Tuesday, March 19, 2013

American Budget


Most of the Senate Budget Committee’s discussion on Saint Patrick’s Day was obscure.  It was confusing, not only to most of the Senators themselves, but also much more confusing to us, the observing public.  A few things are, however, very clear.

One clear thing is that the budget goal as presented, has a designed in goal of roughly 4.7% growth in government per year for the next five years.  I can’t speak for you, but I know what I want.  I want to see a zero growth government for the next five years, or better yet, a negative growth government until we reach a more reasonable size: say 75% of the current government size or smaller.

Another clear thing is that this roughly 4.7% growth plan will still result in the RIF of many jobs.  Neither Sequestration nor 4.7% are zero growth plans: both are merely a limitation and reduction in growth.  What I fail to understand here, is why Sequestration or any other plan curtailing growth requires any job loss at all.  It seems to me that even a zero growth plan should be capable of sustaining all current employment levels: no raises, no job loss.  Nothing in this discussion justifies any job cuts: yet, in places, these are already Draconian.

The only conceivable justification for 4.7% growth-rate would be the application of the extra funds to debt reduction.  This is clearly not the case.  This 4.7% growth is clearly for bigger and bigger government.  Let me offer proof.  The deficit will not be balanced by the end of the five-year period, and subject matter experts refused to predict when it might ever be balanced.  An alternative proposal of 3% growth promised to bring the deficit into control in ten years.  Clearly, a 0% growth will bring the deficit into control more quickly.

I fail to see why we need any growth rate at all.  We need less government not more.

What is abundantly clear is that Democrats and Republicans both want bigger government.  We’re not arguing about the health of the economy, or job loss, or any other such thing.  What we’re really arguing about is how fast we’re going to build bigger government.

Figure.

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