Six Steps to Eliminate Government Waste and Control Government Spending


In Heritage Work

“Eliminating waste and controlling government spending is best accomplished by reducing the size and scope of government,” Heritage Foundation economist Romina Boccia argues in a new report.

She explains:

The federal government does too many things that would be done better by individuals and organizations in the private sector, or by state and local governments, or that should not be done at all. A smaller, more limited federal government would focus on providing essential public services, legal services, and a basic social safety net, and would otherwise leave individuals free to determine their own affairs to the maximum extent possible in the defense of liberty.

Congress should take the following six steps to reduce the size and scope of the federal government, Boccia writes: Continue Reading »

College Loan Forgiveness Is Not the Answer to High Student Loan Debt


In Heritage Work

College loan debt is at an all-time high. To address this problem, President Obama recently used executive action to extend income-based loan repayment options to millions more students. The program caps monthly payments and completely forgives student loans after as little as 10 years.

Sounds great, right? Not so fast. Loans have to be repaid by someone. And that someone is you.

Heritage Foundation education expert Lindsey Burke explains: Continue Reading »

Video: What’s Really in President Obama’s 2015 Budget


In Heritage Impact

Heritage’s Romina Boccia previews the new taxes and spending in President Obama’s forthcoming 2015 budget plan on Fox Business:

“This president has presided over the largest peacetime deficits in U.S. history,” Boccia told Gerri Willis. And based on early reports, the new budget would pile on more spending and debt while imposing new taxes.

Do you think the budget should increase taxes and spending?

The Deficit News Isn’t All Good News


In Heritage Work

The media has been trumpeting reports that Uncle Sam will only spend $500 billion more than it takes in this year.

While it’s good news that we’re adding less to the debt than in past years, Heritage’s Steve Moore writes, the long-term picture has actually grown worse:

But what hasn’t been advertised is the disgraceful longer-term outlook for our fiscal future, which took a turn for the worse. And Obamacare is the main culprit. In the long run, the budget deficit will be slightly more than $1.5 trillion WORSE than previously estimated.

Heritage has a detailed plan to cut spending and rein in the debt. Read the whole thing.

Do you think we can ever get spending under control?

Should the Feds Bail Out Detroit?

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In Heritage Work

Jeremiah Robinson/ZUMA Press/Newscom

Detroit’s decades-long decline has accelerated of late. Over the last four years, the city has lost over a fifth of its population, and its manufacturing base has continued to erode. What was the city’s response to this? It shifted city resources from the private sector to the public sector, raised taxes, and increased regulations.

And last week, Detroit became the biggest American city to file for Chapter 9 bankruptcy. The Heritage Foundation’s Alison Acosta Fraser and Rachel Greszler point out:

Detroit’s tragic downward cycle has reached its end. With all tax rates close to their statutory max and dismal public services that discourage individuals and businesses from remaining in or coming to Detroit, the city simply cannot continue to fund its operations and service its debt.

Detroit will undoubtedly seek help from the federal government. This must be resisted, Fraser and Greszler argue: Continue Reading »

You Won’t Believe How Much Debt the Government Added in Just Four Months


In Heritage Work

Debt Grew by $300 Billion Since Debt Limit Was Suspended

“On May 19, the United States hit its debt ceiling after adding $300 billion in more debt since lawmakers suspended the ceiling in February,” Heritage’s Romina Boccia reports.

That’s $300 billion in new debt in less than four months.

Hitting the limit, she says, is part of an ongoing pattern: Continue Reading »

The Problem Isn’t China Buying U.S. Debt—The Problem Is the Debt Itself

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In Heritage Work

Photo: Newscom

There’s a lot of talk in the media about China “owning America” because they buy up so much of our government’s debt. This borrowing from China is often presented as an economic problem.

But Heritage expert Derek Scissors says these claims are overstated:

China has fallen behind Japan as the largest foreign holder of U.S. securities. The Department of the Treasury’s new numbers are good only through June 30, 2012, but it puts Japan at $1.84 trillion and China at $1.59 trillion.

There are lots of things to say about this, but one stands out: The loose talk about China “owning” America never made any sense and perhaps now can finally end.

In fact, he says, our problem isn’t China buying our debt but rather our own elected officials who create that debt in the first place: Continue Reading »

If Congress Doesn’t Cut the Debt, Get Used to Low Growth


In Heritage Work

Photo credit: Newscom

Amidst our other economic woes, another looms: stagnant growth resulting from our government’s high debt. As more and more debt accumulates, private investment is crowded out, leading to weaker growth.

When debt reaches 90 percent of GDP, economies experience significant growth problems. Heritage Foundation economist Salim Furth explains: Continue Reading »

Video: Jim DeMint on Raising the Debt Ceiling


In Heritage Impact

America will not default on its debt absent a “clean” debt limit increase, Heritage Foundation President-Elect Jim DeMint said Wednesday on Fox News.

Instead, we need to couple a debt limit increase with spending cuts and other reforms that put us on a path to a balanced budget, he said.

“The only way the federal government would default on its debt in the event the debt ceiling remains unchanged is for the Treasury to choose to default—an utterly implausible eventuality,” Heritage expert J.D. Foster explains. Continue Reading »

What’s Really Driving the Fiscal Crisis? It’s Not Taxes


In Heritage Work

While lawmakers negotiate ways to avoid the Taxmageddon tax increases and the so-called fiscal cliff, they are ignoring the real issue at hand: runaway entitlement programs and interest payments that account for more than half of federal spending.

Combined with interest payments on the debt, Social Security, Medicare and Medicaid (including Obamacare) are driving the United States toward fiscal collapse.

The Heritage Foundation’s Romina Boccia explains: Continue Reading »

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