Government Spending

[bluesman]

Since Congress is in charge of spending, I am posting in this thread in the "Congress" section of the forum.


I heard this guy, Bill White, the former Houston Mayor, being interviewed on the radio yesterday and I was impressed with what he was saying. You can click on the link to read a different interview that he did also.

BOOK REVIEW & Conversation: 'America's Fiscal Constitution' by Bill White | The Rivard Report

In the book – which is surprisingly readable, despite being dense with information. White examines periods in American history when the government went into debt. Using these examples, he elucidates part of an unwritten constitution, the American Fiscal Tradition, that guided how the government spent money, levied taxes, and borrowed money.

For those of us who came of voting age post-2001, it’s full of surprises.

His conclusion: America grew into the superpower that it is on a “pay as you go” plan, borrowing money only to preserve the nation, expand and connect the nation’s borders, wage war, and during severe economic downturns. When they borrowed, repayment was a front and center priority in the short years that followed.

What’s different now, White explains, is that both parties lack the political will to directly correlate spending and taxes. Our nation is borrowing money to pay for normal expenses – like Medicare. Meanwhile we continue with a wartime budget that was never financed through taxes. The problem is bipartisan, and White offers up bipartisan suggestions to get a conversation rolling. He maintains that while polarized leadership may have different desires when balancing the budget, history shows that if it’s a high enough priority for both parties, it can happen. And it would really help if the voters knew what to demand.

“America’s Fiscal Constitution” might not be this summers #1 beach read, but if it were, we’d be a long way toward a more informed electorate.

 

[waltky]

Overall spending increased, But Spending on Defense, Homeland Security, Justice Declined...

Federal Spending Increased $183.9B in FY15—But Spending on Defense, Homeland Security, Justice Declined
October 19, 2015 | - Even as overall federal spending increased by $183,890,000,000 from fiscal 2014 to fiscal 2015, spending for the departments of Defense, Homeland Security and Justice declined, according to the Monthly Treasury Statement for September.

Federal spending rose from $3,503,732,000,000 in fiscal 2014 to $3,687,622,000,000 in fiscal 2015 (which ended on Sept. 30), according to the Treasury. But, according to Table 3 in the Monthly Treasury Statement, spending on the Defense Department and military programs decreased from $577,902,000,000 in fiscal 2014 to $562,506,000,000 in fiscal 2015—a drop of $15,396,000,000. Similarly, spending on the Department of Homeland Security decreased from $43,259,000,000 in fiscal 2014 to $42,564,000,000 in fiscal 2015—a drop of $695,000,000. Spending on the Justice Department decreased from $28,617,000,000 in fiscal 2014 to $26,911,000,000 in fiscal 2015—a drop of $1,706,000,000. The Defense Department maintains and operates the U.S. military to protect the nation against foreign enemies. The Department of Homeland Security is responsible for securing the nation’s borders and enforcing the immigration laws. The Department of Justice prosecutes violators of federal law.

While spending on the departments of Defense, Homeland Security and Justice declined in fiscal 2015, spending for the Department of Health and Human Services, the Department of Education, and the Legislative and Judicial branches increased. Spending on the Department of Health and Human Services, according to the Monthly Treasury Statement, increased from $936,032,000,000 in fiscal 2014 to $1,027,422,000,000 in fiscal 2015—a climb of $91,390,000,000. Spending for the Department of Education, according to the Monthly Treasury Statement, increased from $59,609,000,000 in fiscal 2014 to $90,031,000,000 in fiscal 2015—a climb of $30,422,000,000. Spending for the Legislative Branch increased from $4,156,000,000 in fiscal 2014 to $4,329,000,000 in fiscal 2015—an increase of $173,000,000. Spending for the Judicial Branch increased from $6,900,000,000 in fiscal 2014 to $7,128,000,000 in fiscal 2015—an increase of $228,000,000.

In other some other major categories of federal activity, Department of Agriculture spending decreased (from $141.806 billion to $139.112 billion), Department of Housing and Urban Development spending decreased (from $38.524 billion to $35.521 billion), Department of Labor spending decreased (from $56.768 billion to $45.218 billion) Department of State spending decreased (from $27.486 billion to $26.495 billion) and Department of Transportation spending decreased (from $76.177 billion to $75.453 billion). Meanwhile, Social Security Administration spending increased (from $905.769 billion to $944.143 billion), Department of Commerce spending increased (from $7.896 billion to $8.956 billion), Department of Energy spending increased (from $23.638 billion to $25.424 billion), Department of Interior spending increased (from $11.275 billion to $12.347 billion), Department of Veterans Affairs spending increased (from $149.074 billion to $159.217 billion), and International Assistance Spending increased (from $17.093 billion to $18.272 billion).

Federal Spending Increased $183.9B in FY15—But Spending on Defense, Homeland Security, Justice Declined

See also:

Washington Sets Stage for Another Financial Crisis
October 19, 2015 | My 13-year-old son told me at the dinner table the other day that Franklin Roosevelt was one of America’s “greatest presidents” because “he ended the Great Depression.” He’s usually a good student, so I checked where he got this tripe, and sure enough, the fairy tale was right there in his American history book.

The textbook tells kids that the New Deal ended the Great Depression and even saved capitalism. Of course, the New Deal exacerbated the pain and financial devastation of a stock market crash, and unemployment lingered in double digits for a decade after Roosevelt was elected until the start of World War II. We get this kind of rampant revisionism because the left writes the history books—which they are doing right now. Here’s the latest story line: bailouts, trillions of dollars of government spending and debt, easy money, and re-regulation of Wall Street ended the 2008 Great Recession. The myth took on new life last week when Ben Bernanke took a bow in the Wall Street Journal for, in his mind, saving the economy with his $3 trillion of quantitative easing and zero interest rate policy. No, actually, this is what created the crisis. Don’t be surprised if Bernanke receives a Nobel Peace Prize.

A home is advertised for sale at a foreclosure auction in Pasadena, Calif.​

As my fellow Heritage colleague Norbert Michel and other scholars have thoroughly documented, the crash of 2008 was caused by government policies and regulatory failure, including easy money policies that flooded the markets with debt. Within a decade, these policies led to preposterous mortgage loans being issued, and massive over-leverage of government, companies, and households. Now the Fed, the White House, and Congress are recreating the very same conditions for another financial bubble. If it pops, we could replay the same devastating effects as occurred during the first bubble in 1999 and 2000. It is doing so in four ways:

First, the Dodd-Frank regulations are exacerbating one of the greatest consolidations of the banking industry since the Great Depression. Those indispensable small banks, like the one Jimmy Stewart operated in the movie “It’s a Wonderful Life,” are disappearing from the American landscape. This is largely because big government policies are slanting the system in favor of big banks. Because of this, we have created a competitive advantage that allows the sharks to swallow the minnows. Meanwhile, the “too big to fail” safety net to Bank of America, Citi, and other titans exacerbates this cost advantage of big banks and thus makes bailouts even more likely in the future.

MORE

Related:

$496,000 State Department Grant Uses Weaving to Empower Women, Girls in Timor-Leste
October 16, 2015 | - The State Department is planning to award $496,000 in taxpayer funds to help female weavers in the Southeast Asian nation of Timor-Leste.

The goal of the grant, titled, “Women Weaving a Better Future through Better Business,” is to advance “economic empowerment for women and girls” so they will “avoid abusive relationships, stay in school, become economically self-sufficient, contribute to the evolving economy of Timor-Leste, and promote cultural traditions of Timor-Leste through the modernization of marketing strategies and development of collectives for traditional tapestries.” The U.S. Embassy in Dili, Timor-Leste announced the funding opportunity for a new program with the goal of helping “female artisans develop a sustainable business collective, access international markets, and increase revenue.” “Independent for just over ten years, Timor-Leste is confronting many challenges as a new nation. Among these, some of the most difficult are endemic rates of gender-based violence, limited economic opportunity, and pressures for girls to terminate education early,” the embassy noted on its website.

In the largely male-dominated culture, “incidents of rape and incest have disproportionately affected school-age girls, forcing them to leave school early,” the embassy noted. “Teen pregnancies are met with pressure from communities to quit school and marry -- often resulting in girls marrying their abusers,” it added. More than 50 percent of women report partner abuse at least once in their lifetime. “Women are generally restricted from participating in much formal economic work. Instead, they are expected to stay at home and tend to the family. As a result, women often lack resources to leave abusive relationships,” the embassy stated.

The program is designed to “modernize local skills and develop business practices for artisan weavers” in the region, “develop a united, organized collective for women weavers,” provide a scholarship and internship program for girls, “identify new markets and develop strategies for international market access,” and provide “sub-grants to local organizations working to empower women through economic opportunity in the artisan industry.” “Bright spots, literally and figuratively, in this framework are the intricate woven fabrics, tais, that Timorese women produce. The artistic tapestries have been a form of currency in trade for much of Timor-Leste’s history. They are still utilized in formal ceremonies and, where it still exists, bride prices,” the embassy stated. “The success of occasional appearances by individual producers at international craft fairs made possible by funding from NGOs, including sell-out trips to the renowned International Folk Art Market in Santa Fe, New Mexico, indicates that the products have commercial potential,” it stated. “However, producers currently lack access to broader markers needed to sustain a business operation. “In addition to providing a much-needed export product to propel economic growth, a more developed tais industry would directly empower women and girls. Timor-Leste is also entering a new era of its economic future as it begins to build service-oriented skills.

MORE

 

[AdvancingTime]

In November of 2014 the national debt was poised to pass the 18 trillion mark. As of now the National Debt Clock shows 800 billion dollars has been added to the total and the amount owed continues to grow. A major concern for this writer is that in 2017 entitlements are poised to balloon causing a massive spike in government spending.

The myths the budget is under control and that a scenario of growth coupled with a falling deficit will allow us to outgrow many of the problems we face brings with it a false optimism and hope. The fact is we are mired in the mist of the greatest government debt bubble in the history of the world. More concerning this subject in the article below.

http://brucewilds.blogspot.com/2015/08/national-debt-is-exploding.html

 

[AdvancingTime]

At one time a billion dollars was a massive amount of money and it still is. Most people that have not thought about it might not think so considering how modern media and politicians throw the "B" word around. A million is a large number so the magnitude or difference between billion and million is very important.

To put it in perspective think in terms of someone working every year from the age of 20 until they are 60 making $25,000 a year. Their total income over their life would be one million dollars. Below is an article that attempts to bring into focus the massive size of a billion dollars.

Advancing Time: An Ugly Math Primer On American Debt

 

[waltky]

Congress Races to Pass $1.3 Trillion Spending Bill...

US Congress Races to Pass $1.3 Trillion Spending Bill
March 21, 2018 - U.S. congressional leaders appeared Wednesday to have reached a deal on a $1.3 trillion spending bill as a budget deadline loomed.

The bipartisan bill, which would keep the government funded until the end of September, has President Donald Trump's support, the White House said in a statement. "The president had a discussion with [House] Speaker [Paul] Ryan and [Senate Majority] Leader [Mitch] McConnell, where they talked about their shared priorities secured in the omnibus spending bill," White House press secretary Sarah Huckabee Sanders said.

Deadline late Friday

Negotiators planned to unveil the spending bill later in the day in hopes of passing it before a Friday midnight deadline to avoid a government shutdown. The bill will give Trump a huge budget increase for the military, including a 2.4 percent pay raise for military personnel. It also will include a measure strengthening the federal background check system for gun purchases. The measure would provide funding for states to comply with the existing National Instant Criminal Background Check System and penalize federal agencies that don't comply.

People walk by the U.S. Capitol in Washington​

It also will provide money to improve school safety. The funds would go toward training school officials and law enforcement officers how to identify signs of potential violence and intervene early, and installing metal detectors and other steps to "harden'' schools to prevent violence. GOP aides said Trump would win $1.6 billion for a wall and physical barriers along the U.S.-Mexico border. But Trump would be denied a far larger $25 billion request for multiyear funding for the project. To the Democrats' disappointment, the bill offers no protections for so-called Dreamers, undocumented immigrants brought to the United States as children.

No insurer subsidies

It also won't provide subsidies to health care insurers who cut costs for low-earning customers. And it won't provide federal payments to carriers to help them afford to cover their costliest clients. Both parties touted the $4.6 billion in total funding to fight the nation's opioid addiction epidemic, and a record $3 billion increase for medical research at the National Institutes of Health. The House is expected to vote on the bill by Thursday, followed quickly by the Senate, to meet Friday's midnight deadline.

US Congress Races to Pass $1.3 Trillion Spending Bill