Archive for November, 2010

On America’s Deficit

By James Schaefer The current issue of The Economist (Briefing: America's Deficit, November 20,2010) calls for spending cuts and tax increases in the ratio of 75:25.  However -- whether fact or perception -- all tax increases are permanent, and all spending cuts are temporary. This point has not been lost on America's...
Read More

Three Cheers for the National Commission on Fiscal Responsibility!

By John Lumbard.   The President's Commission on Fiscal Responsibility will release its findings on December 1, but recently the two chairmen--Republican Alan Simpson and Democrat Erskine Bowles---took the extraordinary step of releasing a "draft" of the "Co-Chair's proposal".  It's an end-run around the dissenting voices in the commission, and a clear statement that...
Read More

A Billion Here, A Billion There . . .

By James Schaefer Recently, both President Obama and the Republican leadership have taken principled stands against "earmarks", those special spending riders for local projects that are attached to larger appropriations. Advocates of earmarks insist that earmark reform is misguided, since all earmarks total only --"only" -- 2% to 3% of federal spending. Federal...
Read More

Public Servants And Their Material Non-Public Information

By John H. Haldeman, Jr., CFA   During the 1840s, before Texas was admitted to the Union and before oil was discovered, bonds issued by the territory were deemed speculative, and traded at a large discount.  Embedded in the treaty of annexation was a provision that the United States would assume...
Read More

Explaining the Tea Party

It's obvious that the Tea Partiers are driven by anger at the "irresponsibility of Congress" as my Colby College English professor Ed Witham put it (many times) in the mid-to-late 1970s.  At first it appeared that this was all about fiscal responsibility, but let's be honest---budgets don't generate much passion. ...
Read More

Your Legislators Work for You. Make Them Do Their Jobs!

We've heard a lot of talk about fiscal responsibility in the last few months, and now it's time for the new Congress to follow through.  The primary responsibility of our congresspeople is to manage our money responsibly;  if they continue to pile IOUs onto the backs of little children we should...
Read More