I didn't graduate from Harvard Law School. I can't afford to wear designer sneakers. And my husband and I definitely didn't pull in more than $2 million last year.
But I'm a natural at basic math -- without a calculator. And I can tell you, with absolute certainty, there's no way our mint-'em-and-spend-'em government is going to reduce the federal deficit by even $10 at the rate it's going.
Remember when President Obama committed, with a lot of fanfare, to cutting $17 billion in wasteful government spending next year? Well, that was last week.
Today, the White House budget office revealed that thanks to the misguided Wall Street bailout and the Democrats' bloated economic stimulus bill -- OK, the budget office didn't use those exact words -- the deficit for this year is going to be $89 billion more than what the president told us last week. That's five times the "savings" he had promised us for next year. And it adds up to more than $1.8 trillion in red ink for 2009 alone.
Next year, the president plans to add another $1.3 trillion to our national debt.(Hey, it could be worse. Remember the $17 billion he's going to save us!) Of course, that $1.3 trillion is today's forecast. By time the Democratic Congress gets done with the 2010 budget, you can bet the farm that we're going to owe a whole lot more.
What this all means is that we're borrowing 46 cents for every dollar the government spends.
Look on the bright side. We individaully may not have the ability to get a mortgage, extend our line of credit or qualify for an auto, small business or student loan, but thanks to the generosity and far-sightedness of our leaders, we can rest assured that we'll spend the rest of our lives head over heels in national debt.
Showing posts with label budget. Show all posts
Showing posts with label budget. Show all posts
Monday, May 11, 2009
Thursday, May 7, 2009
Fuzzy Math
I guess President Obama and much of Congress bought into the "fuzzy math" they used to -- and probably still do -- teach in school. In releasing his budget figures today for fiscal 2010, the president acknowledged that "all across this country, Americans are responding to difficult economic times by tightening their belts and making tough decisions about where they need to spend and where they need to save." He added that Washington was prepared to act with the same sense of responsibility.
Then he unveiled the details of just how responsible Washington would be under his watch. He said he had charged his staff with "looking for areas where we can save taxpayer dollars," adding that his budget office, for starters, has come up with "a list of more than 100 programs slated to be reduced or eliminated altogether" as part of his effort to slash the deficit by the end of "my first term in office." (He's pretty confident he'll have a second term and is already making plans for it.)
"These savings, large and small, add up," the president says in a White House statement. "The 121 budget cuts we are announcing today will save taxpayers nearly $17 billion next year alone. And even by Washington standards, that should be considered real money."
But here's where the fuzzy math begins. Immediately after saying these cuts will save taxpayers money, Obama introduces his plans to SPEND that money: "To put this in perspective, the $17 billion is more than enough savings to pay for a $2,500 tuition tax credit for millions of students as well as a larger Pell Grant -- with enough money left over to pay for everything we do to pay for [sic] -- to protect the national parks."
No matter how you calculate it, you can't move $10 from your checking account to a savings account, then transfer $15 from savings to checking so you can write a check for $20 and claim you're saving money -- unless you're drinking the Kool-Aid and doing the fuzzy math.
Then he unveiled the details of just how responsible Washington would be under his watch. He said he had charged his staff with "looking for areas where we can save taxpayer dollars," adding that his budget office, for starters, has come up with "a list of more than 100 programs slated to be reduced or eliminated altogether" as part of his effort to slash the deficit by the end of "my first term in office." (He's pretty confident he'll have a second term and is already making plans for it.)
"These savings, large and small, add up," the president says in a White House statement. "The 121 budget cuts we are announcing today will save taxpayers nearly $17 billion next year alone. And even by Washington standards, that should be considered real money."
But here's where the fuzzy math begins. Immediately after saying these cuts will save taxpayers money, Obama introduces his plans to SPEND that money: "To put this in perspective, the $17 billion is more than enough savings to pay for a $2,500 tuition tax credit for millions of students as well as a larger Pell Grant -- with enough money left over to pay for everything we do to pay for [sic] -- to protect the national parks."
No matter how you calculate it, you can't move $10 from your checking account to a savings account, then transfer $15 from savings to checking so you can write a check for $20 and claim you're saving money -- unless you're drinking the Kool-Aid and doing the fuzzy math.
Tuesday, February 17, 2009
Your Share of the Stimulus
They did it. The congressional Democrats and President Obama have made the so-called stimulus package the law of the land. In other words, they've committed themselves to spending $787 billion on an 1,100-page shopping list that none of them had the time to read.
To make it sit better with the public, they're touting the fact that the average American will get a $400 tax cut this year -- about $13 a week. Applause, applause.
Before you waste much time making your own list of how you might spend that money, think about this: In reality, they're just letting you keep $400 that you already earned. And if the stimulus pricetag were evenly divvied up among 200 million people who were working, we'd each be "contributing" $4,000 to the cause. In other words, Harry Reid, Nancy Pelosi and Obama are giving us a 10 percent kickback of what they're dunning us for.
There's more to come. A lot of the favorite earmarks that didn't make it into this package will find their way into future legislation. And Congress isn't even discussing the budget yet. The bottom line? They'll find a way to get that $13 a week back and then some. So hang onto your wallets. We're in for a ride!
To make it sit better with the public, they're touting the fact that the average American will get a $400 tax cut this year -- about $13 a week. Applause, applause.
Before you waste much time making your own list of how you might spend that money, think about this: In reality, they're just letting you keep $400 that you already earned. And if the stimulus pricetag were evenly divvied up among 200 million people who were working, we'd each be "contributing" $4,000 to the cause. In other words, Harry Reid, Nancy Pelosi and Obama are giving us a 10 percent kickback of what they're dunning us for.
There's more to come. A lot of the favorite earmarks that didn't make it into this package will find their way into future legislation. And Congress isn't even discussing the budget yet. The bottom line? They'll find a way to get that $13 a week back and then some. So hang onto your wallets. We're in for a ride!
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