All I Want for Christmas Is for Congress To Exercise Fiscal Restraint

Published

2 years ago

December 22, 2023

admin

As the festive season approaches, with its twinkling lights and merry carols, the item topping my Christmas wish list is fiscal responsibility from Congress and the administration. If this sounds like an economist conflating policy with goodwill, remember this: In a world where holiday wishes usually lean toward “stuff”gadgets, games, and glittering jewelsmy wish would bring long-term prosperity, stability, and cheer far beyond the fleeting joy of unwrapping presents.

Here are two small steps Congress could take to jumpstart the fiscal stability process that are uncontroversial and bipartisan (or at least they should be).

However, before I begin, I’ll remind you why we shouldn’t let Congress fool us into believing fiscal responsibility is impossible. In the last four years, public debt has increased by 53 percent thanks to the massive expansion during the COVID-19 emergency. Huge gains are possible simply by eliminating temporary programs that were created.

As much as people enjoy the illusion of free money handed out by Uncle Sam, it’s been unmasked by inflation. Would it be terrible to go back to where we were before the pandemic, when the economy and wages were growing, and most Americans liked that direction?

The first step involves curtailing emergency spending loopholes. Emergency spending is intended for unforeseen, urgent expenditures arising from natural disasters, economic crises, or other unexpected serious situations. It’s typically exempt from ordinary budgetary constraints and processes. The idea is for governments to respond quickly without the delay of standard budgetary procedures.

Unfortunately, the emergency spending label has long been abused. Regular, predictable expenditures are often labelled as “emergencies” to bypass normal budgetary controls and scrutiny. This ability to spend without much oversight is awfully convenient for politicians and, as a result, makes emergency spending a significant driver of government debt. In a new study of the issue, Romina Bocca and Dominik Lett of the Cato Institute write: “Congress has designated $12 trillion in inflation-adjusted emergency and related cap-exempt spending over the last three decades. That’s 43 percent of the current public debt without including interest costs.”

There’s no way this much spending is based on unforeseen emergencies. Congress can give our children, who (as always) will probably foot the bill, quite the gift by deciding now to finally take on emergency spending reform. That would involve more transparency, stricter criteria about what constitutes an emergency, and better integration of emergency spending into the overall fiscal framework to ensure that such funds are used effectively and responsibly.

The second step is to tackle the staggering issue of improper payments made by the federal government, which soared to $236 billion in 2023. A new paper by Matt Dickerson at the Economic Policy Innovation Center (EPIC) for America notes that this number represents a 5.42 percent improper rate. This adds up to more than the combined total funding of several major government departments, even surpassing the $185 billion provided for the U.S. Army in the same year.

Since 2015, improper payments have increased by $100 billion. Over the last 20 years, the federal government reported a total of at least $2.4 trillion in improper payments. Considering less than 5 percent of improper payments were underpayments, and that the federal government barely even tries to recover overpayments, stopping this trend would make a big difference in reducing budget deficits.

I think we can all agree that improper payments that grow year after year are symptomatic of the sloppiness with which the government manages taxpayers’ hard-earned money. Putting an end to this particularly unacceptable spending should be a no-brainer that transcends bipartisan politics.

Over at the Heritage Foundation, Rachel Greszler rightfully notes that legislators “must verify that government payments are valid, hold bad administrators accountable, and minimize Americans’ reliance on federal programs.” She is correct that reducing the reliance on programs that experience the largest amounts of improper payments, either as a share of the program (Earned Income Tax Credit) or in absolute dollars (Medicaid), is essential. But also, bureaucrats themselves should be held accountable for their mistakes.

These small changes won’t fix everything. Only a reform of entitlement programs would do that. And embracing fiscal responsibility might not bring the immediate thrill of unwrapping a new toy or gadgetespecially for our kids. However, its benefits would endure. Changes could signal a commitment to a more stable and prosperous future not just for ourselves, but for generations to come. This Christmas, let’s hang our stockings with a hope for fiscal sanity, a gift that truly would keep on giving.

Politics

The ‘£7bn’ government secret

Published

3 hours ago

July 18, 2025

admin

👉 Click here to listen to Electoral Dysfunction on your podcast app 👈

Who knew what about the Afghan data leak? And could anyone in parliament have done more to help scrutinise the government at the time of the superinjunction? Harriet thinks so.

So in this episode, Beth, Ruth, and Harriet talk about the massive breach, the secret court hearings, and the constitutional chaos it’s unleashed.

Plus – the fallout from the latest Labour rebellion. Four MPs have lost the whip – officially for repeated defiance, but unofficially? A government source called it “persistent knobheadery”.

So is Keir Starmer tightening his grip or losing control? And how does this compare to rebellions of Labour past?

Oh and singer Chesney Hawkes gets an unexpected mention.

Responding to claims in the podcast about whether Commons Speaker Sir Lindsay Hoyle could have scrutinised the government, a Commons spokesperson said: “As has been made clear, Mr Speaker was himself under a superinjunction, and so would have been under severe legal restrictions regarding speaking about this. He would have had no awareness which organisations or individuals were and were not already aware of this matter.

“The injunction could not constrain proceedings in parliament and between being served with the injunction in September 2023 and the 2024 General Election Mr Speaker granted four UQs on matters relating to Afghan refugees and resettlement schemes.

“Furthermore, as set out in the Justice and Security Act 2013, the Speaker has no powers to refer matters to the Intelligence and Security Committee.”

World

England through to semi-finals of Women’s Euros after beating Sweden on penalties

Published

3 hours ago

July 18, 2025

admin

England through to semi-finals of Women's Euros after beating Sweden on penalties

England have booked their place in the semi-finals of the Women’s Euros after knocking out Sweden.

The Lionesses won 3-2 on penalties at Stadion Letzigrund in Zurich, Switzerland, after clawing their way back to take the game into extra-time.

The defending champions had been 2-0 down at half-time after goals from Sweden’s Kosovare Asllani and Stina Blackstenius in the quarter-final clash.

England then levelled matters towards the end of normal time. Lucy Bronze delivered the first England goal on 79 minutes, assisted by substitute Chloe Kelly. Two minutes later, Michelle Agyemang followed suit, taking the score to 2-2.

After a goalless extra-time, it was time for penalties.

Alessia Russo kicked things off, finding the back of the net for England, before Lauren James, Alex Greenwood, Beth Mead and Grace Clinton had their attempts saved by Sweden’s Jennifer Falk.

The game was sent into sudden death after Falk went face-to-face with England’s Hannah Hampton but sent the ball flying over the crossbar.

It all came down to Sweden’s seventh penalty after Bronze sensationally scored, with 18-year-old Smilla Holmberg missing the chance to send her team through.

England will next face Italy in the semi-finals in Geneva on Tuesday.

‘That was crazy’

England boss Sarina Wiegman described the action as “one of the hardest games I’ve ever watched”.

“We could have been out of the game three or four times, when you’re 2-0 at half-time it’s not good,” she said after the match.

“Although we started really bad, at the end it got better, but we didn’t create anything so we had to change shape, and we score two goals – that was crazy.

“We miss a lot [of penalties], and they miss even more. I need to decompress, I think.”

Goalkeeper Hampton added that it was “stressful watching” and “stressful playing”.

The 24-year-old, who was left with a bloodied nose in extra-time, said: “Every time I saved one, I was just thinking ‘please put it in, so we have a bit of a cushion!’

“To be honest, I think I was better in the game when I had one nostril than when I was completely fine!”

She said it was the support of the England fans that helped the team push on. She said: “They were definitely behind me and I appreciate all the support.”

Pressure was on the Lionesses after they won the tournament in 2022.

Their journey in the group stages started with a 2-1 defeat to France, but hopes were lifted after England sailed past the Netherlands and Wales to reach the knockout stages, finishing second in Group D.

Sweden on the other hand went into Thursday’s game unbeaten in the tournament so far, having already defeated Germany, Poland and Denmark in the group stages.

World

Lionesses went from sloppy to celebratory in nerve-shredding euros quarter-final

Published

3 hours ago

July 18, 2025

admin

Lionesses went from sloppy to celebratory in nerve-shredding euros quarter-final

By the time Hannah Hampton appeared in the news conference, the England goalkeeper was relieved, ecstatic and wanting to share this night far and wide.

So when her phone started ringing with a FaceTime call, she broke off speaking to the media about reaching the Euros semi-finals to answer it.

And then share the call with the room in Zurich.

After such a nerve-shredding night, this was the moment to relax and just savour it all.

Savour how close they came to throwing it all away against Sweden before staging a stirring comeback inspired by Lucy Bronze.

The 33-year-old scored the goal that began the fightback with 11 minutes to go and converted England’s final penalty in the shootout.

“Lucy Bronze is one of a kind,” England manager Sarina Wiegman said. “It’s that resilience, that fight. I think the only way to get her off the pitch is in a wheelchair.”

The Lionesses looked down and out, 2-0 down after 25 minutes.

Completely outplayed. A defence run ragged. Just too sloppy.

“We said at half-time we don’t want to go home,” Hampton said. “So it’s up to us to turn the game around.”

That only came after Wiegman deployed the substitutes the manager calls “finishers”.

They fulfilled their mission.

“Sweden in that moment had to adapt to some different things in the game,” Wiegman said, “before they could, it was 2-2.”

Within seconds of coming on, match-winner Chloe Kelly showed the missing spirit. The spirit that saw her score the Euro 2022 winner.

A creator of two goals in 103 seconds.

A cross headed in with 11 minutes to go by Bronze – the only player still playing from the Euro 2013 group-stage elimination.

It was a lifeline seized on so quickly.

Another cross from Kelly was this time brought down by Beth Mead before Michelle Agyemang.

The timeliest of goals from the teen – a first tournament goal on her third appearance as a sub.

But there would be the anxiousness of extra time to follow, unable to find a breakthrough.

So to the shootout that lasted 14 penalties between them.

Hampton said: “It was stressful watching and playing, I thought every single time when I saved one, ‘Please score and give us a cushion’. I feel so happy and relieved.”

Around Alessia Russo and Kelly scoring there were four England misses before Bronze converted England’s seventh and Sweden missed a fifth.

A frenzied 3-2 shootout win was complete.

“I can’t remember anything like this,” said Wiegman, who has only reached finals in her four tournaments with the Netherlands and England.

“I thought three times we were out,” she said.

But instead it’s off to Geneva for the European champions for a semi-final with Italy.

They’ll be hoping it’s less of a struggle, less dramatic – while just glad to have made it there.