Chris Edwards joins us this week to discuss the politics that goes into attempting to minimize the federal deficit. The Federal Government determines the federal budget, however there is not a balanced-budget requirement, which leads to the growth of the federal deficit. The Federal Government does two main “things” according to Edwards; they produce stuff and they transfer income. Obviously, national defense is one of the main things that the Federal Government produces. If they were to cut that production- it would have an immediate effect on defense programs and initiatives. Whereas if you cut from other programs, like those regarding housing, you would cut direct benefits to people.

Over half of the federal budget goes to entitlement programs. Social Security alone has turned into a trillion dollar endeavor. Edwards suggests that if budget cuts were made across the board then it would be perceived as fair to all programs and it would be a step in the right direction.

Why is it difficult for the Federal Government to cut any kind of spending? Why do federal programs always cost more than they are projected to? What is a special interest? Is there ever a point where we should really care about the federal debt? Who is lending the U.S. money? Should we have a balanced-budget requirement, if so, how would we enforce it?

Further Reading:

Downsizing the Federal Government website

Opportunity Zones Fuel Corruption, written by Chris Edwards

Tax reform 2.0 can alleviate Americans’ chronic saving problem, written by Ernest Christian and Chris Edwards

Related Content:

Building a Better Government, Free Thoughts Episode

Choose Your Own Government, Free Thoughts Episode

Taking Government Unseriously, Free Thoughts Episode

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