The Truth about Budget Cuts

You can’t cut here… You can’t cut there… OK, I get it. We all want to make sure poor families are taken care of in the U.S. I understand but, at some point when the country spends about double of what’s received in revenue, there’s going to be a day of reckoning. So far that doesn’t seem to be happening. Many people don’t believe this poor economy is a result of any excessive government spending. They are unable or unwilling to connect the dots. Whenever there’s anyone suggesting we make cuts in spending besides the military, the cry goes out… you’re trying to take money away from the children or those on social security! This type of panic message usually gets the political party base stirred up as well.

fed spending chart 2014

Fiscal year 2014 begins Oct 1, 2013 – ends on Sep 30, 2014

Just look at this announcement in 2012 about the Republicans wanting to eliminate over 300,000 potentially starving children from Food Stamps to aid millionaires. The Democrat Party has found it pays to make announcements like this to stir people up. Current Republican proposals suggest a cut of about 5% per year from a ballooning 80 billion dollar a year program.

So, are they going to budget $76 billion next year instead of $80 B? That assumption would be wrong, because in reality even if the proposed cuts are passed, the federal government will spend more next year.  There have been similar “apocalyptic” warnings before from Washington. Government statistics show, federal spending vs. GDP has increased from 18% to 24% between 1962 and 2011. That is an increase of 33%.

sequestrian spending chart

Sequestration refers to automatic budget cuts, a bill passed by Congress after President Obama pushed to eliminate the log jam in creating and passing a budget. These cuts will continue over the next decade, with deeper cuts each year. The cuts were designed to affect programs equally across the federal budget. None of the sequestration cuts actually have reduced the budget. The often heard phrase, “draconian budget cuts” actually resulted in the federal government spending $3.6 trillion. A 4.2% increase in outlay; boosting the annual deficit to $1.3 trillion back in February / March of this year.

Political Party nonsense - false pronouncements

Political Party flim-flam budget pronouncements

Here’s the reality, no matter which party is in office. When budget cuts or great savings are announced, it’s time for your hip waders because the brown stuff is going to get deep. Almost all federal programs receive an annual automatic increase over the prior year. A cut is simply a reduction in the increase. This is the continuous federal government budget flim-flam. Government programs seldom get cut as they’re often portrayed. Even sequestration has been bypassed because the government shifts these funny numbers around and takes more from some programs and moves it to another program within the budget.

Just watch how bad it gets once the “Health Care Reform Act” kicks in. Any proposals to cut that budget will just bring more people to the table demanding their ‘fair share’….

Federal spending for each President

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2 thoughts on “The Truth about Budget Cuts

    1. Mike Livingston Post author

      That about nails it. So, when you read stories where Republicans want to starve children, cut people from social security and take away educational funds from certain groups, you can pretty much tell the other group isn’t satisfied with the level of increase in spending.

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