Tag Archives: spending

Tariffs and Economic Growth

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The good editors at The Wall Street Journal spent a lot of ink and pixels decrying President Donald Trump’s (R) tariff moves. They saved the money bit for the end, though maybe not in the way they intended.

The best response to the warning from the first-quarter GDP decline would be for Mr Trump to call the whole tariff thing off. Short of that, settle for 10% across the board and call it a day. If that’s too much of a come-down, Republicans will need to pass a pro-growth tax cut and accelerate their deregulatory push as their best chance to liberate the economy from its tariff kidnapping.

Those first two sentences are irrelevant, whatever one might think of Trump’s tariff moves. Republicans need to pass a pro-growth tax cut and accelerate their deregulatory push—and pass serious spending cuts—independently of any tariff moves.

My Irony Meter…

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…is pegged. In their letter published in The Wall Street Journal‘s Friday Letters section, David Wippman and Glenn Altschuler of Hamilton College and Cornell University, respectively, object to comparisons of Harvard to Hillsdale College, even as they misleadingly mischaracterize the latter’s relationship with Federal dollars (writing that Hillsdale has for decades refused federal funding, when the fact is Hillsdale has never taken Federal dollars at any time in its 180 years of existence).

The letter writers acknowledge that Harvard’s taking Federal dollars makes it “vulnerable” to Federal pressure, citing supposed risks to Harvard’s research capacity. In truth, Harvard still could conduct effective research, were it to get serious about the bigots and terrorist supporters entrenched in its student and faculty and staff populations.

That brings me to the irony of their letter.

[I]t is absurd to compare this Christian college with 1,700 students and 170 faculty with Harvard, one of the leading research universities in the world with almost 25,000 students and more than 20,000 faculty and staff.

Actually, two: Wippman and Altschuler call out Hillsdale as an explicitly Christian college as though that were somehow important to their discussion, while ignoring Harvard’s more religiously and areligiously ecumenical bent—as though that does not matter at all.

The real irony though is that 1:10 faculty to student ratio at Hillsdale compared to that 8:10 ratio of faculty and staff to students at Harvard. Clearly one school is focused on actual teaching, while the other is focused on…nothing in particular, apparently, other than faculty and staff activism, antisemitic bigotry, terrorist support, and condoning when not actively encouraging the same in the student population. That only creates an environment where that vaunted research is merely an afterthought and a source of Federal largesse rather than a serious focal point for the institution.

A Sort of Start on a Student Loan Fix

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Department of Education Secretary Linda McMahon has proposed a series of steps to correct our nation’s student loan miasma.

• mov[e] roughly 1.8 million borrowers into repayment plans and restart collections of loans in default
• in some cases wages would be automatically garnished
• push colleges to be responsible and transparent

That last is especially curious. McMahon does not say how she defines “responsible and transparent,” nor does she say what constitutes her “push,” how hard she will push, or what consequences—concrete, measurable, and publicly accessible—she will apply for noncompliance, or how promptly.

These steps need to be taken, but by themselves they can be only stopgap, and they are wholly inadequate. What’s really necessary is to get the Federal government completely out of the student loan business: no Federal student loan guarantees, no Federal student loan-supporting programs whatsoever.

Because money is fungible, that must include drastically curtailing the range of student grants and scholarships originating from Federal programs. The same reasoning for getting rid of DoEd altogether applies to any sort of Federal involvement in education.

McMahon can do these things from within DoED while she’s setting the stage for Congress’ elimination of the Department (note: not merely defunding the department; eliminate it altogether). However, for the complete solution, Congress needs to act:

• statutorily require colleges and universities to publish the average, median, and range of income at the five years employment mark for their graduates in each of the major fields offered
• statutorily require student loans to be originated by private lenders or colleges and universities
• statutorily require colleges and universities to guarantee at least 50% of each loan granted their students
• statutorily allow current and future student loans to be discharged in “ordinary” bankruptcy proceedings

Only when private lenders and colleges and universities are the only ones with skin in this student loan game will those loans and their borrowers be carefully screened for repayment risk. That will prove optimal for the student borrowers and for us taxpayers.

Responsibility

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The Republican caucuses in the Senate and House are considering restrict[ing] the [provider] taxes’ use to finance state Medicaid contributions entirely, which would have the effect of putting more of a State’s expenditures under Medicaid on the State itself: overall, the restriction would save the Federal government—which is us taxpaying citizens writ nationwide—some $600 billion over 10 years.

There are objections, of course, by those whose money tree would be severely pruned. Ryan Cross, Franciscan Missionaries of Our Lady Health System’s Government Affairs VP:

If you end provider taxes, you’re going to shift that burden to the state, either harming Medicaid patients and healthcare-provider reimbursement, or leading to higher state and local taxes[.]

This is disingenuous. Any harm done Medicaid patients, who as citizens of their State are the responsibility of that State, and of healthcare providers, who as operators in that State also are the responsibility of that State, is done by that State through its own decisions regarding the tax remittals of that State’s own citizens. Regarding those decisions, it apparently is inconceivable to Cross and the rest of the Leftists that the State could reallocate its spending to cover the costs rather than just knee-jerk and willy-nilly raise its taxes.

These are $600 billion dollars for which us taxpaying citizens of our nation have better use.

Yes, And?

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The Wall Street Journal‘s editors are in a tizzy over President Donald Trump’s (R) moves to freeze or cancel altogether Federal funds and grants to universities unless and until those institutions start acting concretely and seriously against the antisemitic bigotry rampant in them. The editors are upset because those fund freezes/cancelations include funds heretofore aimed at NIH sponsored projects.

One regrettable result is that important medical research is getting scrapped.
…
Because of Columbia University’s deep research bench of neurologists, the school in 2022 took over management of the study’s government funding, which is disbursed to some two dozen other sites across the US. A Columbia lead researcher says the study’s funding is now ensnared in the fight between the university and feds over its handling of anti-Israel protests.

Columbia medical professor José Luchsinger:

It’s a pity that all the institutions across the United States, the investigators in these institutions, the staff in these institutions, and the study participants in these institutions are being held hostage to a situation that is occurring in Columbia only[.]

Indeed, it is a pity. Columbia should stop holding all that hostage, should stop namby-pambying around, and should get serious about ending the antisemitic bigotry rampant in its student and professor populations and within its management teams—and then act on that newfound seriousness and get rid of the bigots among its students and professors and university managers.

It is a pity, too, that there even is a fight between the university and feds over its handling of anti-Israel protests.

This is a cynical mischaracterization of what’s going on, and the editors should know better, even if Luchsinger pretends not to. What is there to fight about? What’s going on at the universities is not “anti-Israel protests,” it’s naked antisemitic slurs, intimidations, threats, cutoffs of others’ right to speak in favor of Jews and Israel or just to speak conservatively. Mixed in with those bare assaults (can’t call them bare-faced, the bigots cower behind masks) is overt support for Middle East terrorists and terrorism.

But the editors favor spending money on medical research, which is important when spent efficiently, over getting rid of the bigotry and terrorist support so rife in these institutions. The editors ignore the simple fact that the bigotry and terrorist support not only threaten the institution population at large, but also that very research by making those institutions unsafe for anyone.