Tag Archives: political economy

A Modest Proposal

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The Wall Street Journal editors (I seem to have been picking on them lately…) have a modest proposal regarding student debt and forgiveness.

Congress created the Public Service Loan Forgiveness Program in 2007. It lets borrowers who work for government or tax-exempt organizations get unpaid debt forgiven after 10 years of payments. Its supposed goal was to help government and nonprofit employers compete with private businesses that can pay more.

The editors correctly note that in the years since its inception, the program has become badly abused and used to reward[] a politically favored group of workers and can make it harder for private businesses to compete. Based on that, the editors recommend the Republican-majority houses of Congress repeal the program altogether.

They’re correct in that, but I’d go a ways farther. Congress should make student loan relief available through our existing bankruptcy laws. Additionally (critically additionally), Congress should take the Federal government out of the student loan business altogether: no more Federal government student loans and no more Federal government guarantees of other lenders’ student loans.

And one more step: require colleges (including junior and community colleges) and universities and trade schools to publish the regionally average salaries and wages for each major the school offers or each trade certification program the trade school offers at the five-years employed mark. Associated with that, those schools should be required to be the ones extending the student loans or be either co-signers or guarantors of other lenders’ loans to their students.

Without the ability to hide behind Other People’s Money in the form of purely third party or Government loans, the abuses likely would screech to a halt.

Why Would They Want To?

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The lede says it all, even if the article is a bit dated now.

The leader of Senate Democrats moved to take the threat of a government shutdown off the table, following a grueling intraparty fight in which lawmakers struggled with how best to resist President Trump’s fast-paced efforts to slim down federal agencies.

Why would the Progressive-Democratic Party object to slimming Federal agencies and making them more efficient?

Oh, wait—this is the Party that insists Government knows better than us poor, benighted and ignorant average Americans, and that the way to make Government more efficient is to grow it in both financial and physical size and give it more control over our lives.

Circular Pseudo-Logic

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William Galston had this bit of circularity in his Tuesday op-ed in The Wall Street Journal:

Economists studying past tariffs have found that their effects endured even after the tariffs were removed. … Further, the Federal Reserve Board is concerned about Americans’ increased inflation expectations, which could trigger a damaging price spiral.
The American people smell a rat. In a recent poll by the Economist/YouGov, 68% said that higher tariffs mean higher prices and that consumers will bear a large share of the burden.
They’re right. Tariffs are import taxes paid in the importing nation.

It couldn’t possibly be that we Americans poll that way because that’s what we’re told by a steady stream of news writers, including a plethora of them who cite “economists” or who cite named economists without also citing those economists’ data.

Instead, these news writers just make their bald, unsubstantiated claims, providing no data at all.

It may well be true that tariffs, by their nature, are inflationary. That certainly seems plausible. However, plausibility isn’t fact, and it would be good to see the evidence—including evidence indicating how inflationary tariffs are, if they are, and under what circumstances.

He Thinks It’s a Countermove

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Pennsylvania Governor Josh Shapiro (D) is making a big deal out of his offer of jobs in the Pennsylvania State government to those terminated Federal bureaucrats who would be interested.

The commonwealth recognizes that a workforce of dedicated and talented public servants is the backbone of a responsive government that can ensure the efficient and effective delivery of services for Pennsylvanians[.]

Kudos to Shapiro, I say, for all that his motive is so highly questionable. There’s no doubt that the vast majority of Federal bureaucrats are talented, dedicated workers, and being offered jobs at the State level that match their skill sets is a Good Thing.

None of that, though, alters the simple fact that Federal employment is not an inherent right and that Federal bureaucrats are not entitled to any Federal job, much less any Federal sinecure. Neither does any of that alter the simple fact that these Federal bureaucrats are unnecessary to the function of the Federal government, and their redundancy should be recognized and acted on.

Indeed, those making the Federal cuts have said from the outset that the bureaucrats’ firings do not in any way impugn their skill, talent, or dedication—it’s simply that they are not needed; their job positions themselves are redundant.

Yapping vs Action

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Republican Congressmen are starting to push back, ever so gently, against President Donald Trump’s (R) DOGE initiative and agency. They want more control, for themselves and for the several Department and Agency heads, over spending and Federal job cuts.

The calls come as some GOP lawmakers have pushed back against job cuts and characterized moves as haphazard, even as they largely agree with the broader goal of reducing government costs and inefficiencies.

That’s the difference between yapping and action. It’s necessary to be specific, to name programs and to name names, if actual action—cuts—are to be made. Republicans are exposing themselves now.

The House, with its alleged Republican majority, has passed its budget outline proposal, and already it does not include an aggregated ceiling for spending cuts that’s high enough to have room for all of the ones the DOGE effort is suggesting.

Certainly, it’s useful to not make cuts as sweeping as those on offer from DOGE and from Trump all at once; business and especially State budgets need time to adjust to the sharply reduced inflow of Federal dollars and outflow of ex-Federal employees, but that’s easily enough accommodated over a period of two years, so all the cuts proposed could be accomplished within a single Congressional session.

Just as certainly, the several constituencies of the several Republican Representatives have differing imperatives and needs—Congresswoman Nicole Malliotakis’ (R, NY) constituents have different views of appropriate levels of cuts and where to make them than do Congressman Thomas Massie’s (R, KY), but in the Federal Congress, these Congressmen have national level constituents in addition to their local ones.

But, as ralflongwalker passed along to me:

You want to gore my ox? Oh, no!

Pick one, guys. Either you’re for spending cuts and reductions in the bloated Federal bureaucracy labor force, or you’re like a bunch of spendthrift Progressive-Democrats, just yapping differently.