Category Archives: political economy

A Cost of the Left’s Obstructionism

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This one is our national debt and the interest due on it.

• the average interest rate on debt will exceed the economic growth rate by 2045, sparking the beginning of a debt spiral
• Federal debt held by the public will rise from 100% of GDP in FY2025 to 156% of GDP by 2055
• annual deficits will grow from 6.2% of GDP in 2025 to 7.3% of GDP by 2055

The obstructionism of the Left and their Progressive-Democratic Party isn’t even centered on principle, only on anti-Trumpism and anti-Republicanism and anti-Conservatism.

Potentiating the economic disaster that our debt and associated interest payments portend, those things would accumulate into the loss of the US dollar as the world’s reserve currency. That, in turn, would feed back negatively into our economy, forcing it onto the vagaries of foreign currencies and currency exchange rates.

This is why the DOGE-led spending cuts must be enacted into law by Congress. This is what the Left’s and their Progressive-Democratic Party’s obstructionism will cost us.

A Gordian Knot Solution

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I have called, often, for the dissolution of the Department of Veterans Affairs on the basis of that agency’s, and now department’s, poor-to-nonexistent quality-level care for our nation’s veterans.

Now we get this. It’s from the end of the Biden administration, but this sort of thing is not unique to that one.

The inspector general report published Thursday confirms that a $2.9 billion supplemental request went unused because the agency failed to account for “prior-year recoveries” in its budget planning. Had the agency taken into account those recovered funds, the inspector general found, its projections “would have shown a reduced risk of a shortfall by year-end.”

And this, more generally:

The OIG review team found that Veteran’s Benefits Administration wasn’t consistently overspending in FY 2024 for either compensation and pension or readjustment benefits accounts, which were the subject of the budget request. “Realized prior-year recoveries,” which are “unspent deobligated funds,” weren’t included in the agency’s calculations, which contributed to the erroneous predictions.
“Had the realized prior-year recoveries been included in the calculations throughout the year, the monthly funding status reports would have shown a reduced risk of a shortfall by the end of the fiscal year,” the watchdog concluded.

Current VA Secretary Doug Collins has inherited this situation and the permeating VA internal culture; he has this:

It’s just a very, a department that is so bureaucratically bogged down that it has trouble doing its main mission, and that is taking care of veterans, and that’s why we’re actually working very hard to streamline processes, to get better help in place, and to have budgets and numbers that we can be accurate

To an extent, I disagree with Collins. It’s not worth the time, effort, money, or other resources to try to untangle this financial mess. It’s time for the Gordian Knot solution. Just get rid of the VA altogether, and convert the department’s current and putative future budgets to vouchers which our veterans can use to visit the doctors, clinics, and hospitals they choose and from which they’ll be able routinely to get timely care. Transfer the VA’s veteran housing mortgage facilities to HUD for execution.

Veteranos Administratio delende est.

Money Saved or Wasted?

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Amanda Bennett, ex-previous head of USAGM, is upset with Kari Lake’s (the new head of the US Agency for Global Media) characterization of the $150 million the agency is expected to spend over the next several years on its lease of a new (relative to USAGM’s prior digs) office building.

The prior building that USAGM occupied for a very pretty penny was rundown and rapidly failing further, so Bennet negotiated a good deal for the new office building, and she’s justifiably proud of the deal she got. As far as that deal goes.

The government didn’t lose money [as Lake claimed], it saved—a lot. We estimated that savings over the 15-year lease—including the free rent and millions in cash incentives—would total more than $150 million.

But the USAGM has long been a Leftist propaganda arm, thoroughly deviated from its ROC of passing along factual information, objectively, to other nations, especially those whose governments seek to prevent such data from getting to their subjects.

My question for Bennett, then, is this: how much money would the Federal government save if those $150 million weren’t spent at all and USAGM eliminated from the government’s books?

As the kids like to say, Madam, get real.

A Simple Enough Solution

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Even if it isn’t necessarily politically easy to implement. But the political impediment is merely a lack of political courage in the same politicians who natter on about how expensive and abused is the system in question. I’m writing here about our nation’s Medicaid system.

Medicaid is broken, and Republicans in Washington and in state capitals have an opportunity to fix it. President Trump has pledged to protect the program, in part by cutting waste, fraud and abuse. The House budget target would reduce the growth of federal Medicaid payments over the next decade from $2 trillion to $1.2 trillion. That is a good start. Medicaid wastes enormous amounts of taxpayer money as states use it to reward politically powerful healthcare providers.

Instead of making this sort of namby-pamby tweaks around the edges, and masquerading putative reductions in growth as cuts, the simple enough solution is this.

Take the Medicaid-centered Federal transfers to each State in the current year as the baseline, and convert that amount to a block grant with no strings attached, other than the State must spend the block money on its Medicaid program. Then, each subsequent year transfer the Medicaid block grant, similarly without strings, reduced further each year by 10% of that baseline amount. In a short few years (I’ll leave the third grade arithmetic to the reader, rather than insult his intelligence), the block grants will reach $0.00, and the Federal government will, quite properly, be out of this aspect of the State’s business.

Notice that this solution also does not touch the heart of our nation’s Medicaid system, which is each State’s responsibility. On the contrary, it moves the system entirely into the States’ individual purviews, giving each State complete control over its own Medicaid program, free of Federal touching.

Mistaken Emphasis

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Oil and gas companies are worried that, in the process of reducing the Federal employee work force, too many regulators who issue the permits these companies need to begin work on a project are being fired, and so the permits are being delayed.

Some companies are asking the administration not to lay off key personnel who deliver permits at federal agencies….
[C]ompanies receive permits to drill on US lands from Interior’s Bureau of Land Management, licenses to export liquefied natural gas from the Energy Department, and permits to build interstate natural gas pipelines from the Federal Energy Regulatory Commission.

This isn’t the problem the executives make it out to be. The regulators in those entities are not independent satraps who act entirely on their own recognizance. They do not issue the permits or reject them in their own name; they act in the name of their respective Department or agency heads, and those agency heads are not independent satraps, either; they act in the name of their respective Department Secretaries. As such, the agency heads are fully capable of issuing/rejecting permits, and ultimately the Secretaries are fully capable of overruling their subordinate agency heads and issuing/rejecting the permits themselves.

Of course the Leftists and a large collection of fee-seeking lawyers will jump on this with litigation, but ultimately the agency and Secretary actions should be upheld.

Still, they can’t act entirely alone. Matt Schatzman, NextDecade CEO wants those agencies to hire more workers and cut red tape so the industry can start more projects as quickly as possible. It’s not necessary to have both of those. More hires is not necessary in any event; legislation is: require permits to be issued or rejected withing 30 days of the initial application, or the permits are deemed issued. Require the regulators to defend in concrete, measurable, publicly accessible terms their rejection within two weeks of their rejection, or the permit is deemed issued.