Someone Buy Congress A Damn Dictionary
Anyone who even half heartedly listens to American news is no doubt aware of the budget proposal that Congressman Ryan came out with. According to everyone it has massive "cuts". Now when I first heard about all these "cuts" and the dems start screaming about old people starving in the streets I got a little hopeful. Maybe someone has finally decided to take a sensible approach to our huge budget problem.
So I when I got home I pulled up the new budget proposal. The "trillions" in cuts turns out to be about $100 billion. Now when someone with a 2nd grade education and a dictionary hears someone say "I'm going to cut my budget" they would believe that the person in question was planning on spending less money. When a politician tells you they are "cutting the budget", they mean they are not going to spend as much as they planned.
Here are Congressman Lyan's "huge" cuts. In 2010 we actually spent $3.456 trillion, the horrible cutting budget calls for expenditures of $3.54 trillion in 2011. 3.54 is greater than 3.456 (for those of you who can't count, just in case there is a politician on this site) That would be a spending INCREASE of $84 billion.
In 2012 it calls for spending of $3.44 trillion, ok so we finally have a cut. $100 billion compared to 2011 but only $12 billion less than we spent last year. Spending then goes up every year. In 2013 it goes up to $3.484 (above 2010 levels) 2014 $3.593 and so on. So where is the "huge cuts"?
Congressman Lyan's budget plan ADDS over $5 trillion to our debt, even if we assume the positive economic growth and increasing revenues. Every personal budget planner will tell you to never assume that your revenue is going to increase. Plan for the worse, and if your revenue does increase it is a bonus.
I know these number are large and difficult to comprehend, so lets bring it down to a little more understandable level. Suppose you make $30,000 per year net but you are spending $41,100. Obviously, you are headed towards problems. So you decide to cut back your spending to get yourself out of debt. Being the dedicated budget hawk you are, you scour through your expenses, showing no remorse you decide that in 2011 you will only spend $42,086.40. Whew, you are dedicated.
Then you decide in 2012, you will be truly heroic. You are going to bring spending ALL the way back to 2010 levels, and ONLY spend $40,897.52. A total cut of $0.57 a DAY from your 2010 spending levels. Wow. You are dedicated to getting rid of that debt...
Seriously, if we are going to run ourselves into the ground anyway, why even bother with cuts? If your running up debt this fast and have no intention of actually reducing your spending you might as well run it up as fast as you can until your creditors will no longer loan you the money. We bailed out Greece, we will probably bail out Portugal and Spain. Who is going to bail US out? No one.
We need to get serious about our budget problems, but even the so called "radicals" on capitol hill don't get it. These cuts are so small, they are meaningless. Unless we get our shit together soon, we are headed for economic disaster that will make a splash in the world unlike anything it has ever seen. The bigger you are the harder you fall, and the US is REALLY, REALLY big. Probably the only event in the history of economics that would be comparable is the collapse of the Roman Empire. I don't want to take that fall, do you?