Shortly before his death in 2006, I had the privilege of interviewing Milton Friedman over dinner in San Francisco. The last question I asked him was: What are the three things we had to do to make America more prosperous?
His answer I have never forgotten: “First, allow universal school choice; second, expand free trade; third and most importantly, cut government spending.” That was long before Presidents Barack Obama and Joe Biden came along.
There are not too many problems in America that cannot be traced back to the growth of big and incompetent government.
It is notable that the two big bursts of inflation during modern times both occurred when government spending exploded. The first was the gigantic expansion of the LBJ “war on poverty” welfare state in the 1970s with prices nearly doubling, and then the post-COVID era spending blitz in the last year of Trump and then the Biden $6 trillion spending spree with the CPI sprinting from 1.5% to 9.1%.
Coincidence? Maybe. But I doubt it.
The connection between government flab and the decline in the purchasing power of the dollar is obvious. In both cases the Washington spending blitz was funded by Federal Reserve money printing. The helicopter money caused prices to surge. (I still find it laughable that 11 Nobel prize-winning economists wrote in the New York Times in 2021: Don’t worry, the Biden multi-trillion-dollar spending spree won’t cause inflation.)
The avalanche of federal spending hasn’t stopped even though COVID ended more than three years ago. We are three months into the 2025 fiscal year and on pace to spend an all-time high $7 trillion and borrow $2 trillion. If we stay on this course, the federal budget could reach $10 trillion over the next decade.
This road to financial perdition cannot stand. It risks blowing up the Trump presidency.
Upon entering office, Trump should on day one call for a package of up to $500 billion of rescissions — money that the last Congress appropriated but has not been spent yet. Cancelling the green energy subsidies alone could save nearly $100 billion. Why are we still spending money on COVID?
We could save tens of billions by ending corporate welfare programs — such as the wheel barrels full of tax dollars thrown at companies like Intel in the CHIPS Act. The Elon Musk Department of Government Efficiency is already identifying low hanging fruit that needs to be cut from the tree.
Along with extending the Trump tax cut of 2017, this erasure of bloated federal spending is critical for economic revival and for reversing the income losses to the middle class under Biden.
This is especially urgent because the curse of inflation is NOT over. Since the Fed started cutting interest rates in October, commodity prices are up nearly 5% and the mortgage rates have again hit 7% — in part because the combination of cheap money and government expansion is a toxic economic brew — as history teaches us.
Nothing could suck the oxygen and excitement out of the new Trump presidency more than a resumption of inflation at the grocery store and the gas pump. Trump’s record-high approval rating will sink overnight if the cost of everything starts rising again.
Cutting spending won’t be easy. The resistance won’t just come from Bernie Sanders Democrats. Trump will have to convince lawmakers in his own party — many of whom are already defending green-new-deal pork projects in their districts.
This is why Trump should make the case in his inaugural address that downsizing government is the moral equivalent of war. Borrow a line from Nancy Reagan: just say no — to runaway government spending. Say yes to what Friedman titled his famous book: “Capitalism and Freedom.”
Stephen Moore is a contributor to The Daily Caller News Foundation and a visiting fellow at the Heritage Foundation. His new book, coauthored with Arthur Laffer, is “The Trump Economic Miracle.”
Following intervention from Congresswoman Debbie Lesko (R-AZ-08), the EPA has reportedly decided not to move forward with its decision to declare Maricopa County’s nonattainment status of ozone National Ambient Air Quality Standards (NAAQS) as ‘serious.’ Lesko publicly expressed concern that the change was motivated by the “upcoming administration change,” and not the law.
According to a press release from Lesko’s office, the Environmental Protection Agency (EPA) Administrator agreed to reconsider the decision to “prematurely reclassify” Maricopa County’s status of nonattainment as ‘serious.’
In her letter to the EPA, as previously reported by AZ Free News, Lesko warned, “If the EPA continues its expedited schedule in a rush to make their reclassification effective before the Trump Administration takes office, it will negatively impact Arizona and national security. The Taiwan Semiconductor Manufacturing Company (TSMC) was just awarded $6.6 Billion in CHIPS Act funding. This action by the EPA could jeopardize that funding and makes absolutely no sense.”
In her letter, Rep. Lesko expressed concern that the reclassification was not based upon law or environmental science but on politics. She wrote, “The reason for this change is not clear to me, but I am concerned tat this action was taken based upon the political reality of the upcoming administration change.”
She explained, “The law states that there is a 180-day window from August 3, 2024 for redesignation. The expedited timeline is set prior to the 180-day deadline.” She added, “It is crucial that the EPA and other federal agencies keep a consistent and stable regulatory environment where they do not expedite or change rulings based on the upcoming changes in executive power.”
As noted in our previous coverage, the arbitrary redesignation would lower Maricopa County’s emissions threshold from the current 100 tons to 50 tons for major sources of nitrogen oxides and volatile organic compounds, with said adjustments jeopardizing the operations of TSMC in Phoenix.
“TMSC’s new plant requires an air quality permit to proceed. The current major source threshold of 100 tons would allow TSMC to proceed without needing to acquire emission reduction credits (ERCs),” said Lesko.
“However, a redesignation to serious nonattainment would impose the 50-ton threshold, which is currently unfeasible due to the shortage of available ERCs, thus potentially delaying or halting this key project.”
Great news! Following my letter to the EPA sent earlier this week and after working with Senator Kelly and the governor's office, our office has now heard from the EPA they will no longer move forward with the decision to prematurely reclassify Maricopa County to “serious”…
Congresswoman Lesko posted to X on Friday to announce the result of her appeal to the EPA. She wrote, “Great news! Following my letter to the EPA sent earlier this week and after working with Senator Kelly and the governor’s office, our office has now heard from the EPA they will no longer move forward with the decision to prematurely reclassify Maricopa County to “serious” nonattainment status for their ozone National Ambient Air Quality Standards (NAAQS). This is wonderful news!”
A recent decision by the Environmental Protection Agency (EPA) concerning Maricopa County may have been politically motivated and may pose a national security risk.
The EPA decided earlier this week to reclassify Maricopa County to “serious” nonattainment status for its ozone National Ambient Air Quality Standards (NAAQS). Congresswoman Debbie Lesko claimed that the EPA’s reclassification poses a national security risk in a Wednesday press release. The congresswoman argued that finalization of the reclassification ahead of a second Trump administration would jeopardize Arizona’s newly established semiconductor manufacturing.
“If the EPA continues its expedited schedule in a rush to make their reclassification effective before the Trump Administration takes office, it will negatively impact Arizona and national security,” said Lesko. “The Taiwan Semiconductor Manufacturing Company (TSMC) was just awarded $6.6 Billion in CHIPS Act funding. This action by the EPA could jeopardize that funding and makes absolutely no sense.”
Lesko speculated in letters of appeal to the EPA and Commerce Department that the EPA was acting in a rushed response to undermine president-elect Donald Trump’s incoming administration.
“The reason for this [EPA] change is not clear to me, but I am concerned that this action was taken based upon the political reality of the upcoming administration change,” said Lesko.
Lesko further argued the EPA was “premature” in its reclassification. Lesko referenced an understanding via communications with the EPA that the agency wouldn’t issue its decision until next May.
Not only has the EPA acted prematurely, Lesko argued, but their expedited timeline works outside of the legal requirement to have a 180-day window for redesignation from Aug. 3, 2024, which would land on Jan. 30, 2025. The presidential inauguration takes place on Jan. 20, 2025. Lesko asked the EPA to honor its original May timeline.
EPA Region 9 advised Maricopa County Air Quality that they would issue a Federal Register Notice containing an “expedited redesignation” within the coming weeks.
The redesignation would lower Maricopa County’s emissions threshold from 100 tons to 50 tons for major sources of nitrogen oxides and volatile organic compounds. Lesko said these adjustments would jeopardize TSMC operations.
“TMSC’s new plant requires an air quality permit to proceed. The current major source threshold of 100 tons would allow TSMC to proceed without needing to acquire emission reduction credits (ERCs),” said Lesko. “However, a redesignation to serious nonattainment would impose the 50-ton threshold, which is currently unfeasible due to the shortage of available ERCs, thus potentially delaying or halting this key project.”
Lesko cited further concerns that the expedited redesignation would harm the Maricopa County and Arizona economies by dissuading industry growth and recruitment for technology and advanced manufacturing.
Maricopa County Air Quality issued a release earlier this year warning that the EPA would reclassify their ozone nonattainment from “moderate” to “serious” nonattainment prior to Feb. 3, 2025.
The EPA included Maricopa County in its final rule, finding it in October as an area that failed to submit a plan addressing EPA ozone requirements for moderate nonattainment areas. The EPA reclassified Maricopa County from marginal to moderate in 2022, and gave the county until last January to submit its plan.
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The massive microchip manufacturing firm, the Taiwan Semiconductor Manufacturing Company (TSMC), finds itself facing a class-action lawsuit brought by over a dozen of its current and former employees. TSMC was brought into Arizona through the Biden administration’s CHIPS Act.
The charge presented is a potentially devastating one: that TSMC is engaging in “anti-American” hiring and workplace bias and is discriminating against American workers while favoring Taiwanese nationals imported on work visas. For a firm that is now deeply tied to the political fortunes of the outgoing Democratic administration, and the now-minority party in Congress, the allegations are stunning.
The lawsuit makes the claim that TSMC employs over 2,668 workers in its North American operations and that the vast majority of them are Asian, stating, “This grossly disproportionate workforce is the result of TSMC’s intentional pattern and practice of employment discrimination against individuals who are not Asian and not Taiwanese citizens, including discrimination in hiring, staffing, and termination decisions.”
NOW in Arizona: @POTUS said he "owes an awful lot" to Taiwan Semiconductor Manufacturing Company because founder Morris Chang's wife, Sophie, worked Biden's first Senate campaign. Perhaps that's why Biden told @pdoocy today that the border isn't important. Scratching backs! pic.twitter.com/wFFYncZIMV
In the text of the suit, attorneys representing the workers note, “TSMC’s bias in favor of Asians and Taiwanese citizens was even apparent when it was hiring construction workers to build its first Arizona fab (via TSMC affiliates United Integrated Services (UIS) and Marketech International Corp.). TSMC chairman Mark Liu complained of “an insufficient amount of skilled workers” to build the facility and planned to fly workers in from Taiwan. TSMC agreed to focus on local hiring for those positions only after massive and public outcry from Arizona labor unions.”
The incident referenced was covered by AZ Free News in July 2023 when Liu made the complaint coinciding with President Joe Biden’s first visit to Arizona to tour the facility. Biden told reporters at the time that he “owes an awful lot” to TSMC with Corrinne Murdock observing that founder Morris Chang’s wife worked on his first Senate campaign.
NOW in Arizona: @POTUS said he "owes an awful lot" to Taiwan Semiconductor Manufacturing Company because founder Morris Chang's wife, Sophie, worked Biden's first Senate campaign. Perhaps that's why Biden told @pdoocy today that the border isn't important. Scratching backs! pic.twitter.com/wFFYncZIMV
Phoenix Mayor Kate Gallego also reportedly holds ties to TSMC with a former senior policy advisor and campaign donor, Laura Franco French, serving as TSMC’s director of state government relation. French took the role directly following her tenure with Gallego’s office.
At the time, Liu told reporters, “We are encountering certain challenges, as there is an insufficient amount of skilled workers with the specialized expertise required for equipment installation in a semiconductor-grade facility.”
“While we are working to improve the situation, including sending experienced technicians from Taiwan to train the local skilled workers for a short period of time, we expect the production schedule of N4 process technology to be pushed out to 2025.”
The suit notes that TSMC applied for and received a $6.6 billion grant from the Federal Government via the CHIPS Act predicated on a diverse hiring policy and claims the firm “willfully disregarded diversity commitments TSMC made in the CHIPS Act,” adding that approximately half of TSMC’s Arizona work force of 2,200 people are Taiwan nationals on work visas.
Daniel Kotchen, one of the attorneys representing the plaintiffs, told AZFamily, “If you are receiving federal funding to create jobs in the U.S., it is your responsibility to live up to the rules and laws under the U.S.”
Deborah Howington, a current talent acquisition executive at TSMC, was the first plaintiff claimed to have witnessed the culture of illegal, discriminatory practices that favored Taiwanese candidates and employees first-hand. As reported by Forbes, Howington alleges in the suit that TSMC specifically sought candidates from Taiwan for jobs in the U.S. and confidentially employed an “Asian headhunter,” to attract these recruits.
A company spokesperson responding to questions on the lawsuit told Forbes, “TSMC believes strongly in the value of a diverse workforce and we hire and promote without regard to gender, religion, race, nationality, or political affiliation because we respect differences, and believe that equal employment opportunities strengthen our competitiveness.”
