This is the cry of most Republicans and some Democrats. It is time to stop making this generalized statement and take an HONEST look at the Federal Budget. To help with that please take a look at the following Web Site: www.thebudgetgraph.com . It will give you a very clear picture of just where the Federal Government is spending YOUR tax dollars.
I have looked at this issue as well at the major issues that face our country and will impact spending for the foreseeable future. The objective was to see just where the spending cuts can be made to solve the nation’s fiscal problems.
First we need to understand ALL Federal spending falls into one of two types. One is “mandatory spending” and the other is termed “discretionary spending”. Both types have been increasing at a fast pace. When we talk about cutting the budget we must understand the items which are mandatory are NOT subject to cutting without violating promises that have been made by the Government of the United States. The three biggest elements in this category are Interest on the National Debt, Medicare and Social Security. In round numbers that mandatory spending is about $2 Trillion Dollars per year.
The other category is discretionary spending and is made up of elements that CAN be cut without violating the promises made by our country. The amount of that type of spending is about $800 Billion per year. If you fail to look at what is included in that $800 Billion one can come to the conclusion we can solve our fiscal problems by simply cutting this discretionary spending. Now it is time to take a look at the budget graph I referenced.
You will see the largest element in that category which comprises more then half of discretionary spending is National Defense. Another large component is Homeland Security. Help for the poor for Food Stamps and Medicaid rounds out the major items. These three make up MOST of the discretionary spending.
Let’s take a look at the largest spending items within the budget and the prospect for cutting them in the future.
Mandatory Items:
Social Security- this will increase at a growing rate as the Baby Boomers retire which will start in February 2008.
Medicare – This will increase for the same reason as Social Security plus the addition of the Prescription Drug Program and the increasing cost of health care. This will increase far more then Social Security.
Interest – This will continue to increase so long as we add to the National Debt. The national debt on Sept 30, 2006 was $8.5 Trillion. The National Debt on September 30, 2007 was $9 Trillion. Despite the lie Bush told that the annual deficit was $168 Billion that actual amount we added to the total debt was $500 Billion in FY 2007. Go to the U.S. Treasury web site for the actual amounts to the penny.
Discretionary Items:
National Defense – That will increase substantially because of the increase in the Active Duty strength, pay increases and because of the replacement of most of the equipment for the ground forces.
VA- This will expand in a major way to pay for the injured veterans from the Iraq war.
Homeland Security - That will need to increase as we build the border fence and add the needed border guards. The new equipment and new ID cards and systems will also require added spending. The Coast Guard will see an increase in spending as will federal law enforcement and intelligence services.
Medicaid - As more and more people are becoming eligible and medical cost increase, the cost of this program will increase.
Pell Grants – The lower interest rates for student loans will increase the overall cost of this program.
Federal Road and Bridge maintenance – This will increase given the condition of the ageing roads and bridges.
The above are the areas that surely will require added spending. These items make up the BULK of the overall spending. When you look at the magnitude of these items it will not be a surprise that spending will continue to increase. I would like to have ANYONE provide specifics as to where and by how much the so called “spending cuts” can take place that will both balance the budget and then provide a REAL Surplus to be used to pay down the over $9 Trillion dollar national debt.
The time has passed for statements like - “the problem is our Spending”. We need to provide specifics areas and amounts where spending can be CUT to come up with the money needed to balance the budget and begin paying down the debt! I believe the chance of spending cuts solving our fiscal problems to be about the same as winning the Power Ball Lottery! Remember, mandatory spending is just that!