November 22, 2016
In recent years, even as the case for limited government became increasingly obvious, small-government Republicans have been on the defensive. A succession of failed military interventions did little to turn Republicans against a $600 billion defense budget. And entitlement reform and VA cuts remain “third rails” in the face of a $20 trillion U.S. deficit.
Why?
It was only two decades ago that small-government Republicans were on the offensive. The country was ready for a post–Cold War peace dividend and a bipartisan coalition managed to reduce defense spending from six percent of GDP to three percent. In 1994, the Contract with America delivered Congress to a Republican Party promising rollbacks in federal power. The following year, the House passed a budget plan calling for the elimination of three cabinet agencies—Commerce, Education and Energy—along with over 200 government programs. By fiscal year 1997, welfare reform was signed into law and close to 200 government programs were eliminated.
The small-government push of the early 1990s, however, proved short-lived. During Clinton’s second term, congressional Republicans tired of government downsizing. Between 1997 and 2000, the Republican-controlled Congress abandoned Medicare reform and approved an increase in discretionary spending $30 billion more than the Clinton administration’s request. The 95 programs slated for elimination in the Contract for America actually grew by thirteen percent. And these budget hikes were a mere harbinger of things to come. By the end of the George W. Bush administration, the federal budgetgrew by 53 percent—an increase that exceeded the Lyndon Johnson years.