. State and local officials should have to decide first what infrastructure projects they want to complete, their cost, their priority, and have contracts already let contingent on receiving Federal dollars before Congress contemplates an infrastructure bill that would send taxpayer money to any of those States.

Those are critical first steps in getting to shovel-ready jobs to which to commit funds.

In Which I Disagree

Posted on by
1

There is a bipartisan bill afoot that would cut all taxpayer-based funding for any gain-of-function research into any virus or bacterium for at least next five years.

I disagree.

As the Wuhan Virus, which the People’s Republic of China government released onto the world (whether by design or by incompetent lab carelessness) demonstrates, we need, desperately, to understand such plussed up biologics, whether they’ve been…enhanced…for politico-military use, as our enemies are surely researching, or they’ve naturally jumped from their animal origins to human infectiousness.

That requires gain-of-function research because that’s the only way we’ll be able quickly to understand and then to respond to a new disease. We just need to do the research entirely domestically rather than relying on, or paying, our enemies to do the research for us.

Lies of the Progressive-Democrats

Posted on by
Reply

Another in the interminable series.  This time, it’s Speaker of the House Nancy Pelosi (D, CA) demanding Republicans support raising the debt ceiling during this Congressional session:

We’re paying the Trump credit card with what we would do to lift the debt ceiling[.]

Not at all. What she—and her Progressive-Democrat syndicate family—want to do is raise the debt ceiling so they can borrow an additional $3.5 trillion for their reconciliation spend-a-thon.