Six Questions to Ask About the Federal Budget

January 13th, 2010 Scott Bittle

One of the biggest problems in getting Americans engaged on the nation’s fiscal challenges is that the problem is so hard for most people to get their arms around. The numbers are so huge, the issues so arcane and the problems so daunting that people may get angry about it, but have no idea how to grab onto it.

That’s what makes the approach of the Committee on the Fiscal Future of the United States interesting. Their Choosing the Nation’s Fiscal Future report, issued by the National Research Council and the National Academy of Public Administration (NAPA) today, is about how to control our national debt, already past $12 trillion and threatening to rise to staggering (and dangerous) proportions. Public Agenda is part of the Choosing Our Fiscal Future project with NAPA, working to build a network of citizens who’ll get involved in the discussion and work on solutions.

The nonpartisan committee laid out a goal for a sustainable debt level (keeping it to 60 percent of gross domestic product), four alternative paths for reaching the goal, and six basic questions to ask about any federal budget. The committee argues that if the answers to these questions are “yes,” we’re at least making progress.

Here are the questions, taken directly from the report. Consider whether the federal budget meets them now – and more importantly, keep them in mind as new budgets are proposed.

  1. Does the proposed budget include policy actions that start to reduce the
    deficit in the near future in order to reduce short-term borrowing and long-term interest costs?
  2. Does the proposed budget put the government on a path to reduce the federal debt within a decade to a sustainable percentage of GDP? Given the fiscal outlook and the committee’s analysis of the many factors that affect economic outcomes, the committee believes that the lowest ratio that is economically manageable within a decade, as well as practical and politically feasible, is 60 percent.
  3. Does the proposed budget align revenues and spending closely over the long term?
  4. Does the proposed budget restrain health care cost growth and introduce changes now in the major entitlement programs and in other spending and tax policies that will have cumulative beneficial fiscal effects over time?
  5. Does the budget include spending and revenue policies that are cost-effective and promote more efficient use of resources in both the public and private sectors?
  6. Does the federal budget reflect a realistic assessment of the fiscal problems facing state and local governments?

This gives the public something they haven’t had before: a set of standards for a “good” budget, or at least as good as it can be given the tremendous fiscal challenges we face. If we give the public more tools to measure the problem, and grapple with real solutions, we can get ahead of this challenge – while there’s still time.

To find out more, and to become part of the citizen network working on this issue, visit the Choosing Our Fiscal Future web site, become a Facebook fan, or follow us on Twitter @FiscalFuture.


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Non-partisan Federal Budget Blog Carnival

December 18th, 2009 Billy Hallowell

Facing Up to the Nation’s Finances is back with a new “Budget Blog Carnival!” If you are unfamiliar, a blog carnival is an online “magazine” (blogo-zine) of sorts that focuses on a specific theme. This issue is all about the U.S. federal budget and the national debt.

As always, the carnival is comprised of a non-partisan collective of blog entries. While specific pieces may have ideological roots, the overall carnival is a testament to the diverse voices present in the ongoing debate that surrounds the budget, deficit and accumulated national debt.

Today, we are releasing an exciting array of entries from The Heritage Foundation, The Committee for a Responsible Budget, Econbrowser blog, ECONLOG blog and the Economist’s View blog, to name a few of the participants! Here is your guide to Facing Up’s Dec. 2009 Budget Blog Carnival:

First and foremost, Scott Bittle, executive vice president of Public Agenda and co-author of“Where Does the Money Go?”, leads the pack with a piece entitled, “The Three Questions for the Public on the Federal Budget.” In the piece, Bittle highlights three key questions for the public (and American leaders) to consider: “Can we afford it?” “Can we keep the status quo?” and “Am I willing to give up something I want because the government can’t afford it?”According to Bittle,

“Most of the people who’ve looked at this issue, whether they’re liberal or conservative, in or out of government, use the same word to describe the federal budget: “unsustainable.”

Next, economist Dr. Arnold Kling of the EconLog blog ponders various scenarios for resolving U.S. debt. From technological advances to hyperinflation, Kling provides valuable insight.

Conn Carroll of The Heritage Foundation penned a piece entitled, “The Definition of Economic Insanity.” In the entry, Carroll stands firmly against deficit spending as a means to stimulate the U.S. economy. In opposition to recent “jobs summit” proposals Carroll states,

“These “new” ideas will fail for the same reason the past two government stimulus plans failed: governments do not create jobs.”

In a separate piece, Carroll presents a series of government actions from the 1930’s through modern times that he considers examples of the “…failure of government to spend its way to prosperity…” and makes his case for the government to step “out of the way.”

And Dan Perry penned an intriguing article about the urgency of the debt. Perry charges both parties with fiscal irresponsibility, as he finds fault in both President Obama’s deficit spending and record-increases in spending during George W. Bush’s presidency. While he sees the “Tea Party” movement as impressive, he writes the following:

“After eight years of a Republican administration, the nation saw record spending and deficit levels without so much as a peep about the financial difficulties it might someday cause. Meanwhile, their solution to these economic woes are a series of tax cuts accompanied by no tangible reductions in spending.”

Next, James Hamilton of the Econbrowser blog responds to Paul Krugman, one of the leading economists to argue that U.S. budget deficits are not that troubling in the current fiscal environment. Hamilton expresses his worries about current and future deficits. Please also read Krugman’s writings on this subject here and here.

Also, here’s another piece from Hamilton — an assessment of federal budget commitments and the danger present in continuing on our current budgetary path.

Another exciting partner in the current Facing Up carnival is the bi-partisan Committee for a Responsible Federal Budget. The Committee submitted two pieces — one about theessentials associated with tax reform and another that explores the true costs of health care reform. Both of these entries provide insight into the current debate over the national debt.

And, Mark Thoma from the Economist’s View blog highlights the three ways in which debt can make future generations worse off, while covering some of the “bogus arguments” that are given in the budget debate. Thoma concludes by calling some of the Republican opposition we’ve seen as “unduly alarmist.”

In a more-lighthearted commentary, Bob McCarty writes about the similarities he sees between the movie Friday the Thirteenth and the economic stimulus package.

Finally, in “Musings on America’s Budgetary Challenge,” David D. Kent provides a fun-filled look at federal expenditures and ponders the “what ifs” of potential spending scenarios.

That’s it for this edition of the blog carnival. Stay tuned for more!


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Choices for the Future

November 11th, 2009 Scott Bittle

You know you’re in for a bout of grim reading when the international agency charged with worrying about how we power the planet starts off its fact sheet with a question like this: “Why is our current energy pathway unsustainable?”

That’s the message from the International Energy Agency, which issued its World Energy Outlook report, the organization’s annual examination of the big picture. That picture itself hasn’t changed all that much. The fundamental challenge is still to meet surging worldwide demand for energy while at the same time coming up with ways to avoid global warming and keep energy relatively affordable.

Basically, the IEA says everything depends on whether or not world leaders get serious about climate change, very soon.

If we do nothing, then worldwide energy demand is projected to soar by 40 percent by 2030. The vast majority of that increase is going to come in the developing world, as people in China, India and throughout Asia see their standard of living rise. Even keeping up with that demand would require investing another $26 trillion. And unless things change, most of that energy is going to come from fossil fuels, which means “dire consequences for climate change” and air pollution, the IEA said.

On the other hand, if world leaders committed to fighting climate change with cap-and-trade policies, increased energy efficiency, and greater use of renewable energy, that would cost another $10.5 trillion (on top of the $26 trillion). But energy demand growth could be cut in half, and greenhouse gases would decline.

Not that the prospects for this look particularly good right now. Most observers say hopes for a real deal out of next month’s Copenhagen climate conference are fading, one major reason being that the United States still hasn’t figured out what it wants to do. There’s a chance the Obama administration will put something in place on its own even if Congress doesn’t act, but in any case, it’s unlikely a deal with be struck without American leadership.

Chances are you’ve never heard of the IEA. While the agency has enormous influence among policymakers, and while there are bitter disputes over its estimates, it barely registers with the public. But despite the IEA’s wonky tone and elite audience, the report has one great strength when it comes to getting the public involved: it focuses on choices and alternatives.

The world has decisions to make about energy. Everything we’ve learned about how people get engaged in making policy decisions shows that choices are essential. Nothing’s perfect, and there are always tradeoffs to everything. Setting those options out fairly to the public is critical to building public support for change.

The IEA actually lays out the cost of those alternatives for policymakers. We can only hope that policymakers will turn around and do the same for the public.

More from Public Agenda


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URGENT: House Democrats Push Health Care Bill Through

November 7th, 2009 Billy Hallowell

In an extremely close vote (220 to 215), the Democratic Congress has passed the contentious health care bill.  As per FOX News:

In a victory for President Barack Obama, the Democratic-controlled House narrowly passed landmark health care legislation Saturday night to expand coverage to tens of millions who lack it and place tough new restrictions on the insurance industry. Republican opposition was nearly unanimous.

Read more…


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Still Number One

November 4th, 2009 Scott Bittle

As if anyone needed proof that immigration will remain a major issue, a new international survey reports that some 700 million people worldwide say they would move to another country if they could. Not surprisingly, the largest single group, one-quarter, say their first choice would be to come to the United States.

We can’t speak to the view of those overseas, but we can certainly talk about the immigrants who are already here. In our survey of immigrants, A Place to Call Home, we found a powerful endorsement of life in America. More than seven in 10 say that if they could do it all over again, they’d still come to the United States. Just as many say they intend to make the United States their permanent home.

The reasons are simple enough: immigrants buy into American society. Three-quarters say the United States is “a unique country that stands for something special.” Strong majorities also rate the U.S. as better than their birth country on a range of dimensions, including making a good living, having a trustworthy legal system and providing education and health care.

With all the ups and downs of our international reputation, with all the challenges we face, people still want to come to America. And the ones who have already come here, want to stay. That’s a powerful endorsement – and in fact, you couldn’t ask for a better one.

Scott Bittle is the executive vice-president of Public Agenda, a non-partisan non-profit.


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Urban Conservative Officially Relaunches

October 29th, 2009 Billy Hallowell

Hello, America!  I am extremely excited to be writing to you this evening, as I officially begin my journey as editor-in-chief of UrbanConservative.com.  My name is Billy Hallowell and I am honored to introduce myself to you all.  

I have been a contributor to this site for the past two years.  I am a journalist and commentator who has been working in media for nearly 11 years (I’m 26, so I started fairly young).  In 2003, I founded Pathufind Media and I am currently the host of RENEWtv, a web show devoted to renewing American conservatism.  And now, I’m officially a member of the Urban Conservative family!

But enough about me.  You can surely read more on my Web site, but I’m guessing you’re most interested in what will be happening here on UrbanConservative.com!  Tomorrow, we will become a daily publication.  Many of you have been actively reading UC for years.  This new change will afford you even more access to valuable news and information!

You’ll notice we’ve launched a plethora of new topics.  While these subjects are of great importance to American politics, please be patient as we build our content around them (i.e. there may be a lag before all topics have streaming content).  But, we will be branching into new and uncharted news categories, as you can see.

Also, in November, my show — RENEWtv - will officially join forces with Urban Conservative.  

These are just some of the changes in store as we move forward!  Please be patient as we transition, add new blogs to the CONLIST and forge our path moving forward.  I thank you for your support and readership and I look forward to serving you!

- Billy Hallowell, Editor-in-Chief


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