Freedom Line Blog

In anticipation of the debt ceiling debate/crisis/hysteria, Veronique de Rugy, a senior research fellow at the Mercatus Center at George Mason University tweeted a graph of all the times the debt ceiling has been raised since 1980.

It’s a simple but shocking illustration that tells the story of how America went from a national debt of $930 million to a national debt of $16.7 trillion in just over three decades.

The graph indicates that we clearly have two big government presidents to thank for putting Americans and the American economy in such a dire predicament: George W. Bush and Barack Obama.

The incomparable Veronique de Rugy (Reason columnist and economist at the Mercatus Center) was recently a guest on Bloomberg TV, where she was tasked with rebutting the faulty economics behind the gigantic economic stimulus program that’s still holding back the American economy. As the video below shows, it was child’s play for this intellectually rigorous defender of free markets:

On Tuesday, we told you about the potent case for cutting federal spending being made by Nick Gillespie and Veronique De Rugy over at Reason. Because, as the new omnibus spending bill makes clear, Democrats are congenitally incapable of entertaining the idea of reigning in expenditures, the plan has become the target of criticism for The New Republic’s Jonathan Chait. His response is worth reading, as is Gillespie’s comprehensive rejoinder, but one of his central arguments stands out for its unseriousness:

Another way of putting this [the budget situation] is that, to maintain the current level of services in the federal budget, we would need to spend $5.5 trillion. Gillespie and de Rugy would propose instead to spend $4.2 trillion in 2020. That’s their prerogative. I’m sure they could find at least $1.3 trillion in spending that they don’t like. But the point is that you would have to eliminate a lot of functions of the federal government, and/or reduce a lot of social benefits.

The definition of modern liberalism may be to believe that it would be a hardship for the federal government to get by on over $4 trillion a year. And if budget cuts are a non-starter under this rationale, it’s hard to see when they would be palatable to liberals (how much do you want to bet that national defense is the exception?)

Are we to believe that Mr. Chait is convinced that such bracing austerity would rip the national safety net asunder? And that every activity currently undertaken by the federal government is too sacrosanct to be pruned? There’s a mathematical equation for such worship of the state … and its product is Nancy Pelosi’s approval rating.