How much difference does a year make?Not much, or so it seems if we are talking about the President’s budget submitted to Congress on Monday.
Considering all the talk about our Federal budget problems, a now recovering economy, and the landslide outcome of the 2010 election in favour of those supporting a more fiduciary responsible Government, Quanta Analytics thought it would be interesting to see how the President’s Budget this year (the 2012 budget) compared to the one he submitted last year (the 2011 President’s budget).
The results are in, and depending upon your political bent, they may or may not surprise you. Once again it seems Politics trumps Policy.
Looking at the figures, I can only interpret the President’s thought process relating to the Federal deficit to be: why lead when it is the other fellow who is calling for change? Let’s go to the video tape and see what I mean. Let’s start by looking at Federal Revenues/Receipts.
Exhibit 1 below shows the expected budget streams from the major revenue sources as viewed from the President’s last two budgets.
Hmmm.The current 2012 budget projects lower revenues than last year’s budget—not just for 2011 and 2012, but even as far out as 2015.That probably is not too surprising, since we extended the Bush era tax cuts and unemployment is higher today than was being projected last year.
Since last year’s budget was already projecting huge deficits, given these lower revenues then I think most prudent observers would expect this to mean that the cuts in this year’s budget outlays (expenditures) must really be significant.
After all, surely the Executive Branch of the Government heard the people’s message in November to get the federal budget in order. So let’s go to the video tape again.This time let’s compare the President’s 2011 Budget for federal outlays against his 2012 Budget for outlays.Exhibit 2 provides that perspective.
Excuse the sarcasm, but as we suspected, compared to the President’s budget a year ago, outlays have been cut in 2011 and 2012–cut by a full $15 billion (0.4%) in 2011 and a full $26 billion (0.7%) in 2012.Talk about leadership.Talk about having received the people’s message.I could laugh, but I feel more like crying.
What have the President’s people in his Executive Branches been doing this past year? The financially responsible people of our fine country are expecting cuts in the 10-15% range, and yet instead, all we get from the Executive Branch is less than 1% in cuts from a year before?
Exhibit 3 combines the information from the previous Exhibits and shows the difference between the projected budget deficits as they stood a year ago and how they are now presented in the latest Presidential budget.
Essentially on Monday the President submitted a budget that reflects bigger deficits for this year (2011), and for the years 2012 and beyond that are even larger than the record deficits that he was projecting a year ago. Are you kidding me? I know the President has been busy this past year with things like the Gulf Oil Spill, Afghanistan, Egypt, job creation, and other incessant and insidious problems, but the federal budget has to rank up amongst his priorities, too.
We cannot keep going on like this.Our country is going broke and it is long past time our country gets serious about this problem. It is time to cut our so-called entitlement programs. Who is entitled to what anyway? Especially if we cannot afford it!It’s time to cut social security; it’s time cut Medicaid; and it’s time to cut Medicare. And it is time for the President to lead.
Waiting for Congress to do cut, or to lead, is like waiting for Godot. And if the President’s men and women cannot figure out how to make these painful cuts while limiting their impact, then I’m sorry, but as an ex-democrat and now an independent voter, then I say we need to find new leadership.
For those who are interested, further independent details regarding the President’s budget can be found in the Federal Budget area of the quanta-analytics.com website.
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