Posts Tagged ‘government spending’

Why Feds Won’t Sell GM Stock


Wednesday September 19th, 2012   •   Posted by Lloyd Billingsley at 9:21am PDT   •   8 Comments

The U.S. Treasury Department has invested $50 billion in the General Motors bailout and now owns 26.5 percent of GM stock, about 200 million shares and more than one-fourth of the company. GM was happy to get the taxpayer dough but now wants the government to sell its stock. Trouble is, the government won’t…
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Don Boudreaux on Public Debt


Tuesday March 27th, 2012   •   Posted by Emily Skarbek at 7:33am PDT   •   1 Comment

Readers of MyGovCost will likely be interested in this week’s Econtalk podcast with Don Boudreaux on the nature and significance of public debt. Roberts and Boudreaux begin by discussing debt at the household level and then work to draw out which lessons apply to the spending of a federal government. In doing so, the…
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Fiscal Discipline?


Monday March 5th, 2012   •   Posted by Emily Skarbek at 11:50am PST   •   0 Comments

Last week, Moody’s cut Greece’s credit rating to the lowest level on its scale, citing risk of default despite the recent write-off deal. Moody’s said the rating decision was “prompted by the recently announced debt exchange proposals for Greece, which imply expected losses to investors in excess of 70%.” The sovereign debt crisis in…
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Federal Debt Climbs Past Annual GDP


Saturday January 14th, 2012   •   Posted by Emily Skarbek at 7:54am PST   •   9 Comments

I could not resist posting this beautiful graph of the current state of the momentousness US debt. The graph is particularly useful for eyeballing the historical path of U.S. debt to GDP. Often pundits will say that our current debt-to-GDP ratio is not unreasonable because it is not too high relative to the period…
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How Would You Cut Defense Spending?


Thursday January 5th, 2012   •   Posted by Emily Skarbek at 7:16am PST   •   4 Comments

The New York Times has a useful infographic outlining proposals for how to trim the defense budget. The Pentagon has committed to cutting $450 billion in spending over the next 10 years—only a small slice of the tremendous increase in war and defense spending we have seen in the previous 10 years. The graph…
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The Wrath of Keynes


Wednesday November 16th, 2011   •   Posted by Emily Skarbek at 7:45am PST   •   3 Comments

James Buchanan and Richard Wagner begin their book Democracy in Deficit by explaining that prior to the absorption of Keynesian economics, the conventional wisdom of Adam Smith prevailed. Adam Smith had observed that: “What is prudence in the conduct of every private family, can scarce be folly in that of a great kingdom.” This…
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Italy Getting the Boot


Wednesday November 9th, 2011   •   Posted by Craig Eyermann at 8:49am PST   •   0 Comments

First, it was Greece circling the drain. Today, it’s Italy that’s getting set to enter the national-debt death spiral. Via ZeroHedge (original source misspellings not corrected): Euphoria may have returned briefly courtesy of yet another promise for a resignation that will likely not be effectuated for weeks or months, if at all, and already…
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World War II Did Not End the Great Depression: Lessons for Today


Friday September 9th, 2011   •   Posted by David Theroux at 5:58pm PDT   •   3 Comments

In a very timely new article in The Weekly Standard, “The Ultimate Stimulus? World War Two and Economic Growth,” Arthur Herman refutes the Keynesian economics myth that Big Government spending during World War II ended the Great Depression. In so doing, he bases his analysis on the path-breaking work of Independent Institute Senior Fellow…
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Super-Downgrade Me!


Thursday August 18th, 2011   •   Posted by Emily Skarbek at 10:52am PDT   •   1 Comment

Since last summer, the top 3 ratings agencies (S&P, Moody’s, and Fitch Ratings) have made 196 “super-downgrades” on municipal bonds, according to research popularized in today’s Wall Street Journal. Super-downgrades are defined as cuts of at least three grade-letter scores on the traditional scale used by the firms. For example, when the US treasury…
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Michael Munger on America’s Debt Crisis


Saturday July 23rd, 2011   •   Posted by Emily Skarbek at 5:36am PDT   •   1 Comment

In a speech to the Libertarian Party in Indianapolis, Michael Munger gives three things the government has to do to deal with the debt crisis: 1. Cut defense spending by by at least 15%. More than 15% — even better! 2. Sell US bonds in the Social Security trust fund. Also raise the Social…
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