A new 38-page report from the Cato Institute lays out a bold plan to reduce the size and cost of the federal government.
The report, titled “How to Downsize and Reform the Federal Government,” offers practical steps to cut wasteful spending, shrink bureaucracy, and return power to the people.
And it’s a good roadmap for applying similar reforms here in Nevada.
For decades, Americans have watched as the federal government has grown bigger and more intrusive. Today, the government is spending more than ever, with little to show for it.
Programs are bloated, regulations are crushing businesses, and taxpayers are footing the bill for inefficiency.
The Cato report identifies three major challenges facing the country:
- Government Overreach: The federal government tries to do too much, often failing at even its core responsibilities.
- Slow Economic Growth: Excessive regulations and high taxes have hurt economic growth over the past 25 years.
- Exploding National Debt: Without reform, the U.S. debt will continue to rise, threatening future generations.
The solution? A smaller, more focused government. The report suggests several ways to achieve this goal.
Cutting Bureaucracy and Reforming Federal Agencies
The federal workforce is massive, with over 2.3 million civilian employees.
Many of these positions are redundant and costly. According to the report, the average federal worker earns $157,000 in wages and benefits, far above the private sector average of $94,000.
Cato proposes reducing the number of federal employees by 10%, which could save taxpayers $40 billion a year.
The report also suggests making it easier to fire underperforming workers and limiting union activities on the job.
“Federal employees should serve the people, not themselves,” the report states. “We need accountability and efficiency in government.”
Privatizing Federal Businesses and Assets
Another key recommendation is to privatize government-run businesses like Amtrak and the U.S. Postal Service. These organizations have struggled financially for years, relying on taxpayer bailouts to stay afloat.
“The private sector can do it better,” the report argues. “Privatization will lead to better service, lower costs, and more innovation.”
The report also calls for selling off federal lands and buildings that are underused.
The government owns 28% of all land in the U.S., much of it in western states. Selling some of this land could generate billions in revenue and reduce government control over local economies.
Eliminating Costly Regulations
Federal regulations add billions in costs to businesses and families each year. Cato recommends slashing regulations in several key areas, including energy, healthcare, and financial services.
For example, the report calls for repealing burdensome energy rules that limit domestic production.
“America has vast energy resources,” it states. “We should unleash them to lower costs and create jobs.”
The report also advocates for rolling back federal control of healthcare, arguing that deregulation would lower prices and improve access to care.
Reducing Federal Spending and Taxes
One of the biggest drivers of government growth is runaway spending on programs like Social Security and Medicare.
The Cato report suggests gradual reforms, such as raising the retirement age and reducing benefits for high-income retirees.
Additionally, the report recommends simplifying the tax code by eliminating loopholes and lowering rates for all Americans.
“Lower taxes mean more money in the hands of families and businesses,” the report says.
Ending Government Overreach in Speech and Data Collection
The report takes aim at the federal government’s efforts to regulate online speech and collect data on race and ethnicity.
Cato argues that these initiatives create unnecessary divisions and violate constitutional rights.
“Government should not be in the business of controlling speech or classifying Americans by race,” the report declares. “It’s time to put an end to these intrusive policies.”
What Critics Say
Of course, not everyone agrees with the Cato Institute’s recommendations.
Critics argue that deep cuts to government programs could harm vulnerable populations and reduce essential services.
However, supporters of the report say that reducing government waste and focusing on core functions will ultimately lead to a stronger, freer America.
“Less government means more freedom and prosperity,” the report concludes. “It’s time to take action and restore the principles of limited government.”
The full report is on the Cato Institute’s website for those who want to explore the details of their proposals, click here.
This article was written with the assistance of AI. Please verify information and consult additional sources as needed.
