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    CBO Affirms What We’ve Known All Along: Reducing National Debt Will Grow the Economy

    House Budget Committee Chairman Paul Ryan’s (R–Wis.) steps to reduce the budget would help boost economic growth. Ryan’s 2015 budget proposal contains more than $5 trillion in savings over 10 years and balances by the end of the budget window, leaving a $5 billion surplus in 2024. Ryan’s budget acquires … More

    A Path to Balance in Five Steps: What to Look for in the Ryan Budget

    The House Budget Committee will deliver its budget resolution—which would eliminate the deficit within 10 years—ahead of Congress’s statutory deadline of April 15. The Senate, on the other hand, has already announced that it would not bother producing a budget this year, relying instead on the Ryan–Murray budget deal struck … More

    Without Reform, Entitlement Spending Poses a Default Risk

    The Obama Administration argues that failure to raise the debt limit would lead to a default on federal debts, causing unacceptable harm to the economy. But the President has ample discretion to prioritize debt payments and avoid default. The President has failed to address the more fundamental risk of default: … More

    CBO Report's Facts Speak Louder Than Obama's Spending and Debt Crisis Denial

    The release of today’s Congressional Budget Office (CBO) report on the long-term budget outlook sends one message loud and clear: The U.S. spending and debt crisis is only getting worse. U.S. public debt doubled since before the recession and stands at a 50-year high today. The American public has not … More

    Sequestration Helps Force Needed Spending Cuts and Enables Private-Sector Jobs

    The Congressional Budget Office (CBO) released a letter this week describing how canceling sequestration in 2014 would affect the economy. The CBO dutifully plugged the numbers into its economic model, and the model gave the result it was written to give: more government spending equals more output in the government … More

    Moody's: Further Deficit Reduction Needed to Maintain Stable Outlook

    Moody’s changed the outlook on the U.S. credit rating from negative to stable this week, citing improving deficits. While this is good news, policymakers should curb their enthusiasm about what this means for the U.S. debt situation. The improvement could be fleeting, as Moody’s relies heavily on favorable economic growth … More

    Hurrah Too Soon: White House Budget Revision Shows $759 Billion Deficit in 2013

    The President’s Midsession Review, released this week, projects the 2013 deficit to be lower by $214 billion compared with the earlier Obama budget estimate released in April. But any hurrah would be misplaced. Most of the short-term improvement comes because revenue from the tax increases passed in December 2012 is … More

    Will the Currency Zombie Eat the Trans-Pacific Partnership?

    Currency manipulation is the issue that never dies. No matter how many times the link between exchange rates and American jobs is shown to be tenuous, the matter rises again like a zombie. In this case, it is Japan that has brought exchange rates back into the spotlight, as the … More

    Temporary Debt Paydown Just a Drop in the Bucket

    Reports that the federal government will put a little bit of money toward the massive federal debt for the first time in six years make for an interesting tidbit, but Washington’s spending and debt problem is only getting bigger. The Wall Street Journal reports, “The Treasury Department said that it … More

    Senate Budget Tax Plan: Slowing Opportunity for Americans to Grow Income

    Senator Patty Murray’s (D–WA) budget tax plan directly calls for $975 billion in new tax increases over the next decade. Indeed, the Senate budget is only a framework document, but it clearly lays out who should pay the higher taxes. The Democratic majority wants higher taxes by “eliminating loopholes and … More