Archives

With or Without the BBA, Congress Needs the Penny Plan

November 17, 2011 One Cent Solution

There’s an old saying that a doughnut without a hole is something, but a hole without a doughnut is nothing.  That’s how the “Penny Plan” interacts with the proposal for a Constitutional Balanced Budget Amendment. With the Balanced Budget Amendment (BBA), the One Cent Solution is the perfect vehicle for bringing spending down to levels that [...]

Deficit for 2011 — $1.3 trillion!

October 13, 2011 One Cent Solution

The so-called Super Committee is busy working on plans to reduce the deficit by at least $1.2 trillion over ten years.  Whether the Committee succeeds in hitting that target, or even a fraction of the target, is very much in doubt. What’s not in doubt is the size of the deficit for the fiscal year [...]

Downgraded

April 19, 2011 One Cent Solution

In response to yesterday’s announcement that the S & P had downgraded its outlook on US debt from “stable” to “negative,” Treasury Secretary Timothy Geithner this morning announced a new Administration goal of “locking in” deficit reduction targets to legislation that would increase the debt ceiling. We’re pleased the Administration appears ready for a serious [...]

“The merry-go-round of Congress”

March 25, 2011 Bruce Cook

We keep watching Congress go round and round on the issue of federal spending. But we haven’t seen a clear path of action take place. I’m not sure how long the government can keep this up. Are they just going to give up and start hoping for a miracle to solve the budget crisis? It [...]

We can’t ignore our nation’s fiscal crisis

March 24, 2011 One Cent Solution

Newly-elected U.S. Sen. Joe Manchin (D-W.Va.) is stumping through his state during the Congressional recess and telling his constituents that those who say the nation can have everything it wants without cuts are telling a lie, according to Kim Strassel, a columnist for The Wall Street Journal. Strassel quotes Manchin as saying, “There are some [...]

Facing the facts: grim news from the CBO

March 19, 2011 One Cent Solution

Last year the non-partisan Congressional Budget Office warned of a “sudden fiscal crisis” if our federal debt continues to grow at current rates. What would that crisis look like? It would start with Congress failing to act to restrain spending, then move to a loss of confidence by investors. One day they are willing to [...]

Alan Simpson: “If you spend more than you earn, you lose your butt.”

March 10, 2011 One Cent Solution

Our country has less than two years before we “face a destabilizing fiscal crisis,” says Erskine Bowles and Alan Simpson in the Wall Street Journal. “What happens to interest rates?” asked Bowles. “What happens to the U.S. economy? The markets will absolutely devastate us if we don’t step up to this problem. The problem is [...]

We need more than ‘fake cuts’ and ‘Washington talk’

March 8, 2011 Bruce Cook

Senate Budget Committee Ranking Member Jeff Sessions, R-Ala., was painfully blunt on Monday in his opinion regarding the Senate Democrat proposal to cut $6.5 billion from FY 2010 levels. “A vote for the Democratic plan that will be presented tomorrow will be a vote to do nothing; that’s the fact,” said Sessions, quoted in this [...]

Government spending: belief vs. reality

March 3, 2011 Bruce Cook

I’ve never said that cutting federal spending won’t be difficult, but making difficult decisions is what we elected our members of Congress to do, and we need them to act now to avoid disaster later. The One Cent Solution provides some flexibility in arriving at our target of cutting one cent out of every federal [...]

President’s new budget does not fix fiscal crisis

February 14, 2011 Bruce Cook

President Barack Obama’s new budget does more to highlight the dangerous fiscal crisis we face than it does to actually fix it. The President promises to freeze spending, but only a small fraction of the budget would be covered. He promises to reduce the soaring deficit threatening our fragile economy. But according to his own [...]