bipartisan reform Archive

Are We Like Greece?

By John Lumbard. The fear that Europe will drag the U.S. into a recession is ebbing, and it's about time.  It's likely that Europe is already in a recession, but we're not---and there's little reason why we should be, because our exports to the continent are only worth about 4% of our...
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The Truth about Entitlements

By James Schaefer.   In today’s Wall Street Journal, the lead editorial discusses the problems of government overspending (The Road to a Downgrade, July 28, 2011). Medicare, Social Security, and Medicaid prove Milton Friedman's thesis: we cannot get something for nothing.  There is no free lunch; and indeed, it is quite an...
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Cut, Cap, and Balance, Explained

Budget proposals are coming fast and furious in Washington these days.  Most of it is political chatter, but there HAVE been a number of proposals that aspire to responsible government for the long term.  Today's top story in that regard is "Cut, Cap, and Balance" which would smooth over some near-term...
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Problems With a Balanced Budget Amendment?

In yesterday's Wall Street Journal Senators Snowe and DeMint wrote an opinion piece (subscription req'd) which points out that none of today's budget negotiations offer anything like a long-term cure for the fiscal irresponsibility that has become the norm in Washington, DC.  They argue that this goal is best achieved...
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The Most Predictable Economic Crisis In History

That's what Erskine Bowles, co-chair of the president's National Commission on Fiscal Responsibility, said about our government's ever-so-slowly-developing fiscal calamity in this Senate Budget Committee testimony. The President disavowed the findings of his commission, but it continued on in a scaled-down group of six members (all Senators) called the Gang of...
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Building a Prosperous Future

By Tim Munsell.   Our National Debt is over $14 Trillion dollars, and growing by $1.5 trillion dollars a year.  That’s $47,500 per second! And the Congressional Budget Office says that unfunded liabilities for future payments of Social Security, Medicare and Medicaid add tens of trillions more.  This gigantic debt will have enormous consequences...
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Battling Against the Truth

By John Lumbard.   Spending more than you have feels pretty good, so the resistance to balanced budgets---or anything close to balanced budgets---is not surprising.  Still, it's always a bit of a shock to read carefully-thought-out opinions, written by smart people, that are nonsensical efforts to bend reality to justify the status quo. Today...
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The Cost of Promises

By James Schaefer. CalPERS, California's massive state employee retirement fund, has $227 billion invested in the stock and bond markets to guarantee the future promises that have been made to the state's workers. Those investments generate earnings, and CalPERS has to guess at the rate of return they'll produce to know whether...
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Speech On Boston Common

By John Lumbard.   "In the last 75 years there's been a dramatic change in our nation's Congress.  Our legislators used to say and believe that they represented the interests of all Americans, and were working to do what what’s best for the nation as a whole.  Now they say that...
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The Antidote

By Alan Parks.  Business World writer Holman Jenkins, Jr. lays out the case very well in a Wall Street Journal article on April 6, 2011  that the United States is almost certainly going to deal with its massive deficits and unfunded entitlement liabilities by printing fiat money---which could lead to significant, painful...
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