By J. Patrick Coolican | Editor in Chief
Good morning, Reformers.
Rising interest rates confirm that the nation’s ballooning debt is an issue that affects all of us, but a remarkable thing about this current Republican trifecta’s budget policy is how much damage they’ve done without saving any money.
Elon Musk tried and failed to eliminate foreign aid, which would have saved just 70 cents for every $100 in government spending, and yet the cuts they did make could lead to a child under 5 dying every 40 seconds by 2030 due to U.S. aid cuts, according to an Oxfam analysis.
Overall, more than 70% of the federal budget goes to Social Security, Medicare and Medicaid, defense and interest on the debt. (Summary here.)
As with foreign aid, the same scenario is playing out on the domestic side, where they’re managing to inflict maximum damage while extracting savings whose impact on the deficit is relatively trivial, e.g. Medicaid and SNAP cuts. This came to mind upon reading the work of our Stateline colleague this week, who reports that SNAP cuts will make it harder for states like Minnesota to provide universal free school meals.
It’s almost as if the cruelty is the point.
To the Reformer:
(Photo by Getty Images)
By Thomas Lee
Minnesota’s headquarters economy has served the state extraordinarily well so far, with high-paying jobs, billions in investment and a remarkable tradition of corporate philanthropy from the state’s unusually high concentration of Fortune 500 companies.
However, Minnesota’s greatest economic strength could also become its greatest weakness.
The rapid emergence of generative artificial intelligence, including ChatGPT, Gemini and Claude, threatens many of the white-collar professions on which Minnesota’s headquarters economy depends: lawyers, engineers, communications professionals, accountants, market analysts and sales representatives.
By Ally Braun
The writer is a working mom who makes an argument that should appeal to all the natalists — and Minnesota economists and budget planners — who are concerned about birthrates.
Our childcare costs are holding down the birthrate.
Fewer babies born today means fewer adults joining the workforce later.
Economists predict that the shrinking workforce will make it harder for businesses to find employees while destabilizing elder care and health insurance programs.
IN OTHER NEWS
Legal aid for immigrant kids remains in question after Trump administration pulls contract | Reformer via States Newsroom
USPS whistleblower predicts ‘catastrophic’ effect on elections under Trump vote-by-mail order | Reformer via States Newsroom
US House clears spending stopgap backed by Trump that averts government shutdown | Reformer via States Newsroom
Employer health costs expected to spike by double digits | New York Times gift link
OH BY THE WAY
I’m helping out while on vacation visiting family and was lucky enough to spend Tuesday at the Kennedy Space Center. Highly recommend, especially as an alternative to what’s on offer in Orlando.
But why are we charging $77 for adults and $67 for children? (Minus a temporary $17.76 savings to celebrate the nation’s 250th — eyeroll.) Make it free.
Have a great day all! JPC
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