And the Actual Figures Are?
We've all heard the Obama budget figure of $3.
6 trillion dollars and felt the sticker shock that goes along with that.
The Republicans, of course, have jumped all over the figure to say, "See how the Dems are going to spend us into oblivion?" The Dems have used the figure to say, "See how committed we are to deliver on our campaign promises?" However, the real impact of the actual 2010 budget is different than the media and both sides in Washington would like you to believe.
What has been lost in the furor is that this is a multi-year proposal describing budget policy and items to be initiated this year, not a blueprint for $3.
6 trillion to be spent this year.
Many parts of the budget proposal are not set to take place this year at all.
The tax increases that have been proposed will not take place until 2011.
The $250 billion earmarked for banks is a fund established to be used over time, not an immediate handout.
So is the $634 billion to be placed in a fund for health care reform to be paid for over the next 10 years.
The $3.
6 trillion figure also includes monies promised in previous budgets under previous administrations, including $695 billion for social security.
Committed spending on Medicaid and Medicare have a combined price tag of $743 billion dollars.
That makes the total spent in 2010 on guaranteed entitlement spending $1.
438 trillion or 41% of the total budget.
$164 billion for interest payments on federal debt.
According to the Wall Street Journal, the actual government spending budget proposed for 2010 is just shy of $1.
133 trillion, only about a third of what has been touted in the media.
Almost half of that, $533.
7 billion, is earmarked for the military and is by far the single biggest expenditure.
That is only the base budget and does not include the additional $130 billion for the expected war costs for 2010 which is not included in the $1.
133 trillion figure.
An additional $42.
7 billion dollars is earmarked for the Homeland Security department alone.
Health and Human Services, the recipient of the brunt of Republicans ire as the funding source for welfare-type programs, is earmarked to receive $78.
7 billion dollars.
That is less than 7% of the total US government spending budget and less than 15% of the military earmark.
Two other priorities, Education and Energy, are earmarked to receive $46.
7 and $26.
3 billion respectively.
Much has been made by the Republicans, as well, of the projected $175 trillion dollar deficit.
Not given quite as much attention by them is the fact that the current administration inherited $1 trillion of that from its predecessor.
Considering that $787 billion of that $1.
75 trillion is due to the stimulus package, the Obama budget actually reduces the base budget deficit slightly.
The $1 trillion deficit is a doubling of the previous year's deficit, which shows that larger deficit spending was already a trend before Obama stepped foot in the White House.
All of these figures are enough to send your head spinning, but they point out several key facts.
One is we need long term reform in our economic policy, with a focus on how to spend money and adopt policies that promotes our future fiscal and national health and make wise investments where necessary.
Two is that cutting the government budget here and there according to personal ideology will do nothing if we do not address issues such as Social Security and Medicare/Medicaid.
As our population ages, with less people paying into Social Security to support it, these programs will only plunge us deeper in the hole.
Three, the federal government has, in the past, spent and promised money without regard to the future consequences and the effects of this lack of foresight are starting to really show.
Instead of pointing fingers at the Dems for going on a spending spree, the Republicans should accept their responsibility for the current state of our fiscal situation and work together with the Dems to do what's necessary to get this economy and federal spending on the right course.
Instead of Congress pointing the finger at a man who just came into office because he can't set things to right overnight, they should point the fingers at themselves and accept the job of working together to protect this nation and promote its security by making sure it is fiscally healthy.
No one party or administration will be able to fix this right away; it took many years of mismanagement to get to this point.
It will take years of concerted and committed effort to get out of this mess and require the development of a long range plan that commands the cooperation of all in Washington, both now and into the future.
We can no longer afford to wait for crisis to push us into taking a good hard look at where we actually stand and get angry enough to do something about it.
The time of reckoning we have tried to ignore is finally here, larger than life and twice as ugly.
We can get out of this: with careful planning, working together bit by bit, with our eye on the overall goal, and a commitment to the end result we can guide this nation back to solvency and fiscal responsibility.
6 trillion dollars and felt the sticker shock that goes along with that.
The Republicans, of course, have jumped all over the figure to say, "See how the Dems are going to spend us into oblivion?" The Dems have used the figure to say, "See how committed we are to deliver on our campaign promises?" However, the real impact of the actual 2010 budget is different than the media and both sides in Washington would like you to believe.
What has been lost in the furor is that this is a multi-year proposal describing budget policy and items to be initiated this year, not a blueprint for $3.
6 trillion to be spent this year.
Many parts of the budget proposal are not set to take place this year at all.
The tax increases that have been proposed will not take place until 2011.
The $250 billion earmarked for banks is a fund established to be used over time, not an immediate handout.
So is the $634 billion to be placed in a fund for health care reform to be paid for over the next 10 years.
The $3.
6 trillion figure also includes monies promised in previous budgets under previous administrations, including $695 billion for social security.
Committed spending on Medicaid and Medicare have a combined price tag of $743 billion dollars.
That makes the total spent in 2010 on guaranteed entitlement spending $1.
438 trillion or 41% of the total budget.
$164 billion for interest payments on federal debt.
According to the Wall Street Journal, the actual government spending budget proposed for 2010 is just shy of $1.
133 trillion, only about a third of what has been touted in the media.
Almost half of that, $533.
7 billion, is earmarked for the military and is by far the single biggest expenditure.
That is only the base budget and does not include the additional $130 billion for the expected war costs for 2010 which is not included in the $1.
133 trillion figure.
An additional $42.
7 billion dollars is earmarked for the Homeland Security department alone.
Health and Human Services, the recipient of the brunt of Republicans ire as the funding source for welfare-type programs, is earmarked to receive $78.
7 billion dollars.
That is less than 7% of the total US government spending budget and less than 15% of the military earmark.
Two other priorities, Education and Energy, are earmarked to receive $46.
7 and $26.
3 billion respectively.
Much has been made by the Republicans, as well, of the projected $175 trillion dollar deficit.
Not given quite as much attention by them is the fact that the current administration inherited $1 trillion of that from its predecessor.
Considering that $787 billion of that $1.
75 trillion is due to the stimulus package, the Obama budget actually reduces the base budget deficit slightly.
The $1 trillion deficit is a doubling of the previous year's deficit, which shows that larger deficit spending was already a trend before Obama stepped foot in the White House.
All of these figures are enough to send your head spinning, but they point out several key facts.
One is we need long term reform in our economic policy, with a focus on how to spend money and adopt policies that promotes our future fiscal and national health and make wise investments where necessary.
Two is that cutting the government budget here and there according to personal ideology will do nothing if we do not address issues such as Social Security and Medicare/Medicaid.
As our population ages, with less people paying into Social Security to support it, these programs will only plunge us deeper in the hole.
Three, the federal government has, in the past, spent and promised money without regard to the future consequences and the effects of this lack of foresight are starting to really show.
Instead of pointing fingers at the Dems for going on a spending spree, the Republicans should accept their responsibility for the current state of our fiscal situation and work together with the Dems to do what's necessary to get this economy and federal spending on the right course.
Instead of Congress pointing the finger at a man who just came into office because he can't set things to right overnight, they should point the fingers at themselves and accept the job of working together to protect this nation and promote its security by making sure it is fiscally healthy.
No one party or administration will be able to fix this right away; it took many years of mismanagement to get to this point.
It will take years of concerted and committed effort to get out of this mess and require the development of a long range plan that commands the cooperation of all in Washington, both now and into the future.
We can no longer afford to wait for crisis to push us into taking a good hard look at where we actually stand and get angry enough to do something about it.
The time of reckoning we have tried to ignore is finally here, larger than life and twice as ugly.
We can get out of this: with careful planning, working together bit by bit, with our eye on the overall goal, and a commitment to the end result we can guide this nation back to solvency and fiscal responsibility.