Downsizing the Federal Government


Book Description

The federal government is running huge budget deficits, spending too much, and heading toward a financial crisis. Federal spending soared under President George W. Bush, and the costs of programs for the elderly are set to balloon in coming years. Hurricane Katrina has made the federal budget situation even more desperate. In Downsizing the Federal Government Cato Institute budget expert Chris Edwards provides policymakers with solutions to the growing federal budget mess. Edwards identifies more than 100 federal programs that should be terminated, transferred to the states, or privatized in order to balance the budget and save hundreds of billions of dollars. Edwards proposes a balanced reform package of cuts to entitlements, domestic programs, and excess defense spending. He argues that these cuts would not only eliminate the deficit, but also strengthen the economy, enlarge personal freedom, and leave a positive fiscal legacy for the next generation. Downsizing the Federal Government discusses the systematic causes of wasteful spending, and it overflows with examples of federal programs that are obsolete and mismanaged. The book examines the budget process and shows how policymakers act contrary to the interests of average Americans by favoring special interests.




Expansionary Austerity New International Evidence


Book Description

This paper investigates the short-term effects of fiscal consolidation on economic activity in OECD economies. We examine the historical record, including Budget Speeches and IMFdocuments, to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Using this new dataset, our estimates suggest fiscal consolidation has contractionary effects on private domestic demand and GDP. By contrast, estimates based on conventional measures of the fiscal policy stance used in the literature support the expansionary fiscal contractions hypothesis but appear to be biased toward overstating expansionary effects.







Oregon Blue Book


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The Right Talk


Book Description

Political analyst Mark Smith offers the most original and compelling explanation yet of why America has swung to the right in recent decades. How did the GOP transform itself from a party outgunned and outmaneuvered into one that defines the nation's most important policy choices? Conventional wisdom attributes the Republican resurgence to a political bait and switch--the notion that conservatives win elections on social issues like abortion and religious expression, but once in office implement far-reaching policies on the economic issues downplayed during campaigns. Smith illuminates instead the eye-opening reality that economic matters have become more central, not less, to campaigns and the public agenda. He analyzes a half century of speeches, campaign advertisements, party platforms, and intellectual writings, systematically showing how Republican politicians and conservative intellectuals increasingly gave economic justifications for policies they once defended through appeals to freedom. He explains how Democrats similarly conceived economic justifications for their own policies, but unlike Republicans they changed positions on issues rather than simply offering new arguments and thus helped push the national discourse inexorably to the right. The Right Talk brings clarity, reason, and hard-nosed evidence to a contentious subject. Certain to enrich the debate about the conservative ascendancy in America, this book will provoke discussions and reactions for years to come.




Aging and the Macroeconomy


Book Description

The United States is in the midst of a major demographic shift. In the coming decades, people aged 65 and over will make up an increasingly large percentage of the population: The ratio of people aged 65+ to people aged 20-64 will rise by 80%. This shift is happening for two reasons: people are living longer, and many couples are choosing to have fewer children and to have those children somewhat later in life. The resulting demographic shift will present the nation with economic challenges, both to absorb the costs and to leverage the benefits of an aging population. Aging and the Macroeconomy: Long-Term Implications of an Older Population presents the fundamental factors driving the aging of the U.S. population, as well as its societal implications and likely long-term macroeconomic effects in a global context. The report finds that, while population aging does not pose an insurmountable challenge to the nation, it is imperative that sensible policies are implemented soon to allow companies and households to respond. It offers four practical approaches for preparing resources to support the future consumption of households and for adapting to the new economic landscape.




Reducing the Deficit


Book Description