Posts tagged with: fiscal crisis

Rep. Paul Ryan

Rep. Paul Ryan

Last week’s spike in gasoline prices hasn’t slowed Nuns on the Bus a whit. The nuns and Network, their parent organization, are squeezing every drop of mileage out of their new-found fame, which has more to do with supporting liberal causes than reflecting church principles of caring for the poor and limiting government’s role in the private sector.

Over the weekend, the CBS program 60 Minutes had a sympathetic overview of the supposed Vatican crackdown of the sisters’ activities – censorship! Inquisition! – that was presented fast on the heels of the group’s March 13 press release registering its displeasure with Rep. Paul Ryan’s FY14 budget proposal.

The CBS profile failed to cover the nuns’ weighing in on such topics as averting climate change and the Affordable Care Act via proxy shareholder resolutions while focusing on social topics regarding the ordination of female priests and same-sex marriages. While sensitive to the very real works of compassion performed by the nuns, the network depicted the Vatican as hard-hearted and unyielding in its enforcement of church doctrine. (more…)

On National Review Online, Acton Research Director Samuel Gregg reflects on President Obama’s State of the Union address last night, and flags the “reality-denial” that is expressed by “a few token references to free enterprise and rewarding individual initiative (to reassure us we’re still living in America instead of just another declining European social democracy).” More:

Judging from the president’s remarks, you’d never guess we just had a negative quarter of economic growth; or that the unemployment rate just ticked up again; or that millions of Americans have simply given up looking for work; or that Obamacare is (as predicted) already driving up the health-care costs that the president claimed are falling (just ask those businesses busy shifting thousands of employees into part-time positions in order to cap their exploding health-care costs); or that . . . again, I fear I am belaboring the point.

What’s the plan from the White House?

… we hear the president tell us, yet again, that we need to pump more money into universities and colleges. Never mind the higher-education bubble, which is going to implode sooner than most people think. We’re also told that we need to develop high-speed rail. One wonders if anyone has asked people in the People’s Republic of California how that’s working out. Then there is the apparently endless promise of green energy, which, despite the billions of taxpayer dollars poured into it, hasn’t actually created that many jobs at all. In addition to all this, we are now informed we must raise the minimum wage. Never mind all the evidence underscoring just how much damage minimum-wage laws do to the job prospects of the poor and many young people, not to mention newly arrived immigrants who just want a chance to start working.

Read “Rhetoric versus Reality” by Samuel Gregg on NRO.

And pick up a copy of Gregg’s new book Becoming Europe: Economic Decline, Culture, and How America Can Avoid a European Future here.

Thanks to RealClearPolicy for linking.

It makes little, or really no sense for Americans to fork over more taxes without a balanced federal budget and seeing some fiscal responsibility out of Washington. The fact that the United States Senate hasn’t passed a budget in well over three years doesn’t mean we aren’t spending money, we are spending more than ever. The last time the Senate passed a budget resolution was April of 2009.

We are constantly bombarded with rhetoric that “taxing the rich” at an even greater rate will somehow dig us out of this mess. That’s delusional of course but the line works well in focus groups and polls. Here is a great common sense post from Frank Hill on the problems with that line of reasoning. Hill directs The Institute for the Public Trust and has a solid understanding of the economic and budget challenges facing the nation. His blog is a must to follow and as always Acton’s Principles for Budget Reform are worth reading.

There has been a lot of news coverage and debate about Republicans who signed a tax pledge. Now some of them feel boxed in and want flexibility to cut a deal. The criticism from some is that they want to cave without demanding any real concessions. Sen. Rand Paul (R-Ky) is leading the charge of criticizing Republicans who want to raise taxes. His argument is that budgets need to be balanced and taxes cut to spur economic growth.

At any rate, it’s obvious we have a spending crisis in Washington not a crisis stemming from a lack of revenue. More revenue won’t cure the ailment that plagues Washington.

At this hour, it seems that the number of leaders who are making the moral argument on the rights of Americans to keep more of their property is rapidly dwindling. Strong economic conservatives like Calvin Coolidge and Ronald Reagan made impressive moral arguments about the importance of low taxes in a free society. It not only makes economic sense but it makes sense morally. And for the record, if a politician signed his name to a pledge he or she should show some backbone and principle by honoring his word. Property and taxes are important issues, but today there is little leadership on the issue, especially the kind of moral leadership this nation desperately needs.

Standard and Poor’s decision to downgrade the United States’ credit rating has everyone talking. Discussion has ranged from we shouldn’t take Standard and Poor’s decision seriously at all to this could be the beginning of the end for the United States if it doesn’t make immediate changes. In a roundup published by National Review Online, Samuel Gregg weighs in on how the credit downgrade should be understood:

There are many reasons to be cynical about ratings agencies. These are, after all, the same outfits that assured us collateralized-debt-obligation markets were doing fine just before they started imploding in 2007–2008. Their slowness in warning about the fading creditworthiness of corrupt entities such as Enron and government-sponsored enterprises such as Fannie Mae and Freddie Mac is a matter of record.

That said, Standard & Poor’s decision to downgrade America’s creditworthiness shouldn’t surprise us. It simply states in a pseudo-official kind of way what everyone — citizens, investors, politicians, and maybe even Paul Krugman — already knows: The failure of Washington’s neo-Keynesian policies combined with the long-term projections for entitlement-spending have lowered confidence in the U.S.’s ability to meet its fiscal obligations.

While the downgrade shouldn’t surprise anyone, Gregg notes that action needs to be taken in order for the United States to recover its credit rating. Such a change does not just consist of national fiscal policy or a balanced budget, but it also includes a transformation in attitude: Americans will need to adjust the expectations they have for their government.

Click here to read the article and those of other contributors to “Down on the Downgrade?” on NRO.