Blog Archives
Federal Budget Deficit Breaks Another Record
Doug at Below the Beltway had a post up the other day about the Federal Budget Deficit breaking yet another record in February, as the deficit hit $220 Billion. It appears with the President’s forecast that it’s projected to grow to $156 TRILLION.
Perhaps, if the government would not waste the taxpayer’s money on unnecessary programs, we might not be in this situation. With Congress and President Obama determined to get their version of health care reform passed, the deficit will continue to grow in a rapid pace. Is this what we want our future generations to be saddled with? It’s time to curb the spending and focus on common sense reform.
Spends Too Much, Taxes Too Much and Borrows Too Much
Guest Post by Congressman Bob Goodlatte
Two weeks ago President Obama delivered his State of the Union address to a joint session of Congress. In his speech the President called for fiscal discipline and specifically addressed the need to reduce wasteful spending from the federal budget. However, earlier this week the President sent a $3.8 trillion budget proposal to Congress, which spends too much, taxes too much and borrows way too much.
This fiscally irresponsible proposal will significantly increase the tax burden on American families and small businesses to pay for new wasteful government spending while heaping trillions of dollars of debt on future generations. Facing a slowing economy and an increased cost of living, Americans have to tighten their belts and carefully budget their hard-earned money. The federal government must do the same.
Under the President’s budget, the federal government will run up a record budget deficit of $1.6 trillion in fiscal year 2011. This is the largest deficit as a share of the economy since World War II. The national debt would double over five years and triple by FY2019 from FY2008 levels. Paying the interest on this debt would set American taxpayers back roughly $6 trillion over the next decade. In fact, Senator Kent Conrad, the Democratic chairman of the Senate Budget Committee, described the federal budget as “unsustainable.”
Additionally, the President’s budget includes more than $2 trillion in tax hikes, with a nearly 20 percent jump in the first year alone. This includes tax increases on small businesses, investors, and families. The last thing American families and small businesses need right now are new taxes that make it harder to save, invest, and hire.
Finally, during the President’s State of the Union Address he proposed a spending freeze. Unfortunately, the truth is that the President’s proposed freeze only covers 1/8th of the federal budget and will not start until next year.
In these challenging economic times it is even more important for government to control spending. The federal government must work to both eliminate every cent of waste and squeeze every cent of value out of each dollar our citizens entrust to it. Regrettably, the President’s budget will lead to record spending, record deficits and record debt. In stark contrast to these reckless fiscal policies, I have consistently voted for the tightest budgets possible each year.
Families and small businesses all across our nation understand what it means to make tough decisions each day about what they can and cannot afford, and Congress cannot be allowed to ignore these tough decisions when creating spending policies for the federal government. I continue to urge the leadership of the House to work in good faith to pass a responsible budget that reins in government spending and puts our nation’s families first.
To contact me about this or any other matter, please visit my website at www.goodlatte.house.gov.
The Ramifications of Obama's Budget
If President Obama’s budget gets passed, there is something other than growing debt that will be hampering the U.S. economy. Currently, the U.S. has a Triple-A debt rating, and Moody’s warns that this would come crashing down.
Americans for Limited Government President Bill Wilson mentions that this is no coincidence, as the President’s budget will add an additional $10.6 Trillion to the national debt. Additionally, the U.S. Senate voted to increase the debt ceiling by $1.9 Trillion, which would bring the national debt limit to $14.294 Trillion. Wilson also mentioned, “it was time “to set aside partisan differences and work together, not to ‘reduce the deficit,’ which means nothing, but to reduce the debt. The hour grows late. The nation cannot afford Congress continuing to borrow and print its way into a financial Apocalypse to pay for unsustainable entitlement programs. The national debt is a near-term problem, and there is not a moment to lose.”
Perhaps, we need to place more focus on getting out of debt by reducing government spending and looking at certain unnecessary government programs that need to be eliminated before looking to pass costly initiatives, such as government-run health care.
Worst Political Decade Ever?
The decade of 2000…what can I say? In personal terms, I began the decade with graduating from high school and heading off to college. Midway through the decade (2004 to be exact), I graduated college and headed off to New York with hopes that I would complete graduate school and live the city life. Of course, as we knew fate kicked its golden heels in my plans for good reason, and I decided to first head back to Maryland, then set my sights on a policy related career that led me to Virginia. The decade was filled with successes and hard lessons for me.
Looking back politically, the crew at Reason.tv has a great video highlighting the decade as the “Worst Political Decade Ever.” I would have to concur with their analysis slightly from the national standpoint.
However, let’s look at things from the state level. Since I am a relatively new Virginian (been in Virginia for three years), I can only provide a synopsis from 2006-2009. Being from Maryland originally, the best part of the 2000s was the election of Bob Ehrlich and Michael Steele to Governor and Lieutenant Governor respectively.
2006 was an interesting year for a political newbie to discover. It began with George Allen in the lead for U.S. Senate and ended with Macaca, then Jim Webb as our Senator. 2007 was exciting, as we worked hard to elect State Senators and Delegates, in addition to county office holders. Needless to say, it was exhausting, but the hard work paid off for the GOP in the House of Delegates and certain county offices (depending on what county you lived in).
2008 was a blah year in my eyes. Of course, HB 3202 enraged me due to its unconstitutional nature. Del. Bob Marshall (R-Manassas) challenged it in the Virginia Supreme Court, where it was overturned. No more $1000 speeding ticket. From the Federal level, you read on my blog quite a few times, I was not (and still am not) a John McCain fan. After being burned out from 2007, I was not so enthusiastic as I was in years past. Barack Obama won, Gerry Connolly won, and the Democrats took Congress back…only to lead to falling polls.
That’s where 2009 came in. The honeymoon phase faded quickly and both Obama’s polls (along with Congress’ polls) dropped. Public satisfaction with the new administration was at an all-time low and is expected to continue the decline. The tea party movement grew rapidly with people being enraged at the excessive government spending and waste (thanks to Stimulus and Omnibus) and Obama’s health care plan. Rallies were held all across America, including several large ones in Washington, D.C. (including the 4-15 Washington Tea Party and the 9-12 rally). People flooded townhall meetings held by their elected officials (Congressmen and Senators) to demand accountability and responsibility at the federal government level.
2009 was also a referendum on Obama and the Democratic party with Bob McDonnell, Bill Bolling, and Ken Cuccinelli being elected to all three statewide offices in Virginia, and with Chris Christie and Kim Guadagno being elected as Governor and Lieutenant Governor in New Jersey. It was a great year for Republicans in the General Assembly races as well.
Overall, I am glad to see the end of the 2000s and am eager to welcome decade 2010-2019. Who knows what the new decade will bring both politically and personally?
Stimulus Outrage: What will the Government waste our money on next?
What will the Federal Government waste the taxpayers’ money on next? It goes without saying that the government bureaucrats in Washington will find creative ways to utilize the money coming from the Stimulus. After all, the American people thought that the funds would create more jobs and help boost our economy, but unemployment numbers continue to rise (and will continue to rise, especially if the “finalized” health care reform bill is passed). However, the American taxpayer would be livid to know what exactly the stimulus will be boosting…pet projects. Let’s just take a look at the pet projects that will be created under the stimulus. Thanks to Senator Tom Coburn (R-Okla.) for uncovering these projects.
- How does an “Almost Empty” Mall being awarded an energy grant sound? Price tag: $5 Million
- If you’re interested, Digital Television Advertising Agency will create three jobs…but you better apply fast, as they will be gone in a flash. Price tag: $5.9 Million
- If working for a Digital Television Advertising Agency does not float your boat, then how does researching in the development of supersonic corporate jets sound or studying the learning patterns of honeybees sound? Price tag: $4.7 Million for the corporate jets study and $210,000 for studying honeybees
- It looks like the Stimulus will also create a program to control household appliances from a remote location. Awesome, huh? Price tag: $787,250
- How would you like to climb aboard the wine train and get your groove on? Price tag: $54 Million
- Perhaps, while you are on the wine train, your children can watch anti-capitalist, socially-conscious puppet shows. Entertainment with a cause…yeah right Price tag: $100,000
- Do you live in Buffalo? If so, the Stimulus will create a job in your city that involves journaling your malt liquor and marijuana usage. I guess this will help soothe you after the horrible 6-14 record of the Buffalo Bills. Price tag: $389,357
- Lastly, how does a visit from Bobber the Water Safety Dog sound? I hear he is quite the hit at birthday parties. Price tag: $21,116
What other wasteful programs will the government spend the taxpayers’ money on next? I guess we will have to wait to find out.
Who is Richmond's Biggest Spender?
In his own words, Democrat candidate for Governor, Creigh Deeds, admitted that he had the most budget amendments (similar to earmarks) as a state senator, which gives him the title of Richmond’s biggest spender. Is this who we want to lead the Commonwealth, especially when Virginia is facing huge budget deficits? You can’t spend your way into debt!
Government Spending and Global Warming Research
Will the federal government consider its own research on global warming as it prepares to spend more taxpayer funded research dollars? The answer seems like an obvious no, but it would be a good thing for the US Office of Science and Technology Policy (OSTP) to consider the Environmental Protection Agency’s recent study on ocean research, especially since the EPA suppressed that particular study.
Last Friday, the Competitive Enterprise Institute filed a public comment requesting that OSTP consider the EPA study (which was suppressed by the EPA). Why should the EPA consider any additional data on climate change before making more policies on the same issue? You would think this would be obvious, but I guess we will have to wait on OSTP’s decision.
You can read more into the comments filed by CEI to OSTP, and read the report that the EPA suppressed.
The Flight to Nowhere
Rep. John Murtha is the King of Earmarks, and he sure brings back government waste (i.e. the bacon). This video shows where some of his bacon goes, and this is in the form of an airport that only serves 20 people a day. Wow, 20 people a day, and the airport is nearby Pittsburgh’s airport. Pat on the back, Jack…NOT! Not only is this a fine example of government waste, but it is the taxpayers that suffer to provide improvements, etc.
H/T to Senate Conservative Fund
First 100 Days: Obama's Spending Spree Causes Government Expansion
Since we are almost at the 100 Day mark for the Obama Administration, it is time to look back and ask, “What has Barack Obama done for you lately?” If you are like me, your answer will be to spend taxpayer dollars like it’s going out of style, push his radical social agenda on Americans, and having his DHS Secretary Janet Napolitano consider all those who have opposite political views considered extremists. In order to make this brief, he has done nothing for anyone.
Fox News shares the news that Obama’s spending spree has caused an even larger expansion of the federal government since World War II. Many economic experts are warning that more challenges face Obama. For example:
Among the warning signs: The Government Accountability Office said Thursday that states need help covering the cost of overseeing their share of the massive federal stimulus program.
Treasury Secretary Timothy Geithner told a congressionally appointed oversight panel this week that America’s banks are still broken, despite all their bailout billions. And an inspector general assigned to the bailout program concluded this week that a private-public partnership designed to buy up bad assets is tilted in favor of private investors and creates “potential unfairness to the taxpayer.”
Add to this, if more government programs are created, it will become a challenge to cut them in the future, as many jobs will be lost placing the U.S. into higher unemployment rates.
Stop Spending Our Future
The title of this video alone is enough to alarm anyone, but it is very informative of the current economic situation we are facing in America. This video is narrated by Nick Gillespie of Reason.tv that does comparisons of the bailouts/stimulus to other big government expenditures such as World War II and the New Deal.
It’s time to abandon Keynesian economic hack theories and start reverting back to the Austrian economists’ visions for fiscal prosperity.
H/T to Cato @ Liberty
