The debt-limit deal this summer guaranteed a vote on a Balanced Budget Amendment this year. As the House and Senate prepare to vote, there is concern among conservatives that lawmakers will act on a proposal that includes weaker language than others. Sen. John Cornyn (R-TX) spoke at Heritage today about the importance of enacting the strongest possible version, one that caps federal spending at 18 percent of the economy and requires a super-majority vote in Congress to increase taxes. Following his speech, Cornyn spoke to us about the debate over …
Congressional passage of three free-trade agreements yesterday marked a rare victory for economic freedom in America. But the United States has a long way to go before it regains its status as a leader in economic freedom, according to a new video from the Charles Koch Institute. Government regulations and rapidly rising federal spending have curtailed economic freedom in the United States. The result is a poor economy with high unemployment. The Koch Institute bases its findings on the latest Economic Freedom of the World Report. Heritage’s annual Index of …
House Armed Services Chairman Buck McKeon (R-CA) is a man on a mission. He’s making the rounds on Capitol Hill to convince his colleagues, particularly those on the 12-member Joint Select Committee on Deficit Reduction, that they should avoid cutting defense spending. McKeon has a point — and it’s one that is backed up by Heritage calculations from Congressional Budget Office data. This chart reveals that even if defense spending was eliminated entirely, entitlements would continue to fuel the debt crisis. Making reforms to Social Security, Medicare and Medicaid is …
Although differences over the continuing resolution (CR) that failed in the Senate Friday seem absurdly small, the stakes may indeed be significant—and not just because of the threat of a government shutdown. The legislation is the first test of Congress’s will to cut spending, at least within the limits of the Budget Control Act (BCA) that emerged from the summer’s debt ceiling agreement. With the huge entitlement choices the BCA requires, it is imperative that Congress show it can really tackle spending discipline. After the Senate on Friday defeated the …
The newly formed Joint Select Committee on Deficit Reduction holds its first meeting this week. The 12-member panel will gather at 10:30 a.m. Thursday for an organizational session, then meet again on Sept. 13 at 10:30 a.m. for a hearing on “The History and Drivers of Our Nation’s Debt and Its Threats.” The committee is chaired by Sen. Patty Murray (D-WA) and Rep. Jeb Hensarling (R-TX) and tasked with the goal of finding $1.5 trillion in savings to reduce the federal deficit. It’s not an easy goal, made even more …
Providing for the defense of the United States is Congress’ constitutional obligation. Lawmakers should recognize defense is a necessity, if not the federal government’s most important responsibility. In recent years, however, defense spending has continued to decline as entitlement spending increased. Priorities are being misplaced as the gap between entitlement spending and defense spending continues to widen. This chart is part of Heritage’s 2011 Budget Chart Book, featuring infographics on federal spending, revenue, debt and deficits, and entitlement programs.
The newly formed Joint Select Committee on Deficit Reduction has its 12 members, but beyond that there’s little known about how exactly it will operate. Congressional leaders have promised transparency of its deliberations. And as of now, though, only the first meeting and final report are required to be publicly accessible. Two weeks ago a handful of Republican senators proposed legislation to make the so-called super committee’s work more transparent. The Sunlight Foundation offered a list of five recommendations. And today at Heritage, former Speaker Newt Gingrich outlined why putting …
Late-night comedian Conan O’Brien’s blog has a new post parodying Washington’s excessive spending. “Team Coco has found out why our government is so broke,” the blog explains, “They’ve been spending all our hard earned tax dollars on some pretty ridiculous programs.” The post contains a list of humorous fake programs and encourages readers submit their own. But sadly, there’s no need to turn to a crack team of comedy writers to gin up examples of ridiculous government spending. Instead, one need only look to the shenanigans on Capitol Hill to find a …
In the midst of a world embroiled in economic turmoil, a few nations have managed to do surprisingly well—among them, Estonia. After near economic collapse during the 2008–2009 financial crisis, the country has managed to successfully bounce back with substantial GDP growth, a vibrant trade environment, and a notable budget surplus. During the first quarter of this year, Estonia had the highest rate of growth in the EU and the biggest drop in unemployment. In July, its credit rating was raised by Fitch to A+, a reflection of substantial economic …
As soon as the U.S. Treasury was cleared to start borrowing again, it quickly borrowed $238 billion more and reached a milestone. Our national debt is now more than $14.5 trillion, which means that it has surpassed the size of our total annual economy. The federal government now owes more than is being produced by the entire USA-every person, every company, every business, all in combination. Financial markets figured out immediately just how disastrous it is to have that level of debt-especially because it’s still growing and the budget plan …
