Due to cost overruns, NASA has cancelled the GEM X-ray telescope.
The day of reckoning looms. Two stories:
“If you’re anxious, you sit on your hands.”
“The bad jobs report is just a very small taste of the nightmare that is coming.”
In his first two years in office, Democrats gave Mr. Obama everything he wanted, save for cap and trade and union card-check, which would have done even more harm to job creation. They passed stimulus, ObamaCare, multiple housing bailouts, Dodd-Frank and more.
Even after Republicans took the House, they gave Mr. Obama the payroll tax holiday he demanded first for 2011 and again for 2012. Far from some new fiscal “austerity,” overall federal spending hasn’t declined. Meanwhile, the Federal Reserve has delivered monetary stimulus after stimulus—QE I, QE II, Operation Twist, and 42 months of near-zero interest rates with the promise of 30 months more.
Mr. Obama has had the freest run of policy of any President since LBJ. So maybe the problem is the policies.
Maybe Milton Friedman was right that “temporary, targeted” tax cuts don’t change the incentives to invest or hire because people aren’t stupid. Maybe each $1 of new federal spending doesn’t produce a “multiplier” of 1.5 times that in added output. Maybe the historic burst of regulation of the last three years has harmed business confidence and job creation. And maybe the uncertainty that comes from helter-skelter fiscal and monetary policy has dampened the animal spirits needed for a durable expansion.
As I said yesterday, though no president or Congress is entirely to blame for the state of the economy, they both can do great harm if they make decisions that interfere with the freedom of the market. And sadly, having the government interfere with the freedom of the market has been Obama’s mantra since the day he took office.
The day of reckoning looms: The head of the World Bank yesterday warned that Europe is heading for an economic “danger zone” as bad as 2008.
Not good: The Labor Department announced today that the U.S. economy only added 69,000 jobs in May, the fewest in a year.
The unemployment rate went up slightly as well, Labor also adjusted downward the number of jobs created in the past two months to terribly comparable numbers.
While no president is ever entirely responsible for the state of the economy, Barack Obama’s policies have certainly done significant harm. High regulation, Obamacare, and a clear hostility to private enterprise in all fields except space exploration has helped produce what appears to be the longest period with a floundering economy in my lifetime.
Two Democrats joined Republicans yesterday on a Senate committee to block the U.S. military from increasing its use of alternatives fossil fuels.
What stood out to me in this article was the following quote:
As part of this support, in December the Navy agreed to spend $12 million for 450,000 gallons of “advanced biofuels,” which can be blended with petroleum in a 50:50 mixture and burned in conventional engines. The Navy and Air Force have both set a goal of using advanced biofuels for 50% of their fuel use by the end of this decade. But the current $26-a-gallon price tag angered congressional Republicans, who accuse the Obama Administration of using the military to support its green agenda. [emphasis mine]
$26 per gallon for biofuels? I find it astonishing that anyone voted for this program.
Of course the military wants options. And of course we want to reduce our dependence on fossil fuels, if only to reduce the money pouring into the hands of the radical Islamists of the Middle East. But at that price, these alternative fuels are simply not competitive or affordable.
Are people getting nervous? The number of searches on Google for the phrase “bank run” has just hit an all-time high.
The day of reckoning looms: Using the budget balancing rules Congress imposed on private companies, the annual federal deficit turns out to be five times greater than the official but fake numbers Congress normally publishes.
The big difference between the official deficit and standard accounting: Congress exempts itself from including the cost of promised retirement benefits. Yet companies, states and local governments must include retirement commitments in financial statements, as required by federal law and private boards that set accounting rules.
The deficit was $5 trillion last year under those rules. The official number was $1.3 trillion. Liabilities for Social Security, Medicare and other retirement programs rose by $3.7 trillion in 2011, according to government actuaries, but the amount was not registered on the government’s books.
The work is good if you can get it: Four Princeton physicists received over $1.5 million in lodging subsidies from the Department of Energy while on “temporary” assignment to other labs, even after living at that assignment for as much as 14 years.
The above story, from Science, takes a more sympathic view of this misuse of government funds. The Washington Post is more blunt:
Four high-ranking federal lab workers found a way to turn “per diem” funds for a temporary assignment into a steady flow of extra income — at taxpayers’ expense. The overpayments, discovered in an inspector general’s audit, boosted the annual pay of some of the employees by as much as $64,000.
The Department of Energy paid the four scientists roughly $1.8 million for daily lodging and “inconvenience” during assignments away from home. But these scientists were paid as if they were on temporary duty for up to 14 years — long after most had permanently relocated to job sites.
The problem with this story is that it isn’t an exception but the rule. Right now the wolves are guarding the chicken house, and they are raiding it routinely for as much cash as they can get. Consider for example last week’s story about the NIH study that has spent a billion dollars without even getting off the ground.
You give someone the equivalent of a blank check, and they will make no effort to do things efficiently, or even to do what you hired them for.
The speaker is a Republican, and he is talking correctly about the first four years of the Bush Jr. presidency.
The discrepancy refers to a claim made by the Obama administration about one benefit of Obamacare, compared to the reality of what has actually happened.
It is time to repeal this disaster of a law. We should also fire the politicians who foisted it on us.
Our federal government at work: The federal judges in the Ninth Circuit plan to hold a conference in Hawaii this August that could cost $1 million or more, and will include a golf tournament, a tennis tournament, an ice cream social, a garden tour, sport fishing, yoga, surfing lessons, and Zumba dancing lessons.
Though many of these recreational events are supposingly not being paid for by government funds, there is something rotten here, without doubt. I’ve been to too many of these kinds of conferences as a journalist, and saw millions wasted for the entertainment of government employees. And in this case, the government is getting them to Hawaii.
Pitiful: Only 65% of the political class and only 61% of Democrats are aware that federal spending has gone up in the past ten years.
Interestingly, 85% of the general public knows this basic fact, which might explain why the intellectual elites of our country — from both parties — are continually being blindsided by the rise of the tea party movement and its continued success in elections.
Fiddling away: The Senate today rejected President Obama’s proposed budget 99-0.
Too bad Harry Reid won’t offer up a budget of his own. The only reason this got voted on at all was that the Republicans forced a vote.
Meanwhile, the U.S. government fell another several billion dollars into debt even as the vote was being taken.
Our government in action: An NIH nationwide study to track hundreds of thousands of children from birth to age 21 is wracked with budget and management problems.
All told, this study has already cost the taxpayers almost a billion dollars for the enrollment of only 4,000 children, not the 100,000 envisioned. That’s about $250,000 per child, an amount that seems incredibly high.
In addition to the above problems, it appears there are scientific ones as well:
» Read more
Senator Bill Nelson (D-Florida) on Monday attacked the House version of NASA’s budget that required the agency to make a quick decision on its commercial manned launch company.
Nelson faces a difficult election campaign from the right. Thus, I suspect he has realized that he is better off promoting free enterprise than local pork. It is unfortunate that the Republicans in the House haven’t yet realized this.
Our government at work: The GAO has done a study of a study about studies.
The day of reckoning looms: The federal government is liable for approximately $850 billion in student loans, and the number of borrowers defaulting on these loans is on the rise.
A trend, not a fluke: Indiana Republicans have dumped incumbent Senator Richard Lugar for a tea party favorite.
In related news, a prison inmate has gotten the highest percentage of votes, 40 percent, of any candidate in any previous state primary against Barack Obama.
Washington politicians had better stop ignoring the fiscal concerns of the tea party. The federal budget has got to be brought under control.
Theater: The White House today threatened to veto the House budget because of NOAA and NASA trims.
The financial foolishness in Congress, by Republicans this time, continues. In making its budget recommendations for NASA, the report [pdf] of the House Appropriations Commerce, Justice, Science, and Related Agencies subcommittee also demands that NASA immediately choose one commercial company for its commercial space program. (Hat tip to Clark Lindsey for spotting this.)
The number of ways this action is counter-productive almost can’t be counted.
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The day of reckoning looms: A new official report released yesterday predicts that Social Security will run out of money three years earlier than previously predicted.
NASA budget battles: House panel proposes giving commercial space $500 million.
The Obama administration proposed giving commercial space $830 million, the Senate appropriations subpanel earlier this week proposed $525 million. All in all, this looks good for commercial space.
One other thing: that the House did not propose taking from NOAA the job of launching weather satellites and giving it to NASA is more proof to me that the proposal was merely an attempt by Barbara Mikulski (D-Maryland) to shift federal dollars to the Goddard Space Flight Center in Maryland.
Senate Democrats don’t even bother to show up for a budget meeting called by their own leader.
Since the year 2009, not one single Democrat or Democrat-aligned member of the United States Senate has voted “yes” on any budget. They’ve refused to present their own ideas, of course, but they’ve also unanimously voted down every last alternative, from both Republicans and their own party’s president. Think about that.
A Senate panel today proposed shifting the responsibility for building weather satellites from NOAA to NASA.
It is very unclear from this article why the Senate panel proposed this shift. They claim it will save money but I don’t see how.
What I can guess is that there is probably a turf war going on in Congress over this money. For example, shifting these weather satellites to NASA almost certainly means that the Goddard Space Flight Center in Maryland will get more money, which is almost certainly why Senator Barbara Mikulski (D-Maryland) is for it.
One thought however: NASA generally focuses on individual missions, not long term operational stuff like weather. I suspect it probably is not a good idea to give this work to NASA.
The same article above also outlined the panel’s proposals for other areas of NASA’s budget. To me, the key issue is the budget for commercial space. The White House requested $830 million. The Senate panel has instead proposed $525 million.
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USA, NASA’s prime contractor for operating the space shuttle, on Friday laid off nine percent of its work force.
I honestly have to ask: why did it take so long? The last shuttle flight was in July of last year. It couldn’t possibly have required that many people to prepare these spacecraft for display in museums.
Update: Typo corrected. Thank you Erik.
More news from commercial space: Assuming it gets the necessary funds, Boeing anticipates flight tests of its CST-100 reusable manned capsule by 2016.
This story is part of the on-going lobbying effort to convince the Luddites in Congress to subsidize the new commercial space companies. To get some context, even if Congress gives NASA all of the money it has requested for this program, the annual cost will still be less than a third of the NASA-built Space Launch System, and will get us four different ways to get humans and cargo into orbit, and do it in far less time.
Slap on the wrist: Twenty doctors have been fined $500 to $4001 and made to attend ethics training for giving out fake sick notes at the Wisconsin union demonstrations last year.
The day of reckoning looms: The credit rating of the United States government has been downgraded again.
