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Thursday, March 15, 2012

The Federal Budget

According to the White house Administration staff the following budget is being submitted to congress. If passed, we will see continued job loss, and a continuation of laggard economic growth. My daughter will enter the job market in about 2022. At these figures, social security taxes and federal taxes removed from her pay check will double. Moreover, with so much capital going to government rather than savings or investments, the economic climate will be horrid. Worse, our savings that we hope to use to provide her with a good start in life will be decimated by few, if any growth returns over the next 10 years.

Current Proposed budget


Social Security $1.5 trillion
Domestic spending 1.2 “
Defense spending 0.7 “
Interest 0.3 “

By 2020 this figures… and again we are taking the data from the Administration’s own forecasts… shall be as follows:

Social Security $2.6 trillion
Domestic spending 1.4 “
Defense 0.7 “
Interest 0.8 “

And finally, by 2022, as far out as the Administration is willing to forecast… and far beyond what we would ever consider safe but that is another story for another time…the figures are as follows:
Social Security $2.9 “
Domestic spending 1.5 “
Defense 0.7 “
Interest 0.9 “

This is not a political statement - this is a real recognition that American citizens must seriously consider the shift from personal independence to government dependence. We all have a choice. Big Government or small Government. Free economy vs. tax and spend.

I make a living working for large corporations and small corporations. The larger the company, the more wasteful they are. There is no larger company than the Federal Government.

3 comments:

  1. By the way, these budget forecasts from the Administration are inflation adjusted. The line item for military spending to preserve American safety at home and American interests abroad will actually realize an inflation adjusted reduction. In other words - what looks like a fixed cost for Defense is actually a slight reduction.

    It is sad to note that the nation's interest payments on its debt will be greater than the cost of Defense in 8 years. If you are a parent, you know how fast 8 years can fly by. Its a meare two presidential election cycles.

    We have a great country, and I am a proud citizen. Unfortunately, our levels of government sponsored benefits are too high, and need to be adjusted down commensurate with raising costs - like military spending.

    I would like to see a social security like item that is fixed at 1.5 Trillion, and Domestic spending fixed at 1.2 Trillion. Our country is having a hard time paying these bills today - adding spending will only worsen the problem.

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  2. If only more people gave a damn, Victor. I don't think most can associate what this really MEANS to them and their families. And, I notice that the group continues to grow who think the Government should grow in order to pass out 'entitlements' that are not earned.

    Anyway, I could go on and on, but not sure it would be worthwhile. People are so bi-partisan these days, that it is impossible to have a productive conversation that could otherwise address these types of future realities. Neither 'side' is willing to do the math --- if they were, the conversations and 'issues' being argued would be different. If politicians cared about the citizens vs. arguing rhetoric to 'get elected', they would be bringing forth the crippling consequences of continuing in this same narrative that has us on a trajectory towards disaster -- or a least towards deep sadness. The biggest sadness we will find ourselves experiencing is seeing what we have done to our own children. Our kids' chances of realizing their dreams (that is the foundation of our American culture -- the American dream to have a chance of going from rags to riches b/c of little government involvement and corruption). Our children who choose to work for a living with Ambitions to produce greatness, will be penalized. The very thing that has made this Country great -- as the land of opportunity (not entitlements) -- the 'opportunity' will be stripped away from our children.

    Ugh, I get depressed thinking about it. I'm going to go back to work now so that the government can take more of my hard-earned money (that I took ALL the risk in order to produce -- with no guarantees of success) and piss it away.

    Thanks for the courage to say this.

    By the way, I am not a Republican or a Democrat -- simply a concerned citizen who wants the Government to leave me alone so that I can be responsible for my own success or my own failure. Who, wants the same opportunity for my two children.

    kw

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  3. I hear you Krisstina - especially today (Our annual corporate tax filing day). This is the tax day that you hear very little about. No long lines at the post office.

    It is very difficult for me to look at the tax filing and feel like the tax payments are going to good use.

    It is very difficult for me to believe that our economy can sustain higher taxation.

    It is very difficult for me to find peace in all of this.

    Back to work.

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