Authored by Thomas W. Smith via RealClearPolitics,
For most of the past six decades, the United States has been facing the threat of implosion from a growing federal budget deficit. Today, that threat is no longer lurking. It is here. The annual federal budget deficit has left Americans saddled with unimaginable debt. It has increased more than sixfold in the last 20 years. Today it is on steroids. This year, interest on the federal debt will be approximately $1.1 trillion. By comparison, our annual defense budget is $850 billion.
Think of the exciting opportunities Republicans had when they narrowly captured control of the House of Representatives in 2022. Unfortunately, even before they were sworn in, the House leadership called for a secret vote on how to spend taxpayer dollars. By a vote of 158-2, they brought back to life earmarks that had been put to bed under Speaker John Boehner in 2011. Earmarks are special appropriations tailored to member’s pet projects. Historically, they were known as “pork-barrel” spending.
After a secret vote, those 158 GOP members enabled a system in which 7,500 pork-barrel projects were enacted at a cost to the taxpayers of $16 billion. It was not only – or even primarily – liberal “tax and spend” Democrats pigging out. Fifty of the largest earmarkers in the House were Republicans. In the Senate, eight of the 12 largest offenders were Republicans. Nor was it only established Republicans. Some of the largest MAGA voices were busy pushing earmarks. They include Florida representatives Matt Gaetz (who requested over $1 billion) and Brian Mast (who received some $437 million).
In the second year, the top seven earmarking specialists in the Senate were Republicans, for a grand total of $2.3 billion. In the last two years, highlights of congressional pork included the following:
- Sen. Susan Collins earmarked $870 million for her own state, Maine (population 1.4 million). Those projects included “an outdoor heating facility” and “space education simulators.”
- Alaska Sen. Lisa Murkowski earmarked $851.1 million, including a “whale abundance survey” and a “crab enhancement project.”
- Sen. Mitch McConnell of Kentucky requested 26 earmarks totaling $640.9 million.
- A total of 31 members earmarked taxpayer dollars for universities they attended.
- Another four lawmakers set aside taxpayer dollars for companies where their wives worked.
Actions speak louder than words. These GOP earmark enthusiasts have made a clear statement –they are totally comfortable with the exploding federal debt. Yes, it is true that many Democrats pushed earmarks. But it is also true that the Democratic Party did not bring back earmarks when they controlled the House. Those 158 GOP members did. And they far outspent the Democrats.
What those GOP House members and senators failed to realize is that the world has changed dramatically since Speaker Boehner left Washington.
A decade or so ago, The Economist pointed out that Big Data would change social science like the microscope changed medicine. That was a prophetic observation. Government is a social science. The combination of Big Data and the cloud is bringing a massive change to every aspect of our lives, including how we govern ourselves. It is bringing transparency. For the first time in our nation’s history, non-classified money spent by our governing class is available for public scrutiny. Today, it is difficult to hide government duplication, fraud, and incompetence.
Transparency also works to change the culture within our government.
Transparency educates the voting public by giving them access to federal, state, and local government expenditures on their cell phones, iPads, and computers. While the voters’ eyes glaze over budgets presented in billions or trillions (too many zeroes), they do understand fiscal irresponsibility when presented with egregious examples of government profligacy. Transparency has the potential to change our culture – and political outcomes – while encouraging competition in primary elections, since the lack of fiscal responsibility will no longer be hidden.
Changing the culture within government is encouraged by constant communication with the voting public and the governing bureaucracy. Again, actions speak louder than words. Actions send a clear message to a wider constituency of voters. Here are four actions President Trump and his administration can put in place to encourage a turn-off-the-lights culture, an it’s-taxpayer-dollars-I’m-spending culture.
- Call for Congress to eliminate every earmark immediately. Point out that you will publish every remaining earmark every month until they are eliminated.
- Announce that the White House will cut expenses by a fixed percentage. The president and the Department of Government Efficiency led by Elon Musk are already taking a broadsword to the executive branch agencies, but the symbolism of cutting White House expenses would set a powerful example. Successfully attacking the colossal federal debt requires the participation of everyone in government.
- Suggest that Congress join the White House and cut their office and committee expenses and report their progress to the public quarterly. Again, everyone in the government must participate. If the White House can cut expenses, so can everyone else in government.
- Announce that every department in your administration with a budget will focus on cutting waste, fraud, duplication, and incompetence and report to the public quarterly. And that you will monitor progress (or lack thereof) and report to the public quarterly.
The cloud, Big Data, and technology have given us tools we never had before to attack waste, fraud, duplication, and incompetence. Transparency! It is nonpartisan. It is not controllable. It is a culture-changer.
Mr. President, your administration is fortunately positioned to be the transparency launching pad. It will bring much-needed efficiency and effectiveness to the world of government.
The last time the U.S. budget was not in the red was during the Clinton administration. President Clinton pointed out that the federal debt could be eliminated in about 15 years. That did not take place. Our debt then was $5 trillion. Today it is more than $36 trillion. Think of where our great country would be today if it were not saddled with interest payments of over $1 trillion. That is an exciting thought.
The Trump administration has its work cut out for it. But transparency and political resolve can meet the moment.
Thomas W. Smith is the founder of Prescott Investors, Inc.
Authored by Thomas W. Smith via RealClearPolitics,
For most of the past six decades, the United States has been facing the threat of implosion from a growing federal budget deficit. Today, that threat is no longer lurking. It is here. The annual federal budget deficit has left Americans saddled with unimaginable debt. It has increased more than sixfold in the last 20 years. Today it is on steroids. This year, interest on the federal debt will be approximately $1.1 trillion. By comparison, our annual defense budget is $850 billion.
Think of the exciting opportunities Republicans had when they narrowly captured control of the House of Representatives in 2022. Unfortunately, even before they were sworn in, the House leadership called for a secret vote on how to spend taxpayer dollars. By a vote of 158-2, they brought back to life earmarks that had been put to bed under Speaker John Boehner in 2011. Earmarks are special appropriations tailored to member’s pet projects. Historically, they were known as “pork-barrel” spending.
After a secret vote, those 158 GOP members enabled a system in which 7,500 pork-barrel projects were enacted at a cost to the taxpayers of $16 billion. It was not only – or even primarily – liberal “tax and spend” Democrats pigging out. Fifty of the largest earmarkers in the House were Republicans. In the Senate, eight of the 12 largest offenders were Republicans. Nor was it only established Republicans. Some of the largest MAGA voices were busy pushing earmarks. They include Florida representatives Matt Gaetz (who requested over $1 billion) and Brian Mast (who received some $437 million).
In the second year, the top seven earmarking specialists in the Senate were Republicans, for a grand total of $2.3 billion. In the last two years, highlights of congressional pork included the following:
- Sen. Susan Collins earmarked $870 million for her own state, Maine (population 1.4 million). Those projects included “an outdoor heating facility” and “space education simulators.”
- Alaska Sen. Lisa Murkowski earmarked $851.1 million, including a “whale abundance survey” and a “crab enhancement project.”
- Sen. Mitch McConnell of Kentucky requested 26 earmarks totaling $640.9 million.
- A total of 31 members earmarked taxpayer dollars for universities they attended.
- Another four lawmakers set aside taxpayer dollars for companies where their wives worked.
Actions speak louder than words. These GOP earmark enthusiasts have made a clear statement –they are totally comfortable with the exploding federal debt. Yes, it is true that many Democrats pushed earmarks. But it is also true that the Democratic Party did not bring back earmarks when they controlled the House. Those 158 GOP members did. And they far outspent the Democrats.
What those GOP House members and senators failed to realize is that the world has changed dramatically since Speaker Boehner left Washington.
A decade or so ago, The Economist pointed out that Big Data would change social science like the microscope changed medicine. That was a prophetic observation. Government is a social science. The combination of Big Data and the cloud is bringing a massive change to every aspect of our lives, including how we govern ourselves. It is bringing transparency. For the first time in our nation’s history, non-classified money spent by our governing class is available for public scrutiny. Today, it is difficult to hide government duplication, fraud, and incompetence.
Transparency also works to change the culture within our government.
Transparency educates the voting public by giving them access to federal, state, and local government expenditures on their cell phones, iPads, and computers. While the voters’ eyes glaze over budgets presented in billions or trillions (too many zeroes), they do understand fiscal irresponsibility when presented with egregious examples of government profligacy. Transparency has the potential to change our culture – and political outcomes – while encouraging competition in primary elections, since the lack of fiscal responsibility will no longer be hidden.
Changing the culture within government is encouraged by constant communication with the voting public and the governing bureaucracy. Again, actions speak louder than words. Actions send a clear message to a wider constituency of voters. Here are four actions President Trump and his administration can put in place to encourage a turn-off-the-lights culture, an it’s-taxpayer-dollars-I’m-spending culture.
- Call for Congress to eliminate every earmark immediately. Point out that you will publish every remaining earmark every month until they are eliminated.
- Announce that the White House will cut expenses by a fixed percentage. The president and the Department of Government Efficiency led by Elon Musk are already taking a broadsword to the executive branch agencies, but the symbolism of cutting White House expenses would set a powerful example. Successfully attacking the colossal federal debt requires the participation of everyone in government.
- Suggest that Congress join the White House and cut their office and committee expenses and report their progress to the public quarterly. Again, everyone in the government must participate. If the White House can cut expenses, so can everyone else in government.
- Announce that every department in your administration with a budget will focus on cutting waste, fraud, duplication, and incompetence and report to the public quarterly. And that you will monitor progress (or lack thereof) and report to the public quarterly.
The cloud, Big Data, and technology have given us tools we never had before to attack waste, fraud, duplication, and incompetence. Transparency! It is nonpartisan. It is not controllable. It is a culture-changer.
Mr. President, your administration is fortunately positioned to be the transparency launching pad. It will bring much-needed efficiency and effectiveness to the world of government.
The last time the U.S. budget was not in the red was during the Clinton administration. President Clinton pointed out that the federal debt could be eliminated in about 15 years. That did not take place. Our debt then was $5 trillion. Today it is more than $36 trillion. Think of where our great country would be today if it were not saddled with interest payments of over $1 trillion. That is an exciting thought.
The Trump administration has its work cut out for it. But transparency and political resolve can meet the moment.
Thomas W. Smith is the founder of Prescott Investors, Inc.
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