fiscal responsibility Archive

About That Trust Fund . . .

By James Schaefer Mr. Obama recently stated that he couldn't guarantee that Social Security checks would go out in August if America's debt ceiling weren't raised (Obama's Debt-Ceiling Scare Tactics).   America's taxpayers have paid $2.5 trillion in FICA taxes over the past several decades to create the Social Security trust fund.  It isn't enough...
Read More

How to Fix the Economy

By John Lumbard. We have the most ridiculous tax system in the history of the world.  Last year Clorox paid taxes at a 39% rate---nearly twice what they’d pay if they moved to Canada---while GE paid nothing.  The wealthiest 10% of our citizens pay 70% of all the nation’s taxes, but...
Read More

How to Fix the Health Care Mess

By John Lumbard.   Since 1994 Jeffrey Flier, MD, now Dean of the Harvard Medical School, has been offering a plan for health care reform that would rein in the galloping cost increases that threaten to bankrupt our government and make health care unaffordable to the middle class.  His concept---universal health care...
Read More

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...
Read More

Dominique Strauss-Kahn

By John Lumbard.   What does the allegedly-amoral head of the International Monetary fund have to do with budget deficits in the U.S.?  Ever since the fall of 2008 Americans have been losing trust in their leadership and institutions.  The arrest of "DSK" pulls one more pillar out from under the...
Read More

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...
Read More

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...
Read More

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...
Read More

Term Limits!

By Ralph Lockhart.   Amid all the hoopla about budget cuts, from both sides of the political fence, the media really doesn't do much to explain the entire Federal budget issue.  Consider the recent talk about $38 billion in budget cuts.  That's a huge number . . . . $38,000,000,000, or 38 thousand millions! But...
Read More

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...
Read More