This action might not be possible to undo. Are you sure you want to continue?
A.Economy is on the rebound Chicago Tribune, “Economic measure rises for 2nd month,” June 20, 2008 http://www.chicagotribune.com/business/chi-fri-economy-leadingindicatojun20,0,1560650.story The index of leading U.S. economic indicators unexpectedly rose in May for a second consecutive month, a sign that growth may slow without stalling. The Conference Board's gauge climbed 0.1 percent, matching April's gain, the first back-to-back monthly increases in a year and a half, a report from the New York-based group showed Thursday. The index points to the direction of the economy over the next three to six months based on 10 components, including stock prices, building permits and initial claims for unemployment benefits. The figures may help ease concern that the worst housing recession in a quarter century, slumping consumer confidence and rising job cuts will end the economic expansion.
Earmarking funds for new policies kills fiscal discipline
David Doerr, Tribune-Herald Staff Writer, July 8, 2007 “Congressman Stresses not all earmarks are 'evil'”. http://www.accessmylibrary.com/coms2/summary_0286-31873910_ITM In 1994 -- the last year Democrats controlled the appropriations process -- there were 4,126 earmarks totaling $26.6 billion. That dropped to 3,000 earmarks when the Republicans became the majority. Pledges of fiscal responsibility became overshadowed by more and more earmarks, until the 2006 budget contained 15,500 earmarks totaling $64 billion. As Malmstrom's Comptroller, I am required to align recommended spending with "military utility" as I provide financial advice and decisions on where to use our scarce dollars in an effort to eke out the greatest return in accomplishing the mission. Military utility means that if an item is capable of fulfilling its purpose for the military mission, it doesn't need replacing. Instead, there are many other competing expenditures where we can use our money to further advance our mission effectiveness and efficiency. No longer do we have the luxury of replacing or upgrading based on color, scratches and faded material. In these times of leaner budgets, health, safety and mission must drive our decisions.
C. Spending measures destroy fiscal discipline Ernest Istook, Visiting Fellow in Government Relations at The Heritage Foundation who served 14 years in the U.S. House of Representatives and was chairman of a subcommittee of the House Appropriations Committee, Post-Veto War Supplemental Must Eliminate Pork and Support Troops, May 2, 2007, The Heritage Foundation, http://www.heritage.org/Research/Budget/wm1440.cfm, accessed 7/22/07 A series of short-term supplemental bills would also destroy any hope of Members' exercising the fiscal discipline that this Congress has promised to provide. In the vetoed supplemental, Congress stuffed in an extra $20 billion of non-emergency spending, much of which likely would not survive outside of "must pass" legislation. Although some special-interest spending was taken out in the conference committee, there was still plenty to beef about: $1.4 billion to the livestock industry, hundreds of millions for dairy producers, $60 million for salmon fisheries, a $650 million SCHIP bailout to states that irresponsibly expanded their programs, plus billions more for programs whose value could be debated--all told, $21 billion more than President's original request.As Charlie Rangel openly admitted on Meet the Press, most of that pork added to the supplemental was used to buy votes. Increasing the number of short-term supplemental appropriations will only serve to increase the extent to which the leadership will need to grease the skids with more pork projects in order to buy more votes to pass the series of supplementals. This two-month strategy would make it all the more vital for the President to require fiscal responsibility by eliminating special-interest projects and parochial spending.As a final threat to fiscal restraint, piecemeal supplemental appropriations would enable Congress to subvert budget discipline. Every non-defense, non emergency dollar stuffed into an emergency supplemental is a dollar that does not have to be spent in regular appropriations bills, which count against the limits that will be set in the budget resolution once it is passed. Non emergency spending in supplementals would allow Congress to spend freely, creating a back door for Congress to exceed limits in the budget resolution. Congress should live within reasonable means by declining multiple bites at the spending apple with one supplemental that will last the entire fiscal year. If Congress fails to meet this test, the President should take a firm stand against any legislation--short-term or otherwise--that makes funding for the troops contingent on salmon fisheries, state bailouts, or routine non-defense spending and exercise his veto power again.
D. Economic collapse causes global nuclear war Jeffrey Nyquist, Columnist for Financial Sense and WorldNetDaily and renowned expert in foreign policy and geopolitics, February 4, 2005 “The Political Consequences of a Financial Crash,” http://www.financialsense.com/stormwatch/geo/pastanalysis/2005/0204.html] Should the United States experience a severe economic contraction during the second term of President Bush, the American people will likely support politicians who advocate further restrictions and controls on our market economy – guaranteeing its strangulation and the steady pauperization of the country. In Congress today, Sen. Edward Kennedy supports nearly all the economic dogmas listed above. It is easy to see, therefore, that the coming economic contraction, due in part to a policy of massive credit expansion, will have serious political consequences for the Republican Party (to the benefit of the Democrats). Furthermore, an economic contraction will encourage the formation of anti-capitalist majorities and a turning away from the free market system. The danger here is not merely economic. The political left openly favors the collapse of America’s strategic position abroad. The withdrawal of the United States from the Middle East, the Far East and Europe would catastrophically impact an international system that presently allows 6 billion people to live on the earth’s surface in relative peace. Should anti-capitalist dogmas overwhelm the global market and trading system that evolved under American leadership, the planet’s economy would contract and untold millions would die of starvation. Nationalistic totalitarianism, fueled by a politics of blame, would once again bring war to Asia and Europe. But this time the war would be waged with mass destruction weapons and the United States would be blamed because it is the center of global capitalism. Furthermore, if the anti-capitalist party gains power in Washington, we can expect to see policies of appeasement and unilateral disarmament enacted. American appeasement and disarmament, in this context, would be an admission of guilt before the court of world opinion. Russia and China, above all, would exploit this admission to justify aggressive wars, invasions and mass destruction attacks. A future financial crash, therefore, must be prevented at all costs. But we cannot do this. As one observer recently lamented, “We drank the poison and now we must die.”
Loss of fiscal discipline destroys the economy C. Fred Bergsten, director of the Institute for International Economics, "The Risks Ahead for the World Economy," Economist, September 9, 2004 http://www.economist.com/opinion/displayStory.cfm?story_id=3172404 Robert Rubin, former secretary of the Treasury, also stresses the psychological importance for financial markets of expectations concerning the American budget position. If that deficit is viewed as likely to rise substantially, without any correction in sight, confidence in America's financial instruments and currency could crack. The dollar could fall sharply as it did in 197173, 1978-79, 1985-87 and 1994-95. Market interest rates would rise substantially and the Federal Reserve would probably have to push them still higher to limit the acceleration of inflation. These risks could be intensified by the change in leadership that will presumably take place at the Federal Reserve Board in less than two years, inevitably creating new uncertainties after 25 years of superb stewardship by Mr Volcker and Alan Greenspan. A very hard landing is not inevitable but neither is it unlikely.
Claims of a recession are wrong – the economy is turning around Reuters, “UPDATE 1-U.S. leading indicators rose 0.1 pct in May” June 19, 2008
WASHINGTON, June 19 (Reuters) - The U.S. economy is weak but has so far avoided a recession and may even turn around early next year, according to a key forecasting gauge that rose unexpectedly for the second straight month in May. The private Conference Board on Thursday said its Leading Economic Indicators index rose 0.1 percent, after a matching increase in April. Economists polled by Reuters ahead of the report had expected an unchanged reading. In March, the index was\ unchanged, revised downward from an earlier reported 0.1 percent increase. "The economy is very weak heading into the summer, with gas and utility bills possibly heading even higher. But latest data suggest the economy has not fallen into a contraction and may not undergo one in the second half of this year," said Ken Goldstein, a labor economist at the Conference Board. "In fact, the economy might even begin to turn a corner early next year," Goldstein said.
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.