Chump Change

by Bill O'Connell on March 4, 2011

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Vice President Joe Biden, the man President Barack Obama put in charge of the stimulus spending because, “nobody messes around with Joe,” met with Congressional leaders to talk about the budget for the remainder of this fiscal year. Jingling in his pocket was an additional $6.1 billion in change as all the Democrats had to offer, after the Republicans forced them to agree to $4 billion in cuts to get a two week extension from shutting down the government.

 

It is not serious, it is even hard to be generous in calling it ridiculous. Why are we in this situation? Because Nancy Pelosi and Harry Reid didn’t even bother to put together a budget in their last year in total control of the government. So the Democrats are willing to cut current year expenditures by $10.1 billion while the Republicans put $61 billion in cuts on the table. The Democrats say that is far too drastic. Really? $10.1 billion amounts to 0.28% of federal outlays. Get serious! I have been in many situations in business where the word comes down from the top to find and cut 10% from the budget and do it now. If the federal government was being run like a business that would mean finding $355 billion in cuts and still let the federal government spend 90% of what they originally planned.

The difference is that if the business is up against the wall, they either cut or go out of business. They will cut expenses, sell unneeded assets, or assets that they can get more money for than they can produce themselves. If the government doesn’t cut what will happen? The taxpayers get screwed either way. Either they pay more in taxes or they pay when the economy collapses, but what Obama and Biden think we really need is a faster train to get Joe Biden back and forth to Delaware.

The Democrats say that if we cut the budget it will cost jobs. Even Ben Bernanke in testifying before Congress this week said will slow the economy and cost an estimated 200,000 jobs. Did he use the same model that said if we spend a trillion in stimulus money that the unemployment rate will not rise above 8%? Now, two and a quarter years after the stimulus money was squandered the unemployment rate finally dipped below 9%. It failed. The projections failed, Meanwhile Bernanke keeps printing money and devaluing our currency. It’s time to take a different approach before the government owes more than it is possible to cover the interest on, let alone the principle.

This is a very, very serious problem, that requires serious people to stop playing with half measures and games of chicken around shutting down the government as a political ploy. We keep hearing that the American people don’t want to cut programs, but at the same time the American people know how bad the spending is out of control. That leads me to believe they are not being asked the right questions, but rather the questions a clever pollster formulates to get the response he is looking for.

Real cuts, serious cuts are needed to bring the budget into balance and start shrinking the debt not just the deficit. And it needs to be done now.

That’s my opinion; I’d like to know yours.  Please comment below.

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  • YetAnotherBlogger

    ONCE UPON A TIME, when I was on Wall Street, the word came down to cut 10%, I dutifully cut. However, when my Boss reviewed it, he said: “Anyone can cut doing important things by 10%. You have to cut while STILL doing the important stuff. If you can’t, I’ll get some one who can.” Of course, I scurried away and cut the fat but not the mission critical stuff. Properly motivated, I found 40% by fundamentally changing how the work was done.

    That’s what we need — do more with less smarter — with a lot fewer politicians and bureaucrats.

    imho

    • http://libertyslifeline.com William O’Connell

      Exactly!

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