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A shopper passes a ''Sale'' sign at Quincy Market in downtown in Boston, Massachusetts, U.S. January 11, 2017. (Photo: Reuters)

A shopper passes a ”Sale” sign at Quincy Market in downtown in Boston, Massachusetts, U.S. January 11, 2017. (Photo: Reuters)

The U.S. Census Bureau said retail sales were soft in January, with the advanced estimate declining 0.3% (±0.5 percent) from the previous month. Still, at $492.0 billion, they are 3.6% (±0.7%) above January 2017.

Total sales for the November 2017 through January 2018 period were up 4.9% (±0.5%) from the same period a year ago.

The November 2017 to December 2017 percent change was revised from up 0.4% (±0.5%) to virtually unchanged (±0.3%). Retail trade sales were down 0.3 percent (±0.5 percent)* from December 2017, but 3.9% (±0.7%) above last year.

Nonstore Retailers were up 10.2% (±1.4%) from January 2017, while Gasoline Stations were up 9.0% (±1.6%) from last year.

The U.S. Census Bureau said retail sales

Consumer Price Index (CPI) Graphic

Consumer Price Index (CPI) Graphic

The Bureau of Labor Statistics (BLS) said the Consumer Price Index (CPI) posted strong and broad gains in January, rising 0.5% on a seasonally adjusted basis. Over the last 12 months, the all items index rose 2.1% before seasonal adjustment.

The energy index rose 3.0% in January, with the increase in the gasoline index more than offsetting declines in other energy component indexes. The food index rose 0.2% with the indexes for food at home and food away from home both rising.

The index for all items less food and energy increased 0.3% in January.

The indexes for shelter, apparel, medical care, motor vehicle insurance, personal care, and used cars and trucks also rose in January. The indexes for airline fares and new vehicles were among those few that fell last month.

The all items index rose 2.1% for the 12 months ending January, the same increase as for the 12 months ending December. The index for all items less food and energy rose 1.8% over the past year, while the energy index increased 5.5% and the food index advanced 1.7%.

The Bureau of Labor Statistics (BLS) said

In this June 9, 2017 House Minority Leader Nancy Pelosi, D-Calif., speaks on Capitol Hill in Washington. Democratic Party divisions are on stark display after a disappointing special election loss in a hard-fought Georgia congressional race. (Photo: AP)

In this June 9, 2017 House Minority Leader Nancy Pelosi, D-Calif., speaks on Capitol Hill in Washington. Democratic Party divisions are on stark display after a disappointing special election loss in a hard-fought Georgia congressional race. (Photo: AP)

Rep. Todd Rokita, R-Ind., will push the Creating Relief and Useful Middle-Class Benefits and Savings, — or CRUMBS Act. The name is a dig at House Minority Leader Nancy Pelosi, D-Calif., who infamously referred to the tax reform spurred bonuses as “crumbs” last month.

“Americans are receiving thousands of dollars in bonuses and more money in their paychecks thanks to President Trump’s tax reform, but out-of-touch Democratic leaders believe they only amount to crumbs,” Rep. Rokita said in a statement. “The CRUMBS Act will let Americans keep more of the money they receive as a result of President Trump’s tax reform, and allow them, not the government, to choose how best to spend their bonuses.”

In December, President Trump signed the first overhaul to the U.S. tax code in more than 31 years, which slashes the corporate tax rate from the highest in the developed world to 21%. It’s a long-sought policy that data show does boost wages.

Within hours of final passage, U.S. businesses began announcing wage increases, bonuses, investments and other benefits. As People’s Pundit Daily was first to report, Pfizer Inc. (NYSE: PFE) recently became the latest out of hundreds of companies to have announced bonuses, increased wages and other employee benefits for at least 3 million Americans as a result of the TCJA.

In a memo obtained by People’s Pundit Daily (PPD) entitled “Sharing the Benefits of U.S. Tax Reform,” the company told employees that they had reviewed the impact of the TCJA and earmarked approximately $100 million for a special, one-time bonus to non-executives.

Rep. Rokita’s bill would make bonuses received by workers in 2018 tax-free up to $2,500.

The entire list of tax reform-related bonuses and benefits announced can be viewed at Americans for Tax Reform.

Rep. Todd Rokita, R-Ind., will push the

President Donald Trump hosts a meeting with business leaders in the Roosevelt Room of the White House in Washington on Monday January 23, 2017. (Photo: Reuters)

President Donald Trump hosts a meeting with business leaders in the Roosevelt Room of the White House in Washington on Monday January 23, 2017. (Photo: Reuters)

The National Federation of Independent Business (NFIB) Small Business Optimism Index jumped 2 points in January and a set a new record for the number of small business owners saying now is a good time to expand.

“Main Street is roaring,” said NFIB President and CEO Juanita Duggan. “Small business owners are not only reporting better profits, but they’re also ready to grow and expand. The record level of enthusiasm for expansion follows a year of record-breaking optimism among small businesses.”

The percentage of small business owners who said “Now Is a Good Time to Expand” came in at 32%, the highest level in the history of the NFIB index that began in 1973. Actual Earnings climbed up 11 points from December, the highest level reported since 1988. Plans to make Capital Outlays increased 2 points, while Plans to Increase Inventories rose by 4 points.

“The historically high index readings over the last year tell us small business owners have never been more positive about the economy,” said NFIB Chief Economist Bill Dunkelberg. “This is in large response to the new management in Washington tackling the biggest concerns of small business owners – high taxes and regulations.”

NFIB Small Business Optimism Index

The skills gap, which was the focus of a meeting at the White House between President Donald Trump and small business owners, continues to plague the labor market. President Trump signed an executive order to expand apprenticeship programs in an effort to close the skills gap.

But the demand is contributing to recent upward pressures on wages. Those reporting higher worker compensation rose 4% to a net 31%, the highest reading since 2000 and among the highest in the 45 years of NFIB’s survey. Plans to raise compensation also rose one point to a net 24%, the highest reading since 1989.

“Finding qualified workers now exceeds taxes and regulations as the top concern for small businesses,” Ms. Duggan added.

The NFIB Small Business Optimism Index jumped 2

U.S. President Donald Trump delivers remarks on infrastructure improvements, at the Department of Transportation in Washington, U.S. June 9, 2017. (Photo: Reuters)

U.S. President Donald Trump delivers remarks on infrastructure improvements, at the Department of Transportation in Washington, U.S. June 9, 2017. (Photo: Reuters)

Multiple studies agree U.S. infrastructure is crumbling and the cost involved to repair it could pale in comparison to the cost of doing nothing.

President Donald Trump unveiled a $1.5 trillion proposal to rebuild the nation’s infrastructure through public-private partnerships. The first principle doesn’t call for Congress to write a check for that amount, but instead calls for $200 billion in federal funds to spur at least $1.5 trillion in infrastructure investments with partners at the state, local, tribal and private level.

Let’s take a look at where it stands now.

The World Economic Forum’s Global Competitiveness Index ranks the infrastructure competitiveness of the U.S. 11th out of 138 global economies. In terms of relativity, it doesn’t sound all that bad. But the rest of the world isn’t an impressive relative standard to use.

The American Society of Civil Engineers (ASCE) gave the U.S. a cumulative D+ GPA in 2017, though 7 subcategories showed improvement and 3 further deteriorated.

Source: American Society of Civil Engineers (ASCE)

Source: American Society of Civil Engineers (ASCE)

Considering roads and bridges are at the forefront of the debate on the state of U.S. infrastructure, they are good subcatoriges to start with. But by no means are they the only two worthy of debate.

Roads Grade: D

According to the 2016 Trip Report, nearly one-third (32%) of the roads in the nation’s major urban areas – or, highways and major streets that are the main routes for commuters and commerce – are in poor condition. These stretches carry 70% of the approximately 3.1 trillion miles driven annually in America.

Including major rural roads, just 20% of the nation’s major roads are in poor condition, 39% are in mediocre or fair condition, and 40% are in good condition.

The ACSE found than 2 out of every 5 miles of America’s urban interstates are congested. Traffic delays cost the country $160 billion in wasted time and fuel in 2014, including an increase of $3.1 billion in extra gas used, alone.

The Texas A&M Transportation Institute’s 2015 Urban Mobility Scorecard estimates urban highway congestion cost the U.S. economy $160 billion.

And this will only get worse as the demand for transportation continues to increased, as it has along with volume and cost associated with road congestion since 2000. There was a 4.2% ($1,422.1 billion) rise in transportation demand from 2013 to 2014, the highest annual growth since the end of the December 2007 to June 2009 economic recession.

The Trip Report found motorists lose $523 annually because of the costs associated with driving on roads that need repairs.

Bridges Grade: C+

Nearly 4 in 10 (39%) of the 614,387 total bridges in the U.S. are 50 years or older. The average age of a bridge in the U.S. is 43 year sold, but most of them were designed for a lifespan of 50 years.

While an average 188 million trips are made across them each day, a whopping 56,007 (9.1%), or 1 in 11 of the nation’s bridges were structurally deficient in 2016. The good news is that this number is declining. The bad news is that most recent estimates peg the backlog rehabilitation costs at $123 billion.

The percentage of bridges that are structurally deficient can vary significantly by state, ranging from 1.6% in Nevada to 24.9% in Rhode Island in 2016.

Levees Grade: D

Nationwide, there are 30,000 miles of levees protecting critical infrastructure, communities and other properties. The U.S. Army Corps of Engineers (USACE) Levee Safety Program protects over 300 colleges and universities, 30 professional sports venues, 100 breweries, and an estimated $1.3 trillion in property.

The USACE says levees can be found in 35% of counties in the U.S. and nearly two-thirds of Americans live in a county with at least one.

They will need an estimated $80 billion over the next 10 years for maintenance and improvement, alone. Most of the levees across the nation were built in the middle of the last century by federal, state, and local agencies or by private property owners. The average age of a levee in the U.S. is 50 years old.

The USACE completed a risk assessment on over 1,200 levee systems out of the 2,500 in the safety program. It found that of USACE-owned levees, 5% are high to very high risk, 15% moderate risk, and 80% low risk.

In 2014, the U.S. Congress passed the Water Resources Reform and Development Act, which was intended to expand the levee safety program. However, it has yet to receive any funding.

Dam Grade: D

There are 90,580 dams in the country and the average age for them is 56 years old. By 2025, 7 out of 10 dams in the U.S. will be over 50 years old.

In 2016, the overall number of high-hazard potential dams increased to nearly 15,500. The number of deficient high-hazard potential dams also increased to an estimated 2,170. Another 11,882 dams are currently labeled as significant hazard potential. A failure for these would not necessarily result in a loss of life, but it’s believed the result would be significant economic losses.

The Association of State Dam Safety Officials estimates the total cost to rehabilitate non-federal and federal dams is at least $64 billion. To rehabilitate just those dams categorized as most critical, or high-hazard, would cost the nation nearly $22 billion, a cost that continues to rise as maintenance, repair, and rehabilitation are delayed.

The U.S. Army Corps of Engineers estimates that more than $25 billion will be required to address dam deficiencies for Corps-owned dams.

It is estimated that it will require an investment of nearly $45 billion to repair critical, aging, high-hazard potential dams. President Trump’s public-private partnership principle is key with dam infrastructure projects. According to the Association of State Dam Safety Officials, only 14% of dams in the U.S. are owned or regulated by government agencies.

Transit: D-

Transit expanded to 10.5 billion trips in 2015, a 33% increase from 20 years ago. But the rehabilitation backlog cost grew to $90 billion. The most recent data available show 10% of the nation’s urban bus fleet and 3% of the nation’s rail fleet are not in a “state of good repair.”

Physical infrastructure is in even worse shape. Fifteen percent (15%) of facilities such as maintenance facilities, 17% of infrastructure systems (i.e. power, signal, communications, fare collecting), 35% of guideway elements (i.e. tracks) and 37% of stations are not in a “state of good repair.”

Demand for public transit continues to rise. While 81% of Americans live in urban areas, the ASCE notes that only 51% of U.S. households reported in 2013 they could get to a grocery store using public transportation.

Multiple studies agree U.S. infrastructure is crumbling

President Donald Trump delivers his first State of the Union address as Vice President Mike Pence, left, and House Speaker Paul Ryan, right, stand for applause.

President Donald Trump delivers his first State of the Union address as Vice President Mike Pence, left, and House Speaker Paul Ryan, right, stand for applause.

President Donald Trump released his $1.5 trillion proposal to rebuild the nation’s crumbling infrastructure through public-private partnerships.

“We will build gleaming new roads, bridges, highways, railways, and waterways all across our land,” President Trump said of the proposal. “And we will do it with American heart, and American hands, and American grit.”

It includes six principles.

Specifically, the first principle doesn’t call for Congress to write a $1.5 trillion check, but instead calls for $200 billion in federal funds to spur at least that amount in infrastructure investments with partners at the state, local, tribal and private level. The second calls for new investments in rural America.

Third, it returns decision-making authority back to state and local governments. Fourth, unnecessary regulatory barriers that get in the way or slow down infrastructure projects will be removed. Fifth, as an extension of the fourth, the permitting process for infrastructure projects will be streamlined and shortened. Sixth and finally, America’s workforce will be supported and strengthened.

Here they are verbatim from the White House.

STIMULATE INFRASTRUCTURE INVESTMENT: President Trump’s plan will lead to at least $1.5 trillion in investments to rebuild our failing infrastructure and develop innovative projects.

  • $200 billion in Federal funds will spur at least $1.5 trillion in new infrastructure investments.
    • Federal infrastructure spending will promote State, local, and private investments and maximize the value of every taxpayer dollar.
  • Of the $200 billion, $100 billion will create an Incentives Program to spur additional dedicated funds from States, localities, and the private sector.
    • Applications for the Incentives Program will be evaluated on objective criteria, with creating additional infrastructure investment being the largest factor.
    • The Incentives Program will promote accountability, making Federal funding conditional on projects meeting agreed upon milestones.
  • $20 billion will be dedicated to the Transformative Projects Program.
    • This program will provide Federal aid for bold and innovative projects that have the potential to dramatically improve America’s infrastructure.
    • The program will focus on projects that could have a significant positive impact on States, cities, and localities but may not attract private sector investment because of the project’s unique characteristics.
  • $20 billion will be allocated to expanding infrastructure financing programs.
    • Of the $20 billion, $14 billion will go to expanding a number of existing credit programs: TIFIA, WIFIA, RRIF, and rural utility lending.
    • $6 billion will go to expanding Private Activity Bonds.
  • $10 billion will go to a new Federal Capital Revolving Fund, which will reduce inefficient leasing of Federal real property which would be more cost-effective to purchase.
  • A new fund will allow some incremental revenues from energy development on public lands to pay for the capital and maintenance needs of public lands infrastructure.

INVEST IN RURAL AMERICA: Rural America’s infrastructure has been left behind for too long, and President Trump’s plan will make sure it is supported and modernized.

  • $50 billion of the $200 billion in direct Federal funding will be devoted to a new Rural Infrastructure Program to rebuild and modernize infrastructure in rural America.
    • The bulk of the dollars in the Rural Infrastructure Program will be allocated to State governors, giving States the flexibility to prioritize their communities’ needs.
    • The remaining funds will be distributed through rural performance grants to encourage the best use of taxpayer dollars.

INCREASE STATE AND LOCAL AUTHORITY: President Trump’s proposal will return decision-making authority to State and local governments, which know the needs of their communities. 

  • Funds awarded to State and local authorities, such as through the Incentives Program and the Rural Infrastructure Program, will be allocated to infrastructure projects they prioritize.
    • This empowers States and localities to make more infrastructure investment decisions and prioritize projects based on the needs of their communities
  • The plan will expand processes that allow environmental review and permitting decisions to be delegated to States.
  • The plan will also allow Federal agencies to divest assets that can be better managed by State or local governments or the private sector.

ELIMINATE REGULATORY BARRIERS: The President’s plan would eliminate barriers that prevent virtually all infrastructure projects from being efficiently developed and managed.

  • The President’s plan will:
    • Provide more flexibility to transportation projects that have minimal Federal funding but are currently required to seek Federal review and approval.
    • Incentivize the efficient development and management of water infrastructure, in part, by providing more flexibility to the U.S. Army Corps of Engineers and its partners.
    • Give the Department of Veterans Affairs the flexibility to use its existing assets to acquire new facilities by allowing it to retain property sale proceeds and exchange existing facilities for construction of new facilities.
    • Expand funding eligibility for land revitalization projects through the Superfund program and establish tools to help manage their legal and financial matters.

STREAMLINE PERMITTING: President Trump’s infrastructure proposal will shorten and simplify the approval process for infrastructure projects.

  • Working with Congress, we will:
    • Establish a “one agency, one decision” structure for environmental reviews.
    • Shorten the lengthy environmental review process to two years while still protecting the environment.
    • Eliminate certain redundant and inefficient provisions in environmental laws.
    • Create two new pilot programs to test new ways to improve the environmental review process.

INVEST IN OUR COUNTRY’S MOST IMPORTANT ASSET – ITS PEOPLE: The President is proposing reforms so Americans secure good-paying jobs and meet the needs of our industries. 

  • The President’s plan would reform Federal education and workforce development programs to better prepare Americans to perform the in-demand jobs of today and the future.  This includes:
    • Making high-quality, short-term programs that provide students with a certification or credential in an in-demand field eligible for Pell Grants.
    • Reforming the Perkins Career and Technical Education Program to ensure more students have access to high-quality technical education to develop the skills required in today’s economy.
    • Better targeting Federal Work-Study funds to help more students obtain important workplace experience, including through apprenticeships.

In its latest report, the American Society of Civil Engineers (ASCE) gave the U.S. a D+ grade for its roads and a C grade for its bridges. The U.S. Department of Transportation estimates it will cost at least $1 trillion to get the nation’s infrastructure up to speed.

President Donald Trump released his $1.5 trillion

Donald Trump Jr. and his wife Vanessa speak with Jared Kushner during inauguration ceremonies for the swearing in of Donald Trump as the 45th president of the United States on the West front of the U.S. Capitol in Washington, U.S., January 20, 2017. (Photo: Reuters)

Donald Trump Jr. and his wife Vanessa speak with Jared Kushner during inauguration ceremonies for the swearing in of Donald Trump as the 45th president of the United States on the West front of the U.S. Capitol in Washington, U.S., January 20, 2017. (Photo: Reuters)

Vanessa Trump, Donald Trump Jr.’s wife, was hospitalized on Monday after receiving and opening a letter containing an unidentified white powder. It was later deemed to be non-hazardous, the New York City Police Department (NYPD) said.

The letter was addressed to Donald Trump Jr., President Donald Trump‘s oldest son, and the commander-in-chief’s daughter-in-law opened it just after 10:00 AM EST at the couple’s apartment in Manhattan. It’s unclear what the “white powder” was, but authorities tested the substance and found it to be “non-hazardous.”

A hazmat (hazardous material) team was called to the apartment and conducted decontamination procedures, while Vanessa Trump was taken to the hospital as a precaution. NYPD said two other people who were also exposed to the powder and were taken to the hospital.

Trump Jr. married Vanessa in 2005 and the couple has five children.

The NYPD and U.S. Secret Service are investigating the incident.

“The Secret Service and our law enforcement partners in New York City are investigating a suspicious package addressed to one of our protectees received today in New York, New York,” U.S. Secret Service said in a statement. “This is an active investigation and we cannot comment any further.”

Vanessa Trump, Donald Trump Jr.'s wife, was

Director of the Office of Management and Budget Mick Mulvaney (L) and Treasury Secretary Steve Mnuchin (R) flank U.S. President Donald Trump as he hosts a "strategic initiatives" lunch at the White House in Washington, U.S., February 22, 2017. (Photo: Reuters)

Director of the Office of Management and Budget Mick Mulvaney (L) and Treasury Secretary Steve Mnuchin (R) flank U.S. President Donald Trump as he hosts a “strategic initiatives” lunch at the White House in Washington, U.S., February 22, 2017. (Photo: Reuters)

President Donald Trump will unveil his second budget proposal, which increases funding for border security and the opioid crisis, while proposing trillions in cuts to domestic spending.

On national security and border security, the budget includes $300 billion for the U.S. military, which Congress approved last week with the passage of the Bipartisan Budget Act of 2018. The deal, which was also met with bipartisan opposition, took the issue of military readiness off the table in the next shutdown fight that is looming in March.

The Trump Administration will ask Congress for an additional $23 billion in border security, which includes the hiring and training of 2,750 new Customs and Border Protection (CBP) agents. The federal budget proposal will also include $18 billion to fund the wall on the U.S. southern border with Mexico over the next 2 years.

On the domestic side, President Trump will introduce a $1.5 trillion plan to rebuild America’s infrastructure. The plan is one of the most popular items on the Trump agenda ever polled and enjoys bipartisan support among the electorate and in Congress.

President Trump has made the opioid crisis in the country a priority in his administration. In his second budget, he’ll again ask lawmakers to fund his efforts to combat it. He’s asking for another $13 billion to fund crisis-prevention and treatment programs.

The Trump budget also proposes a whopping $3 trillion in cuts to domestic spending over the next 10 years.

President Donald Trump will unveil his second

General Dynamics Corp. headquarters in Falls Church, Virginia. (Photo: Reuters)

General Dynamics Corp. headquarters in Falls Church, Virginia. (Photo: Reuters)

Defense contractor General Dynamics Corp. (NYSE: GD) announced they are buying CSRA (NYSE: CSRA) for $9.6 billion, including the assumption of $2.8 billion in CSRA debt.

“The acquisition of CSRA represents a significant strategic step in expanding the capabilities and customer base of GDIT,” said Phebe Novakovic, chairman and chief executive officer of General Dynamics. “CSRA’s management team has created an outstanding provider of innovative, next-generation IT solutions with industry-leading margins.”

General Dynamics, the maker of the M1 Abrams tank and Gulfstream business jets, will acquire all outstanding shares of CSRA for $40.75 in cash.

We see substantial opportunities to provide cost-effective IT solutions and services to the Department of Defense, the intelligence community and federal civilian agencies,” Mr.Novakovic added. “The combination enables GDIT to grow revenue and profits at an accelerated rate. It will allow us to deliver even more innovative, leading-edge solutions to our customers.”

The company said they expect to complete the acquisition in the first half of 2018.

“Our combination with General Dynamics represents an excellent outcome for CSRA’s stockholders, employees and customers. It builds on strong shared values, culture and a passion for serving our customers’ missions,” Larry Prior, chief executive officer and president of CSRA. “We believe that this combination creates a clear, differentiated leader in the Federal IT sector, with a full spectrum of enterprise IT capabilities, including unique depth in Next-Gen offerings in conjunction with our commercial IT alliance partners.”

The deal would make General Dynamics the largest provider of IT services to the Pentagon and other government agencies.

“I am very pleased to welcome CSRA’s talented leadership team and employees,” Mr. Novakovic continued. “This combination brings together two industry leaders with highly complementary capabilities to create a strong business with approximately $9.9 billion in revenue and double-digit EBITDA margins in the consolidating Government Technology Services sector.”

Defense contractor General Dynamics Corp. (NYSE: GD)

President Donald Trump meets with Sens. Mitch McConnell and Chuck Schumer and Rep. Nancy Pelosi in the Oval Office in Washington on September 13, 2017. (Photo: Reuters)

President Donald Trump meets with Sens. Mitch McConnell and Chuck Schumer and Rep. Nancy Pelosi in the Oval Office in Washington on September 13, 2017. (Photo: Reuters)

The biggest victory for taxpayers during the Obama years was the Budget Control Act in 2011, which imposed sequester-enforced caps on discretionary spending.

Indeed, that legislation was then followed by a sequester in early 2013, which was a stinging defeat for Obama (he tried to forestall the sequester with hysterical predictions of doom).

But politicians don’t like fiscal restraint. Spending caps limit their ability to buy votes with other people’s money. So they evaded the spending caps in late 2013. Then they did the same thing in late 2015.

And now it’s happened again. The budget caps have been busted again as part of a new agreement. To be blunt, the swamp has triumphed over taxpayers. The politicians who promised to clean up the mess in Washington have decided that the cesspool is actually a hot tub.

Most critics of the deal are focusing on how it means more red ink. But that’s a secondary problem. The real mistake is that government is getting bigger, and that means private sector activity is being displaced.

Here’s everything you need to know about what’s happening to overall discretionary spending, captured in a chart from the Committee for a Responsible Federal Budget.

 

The blue bars in the above chart show what happened in the real world (technically, they show annual “budget authority,” which is sort of like the money that gets deposited in a checking account and “outlays” are when checks are written). The green line shows the spending-on-autopilot forecast from early 2011. The red line shows the discretionary spending allowed by the Budget Control Act. And the yellow line shows what spending should have been if the sequester was left unchanged.

The bottom line is that the spending levels for 2018 and 2019 mean that the victory of the Budget Control Act has been almost entirely undone.

Now let’s look at the numbers for non-defense discretionary spending, based on data from the Congressional Research Service and the Office of Management and Budget.

 

Once again, we see the same pattern of good promises and bad results. And this happened with Republicans in partial control or (now) complete control of the process.

Needless to say, I tried to convince GOPers to do the right thing. But I failed.

Republicans claim, for what it’s worth, that the deal was necessary to get higher defense spending. I question that goal (we already spend enormous amounts of money compared to any potential adversaries, and I also think we shouldn’t squander blood and treasure on  overseas nation building). But even if one believes in more defense spending, why add huge increases in domestic spending?

Why not copy Franklin Roosevelt and Harry Truman, both of whom reduced the burden of domestic spending when increasing defense outlays?

My pro-GOP friends in Washington respond by stating that Republicans didn’t have 60 votes to overcome a filibuster in the Senate. That’s a legitimate point, but I respond by asking why they didn’t force Democrats to conduct a real filibuster (hold the floor for 24 hours a day, 7 days a week)?

They then tell me that a filibuster (assuming Democrats didn’t get tired of holding the floor) would mean stalemate and eventually could result in a shutdown. Another fair point, but I then point out that left-wing constituencies are the ones that will feel the pinch if non-essential parts of the government cease operating.

At this point, the truth usually comes out and they tell me that Republican leaders can’t play hardball because too many of their members actually like big government.

By the way, I put a greater share of the blame on the Trump Administration. If the White House drew a line in the sand and told Congress it would block any spending above the caps, lawmakers would have been forced to prioritize. But since Trump doesn’t seem to have any interest in fiscal restraint, we’re getting a repeat of the profligate Bush years – with congressional Republicans figuring they may as well take part in the feeding frenzy.

I’ll close by noting that this isn’t the end of the world. Yes, we have far too much discretionary spending, and the additional spending in this agreement is bad news. That being said, the extra outlays are relatively trivial compared to the gigantic problem of ever-expanding entitlement spending.

But the fact that Republicans aren’t willing to enforce any discipline on discretionary outlays certainly does not bode well for the presumably more-difficult battle for genuine entitlement reform.

The Bipartisan Budget Act of 2018 struck

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