Tag Archives: Deficit

Why do leftists prefer to cut essential services instead of trimming waste?

Thomas Sowell, an economist for the people
Thomas Sowell, an economist for the people

Conservative/libertarian economist Thomas Sowell explains it.

Excerpt:

Back in my teaching days, many years ago, one of the things I liked to ask the class to consider was this: Imagine a government agency with only two tasks: (1) building statues of Benedict Arnold and (2) providing life-saving medications to children. If this agency’s budget were cut, what would it do?

The answer, of course, is that it would cut back on the medications for children. Why? Because that would be what was most likely to get the budget cuts restored. If they cut back on building statues of Benedict Arnold, people might ask why they were building statues of Benedict Arnold in the first place.

The example was deliberately extreme as an illustration. But, in the real world, the same general pattern can be seen in local, state and national government responses to budget cuts.

At the local level, the first response to budget cuts is often to cut the police department and the fire department. There may be all sorts of wasteful boondoggles that could have been cut instead, but that would not produce the public alarm that reducing police protection and fire protection can produce. And public alarm is what can get budget cuts restored.

The Obama administration is following the same pattern. The Department of Homeland Security, for example, released thousands of illegal aliens from prisons to save money — and create alarm.

The Federal Aviation Administration says it is planning to cut back on the number of air traffic controllers, which would, at a minimum, create delays for airline passengers, in addition to fears for safety that can create more public alarm.

 

He’s not going to do the right thing for America, because he doesn’t see that as his job. He wants to grow government and shrink the private sector.

State Department report finds that Keystone XL pipeline is safe for the environment

The Heritage Foundation reports.

Excerpt: (links removed)

In Washington, a presidential Administration releases news it doesn’t like at 5 p.m. on Fridays. So it pays to pay attention when everyone is leaving work for the weekend.

Late last Friday, the State Department released a positive environmental review of the Keystone XL pipeline. President Obama has been delaying this pipeline—which would carry oil from Canada to refineries in Texas—for more than three years.

The delay has meant that America is still waiting on an additional 700,000 to 830,000 barrels of oil per day from a close ally, not to mention 179,000 American jobs.

Why has this taken so long, when all environmental reports thus far have been positive? Heritage’s Nicolas Loris, the Herbert and Joyce Morgan Fellow, explains:

Given the need for jobs and more oil on the global market to offset high prices, the permit application had been moving along positively with bipartisan support without much attention until environmental activists made blocking the Keystone XL pipeline their issue to rally around for 2011. Although President Obama and the Department of State (DOS) said they’d make a decision at the end of 2011, they ultimately catered to a narrow set of special interests, punting the decision until after the 2012 elections.

The State Department, which is overseeing the pipeline because it crosses a U.S. border, has “already conducted a thorough, three-year environmental review with multiple comment periods,” Loris reported last year.

The review has been comprehensive:

DOS studied and addressed risk to soil, wetlands, water resources, vegetation, fish, wildlife, and endangered species. They concluded that the construction of the pipeline would pose minimal environmental risk. Keystone XL also met 57 specific pipeline safety standard requirements created by DOS and the Pipeline and Hazardous Materials Safety Administration.

This confirms the previous assessment done by the Nebraska government, which concluded that the Keystone XL pipeline was safe for Nebraska’s environment as well.

Related Posts

Michele Bachmann questions Ben Bernancke

Awesome:

Partial transcript:

BACHMANN: So the Fed wouldn’t need to be buying all these treasuries then. We could find other buyers of our debt. Is that true?

BERNANKE: Yes.

BACHMANN: So then why are we doing it?

BERNANKE: To keep rates a little bit lower, to help support housing, automobiles, and other parts of the economy that need support.

BACHMANN: But if there are other buyers, why the FED?

BERNANKE: To get rates a little bit lower.

BACHMANN: So if my 18-year-old daughter was spending 40 percent more than what my husband and I were giving her, and she didn’t just do it this month but she did it the next month and the next month and the next month — and finally my husband and I said, ‘We’re just not going to bail you out anymore, we’re not going to continue to finance that overspending that you’re doing,’ and she said to me, ‘Mother, we need to align our solution with the problem,’ — in other words, you need to keep giving me that money because it’s really not a problem yet — I would say, I think you have a problem today.

And the reason why I would say that is because the analogy with the federal government, in January of 2007, our debt was 8.67 trillion. That debt today is closer to 16.5 trillion with the intra-government debt, according to your calculation.

Do you think that’s a problem, that in six years, we’ve gone from 8.67 trillion to 16.5 trillion?

BERNANKE: Certainly I think it’s a problem, and I think it’s important we have measures to bring down it down over time.

BACHMANN: But you said we need to align the solution with the problem. It seems to me we have a big problem. and I’ll tell you why. When I was home this last week and talking to a lot of women, they were telling me, ‘I don’t get this — gasoline at Christmastime was $2.99 a gallon, now it’s $4 a gallon.’ They say, ‘I can’t keep up with the price increases at the grocery store. And we just got our health insurance premium and its going to be $300-a-month more than what it was.’

And so all I want to say Mr. Chairman is that what I’m hearing from people is that they are having to deal with the inflationary pressure.

Inflation is nothing but a hidden tax on people who save their money so that they can be independent in their old age. It’s nice to see Michele looking out for savers like me.