Tag Archives: debt

Mohler: Our Government Spending-and What It Reveals


Our government spending is way up—and everyone is seemingly fine with it.

A recent headline at the New York Times captured it well: “A Giant Deficit, Once Dreaded, Is Now Desired.” Historically, of course, we’ve had a long-standing argument in American politics about debt, the deficit, and government spending.

But now, all those old rules seem to be completely out the door.

On both sides of the political aisle, we have politicians making arguments they wouldn’t have believed they could have gotten away with just eight weeks ago. Republicans don’t sound like Republicans, and some of the Democrats sound like the kind of Democrat that other Democrats would have run from just weeks ago.

We need to be alerted to the danger of debt—a debt that future generations will have to repay.

Our economic decisions reveal our morality, our culture, our priorities … these decisions eventually reveal who we are.

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Hugh Hewitt: A Rare Bi-Partisan Opportunity for Congress

Older Americans face a housing crisis—and Congress has an opportunity to do something about it.

No: Retirement savings reform is not a hot topic for journalists, but it’s one of the few areas where Democrats and Republicans in Congress and President Trump could pull off some bipartisan reform when legislators reassemble in September.

Older Americans on fixed incomes face a housing crisis, and one part of that solution is retirement reform.

When Congress gets to gets back to business in the fall, they ought to consider how to help seniors stay in their homes as incomes decline or stop but mortgage payments stretch out into the future.

Retirement reform could allow seniors to pay off all or part of their home mortgage debt with money saved in their own retirement accounts without triggering taxes on the money used to do so.

Congress has an opportunity to take a big step toward solving one part of this problem.

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Jerry Bowyer: High Stakes in the 2020 Election

The stakes in the 2020 election may be higher than many Americans recognize:

A detailed look by Townhall Finance into the causes of national financial collapse—measuring hundreds of factors against scores of nations—reveals that the most reliable path to a financial collapse occurs when a nation’s leadership class turns sharply against wealth creation.

When there’s an erosion of business freedom and property rights and when government corruption, taxes and debt increase, the probability of a financial collapse goes up 3 to 5-fold.

Why should we care about how other nations have collapsed? Because large sections of today’s Democratic party are openly embracing exactly those kinds of policies.

The 2020 election is not just about the difference between a 2 percent growth rate and 4 percent growth rate.

It might be about continued growth vs. something which would make the great recession pale in comparison.

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Jerry Bowyer: The Lessons of History and the Green New Deal

By now you have all heard about the Green New Deal. It doesn’t take a very long memory to know that this sort of massive spending plan will collapse the economy.

You see, the European debt crisis was triggered in part by plans very much like those recommended in the Green New Deal: Heavy subsidies for so-called green tech, utopian timelines for alternative energy usage, and punitive treatment on the kinds of energy which our economy actually depends on. The result? Greece and Spain and Italy triggered a crisis that jeopardized the future of the entire European Union.

If eight years ago is ancient history for AOC and her zealots, how about three months? France instituted a tiny version of the same thing—and even France abandoned it. Experience is a great tutor, but her tuition can be very expensive for those who refuse to learn from the failures of others.

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David Davenport: The Green New Deal Looks Red to Me

Perhaps you’ve heard about the Green New Deal?  It’s freshman Congresswoman Alexandria Ocasio-Cortez’s revolutionary scheme to reinvent the entire American economy.  She calls it “the Great Society, the moonshot, the civil rights movement of our generation.”

But look a little deeper and you’ll see different colors:  the blue of progressivism and mostly the red of government spending and debt.  The proposal calls for a breathtaking $90 billion in green initiatives.

Even mainstream Democrats are hesitant about this sweeping effort to reinvent the economy and eliminate income inequality.  But media darling Ocasio-Cortez will make it front and center.

The first New Deal turns out not to have solved the Great Depression as we once thought.  We hardly need a new one. Is it green? Yes. Is it utopian?  Yes.

But mostly it’s the same old liberal blue of government spending and the red of more debt.

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Lanhee Chen: A Spending Problem

single-payer

President Trump earned significant praise for his first State of the Union Address—and for good reason. It presented an affirmative vision for what unified Republican governance can accomplish. It also laid out policy priorities to keep the homeland secure and strengthen our economy. One thing that was missing, however, was any mention of our growing deficits and national debt. Washington is spending more money than it has and more than it should—and lawmakers from both parties seem perfectly content to continue on the path we’re on. This spending requires us to borrow money from foreign adversaries, hurts our economy’s ability to grow and leaves our kids and grandkids with the bill.

 

A change in course is desperately needed. Indeed, reining in spending is never politically easy. That’s why it will take a leader willing to buck trends and attack the special interests—and perhaps even some in his own party—to get the job done.

 

Here’s to hoping that Donald Trump can be that leader.

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Jerry Bowyer: A Necessary Fix On Tax Reform

Shooting Florida

The Senate version of tax reform has a hidden problem which needs to be addressed. It would greatly increase the tax burden on companies which are in debt. When a company expands operations, by say, building a factory, they usually borrow money to do it.

The tax code has always allowed business to take the cost of that borrowing into account when they calculate their profit for the sensible reason that it is a cost of doing business. Tax reform is cutting that back, and the Senate version is cutting it back severely, especially for companies that own a lot of heavy equipment such as miners and manufacturers, exactly the type of companies that we’re trying to revive as part of the Trump growth agenda.

If we get this wrong, during the next downturn, we may well see an epidemic of high growth and heavy equipment companies driven into bankruptcy by their inability to pay their old debt and their new taxes on it at the same time.

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