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Federal Spending at Record Levels

October 20, 2011 One Cent Solution

A unique feature of the One Cent Solution is that it would require Congress to reduce spending in real terms — actual spending reductions — rather than just slow the rate of spending growth. Contrast that approach with Congress’ performance in recent years.  Faced with the largest budget deficits in modern times, Congress has failed [...]

Wake up Congress: CBO releases ‘daunting’ debt outlook

June 23, 2011 One Cent Solution

This Wednesday, the Congressional Budget Office released its annual Long-Term Budget Outlook with grim projections for America’s financial future. The report said the ratio of debt to GDP this year will be 69 percent, seven percentage points higher than last year. What makes this even more daunting is the report also predicts debt will be [...]

The Debt Ceiling: What is at Stake?

May 2, 2011 One Cent Solution

Veronique de Rugy and Jason J. Fichtner of the Mercatus Center are no strangers to the debate to balance our federal budget and curb spending. The two senior research fellows made a good point in a post titled “The Debt Ceiling: What is at Stake”: “[R]aising the debt ceiling for the eleventh time in as [...]

What if the U.S. government was an average American family?

April 28, 2011 One Cent Solution

The total U.S. debt is now at over $14 trillion, and if the fed continues spending at the current rate, experts project the public debt will reach $20 trillion by 2020 (click on the image to the left to expand the chart). A trillion dollars is a large number to wrap your mind around. And, [...]

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 [...]

How much does the Treasury borrow every week?

April 15, 2011 One Cent Solution

The Atlanta-Journal Constitution observed the other day that the auctions necessary to finance this year’s $1.4 trillion deficit are about $28 billion per week. “The debt held by the public grew on average about $28 billion per week between the end of 2009 and April 6, 2011. The total debt grew by about $30.1 billion.” [...]

Riding the wave to fiscal responsibility

April 14, 2011 One Cent Solution

With all eyes on the Capitol last Friday, the tension surrounding the potential government shutdown last Friday was alleviated by an 11th-hour stopgap budget that cuts $38 billion from our federal budget, according to an alert sent out by John Boehner’s office yesterday. What’s so significant about $38 billion? While the number is small compared [...]

Mr. President: You asked for ideas….

April 14, 2011 One Cent Solution

President Obama announced his plans to tackle the federal budget and deficit in a much-anticipated speech at George Washington University Wednesday afternoon. He made a quick opening joke before an audience of college students: “One of the reasons I kept the government open was…to make sure you had one more reason to skip class. You’re [...]

Ryan’s path to prosperity

April 6, 2011 One Cent Solution

House Budget Committee Chairman Paul Ryan unveiled his fiscal 2012 budget proposal. This blueprint should be considered by the full House this week or next and will likely dominate budget discussions for the next month. According to Ryan, his budget plan “[c]uts $6.2 trillion in spending from the president’s budget over the next 10 years, [...]

Wanted: “Path to Sustainable Spending”

April 4, 2011 Bruce Cook

An op-ed in The Wall Street Journal today entitled, “Time for a Budget Game-Changer,” points out how the U.S. government needs a long-term plan for economic growth, full employment and deficit reduction—all without inflation. “It’s time for a game-changer—a budget action that will stop the recent discretionary spending binge before it gets entrenched in government [...]