A new report published by the World Bank has come to a spellbinding conclusion: High government spending and large public sectors substantially diminish economic growth. In fact, a slew of establishment economists and organizations have come to a similar conclusion. Daniel J. Mitchell, senior fellow at the Cato Institute, explained in a recent article that the era of socialism is over, and the field of economics is migrating toward a more laissez-faire ideology, where governmental authority is weakened and economies become more privatized.
Well, he didn’t make Time magazine’s “Person of the Year.” But Warren Buffett did make the cover of the magazine last month. The picture showed him smiling an impish grin. The article inside explained why.
American dependence on government has soared to an all-time high under the Obama administration, spiking 23 percent in just two years, according to a new study by the Heritage Foundation. The conservative research group’s 2012 "Index of Dependence on Government" revealed that 67 million Americans are now banking on some federal program, including programs related to healthcare, housing, welfare, education subsidies, and other government programs that were "traditionally provided to needy people by local organizations and families."
Federal Reserve Chairman Ben Bernanke told lawmakers this week that the government’s borrowing was at “clearly unsustainable” levels, warning that its wild budget deficits increase the possibility of a sudden fiscal crisis which is creeping “ever closer.” The central bank chief also said Washington’s exploding debts would crowd out private-sector investment with damaging consequences for the economy.
Big Brother is set to adopt a new form of surveillance after a bill passed by Congress will require the Federal Aviation Administration (FAA) to open U.S. airspace to drone flights under a new four-year plan. The bill, which passed the House last week and received bipartisan approval in the Senate on Monday, will convert radar to an air traffic control system based on GPS technology, shifting the country to an age where satellites are central to air traffic control and unmanned drones glide freely throughout U.S. airspace.
San Francisco, as even casual observers of the political scene know, is one of the most liberal cities in the country. Many of its citizens fear big business — but not big government — and speak lovingly of locally owned small businesses. Its Mayor, Edwin M. Lee, recently announced a $1.5-million fund to assist small businesses.
In a recent editorial entitled “Regulation without Representation,” Investors Business Daily pointed out that a new federal rule or regulation is published every two hours, 24 hours a day, 365 days a year. But most of them escape the notice of Congress. Congress itself passes fewer than 200 in each session, the rest are promulgated by agencies in the Executive Branch in contravention of explicit instructions in the Constitution.
The long-awaited announcement of another bout of money printing in England on this Thursday will prove once again that experience doesn’t modify behavior on the other side of the pond either. The initial round of money expansion, called Quantitative Easing (QE) in the States, of some $320 billion last year in the United Kingdom had little measurable effect.
Governor Mitt Romney's statement about not worrying about the poor has been treated as a gaffe in much of the media, and those in the Republican establishment who have been rushing toward endorsing his coronation as the GOP's nominee for president — with 90 percent of the delegates still not yet chosen — have been trying to sweep his statement under the rug.
When Oklahoma State Senator David Holt discovered that Oklahoma was ranked the “most anti-taxpayer state in the southern United States” by the Competitive Enterprise Institute (CEI), he decided to propose amending the state’s constitution to stop the unions’ gravy train of collective bargaining contracts without taxpayer approval. His amendment says nothing about unions or collective bargaining. All he did was explain, in his press release, that if the amendment were passed, the constitution would allow local taxpayers to approve all spending of their tax dollars by local authorities for any purpose. He stated: