Category Archives: Debt and deficits

Budget balancing in my house, and the House

Debt and deficits, Politics, U.S. Congress
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 Budget balancing in my house, and the House →

Listening to Eeyore in boom times

Debt and deficits, Politics, State government

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

There’s been a lot of supposedly good economic news lately, which means someone needs to be that guy – the Eeyore guy. Eeyore is needed to balance out the Tiggers.

In case your “Winnie the Pooh” is a little rusty, Eeyore is the pessimistic donkey who sees the cloud in every silver lining. Tigger is the optimistic, enthusiastic tiger who bounces around and is pretty full of himself.

I bring up those two characters in light of this week’s announcement that Arkansas state government is enjoying a $44.2 million surplus this fiscal year with one month to go, and has collected about $160 million more than last year.

That’s good news, and it comes amidst a prosperous national economy – indeed, a global one. We are now in the midst of the nation’s second longest economic expansion on record, though records don’t go back far. This expansion began in June 2009 in the bottom of the Great Recession. If we make it to July 2019, it will become the longest.

But economies that go boom eventually go bust, and so will this one. In the foreseeable future, the expansion will run out of steam and then we’ll be in a slowdown, or something bad will really shock the system like the banking crisis of a decade ago. Continue reading Listening to Eeyore in boom times →

A pledge to reject debt and protect future taxpayers

Debt and deficits, Politics, U.S. Congress

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

Members of Congress shouldn’t be signing pledges. They take an Oath of Office to “well and faithfully discharge the duties of the office,” and that should be enough.

But if they’re going to sign a pledge not to raise taxes, they ought to sign another one promising to hold down spending. And if they’re going to abide by the first, they should abide by the second.

Forty-six senators and 208 House members have signed Americans for Tax Reform’s “Taxpayer Protection Pledge” promising not to raise taxes. According to the organization’s website, all six members of Arkansas’ congressional delegation have signed it. It’s been a powerful force in American politics. Signers have been reluctant to do anything that might be perceived as violating it, such as letting fuel taxes rise with inflation to pay for highways. In the meantime, Congress enthusiastically has cut taxes, as all six members of Arkansas’ delegation voted to do in December.

Continue reading A pledge to reject debt and protect future taxpayers →

A sham vote, and why it happened

Debt and deficits, Politics, U.S. Congress

tax, taxes, debt, deficits, spending, trillion, State of the Union, deficit hawks, balanced budget amendmentBy Steve Brawner

© 2018 by Steve Brawner Communications, Inc.

The U.S. House of Representatives last week played politics with a serious issue. You should not be disappointed if your congressman participated. You should only be disappointed if he brags about it.

And then more importantly, you should ask yourself why it happened.

Continue reading A sham vote, and why it happened →