Knowledge (XXG)

Starve the beast

Source 📝

389: 611:, criticized "starve the beast". According to Niskanen, if deficits finance 20% of government spending, then citizens perceive government services as discounted; services that are popular at 20% off the listed price would be less popular at full price. He hypothesized that higher revenues could constrain spending, and found strong statistical support for that conjecture based on data from 1981 to 2005. Another Cato researcher, Michael New, tested Niskanen's model in different time periods and using a more restrictive definition of spending (non-defense discretionary spending) and arrived at a similar conclusion. 55: 455: 50: 765: 631:
budget deficit." He wrote that the "beast is starving, as planned" and that "Republicans insist that the deficit must be eliminated, but they're not willing either to raise taxes or to support cuts in any major government programs. And they're not willing to participate in serious bipartisan discussions, either, because that might force them to explain their plan—and there isn't any plan, except to regain power."
730: 683:
that every new dollar of new taxes leads to more than one dollar of new spending according to their research. In an op-ed, they both stated that "he grand bargain so many in Washington yearn for—tax increases coupled with spending cuts—is a fool's errand" since "higher tax collections never resulted
630:
summarized: "Rather than proposing unpopular spending cuts, Republicans would push through popular tax cuts, with the deliberate intention of worsening the government's fiscal position. Spending cuts could then be sold as a necessity rather than a choice, the only way to eliminate an unsustainable
622:
testified to a U.S. Senate committee in July 2010 that: "My guess is that if President Bush had announced a new war surtax to pay for Iraq or an increase in the Medicare payroll tax rate to pay for the prescription drug benefit, both initiatives would have been less popular. Given that the
597:
found: " no support for the hypothesis that tax cuts restrain government spending; indeed, suggest that tax cuts may actually increase spending. The results also indicate that the main effect of tax cuts on the government budget is to induce subsequent legislated tax increases."
558:", that 279 Senators and Congressman have signed. The oath states the signatories will never vote to raise taxes on anyone under any circumstances. It is viewed by some of the unsigned as a stumbling block to mutual fiscal negotiations to benefit the country. 581:
suggest that the complicated nature of the U.S. tax system causes fiscal illusion and results in greater public expenditure than would be the case in an idealized system in which everyone is aware in detail of what their share of the costs of government is.
500:
tells us that first we've got to reduce spending before we can reduce taxes. Well, if you've got a kid that's extravagant, you can lecture him all you want to about his extravagance. Or you can cut his allowance and achieve the same end much quicker."
481:: "Let us remember that the basic purpose of any tax cut program in today's environment is to reduce the momentum of expenditure growth by restraining the amount of revenue available and trust that there is a political limit to 623:
prescription drug benefit only passed Congress by one vote after an extraordinary amount of arm-twisting, it seems unlikely that it would have passed at all if accompanied by a tax increase. Starve the beast doesn't work."
530:] for Congress. And that's good for the taxpayers, and it's incredibly positive news if you're worried about a federal government that has been growing at a dramatic pace over the past eight years and it has been." 661:
is a well-known proponent of the strategy and has famously said, "My goal is to cut government in half in twenty-five years, to get it down to the size where we can drown it in the bathtub."
277: 541:, also deferred paying for the larger deficits it would create. It "would most likely be funded by lower government spending on Social Security and Medicare benefits", according to the 194: 292: 388: 155: 375: 287: 267: 638:, former domestic policy adviser to President Ronald Reagan, referred to "starve the beast" as "the most pernicious fiscal doctrine in history", and blames it for the increase in 573:
hypothesis: "It's obvious, borrowing allows spending to be made that will yield immediate political payoffs without the incurring of any immediate political cost." In their book
517: 669:
A related idea known as "Feed the beast", refers to increasing taxes for the purported purpose of balancing the budget only to make the government spend those inflows. Writer
226: 1473: 1079: 524:'s administration were attempts to "starve the beast". Bush said in 2001: "so we have the tax relief plan that now provides a new kind—a fiscal straightjacket [ 306: 720: 74: 282: 272: 262: 654:(R-AZ), a veteran of the Senate Finance Committee, stated "you should never have to offset the cost of a deliberate decision to reduce tax rates on Americans." 585:
Empirical evidence shows that Starve the Beast may be counterproductive, with lower taxes actually corresponding to higher spending. An October 2007 study by
1468: 199: 1498: 368: 1257: 478: 257: 172: 1488: 489: 109: 719: 778: 250: 84: 1483: 1478: 241: 236: 231: 189: 179: 1157:"Do Tax Cuts Starve the Beast: The Effect of Tax Changes on Government Spending National Bureau of Economic Research. Working Paper No. 13548" 432: 361: 735: 594: 132: 89: 1318: 940: 883: 1349: 783: 328: 94: 1139: 1110: 104: 1181: 1463: 440: 137: 54: 1087: 219: 798: 99: 1493: 1218: 958: 471: 79: 69: 37: 754: 1458: 1033: 454: 184: 167: 1400: 1011: 639: 324: 694:, who stated that tax increases in the early 1990s helped contribute to more austere budgets in the late 1990s. 555: 444: 211: 127: 436: 1427: 1264: 853: 750: 1419: 670: 505: 25: 913: 826: 423:
in a deliberate effort to force it to reduce spending. The term "the beast", in this context, refers to
408: 347: 49: 497: 770: 679: 619: 543: 412: 337: 420: 1135: 1106: 803: 615: 578: 566: 1336:
That Used to Be Us: How America Fell Behind in the World It Invented and How We Can Come Back
891: 1405: 1290: 690: 601: 482: 458:
Total tax revenues were calculated as a percentage of GDP for the U.S. in comparison to the
1357: 658: 586: 570: 551: 428: 424: 332: 1423: 1314: 1192: 1156: 1128: 1038: 793: 685: 674: 635: 608: 605: 521: 474: 1452: 1379: 534: 493: 392: 162: 1061: 504:
The earliest known use of "starve the beast" is in a 1979 newspaper article quoting
1319:
Tax Cuts And 'Starving The Beast' – The most pernicious fiscal doctrine in history.
627: 1182:"26(3):553–558, Fall 2006 Limiting Government: The Failure of "Starve the Beast"" 718: 508:
city councilman Jerry Wilhelm at a tax forum sponsored by the Libertarian Party.
788: 684:
in less spending". Their conclusions have been disputed by economist and writer
590: 396: 985: 760: 959:"Mallaby, Sebastian. Don't Feed the Beast: Bush Should End This Tax-cut Myth" 342: 496:
foreshadowed the strategy during the 1980 US Presidential debates, saying "
427:
and the programs it funds, primarily with American tax money, particularly
538: 448: 738:
was created from a revision of this article dated 13 June 2024
651: 416: 1322: 1034:"Congress Gets 5,593-Page Text of Relief Bill Hours Ahead of Vote" 463: 453: 387: 459: 526: 716: 1243:
New, Michael J. "Starve the Beast: A Further Examination",
1130:
Democracy in Deficit: The Political Legacy of Lord Keynes
1012:"President Announces Chairman of Joint Chiefs of Staff" 1014:. Georgewbush-whitehouse.archives.gov. August 24, 2001 569:, a Nobel Prize-winning economist, helped develop the 399:, outlining his plan for tax reductions in July 1981. 16:
Political strategy utilized by American conservatives
1155:Christina D. Romer, David H. Romer (October 2007). 1127: 1258:"Senate Testimony of Professor Leonard E. Berman" 877: 875: 1401:Starve the Beast: Just Bull, not Good Economics 1126:Buchanan, James M.; Wagner, Richard E. (1977). 1080:"The Pledge: Grover Norquist's hold on the GOP" 1062:"Thompson Unveils Plan For Voluntary Flat Tax" 854:"Origins and Development of a Budget Metaphor" 729: 369: 8: 520:and deficit spending of former US President 1219:"The true test of the tea parties' mettle" 376: 362: 18: 1474:Government finances in the United States 1334:Thomas L. Friedman, Michael Mandelbaum: 746:, and does not reflect subsequent edits. 1428:"Higher Taxes Won't Reduce the Deficit" 818: 779:Financial position of the United States 470:On July 14, 1978, economist and future 419:, to deprive the federal government of 36: 1380:"Article | The American Prospect" 1105:. Memphis: P. K. Steidman Foundation. 407:" is a political strategy employed by 920:. Pralmeida.tripod.com. April 1, 2004 833:. Pralmeida.tripod.com. April 1, 2004 7: 595:National Bureau of Economic Research 425:the United States federal government 1469:Tax resistance in the United States 1289:Krugman, Paul (February 21, 2010). 1103:Dehe Deficit and American Democracy 941:"Tax Cuts And 'Starving The Beast'" 395:gives a televised address from the 784:National debt of the United States 533:Republican presidential candidate 14: 1499:Conservatism in the United States 1217:Ezra Klein (September 18, 2010). 1060:Schatz, Amy (November 26, 2007). 965:. Washingtonpost.com. May 8, 2006 804:Wanniski's Two Santa Claus Theory 554:authored an oath, the so-called " 537:'s tax-cut plan, incorporating a 888:Minnesota Council on Foundations 852:Bartlett, Bruce (July 2, 2007). 763: 728: 53: 48: 1489:American political catchphrases 1291:"Opinion - The Bankruptcy Boys" 1263:. July 14, 2010. Archived from 984:Hemphill, Jenda (11 Apr 1979). 939:Bartlett, Bruce (May 7, 2010). 1382:. Prospect.org. March 15, 2005 882:Lindberg, Mark (Spring 2007). 307:2023 Removal of Kevin McCarthy 1: 1484:United States federal budgets 1479:Taxation in the United States 799:Taxation in the United States 1247:, 29(3): 487–495, Fall 2009. 1134:. New York: Academic Press. 1338:. Macmillan, 2012. p. 170. 1101:Buchanan, James M. (1984). 604:, chairman emeritus of the 1515: 884:"Foundations Have a Stake" 556:Taxpayer Protection Pledge 220:2007–2008 financial crisis 992:. Petaluma, CA. p. 6 914:"Europe's Welfare States" 890:. Mcf.org. Archived from 827:"Europe's Welfare States" 251:2013 budget sequestration 156:Bowles–Simpson Commission 1068:– via www.wsj.com. 479:Senate Finance Committee 472:Federal Reserve chairman 212:Subprime mortgage crisis 41:United States of America 24:This article is part of 1464:Economics catchphrases 858:The Independent Review 724: 704:Listen to this article 506:Santa Rosa, California 467: 409:American conservatives 400: 200:Social Security debate 39:Budget and debt in the 1426:(November 21, 2010). 1090:on November 21, 2011. 723: 577:(1977), Buchanan and 490:election as President 457: 391: 348:Continuing resolution 1360:on November 20, 2004 1350:"Starving the Beast" 1225:. Washingtonpost.com 986:"Fed Up With Taxes?" 755:More spoken articles 677:have written in the 650:Former U.S. Senator 575:Democracy in Deficit 258:Government shutdowns 1494:Economic liberalism 1432:Wall Street Journal 1409:, November 26, 2010 1198:on January 11, 2011 1066:Wall Street Journal 963:The Washington Post 771:Conservatism portal 680:Wall Street Journal 620:Syracuse University 550:Political activist 544:Wall Street Journal 413:government spending 338:Balance of payments 227:Debt-ceiling crises 150:Contemporary issues 1459:Political theories 1354:Blueprint Magazine 1295:The New York Times 1180:William Niskanen. 894:on January 7, 2011 725: 646:Political advocacy 640:US government debt 587:Christina D. Romer 468: 401: 85:Financial position 860:. Independent.org 721: 642:since the 1980s. 616:Leonard E. Burman 579:Richard E. Wagner 567:James M. Buchanan 562:Economic analysis 492:, then-candidate 477:testified to the 386: 385: 195:Political debates 190:Healthcare reform 180:Deficit reduction 1506: 1443: 1442: 1440: 1438: 1416: 1410: 1406:The Fiscal Times 1398: 1392: 1391: 1389: 1387: 1376: 1370: 1369: 1367: 1365: 1356:. Archived from 1345: 1339: 1332: 1326: 1312: 1306: 1305: 1303: 1301: 1286: 1280: 1279: 1277: 1275: 1270:on March 4, 2021 1269: 1262: 1254: 1248: 1241: 1235: 1234: 1232: 1230: 1214: 1208: 1207: 1205: 1203: 1197: 1191:. Archived from 1186: 1177: 1171: 1170: 1168: 1166: 1161: 1152: 1146: 1145: 1133: 1123: 1117: 1116: 1098: 1092: 1091: 1086:. Archived from 1076: 1070: 1069: 1057: 1051: 1050: 1048: 1046: 1030: 1024: 1023: 1021: 1019: 1008: 1002: 1001: 999: 997: 981: 975: 974: 972: 970: 955: 949: 948: 936: 930: 929: 927: 925: 910: 904: 903: 901: 899: 879: 870: 869: 867: 865: 849: 843: 842: 840: 838: 823: 773: 768: 767: 766: 745: 743: 732: 731: 722: 712: 710: 705: 691:The Fiscal Times 665:"Feed the beast" 602:William Niskanen 483:deficit spending 405:Starve the beast 378: 371: 364: 268:1981, 1984, 1986 206:Starve the beast 64:Major dimensions 57: 52: 42: 31: 28: 19: 1514: 1513: 1509: 1508: 1507: 1505: 1504: 1503: 1449: 1448: 1447: 1446: 1436: 1434: 1418: 1417: 1413: 1399: 1395: 1385: 1383: 1378: 1377: 1373: 1363: 1361: 1347: 1346: 1342: 1333: 1329: 1315:Bartlett, Bruce 1313: 1309: 1299: 1297: 1288: 1287: 1283: 1273: 1271: 1267: 1260: 1256: 1255: 1251: 1242: 1238: 1228: 1226: 1223:Washington Post 1216: 1215: 1211: 1201: 1199: 1195: 1184: 1179: 1178: 1174: 1164: 1162: 1159: 1154: 1153: 1149: 1142: 1125: 1124: 1120: 1113: 1100: 1099: 1095: 1078: 1077: 1073: 1059: 1058: 1054: 1044: 1042: 1032: 1031: 1027: 1017: 1015: 1010: 1009: 1005: 995: 993: 983: 982: 978: 968: 966: 957: 956: 952: 938: 937: 933: 923: 921: 912: 911: 907: 897: 895: 881: 880: 873: 863: 861: 851: 850: 846: 836: 834: 825: 824: 820: 815: 809: 769: 764: 762: 759: 758: 747: 741: 739: 736:This audio file 733: 726: 717: 714: 708: 707: 703: 700: 667: 659:Grover Norquist 648: 571:fiscal illusion 564: 552:Grover Norquist 514: 441:Social Security 429:social programs 382: 353: 352: 321: 313: 312: 311: 301:Related events 299: 248: 217: 216: 151: 143: 142: 138:Social Security 133:Social programs 123: 115: 114: 90:Military budget 65: 40: 38: 26: 23: 17: 12: 11: 5: 1512: 1510: 1502: 1501: 1496: 1491: 1486: 1481: 1476: 1471: 1466: 1461: 1451: 1450: 1445: 1444: 1424:Richard Vedder 1411: 1393: 1371: 1340: 1327: 1307: 1281: 1249: 1236: 1209: 1172: 1147: 1140: 1118: 1111: 1093: 1071: 1052: 1039:Bloomberg News 1025: 1003: 976: 950: 931: 905: 871: 844: 817: 816: 814: 811: 807: 806: 801: 796: 794:Tax resistance 791: 786: 781: 775: 774: 748: 734: 727: 715: 702: 701: 699: 696: 686:Bruce Bartlett 675:Richard Vedder 673:and economist 666: 663: 647: 644: 636:Bruce Bartlett 609:Cato Institute 591:David H. Romer 563: 560: 522:George W. Bush 513: 510: 475:Alan Greenspan 384: 383: 381: 380: 373: 366: 358: 355: 354: 351: 350: 345: 340: 322: 319: 318: 315: 314: 310: 309: 303: 298: 297: 296: 295: 290: 285: 280: 275: 270: 265: 254: 247: 246: 245: 244: 239: 234: 223: 215: 214: 209: 202: 197: 192: 187: 182: 177: 176: 175: 165: 159: 153: 152: 149: 148: 145: 144: 141: 140: 135: 130: 124: 121: 120: 117: 116: 113: 112: 110:Gov't spending 107: 102: 97: 92: 87: 82: 80:Federal budget 77: 72: 66: 63: 62: 59: 58: 45: 44: 34: 33: 15: 13: 10: 9: 6: 4: 3: 2: 1511: 1500: 1497: 1495: 1492: 1490: 1487: 1485: 1482: 1480: 1477: 1475: 1472: 1470: 1467: 1465: 1462: 1460: 1457: 1456: 1454: 1433: 1429: 1425: 1421: 1420:Stephen Moore 1415: 1412: 1408: 1407: 1402: 1397: 1394: 1381: 1375: 1372: 1359: 1355: 1351: 1344: 1341: 1337: 1331: 1328: 1325:, May 7, 2010 1324: 1320: 1316: 1311: 1308: 1296: 1292: 1285: 1282: 1266: 1259: 1253: 1250: 1246: 1240: 1237: 1224: 1220: 1213: 1210: 1194: 1190: 1183: 1176: 1173: 1158: 1151: 1148: 1143: 1141:0-86597-227-3 1137: 1132: 1131: 1122: 1119: 1114: 1112:0-86597-227-3 1108: 1104: 1097: 1094: 1089: 1085: 1081: 1075: 1072: 1067: 1063: 1056: 1053: 1041: 1040: 1035: 1029: 1026: 1013: 1007: 1004: 991: 990:Argus-Courier 987: 980: 977: 964: 960: 954: 951: 946: 942: 935: 932: 919: 918:The Economist 915: 909: 906: 893: 889: 885: 878: 876: 872: 859: 855: 848: 845: 832: 831:The Economist 828: 822: 819: 812: 810: 805: 802: 800: 797: 795: 792: 790: 787: 785: 782: 780: 777: 776: 772: 761: 756: 752: 737: 697: 695: 693: 692: 687: 682: 681: 676: 672: 671:Stephen Moore 664: 662: 660: 655: 653: 645: 643: 641: 637: 632: 629: 624: 621: 617: 612: 610: 607: 603: 599: 596: 592: 588: 583: 580: 576: 572: 568: 561: 559: 557: 553: 548: 546: 545: 540: 536: 535:Fred Thompson 531: 529: 528: 523: 519: 511: 509: 507: 502: 499: 498:John Anderson 495: 494:Ronald Reagan 491: 486: 484: 480: 476: 473: 465: 461: 456: 452: 450: 446: 442: 438: 434: 430: 426: 422: 418: 417:cutting taxes 414: 410: 406: 398: 394: 393:Ronald Reagan 390: 379: 374: 372: 367: 365: 360: 359: 357: 356: 349: 346: 344: 341: 339: 336: 335: 334: 330: 326: 317: 316: 308: 305: 304: 302: 294: 291: 289: 286: 284: 281: 279: 276: 274: 271: 269: 266: 264: 261: 260: 259: 256: 255: 253: 252: 243: 240: 238: 235: 233: 230: 229: 228: 225: 224: 222: 221: 213: 210: 207: 203: 201: 198: 196: 193: 191: 188: 186: 183: 181: 178: 174: 171: 170: 169: 166: 164: 163:Bush tax cuts 161: 160: 158: 157: 147: 146: 139: 136: 134: 131: 129: 126: 125: 119: 118: 111: 108: 106: 103: 101: 98: 96: 93: 91: 88: 86: 83: 81: 78: 76: 73: 71: 68: 67: 61: 60: 56: 51: 47: 46: 43: 35: 32: 29: 21: 20: 1435:. Retrieved 1431: 1414: 1404: 1396: 1384:. Retrieved 1374: 1362:. Retrieved 1358:the original 1353: 1348:Ed Kilgore. 1343: 1335: 1330: 1310: 1298:. Retrieved 1294: 1284: 1272:. Retrieved 1265:the original 1252: 1245:Cato Journal 1244: 1239: 1227:. Retrieved 1222: 1212: 1200:. Retrieved 1193:the original 1189:Cato Journal 1188: 1175: 1163:. Retrieved 1150: 1129: 1121: 1102: 1096: 1088:the original 1083: 1074: 1065: 1055: 1045:December 21, 1043:. Retrieved 1037: 1028: 1016:. Retrieved 1006: 994:. Retrieved 989: 979: 967:. Retrieved 962: 953: 944: 934: 924:November 25, 922:. Retrieved 917: 908: 898:November 25, 896:. Retrieved 892:the original 887: 862:. Retrieved 857: 847: 837:November 25, 835:. Retrieved 830: 821: 808: 689: 678: 668: 656: 649: 633: 628:Paul Krugman 625: 613: 600: 584: 574: 565: 549: 542: 532: 525: 515: 503: 487: 469: 404: 402: 300: 249: 218: 205: 185:Fiscal cliff 168:Debt ceiling 154: 105:Unemployment 75:Expenditures 22: 1386:December 9, 1364:December 9, 1300:January 11, 1274:December 9, 1229:December 9, 1202:December 9, 1165:December 9, 1018:December 9, 969:December 9, 864:December 9, 789:Reaganomics 606:libertarian 488:Before his 397:Oval Office 323:Cumulative 320:Terminology 95:Public debt 1453:Categories 813:References 751:Audio help 742:2024-06-13 634:Historian 626:Economist 614:Professor 512:Since 2000 1437:March 24, 657:Lobbyist 433:education 411:to limit 343:Inflation 293:2018–2019 278:1995–1996 1084:CBS News 753: · 698:See also 539:flat tax 518:tax cuts 462:and the 449:Medicaid 445:Medicare 431:such as 329:Interest 288:Jan 2018 128:Medicare 122:Programs 100:Taxation 27:a series 740: ( 711:minutes 652:Jon Kyl 593:of the 437:welfare 421:revenue 325:deficit 173:history 70:Economy 1323:Forbes 1138:  1109:  996:30 Jul 945:Forbes 447:, and 30:on the 1268:(PDF) 1261:(PDF) 1196:(PDF) 1185:(PDF) 1160:(PDF) 464:EU 15 1439:2011 1388:2010 1366:2010 1302:2019 1276:2010 1231:2010 1204:2010 1167:2010 1136:ISBN 1107:ISBN 1047:2020 1020:2010 998:2021 971:2010 926:2010 900:2011 866:2010 839:2011 589:and 516:The 460:OECD 333:Debt 283:2013 273:1990 263:1980 242:2023 237:2013 232:2011 688:in 618:of 527:sic 485:." 415:by 1455:: 1430:. 1422:; 1403:, 1352:. 1321:, 1317:. 1293:. 1221:. 1187:. 1082:. 1064:. 1036:. 988:. 961:. 943:. 916:. 886:. 874:^ 856:. 829:. 709:10 547:. 451:. 443:, 439:, 435:, 331:≈ 327:+ 1441:. 1390:. 1368:. 1304:. 1278:. 1233:. 1206:. 1169:. 1144:. 1115:. 1049:. 1022:. 1000:. 973:. 947:. 928:. 902:. 868:. 841:. 757:) 749:( 744:) 713:) 706:( 466:. 403:" 377:e 370:t 363:v 208:" 204:"

Index

a series
Budget and debt in the
United States of America



Economy
Expenditures
Federal budget
Financial position
Military budget
Public debt
Taxation
Unemployment
Gov't spending
Medicare
Social programs
Social Security
Bowles–Simpson Commission
Bush tax cuts
Debt ceiling
history
Deficit reduction
Fiscal cliff
Healthcare reform
Political debates
Social Security debate
Starve the beast
Subprime mortgage crisis
2007–2008 financial crisis
Debt-ceiling crises
2011

Text is available under the Creative Commons Attribution-ShareAlike License. Additional terms may apply.