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31. Special Edition: Responsible American Budget--Bringing Fiscal Sanity to DC (Updated)

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31. Special Edition: Responsible American Budget--Bringing Fiscal Sanity to DC (Updated)

In this newsletter, I highlight my latest research on the federal budget that constructs the Responsible American Budget to provide a tangible maximum goal for the budget to better let people prosper.

Vance Ginn, Ph.D.
May 28, 2021
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31. Special Edition: Responsible American Budget--Bringing Fiscal Sanity to DC (Updated)

vanceginn.substack.com

Hello Friend!

Thanks again for reading! If you haven’t signed up for my newsletter yet, please subscribe here and share with others. My motto: Free-market capitalism best lets people prosper!

Let me introduce you to my latest research of the Responsible American Budget (RAB) that promotes a fiscal rule for limiting federal spending. This rule sets a maximum threshold on the federal budget so that spending is less than the average taxpayer’s ability to pay for it, as measured by population growth plus inflation, thereby helping get us closer to an institutional framework that best supports prosperity.

By using this approach, I provide a tangible maximum threshold that finally gives fiscal hawks like myself something to advocate for and be able to hold Congress and the president accountable. It’s an uphill battle to achieve the Responsible American Budget, but if not us, who? If not now, when? Let us start now!

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Vance Ginn @VanceGinn
✳️Spending is the ultimate burden of govt, & its excess in DC is destroying prosperity. ✅@TPPF's Responsible American Budget gives Americans a tangible goal to help reduce this excess and reduce the growing burden over time. 💯Let's start now!texaspolicy.com/the-responsibl… #Congress
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8:08 PM ∙ May 25, 2021
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During my time as the associate director for economic policy (essentially the chief economist) at the White House’s Office of Management and Budget during the Trump administration, I worked with our fantastic team that proposed nearly $5 trillion in savings over a decade in the president’s FY21 budget that would have helped balance the U.S. government’s budget in 15 years (Office of Management and Budget, 2020a). But Congress did not follow our proposals or the prior budgets of the Trump administration, which proposed historic savings each year because of no desire to rein in spending, disagreements on policy choices, lack of political will, or some combination of these.

Then the COVID‑19 pandemic happened, contributing to Congress passing legislation that led to appropriations outside of the normal federal budget process of more than $6 trillion over a decade during the Trump and Biden administrations. While some of these appropriations may have been necessary, they clearly made the fiscal path substantially worse.

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Vance Ginn @VanceGinn
‼️High taxes & deficits are always & everywhere a govt spending phenomenon. 🚫Excessive spending in Washington is crowding out opportunities for Americans to flourish and mortgaging our future. 💯We need a Responsible American Budget. texaspolicy.com/press/tppf-rel… @TPPF #txlege
texaspolicy.comTPPF Releases “Responsible American Budget” Proposal to Rein in Excessive Federal SpendingThe Texas Public Policy Foundation released its Responsible American Budget today, a bold proposal for the federal government that would help limit the out-of-control spending that has been the norm in Washington. The proposal follows the work of the Foundation’s highly successful Conservative Texas…
8:25 PM ∙ May 25, 2021
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Given past spending excesses by both political parties and the concerns about the future of our nation, we need a strong fiscal rule to tout as Americans while working toward a new law that helps to correct the lack of responsibility by our federal government. We will consider which fiscal rules tend to work best in other countries and in our system of federalism, which provides a laboratory of competition among states to support improvements of the institutional framework of governance.

While the optimal outcome would be a new law that limits federal spending based on the growth in population growth plus inflation, there may not be the political will to do so in the immediate future.

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Texas Public Policy Foundation @TPPF
The Texas model has proven itself time and time again. With this budget, Washington has a tried and true, fiscally responsible blueprint @VanceGinn #ResponsibleAmericanBudget
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3:28 PM ∙ May 26, 2021
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However, there is an opportunity for Americans to have a voice in the budget process by having a tangible maximum threshold for the federal budget. Armed with the same approach that has been helpful to the success of limiting spending in Texas through the Foundation’s Conservative Texas Budget, we can provide fiscal sanity in D.C. through what is called the Responsible American Budget.

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Vance Ginn @VanceGinn
My latest: #Deficits Were Always Bad—@TPPF's Responsible American Budget Addresses Excessive Spending thecannononline.com/deficits-were-… @chiproytx @GroverNorquist @SenatorBraun @gcollinstx @kerpen @RepMattSchaefer @TanParkerTX @Cotton_MT @russvought @RepJimBanks @RepublicanStudy #Congress
thecannononline.comDeficits Were Always Bad—The Responsible American Budget Addresses Excessive SpendingThe very popular narrative is that Republicans only care about budget deficits and the spiraling national debt when Democrats are in charge. Writing in the Washington Post’s “The Fix” column, J.M. Rieger says that “Republican mea culpas on the national debt follow years of demands for spending cuts …
4:24 PM ∙ May 26, 2021
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Congress should consider doing what has worked well in other countries and in states like Texas and promote its own spending limit based on pop+inf each year—a maximum budget threshold referenced in this paper as the Responsible American Budget. Considering that high taxes and debt are always and everywhere a government spending phenomenon, this proposal is a valuable step toward limiting the footprint of government, allowing Americans more opportunities to flourish.

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Vance Ginn @VanceGinn
🔥My latest with E.J. Antoni @TPPF after the #Fed’s meeting today. 🤯#Inflation: Subtle, Silent, Sophisticated Taxation👀 thecannononline.com/inflation-subt… #FOMC @kerpen @brad_polumbo @chiproytx @repkevinhern @RepJimBanks @JohnCornyn @SecYellen @FreedomWorks @feeonline #RAB
thecannononline.comInflation: Subtle, Silent, Sophisticated TaxationPrice inflation in May 2021 was up 5% over May of 2020. At this pace, the general level of prices will double in less than 15 years. The last time inflation was running this high was in 2008, when gasoline first breached $4 a gallon. And inflation expectations for the next year have reached a...
11:26 PM ∙ Jun 16, 2021
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The time is now to restore fiscal responsibility in D.C. by using the RAB so that we benefit from an improved fiscal situation to better let people prosper. Unfortunately, the Biden administration looks to be heading the budget down a worse path, which would exceed $6 trillion or more than $1 trillion more than the RAB thereby further exacerbating the problems of excessive government spending and high deficits.

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Vance Ginn @VanceGinn
My latest @TPPF on how #Biden #budget2022 is irresponsible in at least 3 ways 🚫Sends US down a road to socialism 🚫Makes bad economic assumptions 🚫Mortgages ours & our kids' future ✳️Need #ResponsibleAmericanBudget✳️ texaspolicy.com/how-to-turn-pr… @JimDeMint @GroverNorquist @AFPhq
texaspolicy.comHow to Turn President Biden’s Irresponsible Budget into a Responsible American BudgetPresident Biden finally released his FY22 budget proposal on a Friday afternoon before a long Memorial Day weekend. This was good timing for the White House because it helps hide how irresponsible his budget is for America. But Americans know better, and his budget should be rejected and replaced wi…
6:42 PM ∙ Jun 3, 2021
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Here’s what many policymakers (e.g., U.S. Senator Mike Braun, U.S. Representative Chip Roy, Texas Representative Matt Schaefer, Texas Representative Tan Parker, The Honorable Jim DeMint), economists (e.g., Art Laffer, John Merrifield, Steve Moore, Jonathan Williams, Alex Salter, Orphe Divounguy), and thought leaders (e.g., Grover Norquist, Genevieve Collins, Matthew Dickerson, Bethany Marcum, Kendall Cotton, John Hendrickson, Manfred Wendt) are saying about the benefits of the RAB.

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Vance Ginn @VanceGinn
Here's what they're saying about @TPPF's Responsible American Budget! THANK YOU! texaspolicy.com/press/what-the… @SenatorBraun @chiproytx @TanParkerTX @RepMattSchaefer @JimDeMint @GroverNorquist @Taxeconomist @gcollinstx @Heritage @PolicyQuantsPhD @Cotton_MT @alexwsalter @yct #Congress
texaspolicy.comWhat They’re Saying About TPPF’s Responsible American BudgetThe Texas Public Policy Foundation recently released the Responsible American Budget, a plan for the federal government to limit the out-of-control spending that threatens the prosperity of future generations. The key component of the proposal imposes a successful spending growth formula that has ke…
7:58 PM ∙ May 27, 2021
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Vance Ginn @VanceGinn
💯Excellent read by @alexwsalter @FMI_TTU on the need for rules on fiscal policy, like @TPPF's Responsible American Budget, and monetary policy to rein in excessive government. @dcexaminer washex.am/3iGKZmz #Congress #txlege
washex.amWhat causes disastrous inflation? Money mischief and fiscal folliesThe news that year-over-year inflation hit 5% in May caused a tizzy. Journalists, economists, and financiers are starting to worry about out-of-control price increases. Over the past year, three things happened that predictably eroded the dollar’s purchasing power. First is a marked increase in the…
3:02 PM ∙ Jun 14, 2021
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And reining in spending with the Responsible American Budget approach doesn’t mean that I’m not in favor of cutting the budget, which I am, but rather we must start to bend the cost curve of government with this maximum threshold (not a target) so that we can cut government spending and the intervention of government in our lives.

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Vance Ginn @VanceGinn
My latest: Budget Limits Pair Perfectly with Budget Cuts. @TPPF We ought to demand & achieve both at every level of govt to better #letpeopleprosper with a flourishing civil society & economy while funding only limited roles for govts. thecannononline.com/vance-ginn-bud… #txlege #Congress
thecannononline.comVance Ginn: Budget Limits Pair Perfectly with Budget CutsPeanut butter and jelly. Fred Astaire and Ginger Rogers. Budget limits and budget cuts. Some things just pair perfectly together. Here at the Texas Public Policy Foundation, I’m sometimes asked why my focus lately has been on budget limits—as seen in our Conservative Texas Budget (the model for whic…
11:43 AM ∙ Jun 25, 2021
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I’m thankful for this next step in my research process to finally attack the federal budget, which is in dire shape. Please let me know if you’d like to join in on this effort so I can add you to the coalition. Thank you for reading this special edition of the Let People Prosper newsletter and sharing it with your network. Many blessings to you and yours.

Vance Ginn, Ph.D. | www.vanceginn.com | #LetPeopleProsper

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31. Special Edition: Responsible American Budget--Bringing Fiscal Sanity to DC (Updated)

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