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

Published

1 year ago

December 22, 2023

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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

Starmer to host virtual meeting of ‘coalition of the willing’ – and demand ‘concrete commitments’ on Ukraine

Published

54 mins ago

March 15, 2025

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Starmer to host virtual meeting of 'coalition of the willing' - and demand 'concrete commitments' on Ukraine

Sir Keir Starmer will host a virtual meeting of world leaders to discuss peacekeeping in Ukraine, and he will use the call to say that now is the time for “concrete commitments”, Downing Street has said.

Around 25 leaders are expected to join the call on Saturday morning, in which they will discuss in more detail the peacekeeping mission the prime minister has called the ‘coalition of the willing’.

Sir Keir will ask allies to continue to ramp up military support to Ukraine.

He will also say countries need to increase economic pressure on Russia in the short term, and be prepared to support an eventual peace deal over the long term, should an agreement be reached.

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Attendees will also receive an update on the discussions of defence ministers and military chiefs in Paris this week, and they will all set out details of their own efforts to unlock further military support for Ukraine.

Downing Street has confirmed that some European countries, the EU Commission, NATO, Canada, Ukraine, Australia and New Zealand are expected to join the virtual meeting.

Starmer: The world needs to see action

In a statement ahead of the call, the prime minister said: “We can’t allow President Putin to play games with President Trump’s deal.

“The Kremlin’s complete disregard for President Trump’s ceasefire proposal only serves to demonstrate that Putin is not serious about peace.

“If Russia finally comes to the table, then we must be ready to monitor a ceasefire to ensure it is a serious and enduring peace, if they don’t, then we need to strain every sinew to ramp up economic pressure on Russia to secure an end to this war.”

He went on to accuse the Russian president of “trying to delay” by “saying there must be a painstaking study before a ceasefire can take place”.

“The world needs to see action, not a study or empty words and pointless conditions,” he continued.

“My message to the Kremlin could not be clearer: stop the barbaric attacks on Ukraine, once and for all, and agree to a ceasefire now. Until then, we will keep working around the clock to deliver peace.”

Sir Keir has said Britain could send peacekeepers to Ukraine in the event of a ceasefire deal, but has called on Washington to offer a security ‘backstop’ to those forces.

Russia casts doubt on potential ceasefire

The meeting comes after Ukraine backed the US’s proposal for a 30-day ceasefire.

But the Russian president has said “lots of questions” remain over that proposal, and that a ceasefire must lead to “long-term peace” which “would remove the initial reasons for the crisis”.

Moscow has reportedly also presented a “list of demands” to the US to end the war, which would include international recognition of Russia’s claim to Crimea and four Ukrainian provinces and an agreement that foreign troops not be deployed in Ukraine.

Ukraine’s president Volodymyr Zelenskyy said Mr Putin’s remarks were “very predictable” and “very manipulative”, adding that the Russian president was preparing to reject the ceasefire proposal he agreed with the US.

Technology

Intel’s new CEO receives $66 million in options and stock grants on top of $1 million salary

Published

1 hour ago

March 14, 2025

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Intel's new CEO receives million in options and stock grants on top of million salary

Intel appoints Lip-Bu Tan as CEO.

Courtesy: Intel

New Intel CEO Lip-Bu Tan will receive total compensation of $1 million in salary and about $66 million in stock options and grants vesting over the coming years, according to filing on Friday with the SEC.

Tan was named as the chief of Intel this week, spurring hopes that the chip industry veteran can turn around the struggling company. Intel shares are up nearly 20% so far in 2025, and most of those gains came this week, following Tan’s appointment. He starts next week.

Tan will receive $1 million in salary, and he is eligible for an annual bonus worth $2 million.

He will also receive stock units in a long-term equity grant valued at $14.4 million, as well as a performance grant of $17 million in Intel shares. Both grants will vest over a period of five years, although Tan won’t earn any of those shares if Intel’s stock price drops over the next three years. He can earn more stock if the company’s share price outperforms the market.

Tan will receive a package of stock options worth $9.6 million, as well as a new hire option grant worth $25 million.

In total, Tan’s compensation package has about $66 million in long-term equity awards and options in addition to salary, bonuses, and legal expenses. If Intel goes through a change of control, Tan could be eligible for accelerated vesting, according to the filing.

“Lip-Bu’s compensation reflects his experience and credentials as an accomplished technology leader with deep industry experience and is market competitive,” Intel said in an emailed comment. “The vast majority of his compensation is equity-based and tied to long-term shareholder value creation.”

Separately, Tan agreed to purchase $25 million in Intel shares and hold them in order to be eligible for the grants and bonuses.

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Entertainment

will.i.am and Sean Paul on embracing artificial intelligence in music

Published

2 hours ago

March 14, 2025

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will.i.am and Sean Paul on embracing artificial intelligence in music

How artificial intelligence will affect our lives going forward is a question being figured out across pretty much all industries right now.

While many in the arts have expressed concerns over how algorithms learn from their work, Black Eyes Peas star will.i.am believes it actually should “inspire you to create”.

An early artificial intelligence supporter, he says: “If you’re basing what you’re going to do tomorrow off yesterday, you’re not growing.”

The music producer spoke to Sky News after giving a demo of his new AI radio app in London.

Rather than artificial intelligence being something with negative connotations, he insists its potential should “inspire better, broader, deeper, faster…[it] shouldn’t stop you from being human”.

As one of the most prominent voices to position himself in the pro-AI camp, his enthusiasm is certainly infectious.

Those who turned out to see the demonstration of his app-based platform RAiDiO.FYI got to see the musician and tech entrepreneur challenge one of his AI personas to make a joke comparing computer chips and guacamole chips with reasonably funny results.

He hopes listeners will come to interact and talk with AI presenters in the not-too-distant future.

But is it a gimmick or a taste of the future?

Sky News put it to will that some of his musical counterparts worry AI – with its instant ability for anyone to make a song in his style – waters down the music industry.

“I don’t think anything can water down our industry any more than TikTok has,” he responded.

“We used to listen to three-minute songs, now we’re down to nine seconds….TikTok and that algorithm, you know, changes what record companies are looking for, changes the architecture of the song… it’s watered down…we an ocean (sic).”

Sean Paul on embracing AI

But Jamaican dancehall musician Sean Paul isn’t entirely won over by AI’s potential.

“It’s a pandora’s box,” the rapper said, speaking to Sky News, “when you open it, it’s going to change all the parameters. It’s down to you to get used to the game.”

“I am apprehensive about certain parts of [it] in terms of making people lazy to writing”, the 52-year-old, who has worked with countless stars over his 20-year career, said.

“It can become a toy and make music more dispensable.”

He said he recognises there are copyright and ethical considerations with using AI in the music-making process – especially where algorithms are concerned and they may mimic popular sounds.

He said: “If it does happen that AI takes my stuff and I’m never compensated because of it (…) I will fight that.

“It’s gonna happen. Already though, I feel me, the artist, the creator, I’ve got the short end of the stick for a long time. Even before the days of streaming – we get 0.0 something of the product – and it’s we that created it.”

AI as a ‘tool’

However, he also acknowledged that “times have changed” – and that adapting is key to surviving the ever-changing music industry.

Paul says none of his published music has been touched by AI – but he is open to experimenting with it.

“I’ve used it for trying to finish riddim patterns that I have….I used it as a tool… as I think everybody should.”

Some big names in music, like Sir Paul McCartney and Sir Elton John, have openly called for a legal framework to be established to better protect artists, which will.i.am agrees is paramount “to not always lead with greed, especially with powerful systems” like AI.

“There needs to be some type of artificial intelligence constitution….I believe you should be licensed to put out AIs right now and you’re not.”

AI and copyright concerns

Over 1,000 artists, from Damon Albarn to Kate Bush, recently released a silent album to protest possible changes to UK copyright AI laws.

Dubbed ‘Is This What We Want?’, its aim was to highlight concern for how their work is potentially being used to develop and train the technology.

While the likes of will.i.am and Sean Paul may be open to seeing where the technology takes them, Alastair Webber believes the government should be taking control rather than loosening the reins.

The co-founder of The Other Songs, an independent music company championing songwriters and artists, says: “We must protect copyright because it really is the economic bedrock of the creative industries that bring so much back.”

The son of composer Lord Lloyd Webber, he believes while it’s important that big figures within the industry like his father are vocal with their concerns, the stand they’re taking is actually for those with their careers ahead of them.

“We’re not talking about these big names like Andrew Lloyd Webber or Elton John, all these people that are getting the headlines supporting this, actually [this matters more] for the young people being born today.”