Thursday, January 17, 2013

Fiscal Responsibility: Is Obama a Moron (or does he just think you are)

So, apparently Barack Obama (dumbo, as i call him) is sort of reacting to the impeding debt ceiling vote by talking about ways to decrease the budget deficit - here is a free tip, try spending less than you take in.

Obama says his "plan" will reduce the projected deficit by $4 over 12 years or so (or $333 billion a year).  There was an estimate of increased taxes raising $1 trillion.  Basically, he is talking about cutting $250 billion of spending a year - which is not nearly enough.  So, how large are the expected deficits anyway if he could remove them and still be deep in the red.   The way i see it, the federal budget should never be over $1 trillion dollars. 

Obama's plan basically fails one of my key fiscal responsibility tests.   It is barely about fiscal responsibility at all, but hiding the largess of government under increased revenues.  Sure there will be some cuts, but not nearly as many as their should be.  If Obama were really serious, he would be talking about a red ink bloodbath (massive cuts to everything).  Like most Obama's estimates, this one seems like it is probably overly optimistic (after all, a liberals never met someone else's dollar they didn't want to spend).  i am not sure his plan for $1 trillion of it to come from tax increases in even remotely realistic.  Like all of Obama plans, be wary of collateral damage.  This plan is largely inconsequential lip service (from a person who doesn't truly mean a word they say).  

Fiscal responsibility is all about using money and resources more effectively/efficiently - not hiding your idiotic practices by artificially inflating revenue.  In other words, fiscal responsibility is all about the spending.   i haven't been able to take anything Obama says seriously about the economy since he pushed his Obamacare program so hard - knowing that the estimates (garbage in, garbage out) were overly optimistic by a long way. 

The more i see the Democratic party talking points, the more i believe that they want there to be class warfare.  What do you expect when 50% (or so of the population) actually pay no federal income taxes.  The lower and middle classes acutally benefit from tax break/credits/whatever far more than they should (at the federal level).  So, how about cutting the child credit, mortgage/debt credits, etc in everyone's tax bill - not just picking on the successful.  Using PDI as a basis for taxation is grossly
unfair.

Edit for "fun":
i was thinking about how some of this government stuff "works".  If they (wrongly) assumed that budgets were flat for the foreseeable future, they could cut a program in year one - and then count it as a savings for the next 11 years.  So, a $1 billion cut could show up as a $12 billion dollar savings - not so truthful is it?  The problem here is that only $1 billion would have acutally been cut.  Programs cut are only really fiscally relevant for the year in which they occur.  Counting savings for programs already cut (in future years) is beyond dubious.     

i am far more interested in a true cash flow scenario for the government than i am with accounting tricks. 

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