Barack Obama, Budget Cutter?
April 21, 2009 | By Nathaniel Ward
On Monday, President Barack Obama announced his plan to cull $100 million in spending from the federal budget. While cutting down bloated federal spending is always a good idea, and $100 million is certainly a lot of money, this cut fails to effectively address overspending.
A Heritage Foundation graphic makes clear why a $100 million cut is small potatoes:
Writing on National Review Online, Heritage budget expert Brian Riedl puts the budget cut in context. "Out of a $4 trillion in spending this year," he explains, "this is the rounding error of a rounding error."
- It is 1/40,000 of the federal budget;
- It is 1/7,830 the size of the recent "stimulus" bill;
- It would close 1/1,845 of this year's budget deficit;
- It is the amount the federal government spends every 13 minutes; and
- For a family earning $40,000 annually, it is the equivalent of cutting $1 from their family budget.
"So why bother?" Riedl asks. "Because it may enhance the president's 'budget-cutter' image. Seriously."
Washington Post editors cite Heritage education study
The Heritage Foundation's April report on "How Members of the 111th Congress Practice Private School Choice" was twice cited in a Washington Post editorial on Monday.
The editorial addresses the hypocrisy of those members of Congress who have exercised school choice in their own families, yet oppose renewing a program that awards more than 1,700 low-income children in Washington, D.C. with scholarships to attend private schools.
"The gap between what Congress practices and what it preaches was best illustrated by The Heritage Foundation's analysis of a recent vote to preserve the program," writes the Post editorial board.
Legislation to renew the program was struck down in the Senate by a vote of 39-58. According to the Heritage Foundation's study, had all Senators who send their own children to private schools voted in favor, this amendment would have been approved.
The Heritage report cites the growing success and popularity of private-school scholarship programs, which benefited over 171,000 children in 2008, and highlights the need to expand such programs. As Washington Post editorializes, "no one has been able to offer any evidence of drawbacks of this small, local program, while evidence of its benefits has been mounting."
— Amanda Reinecker
Other Heritage work of note
- Secretary of Homeland Security Janet Napolitano recently declared that "crossing the border illegally is not a crime per se." Writing in the Washington Examiner, Heritage Foundation national security expert James Carafano disagrees and offers a strategy for securing the border. What do you think? Make your voice heard by posting a comment on the Examiner site.
- Heritage experts Steven Groves and Brett Schaefer traveled to Geneva to attend the United Nations' Durban II conference. They blogged about the unfortunate but unsurprising proceedings on National Review Online.
- Heritage Latin America analyst Ray Walser suggests the Obama administration consider "actions – not rhetorical overtures" when it comes to relations with Latin America. Walser argues that "now is not the time" to yield ground to Cuba, Venezuela, and Bolivia, since this would do little to advance American foreign policy interests.
- Many pundits have lauded China's economic "stimulus" package. But the not-so-new and not-so-large 4 trillion yuan stimulus may actually do little to strengthen Chinese competitiveness and global standing. "Everything you know about China's stimulus package is wrong," argues Derek Scissors, an expert in Asian economic policy at The Heritage Foundation.
- In the first edition of her weekly Washington Times column, Heritage's Rebecca Hagelin addresses parents' fear of being "the only one" working to protect their children from a morally deteriorating pop culture. She suggests ways to conquer this fear and gives parents advice on how to "save your family."
- Heritage budget policy analyst Brian Reidl does not subscribe to the belief that continued federal "stimulus" spending is necessary to end the recession. In fact, such a policy "has never actually worked anywhere it has been tried." Citing examples of failed "stimulus" attempts throughout history, Reidl argues that today's "stimulus" is no different: "every dollar Congress 'injects' into the economy must first be taxed or borrowed out of the economy. No new demand is created."
- America's health care system isn't perfect, Heritage health policy expert Jason Fodeman argues in the Boston Herald, but it's not nearly as bad as proponents of universal health care make it out to be. Fodeman argues that the best way to reduce the number of Americans without insurance is to establish "a system where Americans can select the coverage that best suits their situation -- and keep it even when changing jobs."
In other news
- A new survey from Rasmussen Reports finds that a majority of Americans view last week's Tea Parties favorably. The established political classes, however, disagree.
- Treasury Secretary Tim Geithner defended the administration's bailout policies, arguing that the banking system is still broken. A Financial Times report adds that the administration will only allow banks to repay their bailout loans "only if such a move passes a test to determine whether it is in the national economic interest," whatever that means.
- President Obama approved a $100 billion loan to the International Monetary Fund on Monday as part its G20 commitment to bolster the global financial system. The IMF, unfortunately, has a poor track record of bolstering financial stability.
- The Department of Homeland Security issued a report warning law enforcement officials of a rise in "extreme right wing activity." The report warned about individuals or groups "dedicated to a single issue, such as opposition to abortion or immigration," and even cautioned against veterans and those who advocated a more limited role for the federal government.
- A captured Somali pirate who held a merchant ship captain hostage will be brought to New York to face trial. Though no charges have yet been filed, the teenage suspect could face charges that carry a maximum sentence of life in prison.
- Republican governors criticized President Obama's massive spending trend, and dubbed it the "'this way or no way' stimulus relief."
- The Obama administration has released Bush-era documents about interrogation techniques used on suspected terrorists. The President said he would not rule out prosecuting Bush administration officials who authorized the program.
- President Obama signed a "national service" bill into law, expanding the role of government in "volunteer" programs.
Coming up at Heritage
To attend these or any other events at Heritage please RSVP at Heritage's website. Or you can view these events live online. All times are Eastern.
- On Friday, April 24 at 10:30 a.m., a panel of experts discusses China's growing influence in southeast Asia.
- On Monday, April 27 at noon, author John Taylor explains how big government caused the financial crisis and has made it worse.
Nathaniel Ward is the Editor of MyHeritage.org—a website for members and supporters of The Heritage Foundation. Amanda Reinecker contributed to this report.
