Free Markets, Free People

spending cuts

Chart of the day – tell me again why we need another “stimulus”?

Because as I read this chart, what is being proposed by the Obama administration is about what remains unspent from “Porkulus I”, er, the first stimulus bill:

chart-of-the-day-stimulus-sept-2010

 

We already know this hasn’t worked.  That’s the implied reason for the second stimulus (although unstated, of course).  So there’s no reason to assume the second stimulus – mostly a smaller repeat of what failed in the previous rendition – is going to do any good either.

Here, I have an idea – go ahead with the $65 billion in remaining tax cuts, combine them with the tax cuts in the new stimulus and cancel all spending left in the first and that proposed in the second.

And watch Paul Krugman melt down.   Yeah, that’s the ticket.

~McQ

[ad] Empty ad slot (#1)!

The Republican Alternative Budget

It can be summed up in one sentence: They still don’t get it.

Tax cuts are great, but they’re not real tax cuts unless there’s a commensurate cut in spending. If there’s no cut in spending, they’re simply taxes which are being deferred. And that is precisely what the Republicans offer in their alternative. Long on tax cuts and long on spending. Their only claim to fame is they don’t spend as much as the Obama budget. Well, you’d have to be insane to spend as much as the Obama budget, but claiming that your plan is better because you spend less isn’t much of a recommendation.

For instance:

Discretionary Spending. The budget gives priority to the Federal Government’s most important obligations, national defense and veterans’ benefits. All other appropriated spending is level-funded for fiscal years 2010-14, and then increased at a moderate rate through 2019. The final allocation of these and other amounts will be determined by the Committee on Appropriations.

As long as we’re running a deficit, we can’t afford “increased spending” even at a “moderate rate”. What part of that can’t these people seem to get through their heads? Of course, that means they have to bring the bad news to the people that spending for government provided goodies isn’t going to go up, and, in fact, may go down. And the people haven’t exactly been kind to those who do so. Talking about it is one thing, but unfortunately actually doing it is detrimental to a politician’s career. So their cowardice is understandable if still unacceptable (given their rhetoric)

Mandatory Spending. Total mandatory spending increases by an average of 3.9 percent per year for the next 10 years. This is slightly slower growth than projected in the Congressional Budget Office baseline and the Obama/Democratic budget. It provides for a sustainable growth rate to assure the viability of these programs in the future.

Here is the budget killer – mandatory spending. And what to the Republicans propose? Growing it at almost 4% a year. The inflation rate is what? Well, even now, it certainly isn’t 4%. And while it may rise, you can’t assume that. So this does precisely what they claim their budget does:

To Control the Nation’s Debts. It halts the borrow-and-spend philosophy that brought about today’s economic problems, and puts a stop to heaping ever-growing debts on future generations.

It does not end the “borrow-and-spend philosophy” at all. It merely slows the rate of borrow-and-spend. The claim is nonsense on a stick.

And to cap it all off, they buy into the premise of some sort of universal or nationalized health care.

To Fulfill the Mission of Health and Retirement Security. The budget reforms the health care marketplace by making quality coverage affordable and accessible for every American regardless of pre-existing health conditions. It reinforces the decision-making of patients and their doctors, not government bureaucrats; and it reforms Medicare and Medicaid to make them sustainable. The budget also advances the cause of strengthening Social Security.

So instead of buttressing and supporting the concept of private health care and less government intrusion, the Republicans again commit to the concept of government involvement, but just not at the level of the Democrats. And they also want us to believe this isn’t going to cost much as well.

Disappointing is a mild word for what I see in their proposals. They’re again Democrat lite, buying into all the programs just claiming theirs doesn’t spend as much, and again proposing tax deferral as “tax cuts”, completely ignoring the need to cut spending to make those deferrals actual and permanent cuts.

No wonder they put it out on April 1st.

~McQ

[My latest Examiner.com article]