Defense Department Spend It Or Lose It | B.A. Spending Daily
Check out our daily news digest for the latest must-read budget and economic stories and commentary:
- Washington Times Highlights BA “Spend It Or Lose It” Campaign. The Washington Times this week awarded its “Golden Hammer” award for excessive government waste to the Defense Department, which is rapidly trying to spend its fiscal year funding before the end of the fiscal year on Sept. 30. Public Notice spokesman Bill Riggs was quoted in the article, discussing Bankrupting America’s “Spend It Or Lose It” campaign. Riggs noted, “Spending just skyrockets during the last couple of weeks of the fiscal year because they fear that if you don’t spend your budget, you’re going to lose it.”
- Fact Check: Military Personnel Exempt From Sequester Cuts. In remarks to Marines on Wednesday, President Obama argued that by keeping the sequester in place, Congress wasn’t staying faithful to its promises to our troops. Yet, as Bloomberg points out today, military personnel were exempt from those cuts and, under a plan offered by the president himself, will be going forward.
- Detroit “Ripple Effects.” High debt – and bankruptcy – have consequences. Namely, higher interest rates. The New York Times reports Detroit’s bankruptcy has not only been bad for the city itself, it’s been bad for its neighbors. According to The Times, “Two weeks after Detroit declared bankruptcy, cities, counties and other local governments in Michigan are getting a cold shoulder in the municipal bond market. The judgment has been swift and brutal. Borrowing costs are up around the state, in some cases drastically.”
- Americans Think Obamacare Implementation Is Going Badly. According to Fox News, “Majorities of Americans think the new health care law is going to increase their medical costs and their taxes — and add to the federal deficit as well. … A Fox News national poll released Thursday also asks voters about how they think Obamacare is being carried out: 31 percent say ‘it’s going fine,’ yet a 57-percent majority feels ‘it’s a joke.’”
- Fannie Mae Earns $10 Billion Profit. The Financial Times reports, “A surge in US house prices doubled profits at the bailed-out mortgage finance group Fannie Mae in the second quarter, meaning it will send a further $10.2bn back to the US Treasury in the coming weeks.” While the news is good for taxpayers – Fannie Mae is paying back some of what it owes them – taxpayers are still exposed to great risk by having Fannie Mae and Freddie Mac under federal control. If the housing market falls again, those profits will go away and taxpayers could be on the hook to infuse more money into Fannie and Freddie.