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.”
Here is my wish list for the incoming Trump administration to make America healthy and prosperous and great again in 2025.
1.Slash Job-Killing Regulations
The regulatory state is a $2 trillion tax on the American economy. We all want worker safety, a clean environment and consumer protections, but in too many cases the costs of regulations far outweigh the societal benefits. President-elect Donald Trump has promised to slash 10 rules for every new rule. Just do it, Mr. President.
2. Make The Trump Tax Cuts Permanent
As JFK, Ronald Reagan and others have proven throughout history, lower tax rates lead to more growth, more investment and more jobs. The Trump tax cuts meant that a typical family of four earning $75,000 a year saw their tax bill fall by half — a benefit valued at more than $2,000. And the corporate tax rate fell from 35% — the highest in the world — to 21%, bringing jobs and capital to America. Trump has promised to make all these tax cuts permanent. Why? Because they worked almost exactly as we anticipated they would.
3. Replace Welfare With Work
Growth will require more able-bodied Americans getting off welfare and into jobs. Welfare — which includes cash assistance, public housing, food stamps, disability payments, unemployment benefits and Medicaid — needs to be a hand up, not a handout.
4. Use America’s Abundant Natural Resources
America has well more than $50 trillion of natural resources that are accessible with existing drilling and mining technologies. This is a vast storehouse of wealth that far surpasses what any other nation is endowed with. We can use the royalty payments and leases to reduce our national debt while creating hundreds of thousands of jobs.
5. Cut Medical Costs by Demanding Health Care Price Transparency
One of many ways to bring health care costs down to consumers (and taxpayers, who pay half the costs) is to require hospitals, pharmacies, doctors and health clinics to list prices for what they are charging. The Committee to Unleash Prosperity estimates that $1 trillion to $2 trillion could be reduced from health care costs, with no reduction in the quality of care, by allowing consumers to shop around on the internet for the best price — just as we do when we buy groceries, a home or a car. This will foster free market competition and lower prices.
6. Allow School Choice for All Families
Test scores in America have been plummeting. Kids are graduating from high school — if at all — without even being able to read the diploma. America no longer ranks in the top 10 in many academic achievement ratings.
A child can get a better education at half the cost in the Catholic school system and in many charters.
Trump has endorsed universal school choice for all children regardless of income or ethnicity or race. This is the civil rights issue of our time.
7. Implement A Pro-America Immigration Policy
Trump’s committed to securing our border, but we also need legal immigrants through a merit-based immigration system. This visa system would select immigrants based on their skills, talents, investment capital, English language ability and education level. These characteristics all presage success in America.
8. Revive America’s Great Cities
Our once-great cities in America — from New York to Chicago to Detroit to San Francisco to Seattle — have come to look like war zones. Crime has run rampant. Businesses and people and capital are fleeing and leaving the poorest Americans — mostly minorities — stranded with tragically limited opportunities other than working at Walmart or McDonald’s for minimum wage. Since 2020, our major cities have lost nearly 1 million residents. And tens of thousands of businesses.
Trump wants to revitalize our cities and abandoned rural areas through deregulation, reduction in tax rates, changes in zoning policies and infrastructure investments.
9. Pull the U.S. Out Of The Paris Climate Change Treaty And Other Anti-America Agreements
We must end American participation in globalist treaties that hurt America most. This includes the Paris Climate Accords — a treaty with which most other nations have failed to comply, yet which places huge burdens on American companies and workers. Trump also has pledged to end global taxation — such as Treasury Secretary Janet Yellen’s global minimum tax. Do we even need a United Nations?
10. Finally, Drain The Swamp
There is a reason why three of the five wealthiest counties in America are in or around Washington, D.C. Washington is getting rich at the expense of the rest of us. Fewer than 10% of overpaid federal workers (of which there are more than 2 million) are working full time in the office even though COVID-19 ended three years ago. These are swamp employees that often get paid $150,000 or more a year. Fire them if they don’t show up. And relocate federal agencies in other cities.
These are admittedly bold aspirations for an economic transformation toward freedom and free enterprise. But the one person who can get it done is Trump.
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.”
When President-elect Donald Trump named Linda McMahon as the next secretary of Education, he said McMahon “will fight tirelessly to expand ‘Choice’ to every State in America, and empower parents to make the best Education decisions for their families” via a statement issued on Truth Social.
During Trump’s first term, McMahon led the Small Business Administration (SBA), where she favored pragmatic pro-growth policies that emphasized merit-based job opportunities and reducing government intervention in business practices with a nod towards no forced diversity, equity and inclusion measures.
With the selection of McMahon as education secretary, states should demand this administration make true educational freedom attainable, protect our female athletes by returning “girls only” to their sports teams and hold our public schools accountable against child predators.
States like Arizona eagerly await this changing of the guard to truly help protect women. While an enraged Michelle Obama spewed hate-filled propaganda in the last few weeks leading up to the November election by suggesting “women will become collateral damage” if Trump was to return to the White House, thankfully, voters did not buy that.
McMahon understands the importance of bringing education back to the states where it belongs and into the hands of parents, not government bureaucrats relying on zip codes to fill school buildings. While McMahon led the America First Works (AFW), the organization’s main goal was to achieve universal school choice across the country. Over the last several years, the school-choice movement has seen a dozen states achieve this status, but it cannot stop there. McMahon’s leadership role at the helm of AFW illustrates that she adamantly supports competition among our schools, including charter schools, private-school tuition scholarships, education savings accounts and homeschooling. Above all, McMahon believes supporting all educational options will lead to better outcomes for students from all socioeconomic backgrounds.
McMahon’s appointment couldn’t have come at a better time. Future Secretary McMahon could halt the Biden administration’s attack on women by rolling back its faulty rulemaking that was forcing publicly funded schools to allow transgender men to participate in women’s only sports by threatening to defund their Title IX funding if they refused. Hopefully, this war on women can end on Trump’s first day back in the White House. Women’s only sports face near extinction if we don’t prohibit biological men from competing in women’s sports. It is truly unfair for biological girls to have to compete with biological males in sports. Not only do males have bigger muscles than females, but males have the advantage of testosterone that no amount of training or talent can enable biological female athletes to overcome.
Safety in our sports is not the only area this next administration needs to lead. All children should feel safe on their school’s campus. Sexual abuse cases in our public schools continue to generate headlines. Even though teachers and school-district employees are mandatory reporters, they don’t always appropriately record allegations of sexual abuse.
The Trump administration needs to step up in protecting the safety of our kids by requiring all public-school districts and charter-school districts to record all sexual abuse allegations and share these written reports with its state education department. The Department of Education should centrally house a database documenting sexual abuse allegations in our schools so that when district and charter schools are conducting background checks on future employees, they can consult this much needed resource. The teachers’ unions will push back against this proposal. We should all agree, all students should be free from predators, especially in their individual learning environments. Each year public schools report their campuses’ crime data to the Office of Civil Rights under the Department of Education. Schools should be committed to keeping our kids safe and want to be held accountable by reporting any sexual abuse allegations.
Shawnna Bolick is a contributor to The Daily Caller News Foundation and has served in the Arizona Legislature since 2019. She served four years in the Arizona House until 2022. In July 2023, she was appointed to the State Senate, District 2, to fill a vacancy. Bolick has signed onto an amicus brief supporting both Idaho’s Fairness in Women’s Sports Act and Arizona’s Fairness in Women’s Sports Act. She has sponsored or cosponsored legislation pertaining to weeding out sexual predators in our public schools.
Earlier this month, Gov. Katie Hobbs sent a letter to Superintendent of Public Instruction Tom Horne, rebuking him for the implementation of a risk-based auditing approach to approving Empowerment Scholarship Account (ESA) program reimbursements. A few days later, Horne responded by suggesting that Hobbs “should start reading what she signs.”
In a statement, Horne reminded the Democrat governor that the process the Arizona Department of Education (ADE) is now employing is explicitly called for under a bill she signed into law herself. He notes further that Hobbs is also directly responsible for creating the situation that necessitated the change when she signed a bill permitting private school tuition to be paid under reimbursement rather than the previous third-party vendor.
The move has come as a backlog of reimbursement requests for the ESA program has exceeded 85,000. The Department of Education, unable to utilize third party provider Class Wallet, which was previously the procedure, will now automatically approve the requests up to $2,000 and then audit them after the fact.
12.9.2024
All ESA payments under $2,000 will be automatically processed and undergo risk-based auditing. Just announced at the AZ state board meeting by Supt. Horne.
In the initial letter to Horne, Hobbs pointed to recent indictments and allegations of fraud and abuse of the ESA program and claimed that the implementation of the risk-based auditing approach “is a complete dereliction of the ADE’s responsibility to ensure the appropriate use of public funds.”
Horne replied in a statement saying:
“The method we are instituting, known as risk-based auditing, is specifically provided for in the budget statute that the Governor signed last session. Maybe she should start reading what she signs.
Equally startling, is that she herself created the problem we are trying to solve by signing a bill to permit private school tuition to be paid under the reimbursement method, rather than going through our vendor, Class Wallet, which was previously required. This played a major role in increasing the delays and reimbursements from 30 days a year ago to over 100 days now.
The Governor played a major role in creating a problem that we now must solve by using a method provided for in a Bill that she signed.
Part of the problem appears to be that staff in the Governor’s office are slow learners.”
In a press release, Horne referred to Arizona Law under A.R.S. 15-2403 (B), which explicitly permits this method stating, “The department, in consultation with the office of the auditor general, shall develop risk-based auditing procedures for audits conducted pursuant to this subsection.”
The Superintendent also stressed the accountability of the program saying, “The ESA program is among the most accountable programs in the State. It’s responsible for demonstrating accountability through reporting that is required by statute, rules, and ad hoc requests from seven government agencies and bodies, including: Governor’s Office; Legislative Leadership; Joint Legislative Budget Committee; Attorney General’s Office (multiple units); Auditor General’s Office (multiple divisions); State Board of Education and the State Ombudsman.”
As previously reported by AZ Free News, Hobbs was recently fact-checked by Citizens For Free Enterprise, who publicly criticized her for attacking the ESA program. The group stated, “FACT CHECK: Arizona’s universal school choice program is a model of accountability, transparency, and security, according to CSI Institute Arizona. The over 83,000 Arizona families using ESAs just want the best for their children – and Katie Hobbs should stop attacking them.”
FACT CHECK: Arizona’s universal school choice program is a model of accountability, transparency, and security, according to @CSInstituteAZ. The over 83,000 Arizona families using ESAs just want the best for their children — and Katie Hobbs should stop attacking them. https://t.co/Law8wrNwSEpic.twitter.com/ZA1KiLdFYl
Amid an increased flurry of attacks on Arizona’s school choice opportunities, a prominent organization is countering with the facts.
Citizens For Free Enterprise responded to another derogatory statement about Arizona’s historic Empowerment Scholarship Account (ESA) azprogram from the state’s Democrat Governor, Katie Hobbs. Earlier this week, Hobbs posted, “ESAs are rife with waste, fraud and abuse, and this will only make it worse. This empowers bad actors who are spending taxpayer dollars on ski passes, luxury car driving lessons, and grand pianos. We need accountability and transparency for this almost billion dollar program.”
ESAs are rife with waste, fraud and abuse, and this will only make it worse. This empowers bad actors who are spending taxpayer dollars on ski passes, luxury car driving lessons, and grand pianos. We need accountability and transparency for this almost billion dollar program. https://t.co/yqSMzrdGca
Hobbs was reacting to a recent news story about the Arizona Department of Education’s new policy to automatically approve a vast majority of outstanding reimbursement requests from parents in the program, which was announced by Republican Superintendent of Public Instruction, Tom Horne, at a Board of Education meeting.
The response from Citizens For Free Enterprise stated, “FACT CHECK: Arizona’s universal school choice program is a model of accountability, transparency, and security, according to CSI Institute Arizona. The over 83,000 Arizona families using ESAs just want the best for their children – and Katie Hobbs should stop attacking them.”
FACT CHECK: Arizona’s universal school choice program is a model of accountability, transparency, and security, according to @CSInstituteAZ. The over 83,000 Arizona families using ESAs just want the best for their children — and Katie Hobbs should stop attacking them. https://t.co/Law8wrNwSEpic.twitter.com/ZA1KiLdFYl
Others weighed in on the governor’s attack ahead of the 57th State Legislature, starting in January. State Representative Travis Grantham said, “I wish Democrats cared this much about government waste across the board. Why do they only care about it when it’s privatized and / or it gives the citizenry more choices?”
I wish Democrats cared this much about government waste across the board. Why do they only care about it when it’s privatized and / or it gives the citizenry more choices? 🤔 https://t.co/KQT6NowofR
Fellow legislator Austin Smith added, “Not only was Katie Hobbs education agenda rejected; she lost seats in the house and senate. Bold move Cotton, let’s see if it pays off.”
Not only was Katie Hobbs education agenda rejected; she lost seats in the house and senate.
Not everyone was opposed to Hobbs’ statement. Democrat State Representative Oscar De Los Santos replied, “From forging documents to scam taxpayers to abusing funds for luxury items, the private school voucher program is filled with waste, fraud, and abuse. Every Arizonan should be outraged. The DOGE committees should take a look at this disaster.”
From forging documents to scam taxpayers to abusing funds for luxury items, the private school voucher program is filled with waste, fraud, and abuse.
Matthew Ladner, a school choice advocate, weighed in on De Los Santos’ statements, saying, “The waste, fraud and abuse in the ESA program is a small fraction of programs you support. If you’d like to eliminate all the programs with ESA level or higher abuse you will make Ron Paul a very happy man!”
The waste, fraud and abuse in the ESA program is a small fraction of programs you support. If you’d like to eliminate all the programs with ESA level or higher abuse you will make @RonPaul a very happy man! pic.twitter.com/XeV2zw3vFn
In addition to its statement, Citizens For Free Enterprise shared a document of facts from the Common Sense Institute Arizona (CSI) to counter the myth that “ESA’s are subject to rampant fraud and abuse.” On that document, CSI highlighted that there was more than $2 billion of “Medicaid billing fraud in Arizona revealed by a single investigation into pandemic-era relaxed program standards,” and that “Arizona’s share of estimated pandemic-era fraudulent U.S. Unemployment Insurance payments” was $2.3 billion. On the flip side, according to CSI, “the sum-total of all specific, public allegations of ESA fraud …identified to-date, since universal eligibility expansion” was just around $650,000 – a far cry from the fraud in other state programs and handouts.
CSI concluded that “there are specific statutory requirements governing the use of ESA monies – including guidelines on permissible expenditures and a requirement that ADE conduct random and regular audits to ensure compliance. Within that framework, the program has been able to run well, especially compared to similar programs.”
While officials and organizations may have again successfully pushed back on Demcorats’ renewed, false detractions of the ESA program, Horne’s handling of this significant portion of the department he was entrusted to oversee continues to present major headaches for Republicans and school choice proponents. Since Horne’s first ESA Director, Christine Accurso, left the office last summer, he has been faced with a rising number of reimbursement requests and other issues that he has struggled to address with his team. Horne also capitulated to Democrat Attorney General Kris Mayes earlier this year, when she challenged him about the lack of “curriculum” attached to certain requests, adding additional regulations for parents to comply with the attorney general’s threats. Horne’s backsliding here came after he had repeatedly stood up to Mayes and Hobbs’ saber-rattling against the school choice program.
Additionally, Horne recently blamed a number of external factors, including Arizona state legislators, for the skyrocketing number of unfulfilled reimbursement requests. In a November press conference, Horne noted a fix to the ESA program that allowed parents to bypass ClassWallet to obtain reimbursements, stating, “Somebody went to the Legislature last year and got them to pass a bill saying they could do it by reimbursement… We’ve asked the Legislature, in the future, ‘Please ask us before you pass something so we can tell you what the consequences will be.’”
While the program has continued to grow over the past two years, Arizona Education Department officials have failed to satisfactorily explain why the processes put in place by Accurso before her departure were unable to suffice for smooth management and processing of reimbursements and other factors of ESA program oversight and delivery going forward. Accurso was able to save the program from massive and glaring issues created by Horne’s Democrat predecessor, adding staff to her team and reducing the backlogs to almost nothing, while accounting for an exponential increase in students and families realizing the benefits of ESAs.
Daniel Stefanski is a reporter for AZ Free News. You can send him news tips using this link.
