Because of the global financial crisis, U.S. government spending is up sharply, and is likely to rise even more with the stimulus package intended to strengthen the U.S. economy. Indeed, the U.S. government is expected to spend at least $3.5 trillion in 2009. That is about one-quarter of the nation’s economy. But how do we know if it will be wisely spent?
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Choice 1
Strengthen and Expand Systems to Encourage Responsible Spending
- Live within our means. Pass "pay-as-you-go" legislation, meaning that if a spending bill is passed, it must be offset by either a spending cut someplace else in the budget or a raise in taxes to cover the new expenses.
- Implement other reforms to the budget process, such as linking spending increases to population growth, or creating specific triggers or defaults so that if revenues and spending do not match, taxes are automatically raised and/or spending is automatically cut.
- The Amendment approach. Pass a balanced budget amendment. Most states have this and it simply makes it illegal to run a deficit and run up debt.
- Set tough, long-term financial goals. Right now, the federal government has projections but no actual long-term targets for reducing the deficit and paying off the debt. Other countries have legally binding plans to pay down their debt or to set limits for spending and taxes.
Arguments for:
- This is the simplest answer to the problem because it removes the possibility of creating more debt by borrowing money to cover our expenses, and therefore guarantees more responsible spending by the government.
- This would require government officials to think ahead, plan carefully and worry about long-term budget issues instead of focusing on short-term politics.
- This brings government in line with the realities that businesses and families face every day: spending plans must depend on the amount of money that is available.
Arguments against:
- This is a dangerously inflexible approach to governance. Sometimes the government needs to borrow money in a national emergency, such as a hurricane or a terrorist attack, or when facing the prospect of economic collapse.
- This approach also obstructs responsible borrowing for important investments in things like education, new technologies or new sources of energy that can be vital for our economic future. It’s like saying that just because some people run up their credit cards too much, no one will be allowed to take out a student loan anymore.
- This doesn’t do anything to keep government open and honest: without ethics reform and greater transparency, we'd just wind up with politicians fighting over a smaller pie.
Discuss this choicework Choice 2
Make It Easier For Americans To See How Government Spends Its Money And What Programs Work
- Make the federal budget easier to understand. We need to simplify the presentation of the federal budget, and also require that it be placed on the Internet each year in an easily searchable form. That way, reporters and watchdog groups can easily find out what the government is proposing to spend the nation’s money on.
- Protect whistle-blowers. Strengthen legislation that protects and rewards government employees who report wasteful or corrupt spending, so they will be more likely to come forward and bring abuses to light.
- Strengthen watchdog agencies. Ensure that government is able to demonstrate stewardship by strengthening program accountability entities and mechanisms such as the Government Accountability Office, the Government Performance and Results Act process, and the Performance Assessment Rating Tool.
- Shine a light on pork barrel spending. We should require members of Congress to make a formal vote for each added earmark to create a public record of their support for that additional spending. We also need an online earmark database that identifies every such project, along with who sponsored the earmark, who benefits, and which representatives voted for it.
- Strengthen government oversight of areas such as banking and hedge funds, to protect Americans from incompetence, corruption, and greed in the private sector.
Arguments for:
- The best way to clean up government spending is to bring keep things out into the open and keep a close eye on them: sunlight is the best disinfectant.
- Government employees should be encouraged to stand up for what’s right – and protected from retaliation when they do.
- Maybe there’s nothing wrong with members of Congress getting money for their home states, but if so, they should stand up and take responsibility for it.
Arguments against:
- This sounds fine in principle, but in practice, the federal government is so vast and complex, it’s impossible to keep enough of an eye on it.
- Transparency by itself is not enough. Campaign contributions have been public for decades, but politicians and donors always find a way around the rules. Therefore it's important for voters to see if the spending their elected officials support is influenced by their donors.
- The real problem is how the government taxes and spends our money. We need to actually change the way that’s done, not just get a better view of how the government does it.
Discuss this choicework Choice 3
Remove Temptation: Change The Incentives For How Our Leaders Spend Our Money
- Reform campaign finances. Elections are so expensive that candidates can’t help but become dependent on big donors. We should reform campaigns so politicians are less beholden to big campaign donors and therefore less tempted to propose and back spending bills to keep donors happy.
- Tighten ethics and lobbying rules. There should be severe penalties for politicians who abuse the system in regard to conflict of interest.
- Create positive incentives. The public should reward politicians who manage the nation’s finances responsibly through their votes. Moreover, we should provide bonuses to government bureaucrats who improve efficiency and save the nation money by figuring out how to do more with less.
- Reduce political partisanship.This affects the management of the nation’s finances.
Arguments for:
- If we want leaders who can exercise judgment on behalf of the greater good, we need to stamp out corrupting influences and reward responsible behavior.
- These bad influences are the real source of our budget problems.
- Voters are the key to changing the system: if the public held politicians accountable for how they spend the taxpayers’ money, we’d have better government.
Arguments against:
- People have been talking about things like campaign finance reform for years and we’ve seen very little, if any, progress. We need faster solutions before we’re so buried in federal debt we’ll never be able to get out.
- A government can be honest and still avoid tough decisions, particularly if American voters aren’t ready to make sacrifices.
Discuss this choicework
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