Category Archives: Debt and deficits

Instead of gaining five yards, Congress takes a knee

Steve Womack

Steve Womack was co-chair of the Joint Select Committee on Budget and Appropriations Process Reform.

By Steve Brawner, © 2018 by Steve Brawner Communications, Inc.

No, adopting a two-year budget cycle wasn’t going to restore fiscal sanity in Washington, much less make a dent in the $21.85 trillion national debt (your equal share as of 9:24 a.m. Tuesday: $66,389.76).

But as Rep. Steve Womack, R-Ark., told me, when you can’t score a touchdown, at least try to gain five yards.

That comment came four days after a committee he co-chaired failed to advance the two-year budgeting idea.

Why two years? Because Congress can’t get the job done every year. As Womack told me, Congress is so bitterly divided and spends so little time in Washington (about 120 days a year) that it can’t complete the budget soon enough. And that’s if it completes it at all.  Continue reading →

Fort Smith college students Fix the Debt

By Steve Brawner, © 2018 by Steve Brawner Communications, Inc.

At the University of Arkansas at Fort Smith Friday, more than 220 college students, including sophomore Garrett Spain from Greenwood, tried to do what Congress is unwilling to do – get the government’s debt under control.

The students gathered at two dozen tables, each with a laptop, and worked together using the Committee for a Responsible Federal Budget’s (CRFB) Debt Fixer tool. That’s an online resource that lets users see how the federal budget would be affected by selecting various spending cuts and tax increases.

The goal of Friday’s exercise was not to pay down the $21.6 trillion national debt. Instead, it was to get the red ink under control. The $15.8 trillion public debt (what the government owes everyone but itself) is 77 percent of the gross domestic product and growing rapidly. By 2028, it is projected to be 97 percent, meaning it will be the same size as the economy. The goal for the students was to stabilize it at 70 percent by 2028, and 40 percent by 2050. Continue reading →

#BetterOffNow, but what about #Later?

tax, taxes, debt, deficits, spending, trillion, State of the Union, deficit hawks, balanced budget amendment, Jonathan Bydlak, immigration, $98.8 triillion, #BetterOffNowBy Steve Brawner, © 2018 by Steve Brawner Communications, Inc.

There’s been good news and bad news lately when it comes to the way Congress spends your money (and your children’s and grandchildren’s). Which do you want first?

Let’s start with the good news.

On Tuesday, the Senate sent to the House an $854 billion bill to fund the Department of Defense, the Department of Health and Human Services, and other agencies. The House is expected to approve the bill next week.

How is spending $854 billion good news? Because Congress is actually doing its job in a somewhat orderly fashion by passing budget bills before the fiscal year begins. It’s also doing it in time to avert a government shutdown that would occur next month.

That counts as an improvement. In recent years, Congress has lurched from one manufactured crisis to another, often passing enormous up-or-down “omnibus” packages after the new fiscal year has already begun.  Continue reading →

The $98.8 trillion hole

tax, taxes, debt, deficits, spending, trillion, State of the Union, deficit hawks, balanced budget amendment, Jonathan Bydlak, immigration, $98.8 triillionBy Steve Brawner, © 2018 by Steve Brawner Communications, Inc.

A report last week offered two insights on the nation’s fiscal future: How big a hole we’re digging, and what it would take to stop.

Let’s start with the hole – one that will be $98.8 trillion deep only 30 years from now. That’s how big the government’s debt held by the public is projected to be by 2048, according to the Congressional Budget Office. The CBO is the nonpartisan government agency that advises Congress regarding fiscal matters.

That “debt held by the public” figure refers to debt borrowed from others. It’s currently $15.45 trillion. The total national debt – $21.1 trillion at the moment – includes that figure plus the money the government has borrowed from itself.

How big are these numbers? The country’s population is about 328 million. Dividing that into $21.1 trillion equals about $66,000 for each American. Both numbers will rise unless something happens to make them stop.

Continue reading →

Budget balancing in my house, and the House

Steve Womack

Rep. Steve Womack is chair of the House Budget Committee.

By Steve Brawner, © 2018 by Steve Brawner Communications, Inc.

Balancing a budget is hard. I know, because that’s my job in my household. So I can empathize with U.S. Rep. Steve Womack.

Here are some things I’ve found to be true after spending countless hours crunching our family’s numbers.

– Much of your spending is difficult to cut. Your house payment, insurance, taxes, and many bills are almost set in stone. Such “mandatory spending” can consume the majority of your income.

– You can cut your “discretionary spending,” but it’s not easy. Spending less on groceries requires constant vigilance and an altered lifestyle. Also, discretionary spending includes nice-to-have “extras” that provide many benefits at relatively low cost, like subscriptions and community center memberships. Church and charitable giving are discretionary as well. Cut those?

– Because the above options are hard, you might tell yourself you can reduce “waste” and not have to change your lifestyle. That’s wishful thinking. Continue reading →