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Tag Archives : deficits

Federal Spending Primer, Part III: The Spending Problem is an Entitlement Problem

Federal Spending Primer, Part III: The Spending Problem is an Entitlement Problem

Posted on September 8, 2023

Discretionary spending is not causing America’s increasing fiscal burden.

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Federal Spending Primer, Part II: The Spending Burden

Federal Spending Primer, Part II: The Spending Burden

Posted on September 6, 2023

Understanding the economic burden of the federal government.

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Federal Spending Primer, Part I: Budget Basics

Federal Spending Primer, Part I: Budget Basics

Posted on July 25, 2023

Explaining the core features of federal budgeting.

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The Simple and Predictable Story of Fiscal Bankruptcy in Cyprus

The Simple and Predictable Story of Fiscal Bankruptcy in Cyprus

Posted on July 5, 2012

With all the fiscal troubles in Greece, Spain, Ireland, Portugal, and Italy, there’s not much attention being paid to Cyprus. But the Mediterranean island nation is a good case study illustrating the economic dangers of big government. For all intents and purposes, Cyprus is now bankrupt, and the only question that remains to be answered […]

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Switzerland’s “Debt Brake” Is a Role Model for Spending Control and Fiscal Restraint

Switzerland’s “Debt Brake” Is a Role Model for Spending Control and Fiscal Restraint

Posted on April 27, 2012

I’ve argued, ad nauseam, that the single most important goal of fiscal policy is (or should be) to make sure the private sector grows faster than the government. This “golden rule” is the best way of enabling growth and avoiding fiscal crises, and I’ve cited nations that have made progress by restraining government spending. But […]

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New Budget from Republican Study Committee Reduces Burden of Government to Where It Was When Bill Clinton Left Office

New Budget from Republican Study Committee Reduces Burden of Government to Where It Was When Bill Clinton Left Office

Posted on March 28, 2012

A couple of weeks ago, I offered some guarded praise for Paul Ryan’s budget, pointing out that it satisfies the most important requirement of fiscal policy by restraining spending – to an average of 3.1 percent per year over the next 10 years – so that government grows slower than the productive sector of the […]

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By Restraining Burden of Federal Spending, Senator Paul Shows How It’s Simple to Balance the Budget

By Restraining Burden of Federal Spending, Senator Paul Shows How It’s Simple to Balance the Budget

Posted on March 12, 2012

Last year, while lounging on the beach in the Caribbean…oops, I mean while doing off-site research, I developed the first iteration of a rule to describe how fiscal policy should operate. Good fiscal policy exists when the private sector grows faster than the public sector, while fiscal ruin is inevitable if government spending grows faster […]

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According to Obama’s Budget, Burden of Federal Spending Will Be $2 Trillion Higher in 10 Years

According to Obama’s Budget, Burden of Federal Spending Will Be $2 Trillion Higher in 10 Years

Posted on February 13, 2012

President Obama’s budget proposal was unveiled today, generating all sorts of conflicting statements from both parties. Some of the assertions wrongly focus on red ink rather than the size of government. Others rely on dishonest Washington budget math, which means spending increases magically become budget cuts simply because outlays are growing at a slower rate […]

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If Raising the Debt Ceiling and Issuing More Debt Was the Way To Preserve America’s Credit Rating, that Means…

If Raising the Debt Ceiling and Issuing More Debt Was the Way To Preserve America’s Credit Rating, that Means…

Posted on August 20, 2011

…Well, I’m not sure what it means. But it sure doesn’t make sense when you look at the big picture. A credit card company wouldn’t increase a deadbeat’s credit limit, so why is it a sign of fiscal prudence to give Uncle Sam more borrowing authority? That being said, I never thought it was realistic […]

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U.S. Needs to Ditch the OECD

U.S. Needs to Ditch the OECD

Posted on August 11, 2011

This past week Standard and Poor’s lowered their credit rating for the U.S. for the first time ever amidst debt ceiling debates over the growing federal deficit. Our leaders have nearly all acknowledged that to get the credit rating back to AAA there will need to be cutbacks in the nation’s debt. The best way […]

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