Budget Farce

Obama on his 2011 budget:

Before I take a few questions, let me say a few words about the budget we put out yesterday. Just like every family in America, the federal government has to do two things at once. It has to live within its means while still investing in the future. If you’re a family trying to cut back, you might skip going out to dinner, you might put off a vacation. But you wouldn’t want to sacrifice saving for your kids’ college education or making key repairs in your house. So you cut back on what you can’t afford to focus on what you can’t do without.

As a start, it freezes domestic discretionary spending over the next five years, which would cut the deficit by more than $400 billion over the next decade, and bring annual domestic spending to its lowest share of the economy since Dwight Eisenhower.

What he doesn't say is that deficit spending next year alone will reach $1.6 trillion, and $7.2 trillion over the next 10 years.  Our current national debt stands today at $14 trillion.  A $400 billion cut over 5 years represents an average of $80 billion per year, or only a 5% reduction in the current rate of deficit spending.  Even more comical, $80 billion a year in deficit reduction equates to only a 2% spending reduction in the overall $3.834 trillion 2011 budget.  Is he serious?  In fairness, even the republican effort to increase cuts has little effect on such massive numbers. 

At our current rate in 10 years our federal debt will reach $21 trillion using the rosiest of economic projections.  The interest on that debt (>$800 billion yearly) will be the largest non defense or entitlement line item in the budget.  Nothing substantial will be accomplished unless politicians begin a serious discussion on entitlements. And they won't becasue it is political suicide.  To understand the scope of our debt, first think about the size of a trillion dollars.

The Super Bowl this year was held in Dallas Texas at the cathedral Jerry Jones built.  The state of the art, luxury facility cost $1 billion to build.  For the amount our government will borrow this year to fund our deficit spending, they could build 32 of these facilities in every state!  Can you imagine a Dallas Cowboy stadium being built in Overland Park, Kanasas City Kansas, Wichita, Emporia, Dodge City, Goodlin, Salina and 25 other small towns in Kansas?  Virtually every school district in the United States could own one. 

Yet, these jokers can only find $80 billion a year to cut from our current spending.  Nobody is serious about solving the problem yet.