Posts tagged with: federal budget

With the ongoing budget battle and the possibility of a government shutdown looming, the Acton Institute has released its “Principles for Budget Reform.” The Acton Institute developed four key principles to reforming the federal budget that will be important to not only providing a sound fiscal budget but a budget that also has a strong moral basis.

In addition to the four principles, readers can also find staff written commentaries that are related to each principle, additional articles written by Acton staff, related blog posts, video of Rev. Sirico discussing morality in the federal budget, and audio from a radio appearance made by Rev. Sirico talking about the “What Would Jesus Cut?” campaign.

As the federal budget process continues, the Acton Institute will continue to update its “Principles for Budget Reform” with the most up-to-date articles available.

To navigate to the “Principles for Budget Reform” webpage click here.

Jordan Ballor, research fellow at the Acton Institute, will be a panelist at the American Enterprise Institute’s event “I Hope I Die Before I Get Old” on Wednesday, April 20. The event runs from 6-8 pm at the Wohlstetter Conference Center in Washington (1150 Seventeenth Street, N.W., Washington, D.C. 20036). The panel will be discussing and fielding questions on America’s long-term budget crisis and “The Call for Intergenerational Justice.”

Ballor has been very active in both topics. He recently wrote a commentary titled “Back to Budget Basics” and engaged in a discussion with Gideon Strauss, CEO of The Center for Public Justice and co-author of “The Call for Intergenerational Justice,” on The Call. Audio from the discussion can be found here.

If you plan to attend the event please be sure to register. The American Enterprise Institute will also be broadcasting live footage of the event for those who are unable to make it. To register for the event, find out more information, or to watch the event live on April 20th please click here.

Budget battles have heated up recently throughout the United States, and President Obama’s budget proposal has not been exempted from the intense discussion.

The current proposal by the President pushes our national debt to $15.476 trillion or 102.6 percent of our GDP.  Furthermore, there are no cuts to entitlement spending which consist of 57 percent of the spending in the budget, or approximately $2.14 trillion.

While it is imperative to our economic recovery to have a budget that is fiscally sound, it is also crucial to have a budget that is morally sound.  There are critics to cutting entitlement programs, however, a fiscally sound budget which may require a look at entitlement cuts and reforms, will help the poor and vulnerable.  If we continue the spending trend the United States has been fostering under previous budgets than economic recovery will be hampered which means less job opportunities.  The poor and vulnerable will be dependent on entitlement programs, violating the principle of subsidarity.

A fiscally responsible budget also abides by stewardship principles.  To be good stewards we must look long term and create a strong and stable prospering economy not just now, but for our children and grandchildren.  Monsignor Ignacio Barreiro-Carámbula addresses this issue in his blog post:

…we are leaving our debts to future generations. We are asking them to pay the principal and the interest on our debt with their labors. This is akin to forcing them into a form of indentured servitude to us, and it will last long after we have gone to meet our Maker. By law, one can reject an inheritance if has more liabilities than assets, but a citizen cannot reject public debt if he wants to remain a citizen…

Rev. Sirico also articulates the necessity of morality in the Federal Budget during his recent interview with Raymond Arroyo on EWTN’s World Over.

Blog author: rnothstine
Tuesday, February 17, 2009
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In response to the question, “What are the moral lessons of the American Recovery and Reinvestment Act (ARRA)?”

One of the gravest moral issues related to the American Recovery and Reinvestment Act is the matter of dangerous deficit spending. Anybody plugged into our nation’s financial crisis is likely aware of the unsustainable spending path of not just the federal government, but individual states as well. Because many states have balanced budget amendments, they are not entitled to run deficits, so the federal government proposes bailouts, which comes at an even greater cost to taxpayers from fiscally responsible states. One can easily see how policies like these only encourages irresponsible government spending policies.

Dr. Samuel Gregg, who is the director of research at the Acton Institute, touched on this subject and a number of important topics concerning the financial crisis in his recent address “America’s Economic Crisis: Looking Back, Looking Forward.” Offering a scathing critique of Keynesian economic policies, Dr. Gregg directly addressed the moral aspect of deficit spending:

We have every reason to believe that deficit spending on the scale being contemplated is addictive and difficult to stop. Because once we see that the various ways of ‘jump-starting’ the economy do not spark an economic revival, we will undoubtedly be told that the stimulus was not big enough, and that more deficit spending is required. More and more capital will thus be placed in unproductive spending.

The cost of deficit spending is often passed on to future generations. In other words, we force future generations to pay for the sins of the present.

Deficit spending can imply the adoption of inflationary policies. Inflation is like cancer. It acts slowly but is deadly. It attacks the weaker parts of the body, and destroys the economic well-being of the poor, such as those on pensions or other fixed incomes. But I also think that inflationary policies are morally wrong. Why? Because when you inflate the currency, the value of people’s assets is reduced. In other words, once a government introduces inflationary policies, it reduces the value of the assets that people already own. People who work hard to build up the value of their business or property suddenly find that the government has diluted the value of their asset.

In talking to my pastor about these issues a few weeks ago he reminded me of the inscription on the Liberty Bell from Leviticus, “Proclaim liberty throughout all the Land unto all the Inhabitants thereof…” My pastor also reminded me of the meaning of the verse saying, “The passage speaks about the Jubilee year when the Lord forgave people of their debts and sins and allowed for a new beginning of freedom from the slavery debt brought.” And that is a reminder of a subject Dr. Gregg also spoke so well about during his lecture, and that is the moral failings of those on Main Street and Wall Street. If we are going to see fundamental reform of spending in the nation’s capital and beyond, we need to as families and individuals have a moral aspect to our own spending and budgets.

Blog author: jballor
Wednesday, June 4, 2008
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A good hump day timewaster: APM’s Budget Hero.

Try to achieve the national security, efficient government, and economic stimulus badges all at the same time. I couldn’t on my first try, although I admit I was leaning much more heavily on the “efficient government” side of the ledger. Plus there were all the built-in biases to deal with…

Blog author: jballor
Wednesday, April 2, 2008
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Citizens Against Government Waste (CAGW) has released their “Pig Book” for 2008, which is an “annual compilation of the pork-barrel projects in the federal budget. The 2008 Pig Book identified 11,610 projects at a cost of $17.2 billion in the 12 Appropriations Acts for fiscal 2008. A ‘pork’ project is a line-item in an appropriations bill that designates tax dollars for a specific purpose in circumvention of established budgetary procedures.”

According to CAGW, “despite last year’s ethics and lobbying ‘reform,’ pork-barrel earmarks – the currency of corruption in Washington, D.C. – are alive and well.”

Senators of note (PDF):

Clinton: 281 projects, $296.2 million
Levin, Carl: 255 projects, $301.4 million
McCain: 0 projects, $0.0 million
Obama: 53 projects, $97.4 million
Stabenow: 220 projects, $232.5 million