The United States is home to more than 2,000 dysfunctional High Schools. They represent 15 % of American High Schools Yet account for half of our dropouts. When you break this down you find that these institutions produce 81% of Native American dropouts, 73% of all American dropouts, and 66% of all Hispanic dropouts.
At our grade schools, two-thirds of all eight graders score below proficient in math and reading. The average African American or Latino 9 year old is three grades behind in these subjects.
We have dropped from first to twelfth place in the percentage of people between the ages of 25 to 34 who have a college degree. America is now in danger of producing a new generation that will be less educated than their parents.
Clearly it's not for lack of money. Over the past three decades we've nearly doubled spending on K-12 education in real terms. So, why are we spending so much and getting so little in return? The answer is that while the system is failing our children, it works very well for some adults. These adults include leaders of the teachers unions, They include the the politicians whom the unions reward with their cash and political support. They include the vast educational bureaucracies. They include teachers salaries that allow them to retire with more money than they made while they were teaching. In business terms, we have a system that rewards the providers and punishes the customers.
So, how do we fix it? Clearly a big part of the answer is giving parents more choices for their kids. For choices to mean anything, however, parents also need transparency so they can make real comparisons.
The Los Angeles Times just gave us an excellent example of this kind of transparency when it published a database of about 6,000 third through fifth grade teachers ranked by their effectiveness in raising student test scores. If you are a mom with a son or daughter in one of these classrooms, you know this information is vital. Unfortunately it's the type of information that seldom sees the light of day. Unfortunately our systems is set up to protect bad teachers rather than reward good teachers.
On top of that we have chancellors, superintendents and principals who can't hire and fire based on performance. We have tougher standards on "American Idol" And as long as we refuse to measure success by what our children are learning, we're going to have higher performance by pop stars than for public schools.
When we allow the children of other people to fail or leave school without an education, they do not disappear. They become adults who cannot provide for themselves. And guess what? The costs will be borne by our children.
It's time we begin ensuring that every boy and girl who enters a public school leaves with the same shot at the American Dream we insist on for our own children.
Friday, October 8, 2010
Tuesday, October 5, 2010
When The Republicans Win They Better Listen Carefully!
Outsiders become insiders quickly if they agree to tax and spend. This cannot happen again because this is our last chance to get it right. Here is what I mean: In 1995-1996 The Senate introduced two bills to increase spending for every bill they introduced that would cut spending. By 2003-2004 they became much worse. In the House there were 1343 bills introduced to increase spending and just 35 to reduce it. A ratio of 30 to1.
You will recall The "Contract With America" said, that the Republicans would put an end to a "Government that is too big, too intrusive, and too easy with the public's money." What can be done? We know that our elected officials love to spend money, to get re-elected and to be hero's back home when they bring home the pork.
But in order to bring real change we ought to have term limits to start with for obvious reasons. As Americans we need to demand change for it to happen.
In the private sector when individual companies become bloated and mismanaged but competitive markets ensure that they eventually go bankrupt or get taken over and restructured. About 10% of U.S. companies go out of business each year and corporate executives get ousted all the time. Failures are eliminated in the private sector, and poor performance gets punished. By contrast, many Federal agency's are inefficient and perform poorly year after year and yet they survive and grow.
Fraud and abuse: Medicare : Fraudulent payments cost 20 Billion annually.
Medicaid: Inflated billings and bogus claims waste Billions. The GAO found $1 Billion of fraud in California's portion of Medicaid alone. The New York Times reported in 2005 that from 10 to 40% of the states annual budget of 45 billion may be siphoned off in fraud and abuse.
Medicaid Nursing Home Benefits: These benefits are supposed to be for the poor, but financial consultants help higher income seniors hide their assets in order to qualify. This scam costs taxpayers $10 billion each year.
Post 911 Grants: Much of this $8 billion to help repair damaged New York Offices went instead to build luxury condos. The grant to hand out free air-conditioners ballooned in costs from $15 million to $100 million due to management failures and bogus claims.
Housing Subsidies: Overpayment's in federal rental housing subsidies cost $2 billion each year. Head Start: This $7 billion program is rife with misuse of funds.
Social Security: Pays out about $1 billion in fraudulent disability benefits each year.
Farm Subsidies: The Dept of Agriculture pays out $500 million of improper farm subsidies each year. Food Stamps: This program pays out about $1 billion annually in fraudulent and erroneous benefits. Federal Emergency Management Agency: FEMA has a reputation for being sloppy with it's disaster aid. It tends to hand our money indiscriminately after hurricanes and it loses millions of dollars to fraud due to poor management.
Earned Income Tax Credit: Almost one third of this program about $9billion annually--are fraudulent.
Gates has been talking of cutting the defense budget, and it won't be difficult. The Pentagon spent $400 million over two years on new boots and tents. and other items at the same time it was discarding identical products as excess over three years, $4 billion was in excellent condition and often in unopened packages.
Of $68,000 first Class plane tickets purchased by the DOD in one recent year 73% were not justified.
In April of 2005 a $239 million system that monitored U.S. Borders "Has been hobbled for years by defective equipment that was poorly installed. An ex border patrol agent said, "The contractor sold us a bill of goods and no one in the border patrol was watching. All these failures placed Americans in danger." The New York Times reported that much of the $4.5 billion worth of equipment purchased by the government since 911 will have to be replaced because it is ineffective and unreliable. The $3.2 billion spent on airport screening equipment has not improved the detection of a hidden weapon or bomb since 2003.
The Dept. of Veterans Affairs scrapped a $472 million project in 2004 as a failure. The agency had already spent $265 million on the same project.
Rather than discipline a poor worker or fire him, federal managers try to move them into other offices like hot potatoes. Managers who are stuck with bad workers often give them good reviews so as not to rock the boat. The merit systems protection board notes that there is an ingrained culture to score virtually all workers highly in annual reviews.
A team at Duke University found in a two year study that regulations on the U.S. Health Care Industry create annual costs of 339 billion annually. Regulations are costly because they restrict consumer choices, make production expensive and stifle innovation.
The Republicans tried to abolish the dept of Education in the mid-90's but was unsuccessful. Outlays on that dept have almost doubled from $36billion in 2001 to $71 billion in 2005. The department has $7 billion in student loans that are delinquent.
Fannie May and Freddie Mac became a haven for former government officials and others with good political connections who wet there to make millions. 21 Fannie Mae executives earned more than $1 million a year.
They overstated profits by $9 billion.
Senator Tom Coburn Said, "Term limits would be the most important reform that could be made in Washington. It is not the only needed reform, but it would remove a key systematic bias that promotes continual government growth."
The Cato Institutes Chris Edwards proposed budget cuts in the following Budget.
All farm and rural subsidy programs should be abolished, it would save the taxpayers $38 billion.
Department of Defense:$40 billion
Department of Education:$71 billion
Department of Health and Human Services:$63 billion
Department of Homeland Security: $6 billion
Department of Housing and urban development:$42 billion
Department of the Interior:$4 billion
Department of Justice: $2 billion
Department of Labor :$ 6billion
Department of State: $2 billion
Department of Transportation: $51 billion
Other agencies and Activities: $43 billion
The total savings $380 billion
Reform minded newcomers to Congress face deeply entrenched opposition from the old timer's. They must "play or pay". That is go along with the system or suffer. To get good committee assignments, to get floor time in debates, or to get cash to campaign for re-election, members must curry favor with party leaders and power brokers. This is where term limits would help. Let's pray these brave reformers will have the nerve to weather the storm. Let's also pray that the party leaders realize that Conservative Government is crucial!
You will recall The "Contract With America" said, that the Republicans would put an end to a "Government that is too big, too intrusive, and too easy with the public's money." What can be done? We know that our elected officials love to spend money, to get re-elected and to be hero's back home when they bring home the pork.
But in order to bring real change we ought to have term limits to start with for obvious reasons. As Americans we need to demand change for it to happen.
In the private sector when individual companies become bloated and mismanaged but competitive markets ensure that they eventually go bankrupt or get taken over and restructured. About 10% of U.S. companies go out of business each year and corporate executives get ousted all the time. Failures are eliminated in the private sector, and poor performance gets punished. By contrast, many Federal agency's are inefficient and perform poorly year after year and yet they survive and grow.
Fraud and abuse: Medicare : Fraudulent payments cost 20 Billion annually.
Medicaid: Inflated billings and bogus claims waste Billions. The GAO found $1 Billion of fraud in California's portion of Medicaid alone. The New York Times reported in 2005 that from 10 to 40% of the states annual budget of 45 billion may be siphoned off in fraud and abuse.
Medicaid Nursing Home Benefits: These benefits are supposed to be for the poor, but financial consultants help higher income seniors hide their assets in order to qualify. This scam costs taxpayers $10 billion each year.
Post 911 Grants: Much of this $8 billion to help repair damaged New York Offices went instead to build luxury condos. The grant to hand out free air-conditioners ballooned in costs from $15 million to $100 million due to management failures and bogus claims.
Housing Subsidies: Overpayment's in federal rental housing subsidies cost $2 billion each year. Head Start: This $7 billion program is rife with misuse of funds.
Social Security: Pays out about $1 billion in fraudulent disability benefits each year.
Farm Subsidies: The Dept of Agriculture pays out $500 million of improper farm subsidies each year. Food Stamps: This program pays out about $1 billion annually in fraudulent and erroneous benefits. Federal Emergency Management Agency: FEMA has a reputation for being sloppy with it's disaster aid. It tends to hand our money indiscriminately after hurricanes and it loses millions of dollars to fraud due to poor management.
Earned Income Tax Credit: Almost one third of this program about $9billion annually--are fraudulent.
Gates has been talking of cutting the defense budget, and it won't be difficult. The Pentagon spent $400 million over two years on new boots and tents. and other items at the same time it was discarding identical products as excess over three years, $4 billion was in excellent condition and often in unopened packages.
Of $68,000 first Class plane tickets purchased by the DOD in one recent year 73% were not justified.
In April of 2005 a $239 million system that monitored U.S. Borders "Has been hobbled for years by defective equipment that was poorly installed. An ex border patrol agent said, "The contractor sold us a bill of goods and no one in the border patrol was watching. All these failures placed Americans in danger." The New York Times reported that much of the $4.5 billion worth of equipment purchased by the government since 911 will have to be replaced because it is ineffective and unreliable. The $3.2 billion spent on airport screening equipment has not improved the detection of a hidden weapon or bomb since 2003.
The Dept. of Veterans Affairs scrapped a $472 million project in 2004 as a failure. The agency had already spent $265 million on the same project.
Rather than discipline a poor worker or fire him, federal managers try to move them into other offices like hot potatoes. Managers who are stuck with bad workers often give them good reviews so as not to rock the boat. The merit systems protection board notes that there is an ingrained culture to score virtually all workers highly in annual reviews.
A team at Duke University found in a two year study that regulations on the U.S. Health Care Industry create annual costs of 339 billion annually. Regulations are costly because they restrict consumer choices, make production expensive and stifle innovation.
The Republicans tried to abolish the dept of Education in the mid-90's but was unsuccessful. Outlays on that dept have almost doubled from $36billion in 2001 to $71 billion in 2005. The department has $7 billion in student loans that are delinquent.
Fannie May and Freddie Mac became a haven for former government officials and others with good political connections who wet there to make millions. 21 Fannie Mae executives earned more than $1 million a year.
They overstated profits by $9 billion.
Senator Tom Coburn Said, "Term limits would be the most important reform that could be made in Washington. It is not the only needed reform, but it would remove a key systematic bias that promotes continual government growth."
The Cato Institutes Chris Edwards proposed budget cuts in the following Budget.
All farm and rural subsidy programs should be abolished, it would save the taxpayers $38 billion.
Department of Defense:$40 billion
Department of Education:$71 billion
Department of Health and Human Services:$63 billion
Department of Homeland Security: $6 billion
Department of Housing and urban development:$42 billion
Department of the Interior:$4 billion
Department of Justice: $2 billion
Department of Labor :$ 6billion
Department of State: $2 billion
Department of Transportation: $51 billion
Other agencies and Activities: $43 billion
The total savings $380 billion
Reform minded newcomers to Congress face deeply entrenched opposition from the old timer's. They must "play or pay". That is go along with the system or suffer. To get good committee assignments, to get floor time in debates, or to get cash to campaign for re-election, members must curry favor with party leaders and power brokers. This is where term limits would help. Let's pray these brave reformers will have the nerve to weather the storm. Let's also pray that the party leaders realize that Conservative Government is crucial!
Wednesday, September 22, 2010
Our Constitution
I attended a Constitution dinner last week . There was a wonderful speaker there who made me realize what a wonderful thing it was to live in a country like ours. He explained all the hardships the founders had in just getting a quorum I felt great sitting there among people who I thought were like minded. The gentleman across from me taught history to high school seniors. I remarked to him that I was quite concerned that the Obama Administration was stepping all over our constitution. I gave him the example of Elizabeth Warren being appointed as special advisor to the White House. I went on to say that Mr. Becker's appointment to Medicaid was another example of appointing an office without the advice and consent of the Senate. As soon as I heard his reply which was lengthy I knew he was a " liberal" teaching our children about the Constitution.
The Senate should vote on all senior appointments within 60 days. But the president should give it a chance to vote.
Robert Gibbs explained, Ms Warren has been appointed "to lead" a team of about 30 or 40 people at The Department of Treasury working in standing up the new Consumer Finance protection Bureau. A transformation is happening in America. The dignified Constitution emphasizes Senate confirmation of cabinet officers, but effective power is increasingly exercised by presidential assistants. Despite Mr. Obama's campaign against the excesses of the Bush White House, he is now making his own contribution to the ongoing construction of an imperial presidency.
The Senate should change the rules to require an up or down vote on all executive branch appointments within 60 days. In exchange the president should sign legislation to require Senate approval of all Senior White House appointments. By reaching this agreement, the president regains the powers to govern effectively and the Senate regains it's authority to approve all major appointments. Regardless of their location in the executive branch.
In the coming few years let's hope our new elected officials will have the common sense to give up their petty privileges on the existing system and thereby strengthen our one last hope. Our Constitution.
The Senate should vote on all senior appointments within 60 days. But the president should give it a chance to vote.
Robert Gibbs explained, Ms Warren has been appointed "to lead" a team of about 30 or 40 people at The Department of Treasury working in standing up the new Consumer Finance protection Bureau. A transformation is happening in America. The dignified Constitution emphasizes Senate confirmation of cabinet officers, but effective power is increasingly exercised by presidential assistants. Despite Mr. Obama's campaign against the excesses of the Bush White House, he is now making his own contribution to the ongoing construction of an imperial presidency.
The Senate should change the rules to require an up or down vote on all executive branch appointments within 60 days. In exchange the president should sign legislation to require Senate approval of all Senior White House appointments. By reaching this agreement, the president regains the powers to govern effectively and the Senate regains it's authority to approve all major appointments. Regardless of their location in the executive branch.
In the coming few years let's hope our new elected officials will have the common sense to give up their petty privileges on the existing system and thereby strengthen our one last hope. Our Constitution.
Monday, September 20, 2010
Elizabeth lll
The White House isn't afraid to poke a stick in the eye of it's critics. How else do to explain President Obamas decision Friday to put Elizabeth Warren in charge of the new Consumer Financial Protection Bureau while avoiding Senate confirmation and, for that matter any political supervision.
The chutzpah here is something to behold. The pride of Harvard Law School. Ms Warren is a hero to the political left for proposing a new bureaucracy to micromanage the services that banks can offer consumers. A president with more political and constitutional scruple would have nominated someone else. Mr. Obamas choice is to appoint her anyway and dare the Senate to do something about it. Mr. Obama has appointed her an "Assistant" to him and a special advisor to Timothy Geithner. The president emphasized that Ms. Warren will enjoy "direct Access" to him and said she would oversee all aspects of the creation of the new agency, including staffing and policy planning. For all intents and purposes, Ms. Warren will be Treasure Secretary for all consumer lending.
We would have thought a Harvard Law professor would object to the extra-legality of this arrangement but, then, this is also the crew that gave us Obama Care via budget reconciliation and put Donald Berwick in charge of Medicare without a single debate. Remind us again why the Tea Party critique of Obama government is crazy.
The new bureau has independent rule-making authority and can grant itself $646 million. It will draw this money from the operations of the fed, so there won't be any messy intrusions of congressional appropriators
and will therefore receive limited congressional over-site. Ms. Warren's bureau will dictate how credit is allocated throughout the American economy-by banks and financial firms, and also by many small businesses that extend credit to consumers.
In a Blog posting Friday on the White House Web site, Ms. Warren made her intentions clear enough. "President Obama understands the importance of leveling the playing field again for families and creating protections that work not just for the wealthy or connected, but for every American." Given the economic growth and jobless figures, maybe we we should start calling this the "leveling" administration.
Ms. Warren was a vociferous opponent of allowing regulators charged with the maintaining the safety and soundness of banks to control this new bureau. No matter how destructive it's new rules may be they can only be rescinded by a two-thirds vote of the Administration's new Financial Stability Oversight Counsel. And the bureau will now be staffed and shaped by an "assistant" with no obligation to appear before the senate.
The possibility that an appointed official could hold significant authority is why the framers wrote the senate into the process of approving the president's senior hires. Article ll, Section 2 of the Constitution says the president "shall nominate, and by and with the advice and consent of the senate, shall appoint...Officers of the United states." Article ll Section 2 also says "Congress may by law vest the appointment of such inferior Officers as they think proper, in the President alone."
but Congress explicitly did not view the head of the financial consumer bureau as an inferior officer. On July 21, Mr. Obama signed a bill passed by both houses stating that the director shall be appointed by the president , by and with the advice and consent of the Senate.
We have here another end-run around the Constitution niceties so Team Obama can invest huge authority in an unelected official who is unable to withstand a public vetting. So, a bureau inside an agency that it doesn't report to, with a budget not subject to congressional control, now gets a leader not subject to Senate confirmation. If Dick Cheney had tried this, he'd have been accused of staging a coup.
The chutzpah here is something to behold. The pride of Harvard Law School. Ms Warren is a hero to the political left for proposing a new bureaucracy to micromanage the services that banks can offer consumers. A president with more political and constitutional scruple would have nominated someone else. Mr. Obamas choice is to appoint her anyway and dare the Senate to do something about it. Mr. Obama has appointed her an "Assistant" to him and a special advisor to Timothy Geithner. The president emphasized that Ms. Warren will enjoy "direct Access" to him and said she would oversee all aspects of the creation of the new agency, including staffing and policy planning. For all intents and purposes, Ms. Warren will be Treasure Secretary for all consumer lending.
We would have thought a Harvard Law professor would object to the extra-legality of this arrangement but, then, this is also the crew that gave us Obama Care via budget reconciliation and put Donald Berwick in charge of Medicare without a single debate. Remind us again why the Tea Party critique of Obama government is crazy.
The new bureau has independent rule-making authority and can grant itself $646 million. It will draw this money from the operations of the fed, so there won't be any messy intrusions of congressional appropriators
and will therefore receive limited congressional over-site. Ms. Warren's bureau will dictate how credit is allocated throughout the American economy-by banks and financial firms, and also by many small businesses that extend credit to consumers.
In a Blog posting Friday on the White House Web site, Ms. Warren made her intentions clear enough. "President Obama understands the importance of leveling the playing field again for families and creating protections that work not just for the wealthy or connected, but for every American." Given the economic growth and jobless figures, maybe we we should start calling this the "leveling" administration.
Ms. Warren was a vociferous opponent of allowing regulators charged with the maintaining the safety and soundness of banks to control this new bureau. No matter how destructive it's new rules may be they can only be rescinded by a two-thirds vote of the Administration's new Financial Stability Oversight Counsel. And the bureau will now be staffed and shaped by an "assistant" with no obligation to appear before the senate.
The possibility that an appointed official could hold significant authority is why the framers wrote the senate into the process of approving the president's senior hires. Article ll, Section 2 of the Constitution says the president "shall nominate, and by and with the advice and consent of the senate, shall appoint...Officers of the United states." Article ll Section 2 also says "Congress may by law vest the appointment of such inferior Officers as they think proper, in the President alone."
but Congress explicitly did not view the head of the financial consumer bureau as an inferior officer. On July 21, Mr. Obama signed a bill passed by both houses stating that the director shall be appointed by the president , by and with the advice and consent of the Senate.
We have here another end-run around the Constitution niceties so Team Obama can invest huge authority in an unelected official who is unable to withstand a public vetting. So, a bureau inside an agency that it doesn't report to, with a budget not subject to congressional control, now gets a leader not subject to Senate confirmation. If Dick Cheney had tried this, he'd have been accused of staging a coup.
Thursday, September 16, 2010
CATO Institute's New Book gives a guide to Limit Government
Education Subsidies
Education is a state, local and private matter-and that's where the constitution left it. Federal K-12 education programs have cost American taxpayers $1.8 trillion since 1965 without noticeably improving outcomes.Eliminating them would save $40 billion dollars.
Farm Subsidies
Far from "saving the family farm," federal agricultural subsidies are environmentally destructive corporate welfare,
with more than 70% of aid going to the largest 10% of agribusinesses.Zeroing out farm welfare will save,
$25 billion annually.
Military Overreach
The Constitution envisions a U.S. Military that "provides for the common defense" of the United States, not one that serve's as the worlds policeman and nation builder. By withdrawing our troops from Iraq and Afghanistan, we could save at least $125 billion next year.
Transportation Programs
The Federal Government has no business funding the state and local projects that make up the bulk of federal transportation spending. Federal involvement results in pork-barrel spending, excess bureaucracy, and costly one-size fits all regulations. Moving funding for activities such as highways to the states and air traffic control to the private sector would spur innovation while also saving $85 billion a year.
Housing Subsidies
Federal interference in housing markets has done enormous damage to our cities and the economy at large. H.U.D. subsidies have concentrated poverty and fed urban blight, while Fannie Mae and Freddie mac stoked the financial crisis by putting millions of people into homes they couldn't afford. Getting Government out of the housing business will save $45 billion annually.
Federal Worker Pay
Federal workers enjoy far greater job security than their private sector counterparts- and far better total compensation: an average of $120,000 in wages and benefits. Cut federal compensation by 10% and save
$20 billion annually.
Energy Subsidies
The 30 year legacy of federal energy subsidies is replete with corporate cronyism and failed "investments"
entrepreneurs with their own capitol have incentives to develop viable alternative energy sources. Ending federal energy subsidies would save more than a $ 1 trillion dollars in the next decade.
Government Run Health Care
Medicare and Medicaid are driving the explosion in federal debt. The 2010 health care law should be repealed, but the same level of Medicaid cost savings can be realized by moving to a consumer driven health plan through vouchers, which would protect the elderly from government rationing. Medicaid should be converted to a fixed block grant to save money and encourage state innovation. Total savings would be:
a $ 1 trillion dollars over the next decade.
Drug War
Since the start of the federal War on Drugs in the 1970's We've spent hundreds of billions on a futile crusade that's done little to curb drug use and much to impair our civil liberties. In fact, A Cato study showed that Portugal's decriminalization of drugs actually lowered drug-related problems. Returning drug policy to the states would save at least: $15 billion annually.
Social Security
As the baby boom generation retires, our largest entitlement program lurches toward crisis. Social Security should be phased out as a mandatory program and an alternative voluntary system of private accounts, providing for ownership and inheritability, should be offered. Current obligations can be reduced by tying annual benefit growth to price inflation rather than wage growth, saving: $50 billion annually.
The Cato Institute has a new book entitled " The Struggle to Limit Government". Everyone who pays taxes and every elected official should read this book. Our future depends on " Limiting Government Spending!"
Education is a state, local and private matter-and that's where the constitution left it. Federal K-12 education programs have cost American taxpayers $1.8 trillion since 1965 without noticeably improving outcomes.Eliminating them would save $40 billion dollars.
Farm Subsidies
Far from "saving the family farm," federal agricultural subsidies are environmentally destructive corporate welfare,
with more than 70% of aid going to the largest 10% of agribusinesses.Zeroing out farm welfare will save,
$25 billion annually.
Military Overreach
The Constitution envisions a U.S. Military that "provides for the common defense" of the United States, not one that serve's as the worlds policeman and nation builder. By withdrawing our troops from Iraq and Afghanistan, we could save at least $125 billion next year.
Transportation Programs
The Federal Government has no business funding the state and local projects that make up the bulk of federal transportation spending. Federal involvement results in pork-barrel spending, excess bureaucracy, and costly one-size fits all regulations. Moving funding for activities such as highways to the states and air traffic control to the private sector would spur innovation while also saving $85 billion a year.
Housing Subsidies
Federal interference in housing markets has done enormous damage to our cities and the economy at large. H.U.D. subsidies have concentrated poverty and fed urban blight, while Fannie Mae and Freddie mac stoked the financial crisis by putting millions of people into homes they couldn't afford. Getting Government out of the housing business will save $45 billion annually.
Federal Worker Pay
Federal workers enjoy far greater job security than their private sector counterparts- and far better total compensation: an average of $120,000 in wages and benefits. Cut federal compensation by 10% and save
$20 billion annually.
Energy Subsidies
The 30 year legacy of federal energy subsidies is replete with corporate cronyism and failed "investments"
entrepreneurs with their own capitol have incentives to develop viable alternative energy sources. Ending federal energy subsidies would save more than a $ 1 trillion dollars in the next decade.
Government Run Health Care
Medicare and Medicaid are driving the explosion in federal debt. The 2010 health care law should be repealed, but the same level of Medicaid cost savings can be realized by moving to a consumer driven health plan through vouchers, which would protect the elderly from government rationing. Medicaid should be converted to a fixed block grant to save money and encourage state innovation. Total savings would be:
a $ 1 trillion dollars over the next decade.
Drug War
Since the start of the federal War on Drugs in the 1970's We've spent hundreds of billions on a futile crusade that's done little to curb drug use and much to impair our civil liberties. In fact, A Cato study showed that Portugal's decriminalization of drugs actually lowered drug-related problems. Returning drug policy to the states would save at least: $15 billion annually.
Social Security
As the baby boom generation retires, our largest entitlement program lurches toward crisis. Social Security should be phased out as a mandatory program and an alternative voluntary system of private accounts, providing for ownership and inheritability, should be offered. Current obligations can be reduced by tying annual benefit growth to price inflation rather than wage growth, saving: $50 billion annually.
The Cato Institute has a new book entitled " The Struggle to Limit Government". Everyone who pays taxes and every elected official should read this book. Our future depends on " Limiting Government Spending!"
Wednesday, September 15, 2010
One Of The Most Important Reasons Why We must Win In Nov.
Labor Unions, Teachers Unions, Policemen, firemen and Nurses unions will all pull out the stops to elect their Democrats this Nov. Why? Because these people plus all government workers have a pension and health care the average American would die for. (and probably will). When you can retire then collect a pension paying you more that you made while teaching and you have in addition a Cadillac health plan you have a pension to die for. The problem is these outrageous pensions are breaking the states. There is simply not enough revenue to maintain this extravagance. In addition to this States and municipalities across the country are one event away from bankruptcy. The result of years of piling up spending commitments no matter the revenue base.
The next stop is Washington where Barney Frank has a proposal to provide a federal guarantee for local debt. This is why I entitled this blog the way I did.
Look for this to be a priority if Democrats hold the House and Senate this year as they seek to reward public unions for saving the day with their campaign cash of over $100 million.
Putting the U.S. taxpayers on the hook for city debt would only provide local politicians with another excuse to avoid the cutbacks, furloughs and reforms necessary to balance their ledgers. Whatever its short-term pain, bankruptcy is the only disicipline that will break the addiction.
The next stop is Washington where Barney Frank has a proposal to provide a federal guarantee for local debt. This is why I entitled this blog the way I did.
Look for this to be a priority if Democrats hold the House and Senate this year as they seek to reward public unions for saving the day with their campaign cash of over $100 million.
Putting the U.S. taxpayers on the hook for city debt would only provide local politicians with another excuse to avoid the cutbacks, furloughs and reforms necessary to balance their ledgers. Whatever its short-term pain, bankruptcy is the only disicipline that will break the addiction.
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