By The Editorial Board - Feb. 9, 2023
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By The Editorial Board – WSJ – Some numbers tell a story about comparative governance. Comparative governance is a useful course of study, not least because bad governance is so costly to people and prosperity. We often write about the migration from the Northeast to Florida and other states, but sometimes the contrast is best illuminated with some data. Read More
By John F. Cogan - Jan. 23, 2023
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By Judy Shelton – Entitlement programs have accounted for all the growth in federal spending relative to gross domestic product in the past 60 years, causing the persistent budget deficits during that period. Entitlement expenditures are determined differently from so-called discretionary programs. Spending on the latter programs is set by fixed appropriations of money. Entitlement expenditures aren’t fixed in advance but determined by the program’s level of benefits, its eligibility rules and economic factors. Jurisdiction for entitlement legislation is dispersed among more than a dozen committees in each congressional chamber….In this system, no committee is accountable for total spending. Each committee has a reason to expand its programs and resist attempts to restrain them, but none have an incentive to keep overall spending down. It’s analogous to the classic tragedy of the commons. Read More
By Judy Shelton - Jan. 31, 2023
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By Judy Shelton – Going back those 40 some years, we can draw lessons … about how to coordinate monetary and fiscal policy effectively. …The Reagan plan consisted of four parts: “(1) substantial reduction in the growth of federal expenditures, (2) significantly reduced federal tax rates, (3) prudent relief of federal regulatory burdens, and (4) a monetary policy on the part of the independent Federal Reserve System consistent with those policies.”…“The goal of this Administration is to nurture the strength and vitality of the American people by reducing the burdensome, intrusive role of the federal government; by lowering tax rates and cutting spending; and by providing incentives for individuals to work, to save, and to invest. It is our basic belief that only by reducing the growth of government can we increase the growth of the economy.” Read More
By Seth G. Jones - Oct. 16, 2022
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By Seth G. Jones – These challenges highlight an even more serious concern: The U.S. defense industrial base is inadequately prepared for the wartime environment that now exists. It is operating in a peacetime environment. In a major regional conflict—such as a war with China in the Taiwan Strait—U.S. munitions needs likely would exceed Pentagon plans and stockpiles.
In nearly two dozen iterations of a Center for Strategic and International Studies war game that examined a U.S.-China war in the Taiwan Strait, the U.S. expended all its joint air-to-surface standoff missiles and long-range precision-guided antiship missiles within the first week of the conflict. These missiles are critical because of their ability to strike Chinese naval forces from outside Chinese defenses. Read More
By Paul Ryan - Nov. 16, 2022
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By Paul Ryan – U.S. fiscal policy is on a collision course with monetary policy. The economic devastation resulting from a debt and currency crisis could inflict enormous—possibly irreparable—damage. Predicting precisely when a huge debt and high deficits will unleash economic disaster is difficult. The dollar’s status as the world’s reserve currency gives the U.S. unique advantages, but no country can defy the laws of economic gravity forever. The U.S. has run up large budget deficits and debts before, but those moments of national emergency, such as world wars or global financial crises, were usually—at least until recently—followed by periods of fiscal repair. Read More