Want to hear something disturbing? China has increased its defense budget by double digits every year for the last 20 years. Just as China seems to be gearing up for some undefined enterprise, the U.S. is winding down its defense budget at a similarly rapid pace. Despite the obvious contrast, President Obama said recently that reductions in U.S. defense spending “will not—I repeat, will not—come at the expense of the Asia-Pacific.” Yesterday, Obama visited Australia to announce a renewed U.S. troop presence in coming months, part of a new security …
Sen. Mike Lee (R-UT) came to Washington as the a tea-party conservative with the goal of fixing the economy, addressing the debt crisis and curbing the growth of the federal government. It’s an uphill battle for the youngest member of the U.S. Senate, but one he’s prepared to fight. Lee’s recent book, “The Freedom Agenda: Why a Balanced Budget Amendment is Necessary to Restore Constitutional Government,” outlined his goals for changing Washington. (Listen to our recent podcast.) Yesterday at Heritage, he delivered the annual Helms Lecture, detailing his opposition of …
Sen. Ron Johnson (R-WI) today predicted lawmakers would take President Obama to court if he deemed the debt ceiling is unconstitutional under the 14th Amendment. Liberals have floated the desperate and devious ploy in recent days to avoid spending cuts demanded by conservatives. “If the president decides to do that — and that would be his decision and his alone — our only option at that point would probably be to take him to court,” Johnson said this morning on a call with reporters and bloggers. “If he does it, …
Social Security faces the serious danger of failing to live up to its name due to its unfunded obligations. Last week, the Social Security and Medicare trustees issued their report on the fiscal outlook for the program. We reported that: Social Security has a $7.9 trillion shortfall (up $0.1 trillion from last year), which means the program would require $7.9 trillion in cash—today!—to afford its promises. Alternatively, closing that gap would require payroll taxes to rise immediately and permanently from 12.4 percent of earnings to 14.24 percent. For a worker …
The term ‘fiscal responsibility’ is en vogue in Washington these days. Lawmakers have been quick to claim they will tackle the federal government’s impending financial crisis, a claim showcased by the President’s commission to reduce the federal deficit. But Congress’ recent behavior proves they are no more serious about reining in spending than they were before, exposing the deficit commission for the fig leaf that it really is. Yesterday, House Majority Leader Steny Hoyer (D-MD) announced that, for the first time since 1974, the House will not pass a budget …
When it comes to spending, President Obama’s proposed budget for 2011 takes fiscal irresponsibility to Greece and beyond. Ernest S. Christian and Gary A. Robbins, both former Treasury tax officials, write in the Washington Times that “the president’s planned fiscal excesses beyond 2010 cannot plausibly be attributed to the recession, blamed on George W. Bush or justified by economic principles, Keynesian or otherwise.” Growth in spending will only aggravate the nation’s currently poor fiscal outlook. By 2020, the public debt will be 91 percent of Gross Domestic Product (GDP), and …
Recent reports of China’s economic growth contrasted with the U.S. economic downturn have left Americans increasingly concerned that China is becoming a new superpower, controls American finances and will surpass the United States as the world’s leading power. The reality is that the fundamentals of the American economy are stronger than China’s, and U.S. prospects are better. Let’s take exhibit A. It may appear that China contributes the most to world GDP and leads global growth given its 10.7 percent growth last quarter, as well as its 8.7 percent average …
[youtube]http://www.youtube.com/watch?v=JxQgqqnpxo4[/youtube]
“It’s very telling that the first vote that we’re going to make on health care, Neil, is to add a quarter of a trillion dollars to the federal debt.” [youtube]http://www.youtube.com/watch?v=KSP28MjkeAI[/youtube]
