Political & Economic Analysis
ENTITLEMENT TIME BOMBS THREATEN
UNCLE SAM'S 'FULL FAITH AND CREDIT'
In case you missed it, say Tim Penny, a former Democratic
congressman from Minnesota, and Charles Stenholm, a former
Democratic congressman from Texas, Moody's Investors Service
recently said that the bonds issued by the U.S. government may not
be a completely safe bet in the future. Why? Because of the
trillions of dollars in unfunded obligations to the Social Security
and Medicare programs.
"These two programs are the largest threats to the long-term
financial health of the United States and to the governments' AAA
rating," Moody's Vice President Steven Hess said in the agency's
annual report on the United States issued last month.
o According to Tom Lemmon at Moody's, the underlying credit
rating of the U.S. government faces the risk of downgrading in
the next 10 years if solutions are not found to our growing
Medicare and Social Security unfunded obligations.
o Faced with rising entitlement spending due to baby boomer
retirements and surging health care costs, Moody's is rightly
reconsidering its confidence in the U.S. government's ability
to repay its debts.
o Tens of trillions of dollars in unfunded Social Security and
Medicare obligations mean the government must choose
between higher taxes or lower spending on these programs.
For years, however, politicians in Washington have simply failed to
make a choice. But failing to choose is, in fact, choosing to
increase the implicit debts owed to these programs, which grow by
trillions each year, say Penny and Stenholm.
The warning from Moody's shows that runaway entitlement
spending isn't a far-off problem with little impact on Americans
today. Within a relatively short time, the "full faith and credit" of
the U.S. government could come at a much higher cost, and that
cost will be passed on to all Americans, today and in the future. The
time to act is now, say Penny and Stenholm.
Source: Tim Penny and Charles Stenholm, "Entitlement Time
Bombs Threaten Uncle Sam's 'Full Faith And Credit'," Investor's
Business
Daily, February 5, 2008.
For text:
http://www.ibdeditorials.com/IBDArticles.aspx?id=287103104692077
For more on Economic Issues:
http://www.ncpa.org/sub/dpd/?Article_Category=17
UNCLE SAM'S 'FULL FAITH AND CREDIT'
In case you missed it, say Tim Penny, a former Democratic
congressman from Minnesota, and Charles Stenholm, a former
Democratic congressman from Texas, Moody's Investors Service
recently said that the bonds issued by the U.S. government may not
be a completely safe bet in the future. Why? Because of the
trillions of dollars in unfunded obligations to the Social Security
and Medicare programs.
"These two programs are the largest threats to the long-term
financial health of the United States and to the governments' AAA
rating," Moody's Vice President Steven Hess said in the agency's
annual report on the United States issued last month.
o According to Tom Lemmon at Moody's, the underlying credit
rating of the U.S. government faces the risk of downgrading in
the next 10 years if solutions are not found to our growing
Medicare and Social Security unfunded obligations.
o Faced with rising entitlement spending due to baby boomer
retirements and surging health care costs, Moody's is rightly
reconsidering its confidence in the U.S. government's ability
to repay its debts.
o Tens of trillions of dollars in unfunded Social Security and
Medicare obligations mean the government must choose
between higher taxes or lower spending on these programs.
For years, however, politicians in Washington have simply failed to
make a choice. But failing to choose is, in fact, choosing to
increase the implicit debts owed to these programs, which grow by
trillions each year, say Penny and Stenholm.
The warning from Moody's shows that runaway entitlement
spending isn't a far-off problem with little impact on Americans
today. Within a relatively short time, the "full faith and credit" of
the U.S. government could come at a much higher cost, and that
cost will be passed on to all Americans, today and in the future. The
time to act is now, say Penny and Stenholm.
Source: Tim Penny and Charles Stenholm, "Entitlement Time
Bombs Threaten Uncle Sam's 'Full Faith And Credit'," Investor's
Business
Daily, February 5, 2008.
For text:
http://www.ibdeditorials.com/IBDArticles.aspx?id=287103104692077
For more on Economic Issues:
http://www.ncpa.org/sub/dpd/?Article_Category=17
POLICIES THAT WORK FOR WORKING FOLKS
America needs policies that work for people who work. American
women -- and all American workers -- need flexibility, portability, and
security. They deserve no less, says Terry Neese, a distinguished
fellow at the National Center for Policy Analysis.
o Between 1950 and 2000, the labor force participation rate of
women between 25 and 55 years of age more than doubled.
o Today, more than 75 percent of these women are in the labor
market; less than 12 percent of mothers with children under
age 6 were in the labor force in 1950.
o Today, more than 60 percent work outside the home.
Public policy and major institutions never kept pace, says Neese.
Tax law, labor law and other institutions are still designed from
top-to-bottom for an "Ozzie and Harriet" lifestyle. The labor market does not
provide most women with the flexibility they need in the 21st century.
Some suggested reforms:
o Fix the tax system so it's fairer for two-earner couples;
both spouses should be able to file separate tax returns, if
that benefits them.
o Create a flexible employee benefits system that makes it
fairer for dual-earner couples.
o Make labor laws flexible, which would allow parents with
young children and caregivers for elderly parents to choose
alternatives to the traditional 40-hour work week.
o Create a level playing field, under tax laws, for people who
save for retirement, purchase health insurance, long-term
insurance and/or day care.
o Provide the same level of tax relief for people who save for
retirement, purchase health insurance, long-term insurance
and/or day care as those who obtain these benefits at work.
Source: Terry Neese, "Policies that work for working
folks," Washington Times, February 7, 2008.
For text:
http://www.washingtontimes.com/article/20080207/COMMENTARY/422241245
/1012/commentary
For more on Women In Economy:
http://www.ncpa.org/sub/dpd/?Article_Category=45
America needs policies that work for people who work. American
women -- and all American workers -- need flexibility, portability, and
security. They deserve no less, says Terry Neese, a distinguished
fellow at the National Center for Policy Analysis.
o Between 1950 and 2000, the labor force participation rate of
women between 25 and 55 years of age more than doubled.
o Today, more than 75 percent of these women are in the labor
market; less than 12 percent of mothers with children under
age 6 were in the labor force in 1950.
o Today, more than 60 percent work outside the home.
Public policy and major institutions never kept pace, says Neese.
Tax law, labor law and other institutions are still designed from
top-to-bottom for an "Ozzie and Harriet" lifestyle. The labor market does not
provide most women with the flexibility they need in the 21st century.
Some suggested reforms:
o Fix the tax system so it's fairer for two-earner couples;
both spouses should be able to file separate tax returns, if
that benefits them.
o Create a flexible employee benefits system that makes it
fairer for dual-earner couples.
o Make labor laws flexible, which would allow parents with
young children and caregivers for elderly parents to choose
alternatives to the traditional 40-hour work week.
o Create a level playing field, under tax laws, for people who
save for retirement, purchase health insurance, long-term
insurance and/or day care.
o Provide the same level of tax relief for people who save for
retirement, purchase health insurance, long-term insurance
and/or day care as those who obtain these benefits at work.
Source: Terry Neese, "Policies that work for working
folks," Washington Times, February 7, 2008.
For text:
http://www.washingtontimes.com/article/20080207/COMMENTARY/422241245
/1012/commentary
For more on Women In Economy:
http://www.ncpa.org/sub/dpd/?Article_Category=45
| NATIONAL CENTER FOR POLICY ANALYSIS DAILY POLICY DIGEST http://www.ncpa.org IN TODAY'S DIGEST |
 |  |  |  |  |  |  |
THE RIGHT ENERGY SOLUTION
If gas prices stay at current levels, then in 2008 Americans will pay
about 1 percent of Gross Domestic Product (GDP), or $130 billion more
for oil than they paid in 2007, and $180 billion more than they paid in
2006. These are significant increases, about the size of the economic stimulus
package being debated in Congress. Put it another way: if we could get oil
prices down to 2006 or 2007 levels, we wouldn't need a stimulus package,
says Diana Furchtgott-Roth, former chief economist at the U.S. Department of
Labor, and a senior fellow at the Hudson Institute.
What are our politicians doing about this? Not enough, says
Furchtgott-Roth:
o President Bush's 2009 budget, released on Monday, recommends
spending $687 million on electricity from nuclear power; the
funds would primarily be used to help the regulatory approval
process and develop technologies to reduce and dispose of
waste.
o Nuclear power could generate clean electricity that could
substitute for coal, if regulatory and liability problems
could be worked out, but until plug-in cars become widely
available, atomic fission cannot be harnessed to propel
vehicles, which account for about 24 percent of American
energy consumption.
o So far companies have not been willing to go through red
tape, public anxiety, and risks of lawsuits to build nuclear
plants; no new power plant has been ordered since 1978, and
the last one finished was in 1996.
The president's other energy proposals are either counterproductive, or
mere window-dressing, says Furchtgott-Roth:
o He proposes to double the Strategic Petroleum Reserve -
buy more oil at high prices and take it off the market, which
would raise prices, not lower them.
o He wants $648 million for clean coal technologies and $400
million for research into clean technologies for developing
countries to help alleviate global warming.
Source: Diana Furchtgott-Roth, "The Right Energy Solution,"
New York Sun, February 6, 2008.
For text:
http://www.nysun.com/article/70811
For more on National Energy Policy:
http://eteam.ncpa.org/issues/?c=national-energy-policy
For more on Energy Issues:
http://www.ncpa.org/sub/dpd/?Article_Category=22
If gas prices stay at current levels, then in 2008 Americans will pay
about 1 percent of Gross Domestic Product (GDP), or $130 billion more
for oil than they paid in 2007, and $180 billion more than they paid in
2006. These are significant increases, about the size of the economic stimulus
package being debated in Congress. Put it another way: if we could get oil
prices down to 2006 or 2007 levels, we wouldn't need a stimulus package,
says Diana Furchtgott-Roth, former chief economist at the U.S. Department of
Labor, and a senior fellow at the Hudson Institute.
What are our politicians doing about this? Not enough, says
Furchtgott-Roth:
o President Bush's 2009 budget, released on Monday, recommends
spending $687 million on electricity from nuclear power; the
funds would primarily be used to help the regulatory approval
process and develop technologies to reduce and dispose of
waste.
o Nuclear power could generate clean electricity that could
substitute for coal, if regulatory and liability problems
could be worked out, but until plug-in cars become widely
available, atomic fission cannot be harnessed to propel
vehicles, which account for about 24 percent of American
energy consumption.
o So far companies have not been willing to go through red
tape, public anxiety, and risks of lawsuits to build nuclear
plants; no new power plant has been ordered since 1978, and
the last one finished was in 1996.
The president's other energy proposals are either counterproductive, or
mere window-dressing, says Furchtgott-Roth:
o He proposes to double the Strategic Petroleum Reserve -
buy more oil at high prices and take it off the market, which
would raise prices, not lower them.
o He wants $648 million for clean coal technologies and $400
million for research into clean technologies for developing
countries to help alleviate global warming.
Source: Diana Furchtgott-Roth, "The Right Energy Solution,"
New York Sun, February 6, 2008.
For text:
http://www.nysun.com/article/70811
For more on National Energy Policy:
http://eteam.ncpa.org/issues/?c=national-energy-policy
For more on Energy Issues:
http://www.ncpa.org/sub/dpd/?Article_Category=22
THE REAL COST OF IMMIGRATION
A new study by Edwin S. Rubenstein, a Manhattan Institute adjunct fellow,
looks at the myriad ways immigration increases the cost of government and
how government policies increase immigration.
For example:
Rubenstein found that each immigrant costs taxpayers more than $9,000,
while every immigrant household of four costs $36,000 in taxes.
That's far more than the $3,408 in 2007 dollars the National Research
Council's 1997 "New Americans" study of federal, state and local government
expenditures found immigrants to cost.
Looking at education alone, Rubenstein found:
About 3.8 million public school students -- 7.9 percent of total K-12 enrollment
-- are enrolled in classes for English language learners, according to the
Department of Education.
Rand Corp. researchers discovered back in 1981 that added costs for
language assistance instruction ranged from $100 to $500 per pupil.
The total cost of providing English Language Learning instruction to the 3.8
million students enrolled in those programs is about $3.9 billion.
Turning to the Department of Justice, Rubenstein found criminal aliens to be
an increasing burden on U.S. prison systems:
In 1980, federal and state facilities held fewer than 9,000 criminal aliens, but
at the end of 2004, about 267,000 noncitizens were incarcerated in U.S.
correctional facilities.
Of all prisoners in federal prisons, 27 percent are criminal aliens, he found,
with a total cost of $1.5 billion.
According to a 2003 Government Accountability Office (GAO) survey, the
average criminal alien was arrested for 13 prior offenses, 12 percent of which
were cases of murder, robbery, assault and sexually related crimes; only 21
percent were immigration offenses, the rest being felonies.
Source: Editorial, "The Real Cost of Immigration," Investor's Business Daily,
April 4, 2007.
For text:
http://www.ibdeditorials.com/IBDArticles.aspx?id=292204157102985
For more on Immigration Issues:
http://www.ncpa.org/sub/dpd/index.php?Article_Category=34
A new study by Edwin S. Rubenstein, a Manhattan Institute adjunct fellow,
looks at the myriad ways immigration increases the cost of government and
how government policies increase immigration.
For example:
Rubenstein found that each immigrant costs taxpayers more than $9,000,
while every immigrant household of four costs $36,000 in taxes.
That's far more than the $3,408 in 2007 dollars the National Research
Council's 1997 "New Americans" study of federal, state and local government
expenditures found immigrants to cost.
Looking at education alone, Rubenstein found:
About 3.8 million public school students -- 7.9 percent of total K-12 enrollment
-- are enrolled in classes for English language learners, according to the
Department of Education.
Rand Corp. researchers discovered back in 1981 that added costs for
language assistance instruction ranged from $100 to $500 per pupil.
The total cost of providing English Language Learning instruction to the 3.8
million students enrolled in those programs is about $3.9 billion.
Turning to the Department of Justice, Rubenstein found criminal aliens to be
an increasing burden on U.S. prison systems:
In 1980, federal and state facilities held fewer than 9,000 criminal aliens, but
at the end of 2004, about 267,000 noncitizens were incarcerated in U.S.
correctional facilities.
Of all prisoners in federal prisons, 27 percent are criminal aliens, he found,
with a total cost of $1.5 billion.
According to a 2003 Government Accountability Office (GAO) survey, the
average criminal alien was arrested for 13 prior offenses, 12 percent of which
were cases of murder, robbery, assault and sexually related crimes; only 21
percent were immigration offenses, the rest being felonies.
Source: Editorial, "The Real Cost of Immigration," Investor's Business Daily,
April 4, 2007.
For text:
http://www.ibdeditorials.com/IBDArticles.aspx?id=292204157102985
For more on Immigration Issues:
http://www.ncpa.org/sub/dpd/index.php?Article_Category=34
