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TSA-Employees

File: TSA officers check bags at Hartsfield-Jackson International Airport in Atlanta, Georgia. (Photos: Amy Zerba/Getty/Newscom/PPD)

I was about to share my own sob story, when I read that hundreds of passengers missed their flights at Chicago O’Hare International Airport because of hourslong security lines. Many had to sleep on cots overnight, awaiting a morning escape. American Airlines says that in March, about 6,800 travelers missed its flights at the busiest airports for the same reason.

The federal government’s failure to provide a crumb of decent service to ordinary travelers can only astonish. Firing a top official at the Transportation Security Administration may have been necessary, but it also feeds into the tale that bureaucratic incompetence is behind every governmental breakdown.

No, money often is — and the dysfunction of a political class that prefers obsessing about who may use the ladies’ room over the hard work of maintaining basic government services. The TSA, for one, has been funded at subsistence levels.

Here are some numbers: In 2011, the TSA employed over 48,000 screeners. Budget cuts later, it is now down to about 42,500. In response to public outrage over scandalously long security lines, Congress just approved spending another $34 million to hire nearly 800 new screeners.

Do the math. Adding 800 new workers would still leave the TSA with about 5,000 fewer screeners than it had five years ago — and at a time when the number of travelers using U.S. airports is expected to break a record. All this as the mysterious EgyptAir crash raises demands for ever more thorough security checks.

Do you realize what a paltry sum $34 million is in the context of federal spending? The Department of Defense spends almost $58 million every hour. We should also ask how much economic activity is being lost as travelers choose to avoid American airports.

One excuse for slashing the number of TSA workers was the mistaken belief that more Americans would sign up for TSA PreCheck, the expedited screening program. PreCheck vets air travelers in advance, qualifying them for quick lines and less scrutiny at airport security. Apparently, only about 2.7 million people have joined PreCheck thus far.

I am one of them. I spent a morning at a special office where I was interviewed and paid 85 bucks to become a PreCheck member.

And that’s why you’re going to hear my story, anyway.

LaGuardia has been ranked the second-worst airport in the nation (after Newark Liberty). On its most functional days, LaGuardia has a way of taking its pound of flesh. To avoid maximum hassle, I booked an early Tuesday morning flight out.

The TSA PreCheck line was closed. Thus, I joined the un-pre-screened masses in an hourlong line. “Why no PreCheck line?” I asked the harried TSA woman at the desk in front. Not enough personnel was the answer.

Once past the narrow security desk mouth, I encountered another mob jostling to reach the two screening lanes. The checkpoint had five screening lanes. Three were closed.

Six decades ago, Canadian economist John Kenneth Galbraith wrote of the American experience as one of “private affluence and public squalor.”

Think of that. Envision the superrich enjoying seamless luxury travel in their private jets. Now observe the regular folk bearing the gross discomforts of a shabby, underfunded public service. Even a business class ticket doesn’t give one wings.

The security line fiasco is a made-in-Washington outrage, a product of budget cutters who know only hatchets. In those surreal hours trying to get out of O’Hare, I doubt anyone gave a darn who was using the women’s restroom.

Firing a top official at the Transportation

Barack-Obama-Ben-Rhodes

Barack Obama works on a speech with Ben Rhodes, Deputy National Security Advisor for Strategic Communications. (Image source: Pete Souza/White House)

“Crime is contagious. If the Government becomes a lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy.” — Justice Louis Brandeis (1856-1941)

Last week, this column chronicled the startling admissions of lying by White House senior adviser Ben Rhodes. Rhodes readily acknowledged to The New York Times that he lied to the public and to members of Congress during the negotiations that produced the recent Iranian nuclear deal so as to temper the “irrational” fear that some senators and representatives had of the mullahs who run the government in Iran.

He was asked — not subpoenaed — to testify before the House Oversight and Government Reform Committee about his lying, and he refused to show up, claiming his lies were protected by executive privilege. Because he spoke publicly about this, he has no privilege, yet nothing further happened. The committee gave up the ghost.

Also last week, in a federal court in Brownsville, Texas, the government was caught lying again — this time by a federal judge. Here is the back story.

In 2012, President Barack Obama issued numerous executive orders directing the departments of Justice and Homeland Security to enforce a version of immigration law that the president himself had scripted after Congress declined to pass it.

The president crafted a path to permanent residence in the United States for undocumented immigrants who are the parents of children who were born here or are otherwise residents lawfully.

The president’s plan would add between 4 million and 5 million people as lawful residents. That would add to the financial burdens of the states where these folks reside, because they are required by federal law to provide a social safety net — health care, education, safety, welfare — to all legal residents.

Hence, 26 states sued the federal government, arguing in effect that the president exceeded his constitutional powers when he issued his executive orders and that the immediate effect of their enforcement would be massive, unplanned, unfunded financial burdens on the states.

A federal judge agreed with the states and enjoined the president from enforcing his orders. During the course of the oral arguments in the case, the judge asked the lawyers from the Department of Justice who were representing the president whether the programs his executive orders established had yet begun. The lawyers replied that they had not.

On three more occasions, one orally in the same public courtroom and twice in written submissions to the court, the DOJ lawyers insisted that the president’s programs had not yet begun. In reliance upon those assertions, the states asked only for an injunction going forward, not for an injunction on any applications being processed by the feds, because they were told that none existed.

The government lawyers lied.

Last week, we learned that the Department of Homeland Security has surreptitiously accepted applications from more than 100,000 undocumented immigrants for permanent residence under the terms of President Obama’s unconstitutional executive orders.

The orders may be characterized as unconstitutional because the same federal judge to whom the DOJ lawyers lied, as well as a panel of the U.S. Court of Appeals for the 5th Circuit to which the DOJ appealed the injunction against the president, found them so. Those findings await a determination by the Supreme Court, which is expected by the end of next month.

The problem of lawyers lying to judges is extremely serious. Our system of litigation — lawyers present facts and argue about laws, and judges rely on the truthfulness of what the lawyers have told them — is built on trust. Because lawyers know the facts in their cases more intimately than judges do, judges rely on lawyers to tell them the truth.

At first, these DOJ lawyers lied. Then they lied about their lying. Then they reluctantly acknowledged that they had momentary lapses in understanding, an argument that the court rejected because of the repeated nature of their lying. The lawyers said the programs had not begun, when in fact they had — to a large degree.

The judge’s response in the case was curious. He ordered the DOJ lawyers to take ethics classes. I would have done differently. Lying to the court is so severe a violation of the ethical rules, so disruptive of the moral order, that its significance is diminished by the so-called cure of ethics classes.

I would have barred all lawyers who lied to me from ever appearing in my courtroom, and I would have removed them from the case. I would also have referred what I knew about them to ethics prosecutors in the states and federal districts where they are admitted.

Lawyers have an obligation of candor to the judges before whom they appear. That duty is no less serious when the lawyers work for the government than when they work for private clients.

Because the government prosecutes people who lie to it and its liars almost never can be prosecuted, government lying is grave. It is equivalent to government lawbreaking because when people to whom the government lies — judges or litigants or members of Congress or the public — rely on those lies, they often do so to their detriment. They lose a right or an opportunity that often cannot be recaptured.

I have often asked rhetorically whether the government works for us or we work for the government. The answer to this inquiry is obvious. It is only a fiction that the government works for us.

Yet fear of the consequences of government lying should terrify anyone who believes in the rule of law and fair play. Those consequences can be as contagious as government lawbreaking.

Because the government prosecutes people who lie

Housing-Market-Real-Estate-Signs

Mortgage lenders and real estate agents flood the housing market. (Phone: Peter Macdiarmid/Getty Images)

The National Mortgage Risk Index (NMRI) finds purchase loan volume surged 16% in April from a year earlier, fueled by an 18% jump for first-time buyers. The NMRI for Agency purchase loans came in at 12.59% in April, up 0.56% on a year-over-year basis and 1.27% from April 2014. The Agency purchase NMRI has increased year-over-year in every month since January 2014.

“April 2016 was another exceptionally strong month for home buyers, as volume hit a series high for the month of April,” said Edward Pinto, co-director of the American Enterprise Institute’s (AEI’s) International Center on Housing Risk. Mr. Pinto is also the former executive vice president and chief credit officer for Fannie Mae.

“With leverage continuing to increase and given that April represents the lower volume portion of the home buying season, we expect the remainder of the 2016 spring buying season to be exceptionally strong,” he added.

The National Mortgage Risk Index (NMRI), which is published monthly, measures how government-guaranteed loans with a first payment date in a given month would perform if subjected to the same stress as in the financial crisis that began in 2007. An NMRI value of 10% for a given set of loans indicates that 10% of those loans would be expected to default in a severe stress event, based on the actual performance of loans with the same risk characteristics after the financial crisis.

The riskiness of Agency refinance mortgages also increased over the past year, as the NMRI for these loans stood at 11.99% in April, up from 11.03% a year earlier. In April, refinance loans were somewhat less risky than purchase loans, which have been migrating from large banks to non-banks. This shift in market share from large banks to non-banks, which boosts overall risk due to the high non-bank MRI, may be abating.

In April, large banks represented roughly 30% of GSE purchase loans, down from 52% in November 2012. For FHA purchase loans, large banks have lost an even greater percentage of their market share; their April share was about 20%, down from 65% in November 2012. Still, the first-time buyer NMRI notably stood at 15.84% in April, up 0.62% from a year earlier and well above Repeat Primary Homebuyer NMRI of 10.21%.

“Of the estimated 1½ million first-time buyers in our data over the past year, more than a million bought homes with a downpayment of 5 percent of less,” said Stephen Oliner, the other co-director of AEI’s International Center on Housing Risk. “The sheer scale of this number shows that many, many households are buying their first homes with little money down.”

The NMRI for the composite of Agency purchase and refinance loans stood at 12.28% in April, up from 11.40% measured a year earlier. The increase is driven by gains in both purchase and refinance loans. The recent agency refinance loan volume was well below the volume from boom periods, though about 192,000 refinance loans were added in April, down 30% from April 2015.

The National Mortgage Risk Index (NMRI) finds

hillary-clinton-united-nations-march-10-2015

Hillary Rodham Clinton speaks to the reporters at United Nations headquarters, Tuesday, March 10, 2015. Clinton conceded that she should have used a government email to conduct business as secretary of state, saying her decision was simply a matter of “convenience.” (Photo: AP/Seth Wenig)

A State Department audit conducted by the agency’s Inspector General (IG) found Hillary Clinton broke federal record-keeping rules regarding her email practices while serving as secretary of state. Even though other previous secretaries of state were also found at fault for poorly managing email, other computer information and slowly responding to new cybersecurity risks, Mrs. Clinton is the first and only one to refuse to participate in the review and to have kept her email on a private non-secure server.

The Associated Press obtained a copy of the report by the agency’s inspector general on Wednesday. It also shows the former secretary of state’s top aides at the State Department refused to cooperate with investigators and, as did Mrs. Clinton, failed to comply with the Federal Records Act.

“The Inspector General’s findings are just the latest chapter in the long saga of Hillary Clinton’s bad judgment that broke federal rules and endangered our national security,” Republican National Committee (RNC) Chairman Reince Priebus said in a statement. “This detailed inquiry by an Obama appointee makes clear Hillary Clinton hasn’t been telling the truth since day one, and her and her aides’ refusal to cooperate with this probe only underscores that fact.”

The review cites “longstanding, systemic weaknesses” related to communications. These started before Clinton’s appointment as secretary of state, but her failures were singled out as more serious. From the review:

Secretary Clinton should have preserved any Federal records she created and received on her personal account by printing and filing those records with the related files in the Office of the Secretary … at a minimum, Secretary Clinton should have surrendered all emails dealing with Department business before leaving government service and, because she did not do so, she did not comply with the Department’s policies that were implemented in accordance with the Federal Records Act.

The review came after revelations Clinton exclusively used a private email account and server while in office. Clinton is now the likely Democratic presidential nominee.

The 78-page report will say the department and its secretaries were “slow to recognize and to manage effectively the legal requirements and cybersecurity risks associated with electronic data communications, particularly as those risks pertain to its most senior leadership.”

But the audit comes as the Federal Bureau of Investigation (FBI) is thought to be nearing the final phases of its own investigation into Clinton’s email use as secretary of state.

On another front, Romanian hacker Guccifer – who recently claimed he breached Clinton’s server – pleaded guilty in federal court on Wednesday to separate hacking charges.

Under a deal struck with the federal government, he has agreed to cooperate with federal authorities in the future. The plea agreement does not mention the FBI investigation of Clinton’s email practices or his claims that he accessed her private server in March 2013. Such agreements typically do not stipulate how a defendant will aid the government.

“Although Clinton has long claimed her practices were like those of other Secretaries of State and allowed, the report states she was in clear violation of the Federal Records Act,” RNC Chair Priebus added. “And her incredible 2010 email exchange with a top aide ruling out a State Department email address only further underscores her motivation was secrecy, not convenience. The stakes are too high in this election to entrust the White House to someone with as much poor judgment and reckless disregard for the law as Hillary Clinton.”

An audit conducted by the Inspector General

Department-Veterans-Affairs-DC

A man walks past the Department of Veterans Affairs headquarters building in Washington, D.C., on May 23, 2014. (Photo: Larry Downing/Reuters)

Seminole, Fla. – The Department of Veterans Affairs (VA) admitted to Rep. David Jolly, R-Fla., that it wrongly declared more than 4,200 people dead between 2011 and 2015. These decisions not only demonstrate complete incompetence at the VA, but have also negatively impacted the lives of veterans and their dependents by disrupting benefits.

“These numbers confirm our suspicion, that mistaken deaths by the VA have been a widespread problem impacting thousands of veterans across the country,” Rep. Jolly said in an email statement to PPD. “It’s a problem that should have been addressed years ago, as it has caused needless hardships for thousands of people who had their benefits terminated and their world turned upside down.”

In 2015 alone, the VA said it erroneously terminated the benefits of 1,025 veterans or persons receiving a veteran’s benefit. All of these individuals were in fact still alive. The VA numbers are laid out in full in a letter sent to Rep. Jolly from Danny G.I. Pummill, the the Under Secretary of Veterans Affairs for Benefits. Mr. Pummill was responding to Rep. Jolly’s request for a 5-year report of mistaken deaths at the VA.

“Although we are able to identify cases where benefits were terminated based on an erroneous notice of a beneficiary’s death and subsequently reinstated, our computer systems do not collect information on the cause of the errors,” the letter stated.

Rep. Jolly, who is also running for his party’s nomination and ultimately to replace outgoing Sen. Marco Rubio, made the request last year after reports revealed a string of mistaken death cases by the VA in the Tampa Bay area. The representative of Florida Congressional District 13 repeatedly pressed the issue at hearings on Capitol Hill and in private.

While the Department of Veterans Affairs did announce last December they will adopt a new process aiming to avoid wrongly terminating benefits, Rep. Jolly wants assurances. He will be asking the VA for a new annual survey.

“I’ll be asking the VA for a new report at the end of this year so we can see the numbers from 2016. If the VA’s new policy is indeed working, this problem should be eliminated. If the problem persists, then Congress will demand further action,” Rep. Jolly added in his statement. “We simply cannot have men and women who have sacrificed for this country see their rightful benefits wrongfully terminated because the VA mistakenly declares them dead. This creates tremendous financial hardships and undue personal turmoil for veterans, many who are seniors relying primarily if not solely on their VA benefits.”

The VA says under the new guidelines, beneficiaries who are incorrectly declared dead will have an opportunity to correct the error with the Department before the VA takes any action regarding termination of monthly benefits.

Over the past 2 years, Rep. Jolly and his staffers helped a half dozen people get their VA benefits restored after they were erroneously declared dead.

The Department of Veterans Affairs (VA) admitted

Female-Soldier-Military

(Photo: Stephen B. Morton/AP)

OK, full disclosure — I’m an Air Force Academy grad. I had the crap drilled out of me my first year at the Blue Zoo and the military intensity was constant the entire four years until graduation. In fact, during the end of my freshman year, our “Hell Week” for myself and fellow classmates, saw approximately 300 students sent to the hospital for physical overexertion.

That was too far. However, I just have to say, “What the Hell is going on at our military academies?” These are supposed to be our future officers, our country’s future leaders. If so, they are not making them like they used to.

I visited one of the service academies recently and I was shocked. Military decorum was almost non-existent. I actually saw a cadet at noon meal formation with a hole the size of a quarter in the toe of his corframs. Are you freaking kidding me? Military bearing was practically nonexistent. Cadets chatting, touching their hair while at attention, talking on their cell phones. Unbelievable!

This week a female West Point cadet was seen on her cell phone while marching to graduation! And, we’ve all seen the black power salute given by black, female cadets recently.

All of this is completely unacceptable.

USAF pilots, upon returning from captivity in Vietnam, spoke of their fourth class year at USAFA and how it prepared them for years in the Hanoi Hilton. How are cadets going to handle the attention to detail needed to fly an F-22 successfully in combat if they can’t even march to lunch correctly?

The Obama administration has succeeded in changing our military culture, where it hurts, where they make our future leaders, officers and gentlemen. The Left likes to say none of this will affect readiness or our ability to fly, fight, and win. On the contrary, when discipline in nonexistent, unit cohesion, leadership, the will to fight, is nonexistent.

The next president has a big job on his hands to bring our military back from the brink. I recently had a debate on Twitter with a female USAFA grad regarding how the academy changed the “Bring Me Men” declaration above the cadet ramp to a bunch of PC dribble. In her opinion, political correctness was Okto advance women. God help us. I told her no, the purpose of our academy is to make warriors, not advance societal experiments.

As Gen. George S. Patton so famously said, “If you can’t get them to salute when they should salute and wear the clothes you tell them to wear, how are you going to get them to die for their country?”

(H/T This article first appeared on “Threat Assessment” via The Washington Times.) Check out Wood’s website Tsarizm.com, bring you news you need to know right now about Russia, the former Soviet Union and Eastern Europe.

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What the Hell is going on at

TSA-Employees

File: TSA officers check bags at Hartsfield-Jackson International Airport in Atlanta, Georgia. (Photos: Amy Zerba/Getty/Newscom/PPD)

Our next president will almost certainly be Donald Trump or Hillary Clinton. But I take heart knowing that America’s founders imposed checks and balances, so there will be limits on what bad things the next president can do.

Most of what government does is expensive and useless, no matter who is president. Or governor. Or mayor.

Politicians say there are so many things only government should do — explore outer space, provide airport security, supply utilities, etc. But even those things work better when the private sector does them.

NASA put rockets into space. But the private company SpaceX found a way to bring those same rockets safely back to earth. SpaceX now puts satellites in orbit for much less than NASA thought possible.

Private, competitive enterprises routinely find ways to do things more efficiently than lazy bureaucracies. After all, government can keep screwing up forever and just tax you more. But private companies must make a profit or die.

“Everybody loves the space program,” says Lori Garver on my TV show this week. Garver was President Obama’s former No. 2 at NASA, but now she admits, “It’s a government bureaucracy. Their incentives are not to do things more efficiently.”

Obama actually tried to privatize more of it. “NASA uses test stands that cost $300 million to refurbish, says Garver. “When I went to (Amazon’s) Jeff Bezos’s facility, Blue Origins, they were building the same quality test stand for $30 million. …That is crazy.”

Airport security also works better when government doesn’t run it.

After 9/11, politicians wanted to show they were making airport security tougher. Republicans at least vowed that TSA workers would not be unionized. But a few years later, Democrats won, and TSA became unionized. Now, lines are extra long, and the union whines that it needs more resources. That would be more money wasted.

Fortunately, Congress allows airports to beg for the right to opt out of the government-run system. Security lines move faster at airports that have. At San Francisco International Airport, the largest to privatize, travelers even told us the screeners were nicer.

They’re also better at finding stuff. The TSA tested them and found them twice as good at finding contraband as TSA screeners.

Private companies try harder. San Francisco’s company has screeners practice racing to find mock contraband. The fastest wins $2,000.

More airports are asking the Department of Homeland Security to allow them to use private screeners. DHS stalls, because governments rarely relinquish power voluntarily.

In quiet ways, privatization keeps improving our lives. A thousand American cities have now switched from government-run to private water systems.

When the government-run system in Flint, Michigan, poisoned people, pundits made it sound like cold-hearted Republican politicians created the problem. But government at all levels, both parties, failed in Flint.

Government water departments routinely neglect basic maintenance. In Jersey City, New Jersey, they let the pipes rust. The water didn’t taste good, failed government’s own tests — and kept getting more expensive.

City workers said there wasn’t anything they could do.

“It can’t be done” is an answer heard in bureaucracies everywhere. So the mayor put the water contract out for bid. A for-profit company won. Within months, the private company fixed pipes the government couldn’t fix.

But the private company hired the same government workers. I asked some: Are you working harder now? “Yes. You’re always on the go,” one said.

“Were you goofing off before?” I asked. “Sitting around?”

“Well, occasionally, yes,” one worker admitted.

“What if the private company screws up?” I asked the man who privatized the system back when he was mayor, Bret Schundler.

“They’re fired. They’re toast. If they blow it, we’re going to give the contract to somebody else,” said Schundler. “There’s nothing like the prospect of a hanging to concentrate the mind.”

Right. Private companies must do better because they get fired if they don’t. Government never fires itself.

Most of what makes our lives better — flush toilets, air-conditioning, Google, Facebook, cellphones, pacemakers, vegetables in winter, etc. — comes from the private sector.

There’s nothing stopping people everywhere from enjoying improvements like the ones in Jersey City, in San Francisco’s airport and at SpaceX — nothing except government bureaucracy and our outdated belief that many jobs just belong in government’s clumsy hands.

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Most of what makes our lives better--everything

Donald Trump Spokane Washington

Republican presidential candidate Donald Trump greets supporters as he arrives for a rally in Spokane, Wash., Saturday, May 7, 2016. (AP Photo/Ted S. Warren)

Presumptive Republican nominee Donald Trump has easily won the winner-take-most Washington Republican primary Tuesday night, likely taking all 44 of the state’s delegates. With 1,387/2,000 precincts (69.3%) reporting, Mr. Trump had more than three-quarters of the vote and more than 371,000 total votes.

If a candidate receives a majority of the vote or only 1 candidate receives 20% of the vote, said candidate receives all 3 delegates available in the state’s 10 congressional districts. Adding only the delegates automatically awarded to the statewide winner of the primary and districts tallied puts Mr. Trump now just 38 delegates shy of his goal with a total 1,199.

A candidate needs 1,237 delegates to clinch the Republican nomination.

Meanwhile, Mr. Trump held a rally in Albuquerque, New Mexico on Tuesday night and was on fire. He took shots at his likely rival Hillary Clinton, her allies to include but not limited to former Pennsylvania Gov. Ed Rendall, who said half of American women are ugly. Mr. Trump also repeatedly referred to “Goofy” Massachusetts Sen. Elizabeth Warren as “Pocahontas.”

Sen. Warren, a darling of the far left and Democratic Party, infamously and erroneously claimed she was of Native American heritage, a claim that got her preferential treatment during her Ivy League career.

The state will hold its proportional primary on June 7, the final day of the nomination contest and 24 delegates are up for grabs.

Donald Trump has easily won the winner-take-most

Cyprus-Debt-Crisis-Protests-AP

Protestors assemble in response to the government actions to curb the Cyprus debt crisis. (Photo: AP)

Much of my work on fiscal policy is focused on educating audiences about the long-run benefits of small government and modest taxation. But what about the short-run issue of how to deal with a fiscal crisis? I have periodically weighed in on this topic, citing research from places like the European Central Bank and International Monetary Fund to show that spending restraint is the right approach.

And I’ve also highlighted the success of the Baltic nations, all of which responded to the recent crisis with genuine spending cuts (and I very much enjoyed exposing Paul Krugman’s erroneous attack on Estonia).

Today, let’s look at Cyprus. That Mediterranean nation got in trouble because of an unsustainable long-run increase in the burden of government spending. Combined with the fallout caused by an insolvent banking system, Cyprus suffered a deep crisis earlier this decade.

Bloated Government in Cyprus

Unlike many other European nations, however, Cyprus decided to deal with its over-spending problem by tightening belts in the public sector rather than the private sector.

This approach has been very successful according to a report from the Associated Press.

…emerging from a three-year, multi-billion euro rescue program, Cyprus boasts one of the highest economic growth rates among the 19 eurozone countries — an annual rate of 2.7 percent in the first quarter. Finance Minister Harris Georgiades says Cyprus turned its economy around by aggressively slashing costs but also by avoiding piling on new taxes that would weigh ordinary folks down and put a serious damper on growth. “We didn’t raise taxes that would burden an already strained economy,” he told The Associated Press in an interview. “We found spending cuts that weren’t detrimental to economic activity.”

Cutting spending and avoiding tax hike? This is catnip for Dan Mitchell!

But did Cyprus actually cut spending, and by how much?

That’s not an easy question to answer because the two main English-language data sources don’t match.

According to the IMF data, outlays were sliced to €8.1 billion in 2014, down from a peak of €8.5 in 2011. Though the IMF indicates that those numbers are preliminary. The European Commission database shows a bigger drop, with outlays of €7.0 billion in 2015 compared to €8.3 billion in 2011 (also an outlay spike in 2014, presumably because of a bank bailout).

golden-rule-examples

Source: IMF World Economic Outlook database.

The bottom line is that, while it’s unclear which numbers are most accurate, Cyprus has experienced a multi-year period of spending restraint. And having the burden of government grow slower than the private sector always has been and always will be the best gauge of good fiscal policy.

By contrast, there’s no evidence that tax increases are a route to fiscal probity. Indeed, the endless parade of tax hikes in Greece shows that such an approach greatly impedes economic recovery.

Though not everybody in Cyprus supports prudent policy.

Critics have accused the government of working its fiscal gymnastics on the backs of the poor — essentially chopping salaries for public sector workers. Pambis Kyritsis, head of the left-wing PEO trade union, said the government’s “neo-liberal” policies coupled with the creditors’ harsh terms have widened the chasm between the have and have-nots to huge proportions. …Georgiades turned Kyritsis argument around to reinforce his point that there shouldn’t be any let-up in the government’s reform program and fiscal discipline.

In the European context, “liberal” or “neo-liberal” means pro-market and small government (akin to “classical liberal” or “libertarian” in the United States).

Semantics aside, it will be interesting to see whether Finance Minister Georgiades is correct about maintaining spending discipline as the economy rebounds.

As the above table indicates, there are several examples of nations getting good results by limiting the growth of government spending. But there are very few examples of long-run success since very few nations have politicians with the fortitude to control outlays if the economy is growing and generating an uptick in tax revenue (which is why states like California periodically get in trouble).

This is why the best long-run answer is some sort of constitutional spending cap, similar to what exists in Switzerland or Hong Kong.

The bottom line if that spending restraint is good short-run policy and good long-run policy. Though I doubt Hillary Clinton will learn the right lesson.

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Today, let’s look at Cyprus. That Mediterranean

Bill Cosby Performs At The Treasure Island

Comedian/actor Bill Cosby performs at the Treasure Island Hotel & Casino on September 26, 2014 in Las Vegas, Nevada. Bill Cosby (Ethan Miller/Getty Images)

A Pennsylvania judge on Tuesday ruled there is enough evidence for Bill Cosby to stand trial on sexual assault charges involving a 2004 incident. As Magisterial District Judge Elizabeth McHugh handed down her ruling, Mr. Cosby just nodded his head.

“Mr. Cosby, good luck to you, sir,” Judge McHugh said to the 78-year-old actor and comedian.

“Thank you,” the former TV star responded, before standing up in a strangely chipper and unsurprised manner. Mr. Cosby then hugged one of his lawyers.

Prosecutors brought charges against Mr. Cosby on December 30, 2015 after former Temple University athletic department employee Andrea Constand told police that he drugged and sexually assaulted her at his home near Philadelphia in 2004. He had not entered a plea since his arrest and is free after posting 10% of a $1 million bail in cash. His next hearing is July 20th for a formal arraignment.

Ms. Constand said he gave her pills that made her dizzy and left her legs feeling “like jelly,” according to a police report read at a court hearing Tuesday.

“I told him, ‘I can’t even talk, Mr. Cosby.’ I started to panic,” Ms. Constand told police in 2005, according to statements read in court. “I was laying on my left side with my knees bent. That is the last thing I remember… I recall Mr. Cosby’s body near mine. I was in and out.”

Dozens of other women have come forward with similar accusations against the once-beloved actor who played Dr. Cliff Huxtable from TV’s “The Cosby Show.” The testimony on Tuesday got explicit.

“I was aware that his hands were on my breast…and his fingers were in my vagina… His penis was erect,” she told police in a statement. “I don’t remember any kissing, any intercourse. Everything was blurry and dizzy. I felt nauseous.”

Ms. Constand, who was not in the courtroom on Tuesday, said Mr. Cosby claimed the pills were just herbal medication and he also pressured her to drink wine even though she said had not eaten and didn’t want to drink. He claims it was consensual sexual activity. Law enforcement officers read her statements, which is a common practice at preliminary hearings in Pennsylvania.

“She was available to testify, but it wasn’t necessary,” Montgomery County District Attorney Kevin Steele told reporters after the hearing.

He previously admitted under oath to drugging several women with the intent to having sex with them, though he claimed to have consensual sex. Pennsylvania law gives prosecutors up to 12 years for some sex crimes, with the clock running out on this case in January. Mr. Cosby told police in 2005 that he had other “petting” sessions with Constand, stopped kissing her breast at least once when she asked him to and that she never said “no” as he put his hand down her pants and fondled her on the night in question in 2004.

The TV star, known as America’s Dad, could now get 10 years in prison if found guilty of indecent sexual assault.

“Obviously, this is a travesty of justice,” Brian McMonagle, a lawyer for Mr. Cosby told reporters outside of the courthouse after the ruling. “They had 12 years to bring a case. They didn’t, and what they presented today was evidence of nothing. The inconsistencies that plagued this case from the beginning continue to plague it now. This case should end immediately.”

A request for comment was not returned Wednesday, but the allegations that have long plagued the comedian are now taking a serious toll. On November 19, NBC became the second outlet following Netflix to cancel projects with Bill Cosby, which came only one day after famous model and well-known TV host Janice Dickinson told “Entertainment Tonight” that she was sexually assaulted by the comic in 1982.

Mr. Cosby recently filed a lawsuit alleging seven of the woman who accused him of sexual assault engaged in “nothing more than an opportunistic attempt to extract financial gain from him.” The comedian is seeking an unspecified amount in monetary damages and claimed the women inflicted emotional distress. As a result of the revelations, Boston University announced last November that it was rescinding an honorary degree they awarded to the entertainer in May 2014.

A poll taken in the wake of the cancelations and rash of new allegations found that—even though nearly half of Americans said they think it’s likely the rape allegations against comedian Bill Cosby were true—networks shouldn’t have cancelled his shows until he was found guilty of an actual crime. But now, according to the most recent survey conducted by Rasmussen Reports, just 21% of American adults now have a favorable view of Bill Cosby.

A Pennsylvania judge on Tuesday ruled there

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