Debt Ceiling Myths

John Lott: 7 myths about the debt ceiling ...

Friedman on the proper role of government

This is circa 1999, but it is an interesting interview of Milton Friedman by Peter Robinson.  The full 'Uncommon Knowledge' interview is here.

In part 5 of the 5-part interview (link), Friedman provides his definition of the proper role of government (federal and local): 

            
            1. Preserve the peace / defend the country
            2. Provide a mechanism whereby individuals can adjudicate their disputes
            3. Prevent individuals from being coerced by other individuals

Robinson then provides a checklist of 14 federal government cabinet departments and Friedman says which should stay and which should go away:

1. Agriculture:  Eliminate
2. Commerce:  Eliminate
3. Defense:  Keep
4. Education:  Eliminate
5. Energy:  Eliminate
6. Health & Human Services:  Cut by 1/2
7. Housing &Urban Development:  Eliminate
8. Interior:  Eliminate
9. Justice:  Keep
10. Labor:  Eliminate
11. State:  Keep
12. Transportation:  Eliminate
13. Treasury:  Keep
14. Veterans Affairs:  Eliminate(* replace core functions)

Debt Ceiling Scaremongering

We have posted on this topic a while ago, here and here.

The Democrats need to be called out on this (from James Pethokoukis) ... This cash flow diagram illustrates the disingenuous scaremongering strategy the Democrats have decided to go with.

"As is clearly shown, there is enough cumulative money coming to pay interest, SS, Medicare and defense ... "

While the short-term scenario is less dire than the Democrats claim, the situation is indeed unsustainable over the long term, as government spending is currently 1.6 times income.