Executive Summary Following the attacks of September 11, 2001, Americans called on Washington to spend the resources necessary to fight terrorists abroad, protect the homeland, and rebuild New York City. Total federal spending has grown 16 percent since 2001. However, only 45 percent of all new federal spending since 2001 has been related to defense and the 9/11 attacks. The remaining 55 percent was spent on programs unrelated to the war on terrorism.

©2003 Copley News Service, 12/9/2003

Congress and the Administration are once again facing gigantic and growing deficits. There are many explanations, but unrestrained spending is the biggest. With the tallies in from the fiscal year ended September 30, spending grew by almost 9% last year and by 21% over the last two years. This is before you consider the supplemental for Iraq, the energy bill, the new entitlement for prescription drugs law, or the omnibus appropriations bill that is still being written and which Congress will consider December 8. Non-military discretionary spending, which the Administration had pledged to hold to 4% growth, actually rose 8.5% - or roughly four times as fast as inflation.

This Halloween Day, the 60th annual National Peanut Festival gets under way in Dothan, Ala. Did you know that you were a host? After all, you the taxpayers are sponsoring the event. Despite a $374 billion federal deficit for fiscal 2003 — projected to reach $480 billion next year — Rep. Terry Everett, an Alabama Republican born in Dothan, sliced $202,500 from the 2003 Omnibus Appropriations Act for the festival, which this year features a Spam-recipe contest. Is Spam the new pork-barrel politics!?

This Halloween Day, the 60th annual National Peanut Festival gets under way in Dothan, Ala. Did you know that you were a host? After all, you the taxpayers are sponsoring the event. Despite a $374 billion federal deficit for fiscal 2003 — projected to reach $480 billion next year — Rep. Terry Everett, an Alabama Republican born in Dothan, sliced $202,500 from the 2003 Omnibus Appropriations Act for the festival, which this year features a Spam-recipe contest. Is Spam the new pork-barrel politics!?

©2003 Copley News Service, 10/21/2003 Countries that anchor the value of their currencies to a larger, relatively stable currency, such as the dollar and the euro, are wrongly accused by many world leaders of "manipulating" their currencies. Leaders who pressure countries with fixed exchange rates to allow their currencies to float freely on foreign exchange (Forex) markets aren't considering the inherent limitations of currency markets, and they fail to appreciate the economic havoc floating exchange rates create.

With the end of the fiscal year, the Congressional Budget Office concluded that the federal deficit is actually $27 billion lower than was forecast in August, totaling $374 billion for 2003. Unfortunately, the shrinking deficit is not an indication of renewed fiscal restraint by the federal government. In fact, this year’s deficit is more than double the 2002 deficit of $158 billion. The main reasons for the drop in this year’s deficit are corporate revenues that are increasing as the economy strengthens and smaller than forecast outlays on defense and education. Discretionary spending, however, continues to be problematic, and mandatory spending on entitlement programs will skyrocket under a huge Medicare drug benefit currently being negotiated.