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Archive for August, 2015

The libertarian message of limited government generally is not warmly received in Washington because politicians, bureaucrats, cronyists, lobbyists, contractors, and other insiders profit from the status quo.

The D.C. area is now the richest region of the country, filled with folks who gladly support higher taxes because they realize that “They may send an additional 5 percent of their income to the IRS, but their income will be 20 percent higher because of all the money sloshing around Washington.”

But what about folks in the real world? Do the folks from “outside the beltway” believe in smaller government?

As a general rule, I think ordinary people are sympathetic to limited government, particularly if you have a chance to dispassionately explain how nations with good policy routinely out-perform countries with bad policy.

But there are issues that present challenges because a non-trivial share of the population thinks the free-market approach is too radical or unrealistic. To cite a few examples that I’ve written about in the past:

Today, I want to add to that list. When discussing the merits of government intervention, there are people who generally believe in markets, but nonetheless argue that we need antitrust laws to protect consumers from avaricious companies.

I agree that businesses are looking to maximize profits, but I disagree with the notion that this puts consumers in peril. In a free-market economy, businesses can get money only by providing goods and services that are valued by consumers.

Indeed, consumers are only in danger when government puts its thumb on the scale with handouts, subsidies, restrictions, bailouts, regulations, licensing, mandates, and other forms of intervention. Because when government rigs the market and hinders competition, that’s when consumers can get exploited.

Moreover, to the extent we have monopolies in America, it’s because of government. Just think of the Postal Service. Or Social Security. Or the air traffic control system. Those are all things that should be handled by the private sector, but they exist because of government coercion.

Now that we’ve reviewed the theoretical argument, let’s look at how antitrust laws are grossly inconsistent in practice. Professor Mark Perry of the American Enterprise Institute pointed out that it’s possible for companies to get in trouble with antitrust bureaucrats regardless of the prices they charge.

If your company’s prices are too close to the same as your competitors’ prices, government bureaucrats will come after you and charge you with price-fixing and collusion as 35 auto parts manufacturers found out recently… If your company’s prices are too high, government bureaucrats will come after you and charge you with price-gouging, as five airlines found out recently… And finally, if your company’s prices are too low, government bureaucrats will come after you and charge you with predatory pricing or selling products below cost, as the grocery chain Meijer found out recently after opening stores in Wisconsin.

Now put yourself in the position of a pricing manager at a company. What are you supposed to do if bureaucrats can come after you no matter what price you charge?!? This makes no sense.

And it sparked my memory. Back when I was a college student in the 1970s and first learning about free markets, I remember coming across a short film, The Incredible Bread Machine, that argued in favor of economic liberty.

It was accompanied by a poem that told the story of an entrepreneur named Tom Smith who invented a technology to produce cheap bread for the masses. That was good news, but then the price of bread rose after an increase in business taxation and that led to accusations that the entrepreneur was exploiting his “market power.”

And that’s when the antitrust bureaucrats got involved. Here’s the relevant section of the poem, and you’ll notice that 1970s satire is eerily similar to today’s antitrust reality.

So, antitrust now took a hand.
Of course, it was appalled
At what it found was going on.
The “bread trust,” it was called.

Now this was getting serious.
So Smith felt that he must
Have a friendly interview
With the men in antitrust.
So, hat in hand, he went to them.
They’d surely been misled;
No rule of law had he defied.
But then their lawyer said:

The rule of law, in complex times,
Has proved itself deficient.
We much prefer the rule of men!
It’s vastly more efficient.
Now, let me state the present rules.

The lawyer then went on,
These very simpIe guidelines
You can rely upon:
You’re gouging on your prices if
You charge more than the rest.
But it’s unfair competition
If you think you can charge less.

A second point that we would make
To help avoid confusion:
Don’t try to charge the same amount:
That would be collusion!
You must compete. But not too much,
For if you do, you see,
Then the market would be yours
And that’s monopoly!”

Price too high? Or price too low?
Now, which charge did they make?
Well, they weren’t loath to charging both
With Public Good at stake!

In fact, they went one better
They charged “monopoly!”
No muss, no fuss, oh woe is us,
Egad, they charged all three!

Here’s the 1975 film version of the Incredible Bread Machine. The poem begins shortly after 30:00, though I suggest watching the whole video for its historical value, as well as the commentary at the end by Milton Friedman.

P.S. On another topic, I can’t resist sharing this man-bites-dog passage from a recent editorial in the New York Times.

…the next government will have to do more to make the country more productive, and that includes…cutting pensions, streamlining regulations, privatizing state-owned businesses.

No, this isn’t a joke. The NYT actually endorsed pro-market reforms to shrink the size and scope of government.

That’s the good news.

The bad news is that the editorial was about Greece rather than United States.

But at least there’s hope that the editors are becoming more rational, particularly when you also consider that the New York Times recently published columns showing the superiority of funded pension systems over tax-and-transfer programs like Social Security and revealing that feminist-supported government intervention in labor markets hurts intended beneficiaries.

To be sure, a few good pieces hardly offset the NYT‘s long track record of economic illiteracy, but a journey of a thousand miles begins with a first step.

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Socialism is an economic failure. International socialism didn’t work in the Soviet Union. National socialism didn’t work in Germany. And democratic socialism, while avoiding the horrors of its communist and Nazi cousins, also has been a flop.

Socialism fails because it attempts to replace market-determined prices with various forms of central planning based on government-dictated prices.

Moreover, socialism channels self interest in a destructive direction. In a free market, people get income and improve their lot in life by satisfying and fulfilling the needs of other people. In a socialist system, by contrast, people squabble over the re-slicing of a shrinking pie.

There’s a famous Winston Churchill quote that basically says that the ostensible problem with capitalism is that people aren’t equally rich, whereas the supposed attractiveness of socialism is that people get to be equally poor.

The Princess of the Levant sent me a visual version of Churchill’s quote, and it’s definitely worth sharing.

Both the Churchill quote and the above image are very entertaining. And they effectively make the point that statism is very bad for ordinary people.

That being said, they’re not actually accurate.

Sure, the masses are equally impoverished by socialist systems, but a handful of people escape this fate. You probably won’t be surprised to learn that the government elites have very comfortable lives. And that may be the understatement of the century, as indicated by this report in the U.K.-based Daily Mail. Here are some very relevant passages.

The daughter of Hugo Chavez, the former president who once declared ‘being rich is bad,’ may be the wealthiest woman in Venezuela, according to evidence reportedly in the hands of Venezuelan media outlets. Maria Gabriela Chavez, 35,…holds assets in American and Andorran banks totaling almost $4.2billion… Others close to Chavez managed to build up great personal wealth that was kept outside the petrostate. Alejandro Andrade, who served as Venezuela’s treasury minister from 2007 to 2010 and was reportedly a close associate of Chavez, was discovered to have $11.2billion in his name… During his lifetime, Hugo Chavez denounced wealthy individuals, once railing against the rich for being ‘lazy.’ ‘The rich don’t work, they’re lazy,’ he railed in a speech in 2010. ‘Every day they go drinking whiskey – almost every day – and drugs, cocaine, they travel.’

What a bunch of hypocrites. They denounce successful people who presumably earn money honestly, yet they amass huge fortunes by pilfering their nation.

And what’s been happening in Venezuela is no different, I’m sure, than what happened in the past in Nazi Germany, the Soviet Union, and other socialist regimes.

And I’m sure it’s still happening today in other socialist hell holes such as North Korea and Cuba. The elite enjoy undeserved and unearned wealth while ordinary people live wretched lives of deprivation.

Everyone’s equal, but some are more equal than others.

Let’s close by citing some wise words about the impact of socialism on ordinary people from Kevin Williamson of National Review.

The United Socialist party’s disastrous economic policies have led to acute shortages of everything: rice, beans, flour, oil, eggs, soap, even toilet paper. Venezuela is full of state-run stores that are there to provide the poor with life’s necessities at subsidized prices, but the shelves are empty. …While Venezuela has endured food riots for years, the capital recently has been the scene of protests related to medical care. Venezuela has free universal health care — and a constitutional guarantee of access to it. That means exactly nothing in a country without enough doctors, medicine, or facilities. Chemotherapy is available in only three cities, with patients often traveling hours from the hinterlands to receive treatment. But the treatment has stopped.

Now ask yourself whether you think the party bosses are suffering like other citizens because of a lack of food and health care (or toilet paper!).

And that giant gap between the treatment of the elite vs. the peasantry tells you everything you need to know about socialism, whether it’s the brutal kind practiced in places such as Venezuela or the kinder, gentler (but equally hypocritical) versions found elsewhere.

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There are eight current or former governors running for the Republican nomination in 2016. In alphabetical order, we have Jeb Bush, Chris Christie, Mike Huckabee, John Kasich, Bobby Jindal, George Pataki, Rick Perry, and Scott Walker.

So who’s the best of that bunch? That’s a subjective judgement, of course, but one valuable piece of information is to see what grades they earned from the Cato Institute’s Fiscal Policy Report Card on America’s Governors. This superb publication provides a comprehensive analysis of the overall fiscal policy record of each state executive. The latest version is here, and that will give you the scores of current governors, as well as the score of Rick Perry (who just left office).

For former governors, you can dig through the Cato website to find earlier versions of the Report Card. Or if you want to be lazy and don’t care about the nuances, this post by my colleague Nicole Kaeding is a nice summary.

For today, though, let’s focus solely on their spending records.

Here’s some of what Nicole wrote in a separate article on the fiscal record of the governors.

A governor who promises to cut federal spending is more believable if he held spending in check when he was governor. …Using data from the National Association of State Budget Officers, I wanted to see just how much each governor increased spending on an annual basis. …The graph below shows the average annual increase in spending during each candidate’s time as governor. Jeb Bush has the highest spending with a 6.08 percent average annual increase. John Kasich is second. He increased spending by 4.95 percent. Rick Perry finishes third with an average annual increase of 4.01 percent. Bobby Jindal shows the most fiscal restraint. He cut spending by 1.76 percent a year on average.

And here’s her chart.

But Nicole then explains that you don’t get a full picture when you simply look at spending increases.

…this comparison is somewhat biased because population grows at different rates in the states. …The graph below presents annual average spending growth on a per capita basis. The spending increases of Jeb Bush and Rick Perry now look much smaller. Jeb Bush’s increases are still above the average, but Rick Perry falls below it. …This further confirms Kasich’s lack of fiscal restraint. Bobby Jindal actually cut spending on a per capita basis by an average of 2.41 percent a year.

And here’s her second graph.

The bottom line is that Bush and Kasich don’t look very good, whereas Bobby Jindal is easily the most frugal.

But don’t make a decision just on this basis. We have some more data to investigate.

John Stossel and Maxim Lott analyze the same group of governors (other than Pataki) in a column for Fox News.

Every Republican presidential candidate has promised to keep government spending in check — but which ones actually have a track record of doing that? …The “Stossel” show crunched the numbers on that — adjusting them for inflation and population growth. …Bush cut spending the most. Though he’s criticized by conservatives as “too moderate,” the former Florida governor cut spending by an average of 1.39 percent each year he was in office.

On this basis, Bush goes from last place to first place!

Stossel and Lott then re-slice the numbers based on how frugal governors were compared to their counterparts in other states.

But the above chart isn’t perfect for comparing candidates, because governors serve terms in very different time periods. Some served during recessions, when most states must cut spending. We adjusted for that by doing another comparison — how much each governor spent compared with other governors in office at that same time… Bush was indeed the biggest budget cutter. During his tenure, Florida’s spending shrunk by 3.6 percentage points more than the average. He cut spending by 1.39 percent per year in his state, while other states increased theirs by 2.3 percent during that same period. Kasich was also conservative by this measure, cutting spending 1.76 percentage points more than other states did. But both charts show spending grew by the most under New Jersey Gov. Chris Christie and former Arkansas Gov. Huckabee.

This next chart show Bush and Kasich doing better than their political rivals.

So how can Bush and Kasich do better in one set of calculations but do the worst in another set of calculations?!?

Does adjusting for inflation really make that much difference? Or perhaps they used different measures of spending, with one including outlays financed by federal transfers?

Nicole walks through some of these methodological challenges in a post reviewing Kasich’s record (i.e., how much should he be blamed for expanding Medicaid/Obamacare in Ohio when all the initial cost is shifted to federal taxpayers?).

For what it’s worth, Jindal probably comes in first place if you average all the above numbers. And he also has tried to abolish Louisiana’s income tax, so that’s another point in his favor.

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At the risk of stereotyping, the Chinese people are remarkably productive when given the chance. Hong Kong and Singapore are dominated by ethnic Chinese, and those jurisdictions routinely rank among the world’s top economies.

Taiwan is another high-performing economy with an ethnic Chinese population.

Ironically, the only place where Chinese people don’t enjoy high average incomes is China. And that’s because there’s too much statism. If you peruse the indispensable Economic Freedom of the World from Canada’s Fraser Institute, you’ll see that China is ranked #115 out of 152 jurisdictions, which is even below nations such as Greece, Haiti, and Vietnam.

As I explain in this interview, China’s politicians are undermining prosperity with a system based on cronyism rather than capitalism.

China’s in the news, of course, because of recent instability in its financial markets. And I’ve taken advantage of the opportunity to give my two cents on this issue (see here and here).

But I was making the same criticisms even when China’s economy was perceived as a big success. I wrote in 2010 that America didn’t need to fear the supposed Chinese economic tiger. I pointed out in 2011 that China was way behind the United States.

And I was at least somewhat prescient when I warned about a bubble in the Chinese economy in this 2011 debate.

Though plenty of folks on the left actually argued that China’s state-controlled economy was something to mimic. Writing for Reason, Ronald Bailey cites some of their silly statements.

As the world watches China’s Communist Party leaders try to order markets around, my mind turned to those pundits who earnestly recommended that the United States emulate the brilliant beneficient Chinese planners in running our economy. The most fulsome China booster was New York Times columnist Tom Friedman. …So enamored of China’s industrial policy was Friedman that in 2010 he likened Chinese economic planning boldness to making “moon-shots.” …And then there is the inevitable Robert Reich. Reich, who is a former Clinton Secretary of Labor, has never been right about anything when it comes to economic policy prescriptions. For example, Reich was convinced in the 1980s the Japan would bury the United States due to the planning acumen of that country’s savvy bureaucrats. …Just shy of 30 years later Reich sang the same stale tune in 2011, only instead of Japanese planners, he was praising the wonders of Chinese industrial planning… As late as 2012, Richard D’Aveni, a Professor of Strategy at Tuck School of Business at Dartmouth College, declared in The Atlantic that “The U.S. Must Learn From China’s State Capitalism to Beat It.”

Actually, Professor D’Aveni is right for the wrong reason. We can learn a lot from statist economies. But we should learn what to avoid, not what to copy.

To conclude, this post shouldn’t be perceived as being anti-China. I want there to be more prosperity in that country, which is why I defended China from an absurd attack by the IMF.

Moreover, I commend China for reforms that move policy in the right direction. And as I pointed out in the interview embedded above, China’s reforms in the 1980s and 1990s may have been limited, but they did help lift hundreds of millions of people out of abject poverty.

Since I mentioned the interview, one of the quirky parts of the discussion was whether politicians should be held criminally responsible for economic mismanagement. Here’s what I wrote a few years ago about an example of that happening in Iceland.

P.S. You probably didn’t realize that it was possible to see dark humor in communist oppression.

P.P.S. But at least some communists in China seem to understand that the welfare state is a very bad idea.

P.P.P.S. Some business leaders say China is now more business-friendly than the United States. That’s probably not good news for America, but my goal is to have a market-friendly nation, not a business-friendly nation.

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It would require several people, working around the clock, to provide daily updates about the bizarre and senseless actions of the crowd in Washington.

And you’d need many additional people to monitor the foolish decisions in state capitals.

I certainly try to do my small part, sharing example of jaw-dropping vapidity by our overseers in government (especially in New York City and California).

But I don’t like to discriminate, which is why I periodically highlight inane behavior by foreign bureaucrats and politicians. And we have two perfect examples today. We’ll start north of the border.

Here are some passages from a CBC report about nanny-state overkill from Canada (h/t: Lenore Skenazy).

Clayton, 8, and Kristopher Cadieux, 10, started their business last summer, digging up worms and selling them as bait for $2.50 per dozen. But after a complaint from a neighbour, the brothers received a note from the city saying they were breaking a bylaw and had to shut down their business. The mayor of Cornwall, Leslie O’Shaughnessy, explained that the bylaw requires all personal business sales be conducted within the home, without outdoor signage. …The city told the brothers to move their business inside their home, and to take down their signs on their front lawn. …Kristopher said the worm enterprise only brought in about $34 a month last summer, and he doesn’t understand why he and his brother are being told they can’t sell worms from their front lawn.

How dare these kids display entrepreneurship.They’re almost as bad as the Canadian kid who got in trouble for stopping a knife attack.

But I still think America wins the prize for teaching kids bad lessons. After all, local government officials have heroically thwarted rogue operators of unregulated and unlicensed lemonade stands, in California, Georgia, and Oregon!

Without adequate government supervision, you never know what might happen. If you allow kids to engage in voluntary exchange, maybe that will be the gateway step to other forms of anti-social behavior. Such as snow removal without government approval. Or giving topless haircuts without a cosmetology license!

Our second example of foreign government stupidity comes from the United Kingdom, which is infamous for astounding – and embarrassing – episodes of political correctness.

But this latest example, reported by the U.K.-based Metro, represent the ultimate triumph of the P.C. culture (h/t: Amy Alkon).

…according to one school, Wonder Woman and her Golden Lasso of Truth are…not suitable lunchbox fodder. According to Redditor twines18, who posted a copy of the letter and offending lunchbox on Imgur, the lunchbox contravened the schools dress code which states children aren’t allowed to bring ‘violent images’ into the building. The letter states: ‘We have defined “violent characters” as those who solve problems using violence. Super heroes certainly fall into that category.’

Part of me is convinced this is a joke, but it seems legit.

And let’s remember this is coming from a nation where anti-gun fanaticism results in jaw-dropping displays of government stupidity.

Anyhow, here’s the letter that was sent to the parents.

So solving problems using violence is bad?

I guess that means this school doesn’t teach the kids about World War II. After all, Churchill and other U.K. leaders obviously took the wrong approach. I’m sure a big group hug would have sufficed to stop Hitler and the rest of the National Socialists.

P.S. Speaking of England, the U.K.-based Spectator reports that local universities have an unfortunate habit of filling the heads of foreign students with very bad economic theories. And when those students gain power in their home countries, you get very bad results.

Varoufakis was a product of British universities. He read economics at Essex and mathematical statistics at Birmingham, returning to Essex to do a PhD in economics. With the benefit of his British university education he returned to Greece and, during his short time in office, obliterated the nascent recovery.But Varoufakis is not alone. Plenty of other visitors to our universities have been influenced by the teaching here and returned to their countries to wreak havoc. Jawaharlal Nehru, the first prime minister of an independent India…was influenced by British intellectuals such as George Bernard Shaw, a socialist, Bertrand Russell, who once remarked ‘communism is necessary to the world’, and John Maynard Keynes. He returned to India and started to put the ideology into practice with state planning, controls and regulations. This was a calamity. …Julius Nyerere, president of Tanzania,…read economics and history at Edinburgh (as did Gordon Brown). Naturally he was surrounded by leftist academics and apparently ‘encountered Fabian thinking’ in particular. The experience made it all but inevitable that Tanzania would endure a bloated bureaucracy, shortages and miserably low growth. …the London School of Economics can rightly claim more than its share, of course. Jomo Kenyatta, first prime minister of Kenya after independence, went there. …overblown, corrupt state industries and attempted import substitution took their toll, so that GDP growth per capita was low and, in some years, negative. …Pierre Trudeau…came to the LSE for his doctorate. He did not finish it but the LSE nonetheless gave him a finishing course in leftist economics. Under his rule, Canada introduced wage and price controls while inflation, unemployment and the national debt all rose. Zulfikar Ali Bhutto, variously president and prime minister of Pakistan, went to…Oxford. …once he had gained power, declaring ‘socialism is our economy’, he nationalised the steel, chemical, cement and banking industries along with the flour, rice and cotton mills. Economic growth slowed to a crawl.

Wow, what a rogue’s gallery of statist politicians.

Though, to be fair, I don’t think you automatically get bad ideas by studying economics in the United Kingdom. It’s a function of being “taught” be misguided professors.

After all, just think what must happen to foreign students in America who take classes from Paul Krugman. If these examples (here, here, here, herehereherehereherehere, herehere, and here) are any indication, they probably experience un-learning.

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Why are many developed nations facing long-run fiscal crisis according to long-run estimates from the IMF, BIS, and OECD?

Poorly designed entitlement programs are a big part of the answer, with the United States being an unfortunate example of how fiscal systems become unstable when politicians buy votes by putting burdens on future taxpayers.

But changing demographics is an equally important part of the answer.

Simply stated, birth rates are falling and lifespans are increasing all over the world. Those aren’t bad things. Indeed, longer lifespans are a very good thing.

But it means there won’t be enough workers to finance the modern welfare state. And when there are too many people riding in the wagon and too few people pulling the wagon, that is a recipe for Greek-style fiscal chaos.

When I explain this to audiences, I get the feeling that some folks think I’m exaggerating.

Indeed, some people openly accuse me of exaggerating demographic changes as part of a “scare campaign.”

They’re partially correct. My warnings about the need for reform could be considered a “scare campaign.” But that’s because I am scared. And I’m definitely not exaggerating.

Check out this very sobering image of how America’s population pyramid is turning into a population cylinder. Heck, our population profile will be somewhat akin to an upside-down pyramid by the middle of the century!

I have two thoughts when looking at this data.

The first – and most obvious – reaction is that we better implement genuine entitlement reform if we want to avoid a big mess. And the sooner, the better.

My second reaction is to express some sympathy and understanding (thought not approval) for the politicians who created America’s entitlement crisis.

Social Security was created in the mid-1930s and Medicare and Medicaid were adopted in the mid-1960s. And if you pay close attention to the above image, you’ll see that America had a “population pyramid” during those periods, meaning that there were comparatively few old people, plenty of workers, and then even larger generations of children (i.e., future workers and taxpayers).

With that type of population profile, tax-and-transfer entitlement systems appeared to be financially sustainable. That didn’t mean those programs were a good idea, of course, but it did mean that politicians could plausibly argue that it was okay to create entitlement programs that resembled Ponzi schemes.

The bottom line is that FDR and LBJ were very misguided, but their mistakes look far worse today than they did at the time.

So now the question is whether today’s politicians will show some actual foresight and fix the problems. There are reasons for optimism, but also reasons for pessimism.

P.S. Demography is not destiny. As I wrote earlier this year, “there are jurisdictions, such as Singapore and Hong Kong that are in reasonably good shape even though their populations rank among the nations with the lowest levels of fertility and longest life expectancies. …Mandatory pension savings is a key reason why some jurisdictions have mitigated a demographic death squeeze.

P.P.S. My 11th-most viewed post of all time (and the most-viewed item in the past three months) used two cows to explain economic and political theories.

Here’s an addendum to that post.

For more Greek-related humor, this cartoon is quite  good, but this this one is my favorite. And the final cartoon in this post also has a Greek theme.

We also have a couple of videos. The first one features a video about…well, I’m not sure, but we’ll call it a European romantic comedy and the second one features a Greek comic pontificating about Germany.

Last but not least, here are some rather un-PC maps of how various peoples – including the Greeks – view different European nations.

 

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Earlier this month, Americans for Prosperity held a “Road to Reform” event in Las Vegas.

I got to be the warm-up speaker and made two simple points.

First, we made a lot of fiscal progress between 2009 and 2014 because various battles over debt limits, shutdowns, and sequestration actually did result in real spending discipline.

Second, I used January’s 10-year forecast from the Congressional Budget Office to explain how easy it would be to balance the budget with a modest amount of future spending restraint.

Here’s my speech (you can see the entire event by clicking here).

I realize I sound uncharacteristically optimistic in these remarks, but it is amazing how easy it is to make progress with even semi-effective limits on the growth of government.

Genuine spending cuts would be very desirable, of course, but we move in the right direction so long as government spending grows slower than the private sector.

The challenge, needless to say, is convincing politicians to limit spending.

Well, we now have some new data in that battle. The CBO released its Update this morning, which means the numbers I shared in Nevada are now slightly out of date and that I need to re-do all my calculations based on the new 10-year forecast.

But it doesn’t really make a difference.  As you can see from the chart, we can balance the budget by 2021 if spending is capped so that it grows by 2 percent annually. And even if spending is allowed to grow by 3 percent per year (about 50 percent faster than projected inflation), the budget is balanced by 2024.

At this point, I feel compelled to point out that the goal should be smaller government, not fiscal balance.

But since fiscal policy debates tend to focus on how to eliminate red ink and balance the budget, I may as well take advantage of this misplaced focus to push a policy (spending restraint) that would be desirable even if we had a budget surplus.

And that’s the purpose of this video I narrated for the Center for Freedom and Prosperity back in 2010. The numbers obviously have changed over the past five years, but the underlying argument about the merits and efficacy of spending restraint are exactly the same today.

For more information on the merits of smaller government, here’s my tutorial on government spending.

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