limit on federal spending Archive

The ENTIRE Government Runs on Borrowed Money

By Ron Olive.   (To the Editor of the Wall Street Journal)   Sir:   In “Revenues Are Rising” (Review & Outlook, January 12th), you tell us that, according to the Congressional Budget Office, federal receipts “have climbed by $44 billion, or nearly 9%, to $531 billion” during the first quarter of fiscal...
Read More

Incentives Rule!

By John Lumbard.   In December the Boston Globe ran a front-page story on the “dangerous incentives” created by a program that offers cash to the parents of children taking psychotropic drugs for ADHD and other behavioral conditions.  The number of children on these drugs has predictably swelled, and a program...
Read More

Hair of the Dog

By John Lumbard.   Unemployment claims are down.  The trade deficit is rising.  The Fed is printing money.  A new cut in payroll taxes (less FICA taken out of your paycheck) and an extension of unemployment benefits will mean growing federal budget deficits---and a big new stimulus for the economy.  We’re...
Read More

Don’t Throw Rocks at the Firemen

When people are in trouble they're not always willing to accept help.  Whether you're talking about an alcoholic resisting intervention, a drug addict, a wife who protects her wife-beating husband, or a homeowner who refuses to leave the flanks of an erupting Mount Saint Helens, there's never been a shortage of...
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

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

20 by ’20: A Limit on Federal Spending

By Dennis Canfield.     “…  It's time to try something new.” - President Barack Obama, introducing his $3.8 trillion budget for 2011---which proposes that our federal government spend 25 cents of every dollar earned by every American, rich and poor alike.  This is new.  Before World War II, our government typically spent 10% less...
Read More

Postponing the Pain

Economist Charles Wheelan writes occasionally for Yahoo Finance, and he's always terrific.  In a recent article he suggests that the President extend the current graduated tax structure, with a plan to balance the budget in 3 or 4 years (when the economy is stronger) by cutting spending and adding consumption taxes...
Read More

Letter To A Congressman

By John Lumbard.   Dear Congressman; In high school we all learned that our Congress has the power of the purse.  Our legislators have other powers and responsibilities, but their most basic duty is to ably manage the monies that they extract from reluctant and disillusioned taxpayers and voters.  They have failed...
Read More