Economy & Budget

Krugman is right, Washington is wrong

And now in the next act of the Washington performance, the Senate Democrats offer their budget, the House Republicans offer their budget, the president (between resets about what his presidency is about) will sooner or later offer his budget.

But one thing is clear: Nobody will offer a budget that promises to create significantly more jobs at a time when joblessness is the great national scandal.


Has Speaker Boehner opened the door or is he just being cute?

Despite his declaration that the Senate “needs to get off their ass,” Speaker John Boehner (R-Ohio) may have opened up the possibility of negotiations on real tax reform.

Of course, tax committee chairmen Rep. Dave Camp (R-Mich.) and Sen. Max Baucus (D-Mont.) are deep into negotiations to come up with workable ideas to reform our tax system. So Boehner’s comments today weren’t totally out of the blue.

But Boehner may realize the key to a grand bargain is as much in revamping our tax system as it is in the Tea Party’s slash and burn politics. As much as the Republicans love to repeat “we have a spending problem,” the smart ones know deep down that we have a revenue problem too.


Why sequestration needs to happen

The GOP in Congress has already lost three rounds of the fight for a balanced budget.

In December they agreed to raise taxes with no "quid pro quo". This year, they agreed to suspend the debt ceiling and finally delayed the sequestration until March. Unfortunately, as is usually the case with President Obama, the Republicans got nothing in exchange for compromising their fiscal principles.


Tax reform not a waste of time

Speaker John Boehner (R-Ohio) admitted earlier this week, in a press briefing before the State of the Union, that Republicans are no longer committed to pushing tax reform this year because the effort might be a waste of time.

"There's a debate going on about whether we can get to the kind tax reform we want given the outcome of the election," Boehner said, adding that the GOP would "love" to simplify the code and lower rates for all. Yet, in doubting the end result, Boehner is questioning the merits of the effort, and asked "why go through all of that effort if it isn't going anywhere, or why go through that effort if the outcome would be unacceptable?"


The Nanny State of the Union

Tonight, we will hear President Obama give a defense of big-government liberalism and make an argument that growing government is good for America. He couldn’t be more wrong.

Almost 1 in 6 Americans depends upon the government for food assistance. To put the enormity of this dependency into perspective, the number of people on food stamps is more than the combined populations of Illinois, Pennsylvania, Ohio and Michigan. Or in political terms, the astonishing number of food stamp recipients equates to 74 electoral votes.


Dr. Ben Carson's tithing wisdom

I was intrigued with Director of Pediatric Neurosurgery at John Hopkins University Dr. Ben Carson's perspective on tithing and our tax system during his recent address at the National Prayer Breakfast.

The reason that tithing is such a fair way to tax people is because it's proportional.  As soon as you move away from proportional taxing, ideology takes over.  As a result, ideology is, quite frankly, arbitrary and depends upon the flavor of the month.


Pointless makework

A nuclear Iran and an America $136 trillion in debt makes anything else into pointless makework.

If you turned on your television, you might think that the biggest issue facing our country is 20-year-olds stealing their mothers’ guns, or illegal immigration, as if we have never had these problems ever before and as if they are destroying our country.


Big deficit consumption

The economists and media are expressing surprise that the economy has shrunk. Anyone with a modicum of common-sense economy knowledge knew the numbers never felt or looked right from the beginning. 

Jack Welch, a true businessman, made it clear that the media and economists were delusional and selling we the people a bill of goods.


What worries you?

I was speaking to a group of college students recently and raised the question of what worries them about their future. I followed up by asking whether they were optimistic or pessimistic. A student answered that her hopes were to secure a job upon graduation and that she was neither optimistic nor pessimistic. I wasn't surprised in hearing that answer, because it seems that many in the younger generation do not think deeply about the implications of out-of-control spending. Obviously, many don't think about nor do they understand the impact of out-of-control debt on their future. They simply hope that everything is going to be OK.


Justifying the spending addiction

Republican leaders should — and I’m confident that they will — take a principled position to save our nation from further bankruptcy, which is what a rational populace would call our situation. The president knows only the blame game; he doesn’t know about accepting responsibility. Someone has to step up and take on the role of grown-up; don’t count on it being Obama. In his four total years in the Senate, he (along with Harry Reid, Dick Durbin, Charles Schumer, Patty Murray and, oh yeah, Joe Biden) opposed raising the debt ceiling, and now as president viciously demagogues those who do the same thing he did in 2007. He is shameless.