Wednesday, June 27, 2012

Ron Paul's Advancing "Audit The Fed" Bill Indicative Of Public's Anti-Bankster Sentiment?

Ron Paul's Advancing "Audit The Fed" Bill Indicative Of Anti-Bankster Public Sentiment
After three years of languishing, H.R. 459, Ron Paul's "Audit the Fed" bill, passed the House Oversight Committee this morning on a voice vote, with no opposition. I'm encouraged by this news, particularly due to the fact that the committee had blocked multiple iterations of the bill over the years. It would appear that the public is becoming skeptical of the Fed: no one on the bipartisan committee--a group of representatives for millions of Americans of all stripes--voted "nay". This is fantastic news!

Often times we have to wait with baited breath for votes on big bills like this. But I'm happy to report that a floor vote on H.R. 459 is on the schedule for next month! Stay tuned.

Monday, June 25, 2012

Site Details Lifetime Costs To The Individual Of Big Government Spending

New Site Details Lifetime Costs Of Big Government Spending
Every once in a while you stumble upon a site that provides incontrovertible evidence that federal spending is out of control. Today I found MyGovCost.org. The site, a service provided by The Independent Institute, a reputable nonprofit, scholarly, research, and educational organization, calculates how much federal government spending costs an individual over the course of his life, depending on his age, income, and education level. The site categorizes spending by sector and function, and, most importantly, quantifies the opportunity cost that each category of spending creates. This is powerful information! The data the site provides could be cited in articles, quoted on talk radio shows, included in presentations, and referenced when debating liberals in comment threads. The only criticism I have of the site is that it doesn't take into consideration the lifetime cost of federal regulations on the individual. But if you're one to engage in arguments against Big Government, you should bookmark MyGovCost.org for quick reference.

Welcome, Boortz Listeners!

Neal Boortz linked to ECOMINOES today in his Reading Assignments. I'm extremely excited about this, in no small part due to the fact that I've been listening to the Talkmaster for nearly a decade. Although I've never met him, I can thank Neal for introducing me to libertarianism and inspiring me to take up amateur talk radio. In recent years my brand of libertarianism has lead me to re-asses the U.S.'s approach to the War on Terror, and Neal and I would likely disagree on foreign policy. But I believe we're on the same page domestically, and, as such, I believe you, the Boortz listener, will enjoy this blog. ¡Bienvenido!

Sunday, June 24, 2012

The TRUE Cost Of Outrageous Government Spending

The TRUE Outrageous Cost Of Government Spending
Conducting research for my post concerning ridiculous federal employee compensation, I began to wonder what the true cost of government spending is when factoring the large portion of federal outlays that are comprised of dollars that are either borrowed or printed (which, too, are ultimately "borrowed"). I came up with a formula and applied it to a number of government expenditures, making them appear even more ridiculous.

The Formula

Under Obama, the annual deficit has been consistently hovering around 40%. In other words, for every $1 the Government has spent, $.40 has either been borrowed or printed (henceforth to be called "borrowed"). The majority of borrowed federal funds are derived from 10-year Treasury notes, whose yield has been hovering around 2% over the past couple of years. A 10-year Treasury note with a face value of $.40, 2% yield, and interest compounded semiannually would have a return of $.09. In other words, 40% of every $1 ($.40) the Government currently spends actually costs $.49. Therefore, $1 in government spending actually costs $.49 + $.60, or $1.09.

The Results

Adding 9% to the following annual federal expenditures, we get:

Defense: $768.2 billion reported, $837.3 billion actual

Entitlements: $2.41 trillion reported, $2.63 trillion actual

Average Federal Employee Compensation: $126,141 reported, $137,493 actual

Federal Employee Minimum Wage: $10.50 reported, $11.45 actual

And the grand total:

Total Outlays: $3.83 trillion reported, $4.17 trillion actual