With nearly half of overpayments originating in Medicare or Medicaid, it is an obvious place for waste to be eliminated. The Examiner reports that the House Oversight and Government Reform subcommittee has opened a probe into federal misspending, with long reach. With no clear restrictions on what the subcommittee can investigate, it is likely that there will be numerous government projects where overpayment has occurred.

Though $115 billion is no laughing number, it could have been worse. The Obama administration slashed nearly $20 billion in their Campaign to Cut Waste. Should the congressional probe be as successful as President Obama’s, we can expect some great results.BA

Our debt didn’t reach over $15 trillion overnight. Making a habit of running huge annual deficits isn’t a recent phenomenon. Congressional gridlock and its consequences isn’t a one-party game. Governing towards reelection rather than economic recovery transcends part lines. Our economic problems have been decades in the making, developing through numerous Washington power shifts.

The setbacks our economy has suffered over the past year speak more to Washington dysfunction and disconnect than one party’s failed leadership. The inability of Congressional leaders to reach a debt ceiling deal in a timely fashion lead to the country’s first ever credit rating downgrade. Political gamesmanship was at the heart of recent uncertainty over the payroll tax cut and unemployment insurance. The supercommittee was a bipartisan failure triggering automatic cuts – which members of both parties are now exploring how to reverse.

So as the candidates continue to tout themselves as members of the party of fiscal responsibility, we’d contest there seems to be no such thing these days. And the numbers back us up. Click here to see our fact sheet on the GOP’s history of overspending,BA

The Wall Street Journal says there is still hope the debt super committee will agree on a plan to cut the budget deficit. The Journal also looks at how the committee’s action – or inaction – is impacting stock markets.

Other news outlets are not as optimistic: The Associated Press, The New York Times, Politico, The Washington Post and The Washington Times say the super committee still has a lot to do and may be deadlocked. Politico says the committee needs to get a lot done this week.

According to The Washington Post, today President Obama will unveil a $1 billion initiative to hire health care workers.

The New York Times examines subsidies that have gone to the clean energy industry.

The Los Angeles Times asks whether a $443 million smallpox contract was necessary.

The New York Times and Reuters have the latest on Greece and Italy’s efforts to get their respective debt problems under control. The Times also looks at the problems Europe’s debt crisis pose for the U.S. economy.

On the opinion pages: The Wall Street Journal looks at the “Christmas tree tax” and corporate welfare; The Washington Examiner says super committee deliberations should be more public.

BA

The Associated Press says the Senate will vote today on a proposal to help veterans find jobs.

Politico looks at infighting among members of the debt supercommittee. The Associated Press, Bloomberg and The Wall Street Journal report Democrats on the panel have proposed $2.3 trillion in deficit reduction. The New York Times and The Washington Post also take a look at negotiations.

The Washington Post and The Washington Times examine the executive order President Obama signed yesterday calling on federal agencies to cut overhead expenses.

The Hill looks at whether and when the House will vote on a balanced budget amendment to the U.S. Constitution.

Reuters says Italy is on the brink of collapse due to the weight of its debt problems. The New York Times also looks at Italy’s fiscal problems.

On the opinion pages: Joseph Antos looks at problems in Medicare; Walter Williams asks who pays corporate income taxes; Grover Norquist, Mike Needham, Phil Kerpen, Al Cardenas, Duane Parde and Daniel J. Mitchell say the federal government needs to stop overspending; and Debra Saunders examines Fannie Mae and Freddie Mac bailouts.

BA

The Hill says Democrats will try to pass President Obama’s jobs package on a provision-by-provision basis. First up would be $35 billion in spending for the states. The Los Angeles Times says the President will be back on the road this week promoting his ideas.

Politico and Roll Call preview the upcoming skirmishes on fiscal year 2012 appropriations bills.

The Wall Street Journal, The Washington Post, and The Washington Times reports the Department of Health and Human Services is shutting down a plan, mandated under the 2010 health care bill, to provide long-term care insurance to the sick and the elderly because it’s not clear the plan could pay for itself.

The Wall Street Journal takes a look at the deficit reduction recommendations submitted to the debt super committee.

According to The Washington Post, several key senators are on board with a plan to freeze federal pay.

Politico reports GOP presidential candidate Ron Paul will unveil $1 trillion in spending cuts today.

The Wall Street Journal says European leaders have until the end of the week to come up with a rescue plan to address its ongoing debt crisis.

On the opinion pages: formers Sens. Byron Dorgan (D-ND) and Judd Gregg (R-NH) say it’s time for Congress to cut the budget deficit; Amity Shlaes explores the public policies that enabled Steve Jobs’ success; and The Oklahoman looks at the effect of overregulation on farmers.

BA

As the Journal Star reports, the near-new curb ramps are slightly too steep — a difference that is barely noticeable for both walkers and wheelchair users, yet will cost $800,565 in federal and state funds to correct.

The city of Lincoln typically spends up to $500,000 annually on sidewalk repair. These mandated adjustments will put the city way over budget.

Lincoln city officials are agreeing to fund the alterations on 294 ramps. They’re worried of possible lawsuits and cut-offs in federal funding if they don’t. But that doesn’t mean they think this is the best use of their money in tight financial times.

Councilman Jon Camp calls the re-do an “absolute waste of money.”

Lincoln residents point out better ways for the money to be spent, “Some city street corners have no ramps at all, for example. And some city sidewalks have nasty patches and uneven sections that make navigation difficult for everyone.”

The wheelchair ramps might be too steep to comply with current standards. But the price of living up to ever-changing standards is much steeper.BA

In an op-ed today in the Wall Street Journal, Charles Schwab, founder and chairman of the Charles Schwab Company, echoes much of what we’ve been explaining for months. Below are excerpts. Click here to read the full piece.

In his speech before a joint session of Congress on Sept. 8, President Obama said, “Ultimately, our recovery will be driven not by Washington, but by our businesses and our workers.”

He is right. We can spark an economic recovery by unleashing the job-creating power of business, especially small entrepreneurial businesses, which fuel economic and job growth quickly and efficiently. Indeed, it is the only way to pull ourselves out of this economic funk.

But doing so will require a consistent voice about confidence in businesses—small, large and in between. We cannot spend our way out of this. We cannot tax our way out of this. We cannot artificially stimulate our way out of this. We cannot regulate our way out of this.

What we can do—and absolutely must—is knock down all hurdles that create disincentives for investment in business.

The simple fact is that every business in America was started by an entrepreneur, whether it is Ford Motor Co., Google or your local dry cleaner. Every single job that entrepreneur creates requires an investment. And at its core, investing requires confidence that despite the risks, despite the hard work that will certainly ensue, the basic rules of the game are clear and stable.

[T]he leaders of both parties, Republicans and Democrats alike, must lend their voices to encourage and support private enterprise, both for what it can do to turn our economy around and for the spirit of opportunity it represents.

BA

Additionally as our debt burden grows, more and more tax dollars are used to pay interest on the debt – an expenditure that produces no economic benefit (besides not defaulting on our obligations).

In a must read op-ed in Forbes, Steve Cunningham and Polina Vlasenko of the American Institute for Economic Research lay out the facts. Below are excerpts. Click here to read the full piece.

When nations accumulate a certain level of debt, growth suffers. For the United States, that moment is now.

Currently, total federal debt stands at $14.7 trillion, or around 98% of gross domestic product, a level not seen since the end of World War II. Debt financed by private investors, as opposed to that held by government, is about $10 trillion, or 67% of GDP.

Worse, despite promises by both Democrats and Republicans to slow the pace of deficit spending, there is really no end in sight. The Office of Management and Budget (OMB) projects that by 2016 gross federal debt will reach 105% of GDP, and debt held by private investors will reach 76%. According to the Congressional Budget Office (CBO), if current policies continue federal debt held by the public will grow to 82 percent of GDP by the end of 2021. This doesn’t bode well for the economy.

The private sector allocates resources by comparing the expected benefits of various projects to their costs. Projects that produce greater benefits relative to costs result in higher profits and typically attract more resources.

No comparable mechanism exists for government spending. Politicians are not driven by the profit motive, but rather by a complicated web of political, ideological, and other motives with a substantial dose of interest-group lobbying mixed in.

[A] recent National Bureau of Economic Research study by Carmen Reinhart and Kenneth Rogoff….analyzed newly compiled data on government debt in 44 countries spanning about 200 years. It found that when debt exceeds the threshold of 90% of GDP, the median rate of economic growth falls by about 1 percentage point per year and the average (mean) rate falls by almost 4 percentage points.

If investors continue to show preference for U.S. Treasury bonds and if foreigners continue pouring money into U.S. sovereign debt at very low interest rates, the United States may be able to finance debt in excess of 90% of GDP.

But betting on this special outcome against the history of more than two centuries seems a risky proposition. The more likely outcome is a long period of very slow growth.

BA

In a recent audit, reported on by The New York Times, the Department of Justice is scolded for “extravagant and potentially wasteful” spending on conferences dating back to the end of the Bush presidency and continuing into Obama’s tenure.

From 2008 to 2009, the Department of Justice spent $121 million on 1,832 conferences. The bulk of the waste? Snacks.

Food and refreshment costs skyrocketed due to agreements the Department made with hotel’s exclusive catering vendors in exchange for free meeting space.

The result: $16 muffins, $10 cookies and brownies, $5.57 cans of soda — all consumed by the thousands, as taxpayers footed the bill.

While Department officials argue the benefits of free meeting space are balanced by the high refreshment prices, the audit found “the conferences often ended up spending tens of thousands more on food and beverage than the minimum necessary to secure the ‘free’ meeting rooms.”

This report is another blow to the DoJ, which received similar criticisms in 2007. Since then, they have enacted measures in an attempt to put an end to wasteful spending – and apparently having little affect.  We hope this audit can serve as a wakeup call for all agencies to spend more responsibly.

Washington cupcakes aren’t cheap. But they sure do beat a $16 muffin.BA