Budget Reform

Research

In Search of Austerity: An Analysis of the British Situation Anthony Evans \| Oct 15, 2012 This paper intends to provide a basic overview of the fiscal position of the United Kingdom. The 2008–2009 recession has been deeper and more sustained than the two previous recessions (in 1990–91 and 1979–81).	Institutions and State Spending: An Overview Matthew Mitchell, Nick Tuszynski \| Jun 01, 2012 Matt Mitchell and Nick Tuszynski discuss two institutions that have been successful at controlling spending: separate taxing and spending committees, and item-reduction vetoes.
The Economic Situation Bruce Yandle \| Mar 06, 2012 With hope riding high for a stronger 2012 economy, treating the economy like a Washington-directed marionette is not the way to go.	Illinois's Fiscal Breaking Points Eileen Norcross, Benjamin J. VanMetre \| Oct 11, 2011 It is important to understand that Illinois’s current fiscal crisis is not the result of a single critical event but rather a series of events in Illinois’s economic and fiscal history. This paper uncovers why Illinois's 2012 budget strategies are unlikely to work.
From Defined Benefit to Defined Contribution Scott Beaulier \| Oct 11, 2011 America’s fiscal mess, coupled with poor management in the past and changing demographics, guarantees that public pension systems across the country will be reformed. At the margin, the case for more radical shifts from defined benefit to defined contribution plans is strong.	Institutions and State Spending Matthew Mitchell, Nick Tuszynski \| Oct 03, 2011 This paper summarizes the empirical investigations of sixteen state-level institutions. The lesson for both state and federal policy makers is that there are a number of institutional reforms that seem likely to put spending on a more sustainable path.

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Testimony & Comments

What the Euro Crisis Means for Taxpayers and the U.S. Economy Anthony B. Sanders \| Dec 15, 2011 Anthony Sanders testified before the U.S. House Committee on Oversight and Government Reform Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs on the role of the U.S. in addressing the European debt crisis.	Administration Efforts on Line-by-Line Budget Review Veronique de Rugy \| Oct 05, 2011 Veronique de Rugy testified before the House Committee on Energy and Commerce, Subcommittee on Oversight and Investigations about a line-by-line budget review process.
A Balanced Budget Amendment to the Constitution Matthew Mitchell \| Oct 04, 2011 Matthew Mitchell testified before the House Committee on the Judiciary about state governments' experiences with Balanced Budget Amendments.	Wasteful Spending Does Not Stop at Earmarks and Overpayments Veronique de Rugy \| Feb 17, 2011 Veronique de Rugy testified before the House Committee on Oversight and Government Reform about wasteful government spending.
State and Municipal Debt: The Coming Crisis? Eileen Norcross \| Feb 09, 2011 Eileen Norcross testified before the U.S. House Committee on Oversight and Government Reform on the looming municipal debt crisis.	American Recovery and Reinvestment Act of 2009: An Update Veronique de Rugy \| Jul 14, 2010 Since the Great Recession began in December 2007, employment has shrunk by 7.5 million jobs1, long-term unemployment is higher now than in any previous recession2, and real GDP has plummeted to 2006…

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Research Summaries & Toolkits

The FY 2014 Budget Proposals Veronique de Rugy, Jason J. Fichtner, Charles Blahous, Matthew Mitchell \| Mar 15, 2013 Despite years without a federal budget, trillion-dollar deficits, and ad hoc, crisis-driven fiscal and economic policies that failed to deal with the looming entitlement crisis, leaders on both sides in Washington are now touting seemingly miraculous progress toward a “fix” to our budgetary woes.	Mercatus Center Policy Guide \| Aug 03, 2012 The Mercatus Center at George Mason University is pleased to provide you with our new policy guide. The guide is designed to provide easily accessible economic information that might prove useful in pre- paring for hearings or town hall meetings, drafting speeches or policy papers, and generally educating the public regarding spending, taxes, regulation, financial markets, and technology policy.
Assessing the President's FY2013 Budget Proposal \| Feb 13, 2012 This policy brief takes a look at the president's FY2013 budget proposal and emphasizes the need for fundamental reform in the areas of spending, taxes, and the budget process.	Analysis of Legislation in Order to Reduce Spending Veronique de Rugy, Jason J. Fichtner, Matthew Mitchell \| Sep 12, 2011 This toolkit provides members and their staffs with tools to help them evaluate spending bills and start the process of reducing government spending.
Performance and Accountability Jerry Ellig, Jason J. Fichtner, Maurice P. McTigue \| Sep 12, 2011 Congress should conduct rigorous oversight of federal agencies and programs not just to prevent waste, fraud, and abuse, but also because current levels of spending are unsustainable, making spending cuts inevitable.	The Real Debt Crisis: What Can Be Done? Matthew Mitchell \| Jul 29, 2011 On July 14, Standard & Poor's (S&P) issued a warning to Washington: within months, policy makers must craft a "credible solution" to reduce deficits by at least $4 trillion over the next 10 to 12 years.

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Expert Commentary

Let Cyprus Be the Lesson Pittsburgh Tribune-Review By Antony Davies, James R. Harrigan \| Mar 22, 2013 How can the United States avoid the fate that awaits this growing list of countries? The answer to this question is as easy factually as it is difficult politically: The United States must balance its budget.	Nips and Tucks and Big Budget Cuts The New York Times By Tyler Cowen \| Feb 02, 2013 Unless lawmakers act by March 1, the budget sequestration process will start cutting government spending automatically — reductions that would amount to $1.2 trillion by 2021. Congress and the White House agreed in 2011 to the sequestration, and many people see it as a kind of political gimmick.
Lies and Politicians Pittsburgh Tribune-Review By Antony Davies, James R. Harrigan \| Jan 07, 2013 Today, you can tell what a law does simply by reading its title and assuming the opposite. As evidence, consider the American Taxpayer Relief Act of 2012 — Washington‘s solution to the recent “fiscal cliff” debacle. Contrary to its title, the act does not provide tax relief. Contrary to what politicians would have you believe, it neither cuts spending nor reduces the deficit. So what does it do?	The Fiscal Cliff Deal: Mercatus Center Scholars React By Veronique de Rugy, Jason J. Fichtner, Charles Blahous, Matthew Mitchell \| Jan 02, 2013 As the nation narrowly averts the dreaded “fiscal cliff,” can Americans finally exhale with the knowledge that Washington’s last-minute deal is a good deal for them? Mercatus Center at George Mason University scholars suggest the following key questions to help gauge whether the fiscal cliff deal is a real step toward improving the nation’s dire fiscal outlook.
Chained CPI: Diet COLA for Social Security Market Watch By Jason J. Fichtner \| Dec 20, 2012 As negotiations between President Obama and Speaker Boehner rapidly close on the end of the year deadline for avoiding the fiscal cliff, media attention has been focused on the back-and-forth over increasing taxes. But there hasn't been much attention to the spending side of the negotiations. That is, however, with one exception — changing the way Social Security Cost-of-Living Adjustments (COLAs) are computed.	Six Degrees of Military Spending Reason By Veronique de Rugy \| Dec 19, 2012 The Department of Defense, with its 2.3 million workers, is the single largest employer in the United States. The defense industry, which is the main private-sector recipient of defense dollars, directly or indirectly employs another 3 million people. This, in a nutshell, is why it’s so hard to cut government spending in general and military spending in particular.

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Charts

FY2014 Budget Proposals In Perspective

With the recent release of President Obama’s FY 2014 budget, it is important to put the budget numbers from the various proposals into proper perspective. These charts compare the patterns of future spending projections from the Senate Democratic budget by Chairman Patty Murray, House Republican budget by Chairman Paul Ryan, Senator Rand Paul’s budget, and the president’s budget.

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Experts

Charles Blahous

Charles Blahous is a senior research fellow at the Mercatus Center and public trustee for Medicare and Social Security. His primary research interests include retirement security, with an emphasis on Social Security and employer-provided defined benefit pensions, as well as federal fiscal policy, entitlements, demographic change, economic stimulus, financial market regulation, and health care reform.

Antony Davies

Antony Davies is associate professor of economics at Duquesne University and Mercatus Affiliated Senior Scholar at George Mason University. His primary research interests include econometrics, public policy, and economic psychology.

Veronique de Rugy

Veronique de Rugy is a senior research fellow at the Mercatus Center at George Mason University. Her primary research interests include the federal budget, homeland security, taxation, tax competition, and financial privacy issues.

Jason J. Fichtner

Jason J. Fichtner is a senior research fellow at the Mercatus Center. His primary research interests include Social Security, federal tax policy, federal budget policy, retirement security, and policy proposals to increase saving and investment.

Matthew Mitchell

Matthew Mitchell is a senior research fellow at the Mercatus Center at George Mason University and the lead scholar on the Project for the Study of American Capitalism. His primary research interests include economic freedom and economic growth, public choice economics, and the economics of government-granted privileges to businesses.

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Videos

Veronique de Rugy Discusses Government Contractors and the Economy on Fox 5

Veronique de Rugy | January 02, 2013

Veronique de Rugy Explains France's Spending Crisis on Varney & Company on Fox Business News

Veronique de Rugy | December 18, 2012

Podcasts

Antony Davies Discusses Unfunded Pensions in Pennsylvania on KDKA

| May 13, 2013

Antony Davies Discusses Unfunded Pensions in Pennsylvania on KDKA

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Recent Events

Spending Restraint and Lessons Learned: Why Cutting Spending is Key to Balancing the Federal Budget

Please join the Mercatus Center at George Mason University for an expert panel discussion of why spending control is key to balancing the federal budget and which proposals might be most effective in starting the process.

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In Search of Austerity: An Analysis of the British Situation Anthony Evans \| Oct 15, 2012 This paper intends to provide a basic overview of the fiscal position of the United Kingdom. The 2008–2009 recession has been deeper and more sustained than the two previous recessions (in 1990–91 and 1979–81).	Institutions and State Spending: An Overview Matthew Mitchell, Nick Tuszynski \| Jun 01, 2012 Matt Mitchell and Nick Tuszynski discuss two institutions that have been successful at controlling spending: separate taxing and spending committees, and item-reduction vetoes.
The Economic Situation Bruce Yandle \| Mar 06, 2012 With hope riding high for a stronger 2012 economy, treating the economy like a Washington-directed marionette is not the way to go.	Illinois's Fiscal Breaking Points Eileen Norcross, Benjamin J. VanMetre \| Oct 11, 2011 It is important to understand that Illinois’s current fiscal crisis is not the result of a single critical event but rather a series of events in Illinois’s economic and fiscal history. This paper uncovers why Illinois's 2012 budget strategies are unlikely to work.
From Defined Benefit to Defined Contribution Scott Beaulier \| Oct 11, 2011 America’s fiscal mess, coupled with poor management in the past and changing demographics, guarantees that public pension systems across the country will be reformed. At the margin, the case for more radical shifts from defined benefit to defined contribution plans is strong.	Institutions and State Spending Matthew Mitchell, Nick Tuszynski \| Oct 03, 2011 This paper summarizes the empirical investigations of sixteen state-level institutions. The lesson for both state and federal policy makers is that there are a number of institutional reforms that seem likely to put spending on a more sustainable path.

What the Euro Crisis Means for Taxpayers and the U.S. Economy Anthony B. Sanders \| Dec 15, 2011 Anthony Sanders testified before the U.S. House Committee on Oversight and Government Reform Subcommittee on TARP, Financial Services and Bailouts of Public and Private Programs on the role of the U.S. in addressing the European debt crisis.	Administration Efforts on Line-by-Line Budget Review Veronique de Rugy \| Oct 05, 2011 Veronique de Rugy testified before the House Committee on Energy and Commerce, Subcommittee on Oversight and Investigations about a line-by-line budget review process.
A Balanced Budget Amendment to the Constitution Matthew Mitchell \| Oct 04, 2011 Matthew Mitchell testified before the House Committee on the Judiciary about state governments' experiences with Balanced Budget Amendments.	Wasteful Spending Does Not Stop at Earmarks and Overpayments Veronique de Rugy \| Feb 17, 2011 Veronique de Rugy testified before the House Committee on Oversight and Government Reform about wasteful government spending.
State and Municipal Debt: The Coming Crisis? Eileen Norcross \| Feb 09, 2011 Eileen Norcross testified before the U.S. House Committee on Oversight and Government Reform on the looming municipal debt crisis.	American Recovery and Reinvestment Act of 2009: An Update Veronique de Rugy \| Jul 14, 2010 Since the Great Recession began in December 2007, employment has shrunk by 7.5 million jobs1, long-term unemployment is higher now than in any previous recession2, and real GDP has plummeted to 2006…

The FY 2014 Budget Proposals Veronique de Rugy, Jason J. Fichtner, Charles Blahous, Matthew Mitchell \| Mar 15, 2013 Despite years without a federal budget, trillion-dollar deficits, and ad hoc, crisis-driven fiscal and economic policies that failed to deal with the looming entitlement crisis, leaders on both sides in Washington are now touting seemingly miraculous progress toward a “fix” to our budgetary woes.	Mercatus Center Policy Guide \| Aug 03, 2012 The Mercatus Center at George Mason University is pleased to provide you with our new policy guide. The guide is designed to provide easily accessible economic information that might prove useful in pre- paring for hearings or town hall meetings, drafting speeches or policy papers, and generally educating the public regarding spending, taxes, regulation, financial markets, and technology policy.
Assessing the President's FY2013 Budget Proposal \| Feb 13, 2012 This policy brief takes a look at the president's FY2013 budget proposal and emphasizes the need for fundamental reform in the areas of spending, taxes, and the budget process.	Analysis of Legislation in Order to Reduce Spending Veronique de Rugy, Jason J. Fichtner, Matthew Mitchell \| Sep 12, 2011 This toolkit provides members and their staffs with tools to help them evaluate spending bills and start the process of reducing government spending.
Performance and Accountability Jerry Ellig, Jason J. Fichtner, Maurice P. McTigue \| Sep 12, 2011 Congress should conduct rigorous oversight of federal agencies and programs not just to prevent waste, fraud, and abuse, but also because current levels of spending are unsustainable, making spending cuts inevitable.	The Real Debt Crisis: What Can Be Done? Matthew Mitchell \| Jul 29, 2011 On July 14, Standard & Poor's (S&P) issued a warning to Washington: within months, policy makers must craft a "credible solution" to reduce deficits by at least $4 trillion over the next 10 to 12 years.

Let Cyprus Be the Lesson Pittsburgh Tribune-Review By Antony Davies, James R. Harrigan \| Mar 22, 2013 How can the United States avoid the fate that awaits this growing list of countries? The answer to this question is as easy factually as it is difficult politically: The United States must balance its budget.	Nips and Tucks and Big Budget Cuts The New York Times By Tyler Cowen \| Feb 02, 2013 Unless lawmakers act by March 1, the budget sequestration process will start cutting government spending automatically — reductions that would amount to $1.2 trillion by 2021. Congress and the White House agreed in 2011 to the sequestration, and many people see it as a kind of political gimmick.
Lies and Politicians Pittsburgh Tribune-Review By Antony Davies, James R. Harrigan \| Jan 07, 2013 Today, you can tell what a law does simply by reading its title and assuming the opposite. As evidence, consider the American Taxpayer Relief Act of 2012 — Washington‘s solution to the recent “fiscal cliff” debacle. Contrary to its title, the act does not provide tax relief. Contrary to what politicians would have you believe, it neither cuts spending nor reduces the deficit. So what does it do?	The Fiscal Cliff Deal: Mercatus Center Scholars React By Veronique de Rugy, Jason J. Fichtner, Charles Blahous, Matthew Mitchell \| Jan 02, 2013 As the nation narrowly averts the dreaded “fiscal cliff,” can Americans finally exhale with the knowledge that Washington’s last-minute deal is a good deal for them? Mercatus Center at George Mason University scholars suggest the following key questions to help gauge whether the fiscal cliff deal is a real step toward improving the nation’s dire fiscal outlook.
Chained CPI: Diet COLA for Social Security Market Watch By Jason J. Fichtner \| Dec 20, 2012 As negotiations between President Obama and Speaker Boehner rapidly close on the end of the year deadline for avoiding the fiscal cliff, media attention has been focused on the back-and-forth over increasing taxes. But there hasn't been much attention to the spending side of the negotiations. That is, however, with one exception — changing the way Social Security Cost-of-Living Adjustments (COLAs) are computed.	Six Degrees of Military Spending Reason By Veronique de Rugy \| Dec 19, 2012 The Department of Defense, with its 2.3 million workers, is the single largest employer in the United States. The defense industry, which is the main private-sector recipient of defense dollars, directly or indirectly employs another 3 million people. This, in a nutshell, is why it’s so hard to cut government spending in general and military spending in particular.

Budget Reform

Budget Reform

Research

Testimony & Comments

Research Summaries & Toolkits

Expert Commentary

Charts

Experts

Videos

Podcasts

Recent Events

Media Clippings