Downsizing Blog
On June 12, I testified before the Joint Economic Committee (along with Cato’s own Adam Michel) on the current state of US industrial policy and the manufacturing “boom” its supporters assert has already begun. Below is my oral statement to the committee, which summarizes my longer written testimony.
Federal debt and interest costs are headed toward levels never seen in our nation’s history.
Both the Reagan and Trump administrations proposed eliminating the EDA. House Republicans should take another shot at reform.
President Trump approved $900 billion in stimulus spending in December and President Biden approved another $1.9 trillion in March. Biden is set to propose a further $3 trillion on infrastructure, and Majority Leader Chuck Schumer is exploring ways to bend Senate rules to keep the spending flowing.
One concern about climate change is that it may cause more natural disasters such as hurricanes, floods, droughts, and forest fires. People living along the East and Gulf coasts, major rivers, and in the West may face higher risks if pessimistic climate predictions come true. President Biden has proposed an array of new subsidies and regulations to address climate change, but big‐government solutions to the problem are themselves very risky.
New York Governor Andrew Cuomo is in hot water. His handling of nursing homes during the pandemic was tragically flawed and his attempted coverup of the blunders has heightened the scandal. The governor has also been accused of sexual harassment by a former aide.
I reported on the governor’s policies in Cato’s fiscal report card. Cuomo received the worst grade of “F” in the 2020 report for his large tax and spending increases.
President Biden and the Democrats are including $350 billion in aid for the states in their $1.9 trillion stimulus bill. But state and local budgets are in decent shape, and finances will continue to improve as the economy recovers. Further state handouts are not needed.
Worried that their spending spree in the recent omnibus bill will suppress conservative turnout at the polls this November, Republicans are now considering a “rescission” package.
The EDA, which cost taxpayers $287 million in 2017, funds activities that should be funded by local governments and the private sector.
I am a fan of Kimberley Strassel’s columns about federal politics in the Wall Street Journal. But her recent column about the omnibus spending bill—which increased spending 13 percent in one year—was off the mark.
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