If the 2012 edition of Heritage’s Index of Economic Freedom has bad news for the United States, the news for Europe is not much better. The 43 nations of the European region did manage to lose less economic freedom than did the United States, but a decline is still a decline. And the European decline was broad-based: Only nine countries made gains, and every one of the top 10 declined—in some cases, dramatically. The underlying driver of the declines in many cases will come as no surprise: higher levels of … More

On Thursday, President Obama formally notified Congress that the total federal debt (debt subject to statutory limit) is within $100 billion of the debt limit and requested an increase of $1.2 trillion. The announcement comes as no surprise, because such an increase is the anticipated third and final installment of $2.1 trillion in debt limit increases provided under the Budget Control Act of 2011 (BCA), passed at the conclusion of last summer’s debt ceiling debate. The BCA states that Congress has 15 calendar days from the President’s notification in which … More

The remarks of Alan Krueger, chairman of Obama’s Council of Economic Advisers, asserting that taxing the rich can spur economic growth demonstrate that he and the Administration are nothing if not consistent in their mistakes. Krueger says that there is growing income inequality in the United States, that this growing inequality contributes to slowing economic growth, and that raising taxes on the wealthy to offset some of this growing income inequality would actually stimulate the economy in the near term. While income inequality in the United States is growing, the … More

Dark clouds hover over the nation’s finances and threaten a perfect storm of massive debt and crushing taxation unless Congress starts acting—soon. Washington must demonstrate that it is serious about reining in ever-rising spending and reducing annual deficits. Passing commonsense reforms to our major entitlement programs (Medicare, Medicaid, and Social Security), the main drivers of future spending and annual deficits, is crucial. As the population ages and health care costs rise, spending on entitlements is projected to more than double by 2050, as this Heritage Budget Chart Book chart shows. … More

Last week, the independent California High-Speed Rail Peer Review Group recommended that the state legislature not proceed with funding the proposed Los Angeles–San Francisco project. Its argument was grounded in concerns about “the California High-Speed Rail Authority’s plan to start construction without any assurance of future funding from the federal government,” according to The Wall Street Journal. The California High-Speed Rail Authority responded with a “you’ll be sorry” statement, asserting that it will cost Californians more not to build the system. It argued that the cost of expanding airports and … More

The Obama Administration just rolled out its Defense Strategic Guidance (DSG), which outlines priorities of the U.S. military after the Budget Control Act of 2011. While it will have significant negative impact for the entire U.S. force structure, readiness, and training, the DSG mentions nuclear weapons to state that “it is possible that our deterrence goals can be achieved with a smaller nuclear force.” This is a mark of a wishful, rather than strategic, thinking. In addition, there is no justification as to why the document arrived at this conclusion. … More

America’s total debt now tops $15.2 trillion—the size of the entire economy. While this is a real concern, the greater problem is the growth of spending and debt in the future. Spending on entitlements is the real driver of future debt. In this clip from the documentary film “I Want Your Money,” Heritage expert Alison Fraser reveals why the national debt is a catastrophic crisis, stating: “We’re right on the cusp of 77 million baby boomers retiring into these entitlement programs, and that is absolutely unsustainable.” When Moody’s threatened to … More

Voters in Iowa will caucus today to select their choice for the 2012 presidential nominees. As the rest of the nation watches, Iowa’s choice could help frame the debate for this election year. And as the voters speak, others are weighing in on what they believe is the best direction for America’s government and policy in 2012 and beyond. Over the weekend, The New York Times editorial page was one of those voices, yet again carrying the torch of the liberal, progressive movement. The Times revealed its dismal view of … More

Over the past 50 years, 10 U.S. presidents have made annual budget requests to Congress, projecting deficits both big and small. But no other president compares to Barack Obama when it comes to the size and scale of the current budget deficit facing the United States. The country is facing an 8.3 percent estimated average national deficit of a two-term Obama administration — the biggest of the past 50 years. By comparison, the current estimate for Obama is nearly double the percentage under Presidents Ronald Reagan and George H.W. Bush — and … More

This year saw the death of Osama bin Laden, the Arab Spring and the fall of regimes in Libya and Egypt, a conservative revolution in Wisconsin, continued joblessness in America, and a European economic crisis. Through it all, Heritage experts provided the best conservative analysis of the latest breaking news here at Foundry.org. Below are the Top 10 most read Foundry posts of 2011. Thank you for your readership, and we look forward to being with you again in 2012. Obama Couldn’t Wait: His New Christmas Tree Tax Libyan Draft … More