In Just Six Minutes, Everything You Need to Know about Spending Caps

Back in April, Ishared a new video from the Center for Freedom and Prosperity that explained how poor nations can become rich nations by following therecipe of small government and free markets.Now CF&P has released another video. Narrated by Yamila Feccia from Argentina, it succinctly explains - using both theory and evidence - why spending caps are the most prudent and effective way of achieving good fiscal results.Ms. Feccia covers all the important issues, but here are five points that are worth emphasizing.Demographics - Almost all developed nations havemajor long-run fiscal problems because welfare states will implode because of aging populations and falling birthrates (Ponzi schemes need an ever-growing number of new people to stay afloat).Golden Rule - If government spendinggrows slower than the private sector, that reduces the relative burden of government spending (theunderlying disease) and also reduces red ink (thesymptom of the underlying disease).Success Stories - Simply stated, spending caps work. She lists the nations that haveachieved very good results with multi-year periods of spending restraint. She points out thatthe U.S. made a lot of fiscal progress when GOPers aggressively fought Obama. And she shares the details about thevery successful constitutional spending caps in Hong Kong and Switzerland.Better than Balanced Budget Amendments or Anti-Deficit Rules - The video explains why policies that try to target red ink are not very effective, mostly because...
Source: Cato-at-liberty - Category: American Health Authors: Source Type: blogs