Cutting Spending–It’s Just Not That Hard to Do

You wouldn’t know it by listening to the politicians in Washington, but the federal government doesn’t have an income problem … it has a spending problem.  There is only one way to fix that problem:  the spending has to be diminished.  It’s not that difficult to understand.

Only in Washington do they try to convince us that our credit rating was diminished because we were about to have spending controls imposed on us by the debt ceiling.  So what did we do?  We did exactly the opposite of what we should have done.  We raised the debt ceiling and now we continue to spend, and spend, and spend.

Rep. Connie Mack (R-FL) has a plan that looks like it might work.  He proposes that we cut a penny of every dollar from our spending.  It’s called HR 1848.  But how can it be that simple?  Well, here’s how.

You see, the federal government (unlike the average American family) grants itself an automatic increase in budgetary allowance every year.  It’s called “baseline budgeting.”  Government departments get a chance to spend more every year.  It’s built in to the whole budget process.  Never mind that it’s wasteful and silly, it’s just the way things are.

And here’s another dirty little secret from DC.  When politicians tell us they are cutting spending (as my own congressman told me when he voted for the debt-ceiling increase), that’s not correct.  They aren’t cutting spending.  They are reducing (usually in a very small way) the amount of future projected increases in spending.  Politicians get to lie to us about how much they are “cutting,” and the irresponsible spending continues.  It’s a sure-fire way to bring about economic disaster.  We are reaping the costly effects even now.  I suspect 2012 will bring worse.


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