Can’t people see through Obama’s game by now? Build the State and bring the remnants of what is left of a once (but no longer) a free market under the control of the government.
Yet Obama, who agreed to the cuts during the negotiations to raise the debt ceiling in the summer of 2011, now poses these cuts as a danger to our recovery.
Kinda reminds me of the rhetoric during the bank bailouts which promised economic collapse if we didn’t give the banks the opportunity to transfer their losses to the American public. How’d that work out BTW?
First of all, the cuts are miniscule compared to total Federal government spending.
The deal is supposed to reduce federal spending by $1.2 trillion over the next 10 years. But thanks to the compromise Congress made last month to raise the debt ceiling, the actual cuts this year will be just $85 billion and possibly lower as cuts often actually go.
With a federal budget this year of $3.6 trillion, the reduction this year amounts to a whopping 2.36 percent reduction. Big friggin deal!
If you want an honest representation of our debt problem then please take a few moments and watch this YouTube video on the budget from an accountant who spent his life analyzing budgets. It offers a dose of reality we all need to see:
[vsw id=”EW5IdwltaAc” source=”youtube” width=”425″ height=”344″ autoplay=”no”]
However, according to Obama this miniscule amount is going to lead us over the cliff as we heard in the State of the Union address:
“In 2011, Congress passed a law saying that if both parties couldn’t agree on a plan to reach our deficit goal, about a trillion dollars’ worth of budget cuts would automatically go into effect this year. These sudden, harsh, arbitrary cuts would jeopardize our military readiness. They’d devastate priorities like education, and energy, and medical research. They would certainly slow our recovery, and cost us hundreds of thousands of jobs. That’s why Democrats, Republicans, business leaders, and economists have already said that these cuts, known here in Washington as the sequester, are a really bad idea.”
The Sequester – A Bad Idea???
Spare us the drama please. Here, allow me to give you an example of a really bad idea:
- Despite the worst recession and financial crisis since the Great Depression federal bureaucrats, according to the US Office of Personnel Management, from December 2007 to the present have grown by 4% (not including the military) or 2.70 million vs. 2.82 million today.
- Additionally, the average total compensation for federal government employees increased nearly 9% to $126,200 from 2007 to 2011.
- Finally, according to the US Bureau of Economic Analysis, the number of government workers earning more than $150,000 has more than doubled over this same period.
- By comparison, the average total compensation for those in the private sector was $62,100 in 2011 or only 49% of what the average federal employee realized that same year. The average government worker pulled in an astounding $126,200 according to the Bureau of Economic Analysis.
While this seems like a large disparity to me and possibly suspect, there seems to be no question that government workers are better paid, have more benefits including time off and are in general not pushed as hard as private sector workers.
I can attest to this from my own working experience whereby we are seeing people cut and jobs not being replaced while incomes remain stagnant with miniscule if any raises. The end result is that people are working significantly harder and compensated less while over spending inflation led by government erodes their earnings
Now with our nation mired in economic malaise, to increase the size and income of government workers who suck money out of the economy rather than contributing to it is a really bad idea!
Wouldn’t it be a really good idea to increase the productivity of the private sector by reducing money being directed towards the public sector…………….rather than increasing it?
What to Expect in Government Spending This Year Alone
According to our government, reporting the total projected spending for governments this year will be $6.28 Trillion of which $3.8 Trillion is from Federal government.
Government debt according to USDebtclock.org now stands at $16.57 Trillion or $52,000 per man, woman and child. And cutting this comparatively tiny amount is what Obama thinks will tank the economy?
I don’t know about you but it galls me to go to work on public holidays knowing I am underpaid by a significant amount compared to Federal workers and see over half the parking lot empty when I arrive. While I work, Federal workers are permitted to rest. From what, bureaucracy? Sorry, but it kinda sticks in my craw.
Sequester Cuts- Sudden and Harsh?
Oh BTW, these cuts are not “sudden and harsh” as Obama spins it, they have been known for 18 months now and it was Obama’s team that proposed the cuts to military and domestic spending part of the debt ceiling negotiations in the summer of 2011. When Obama signed the Budget Control Act on August 2nd of 2011 he said,
“Is this the deal I would have preferred? No. But this compromise does make a serious down payment on the deficit reduction we need , and gives each party a strong incentive to get a balanced plan done before the end of the year.”
Now however, that serious step towards the deficit reduction we need becomes an economic Armageddon? Oh please, spare us the drama. Two years of “Change We Need” was enough for a lifetime.
Isn’t this what politicians always do to preserve their power. Spend now to buy votes and then renege on the cuts that they promised later.
Sequester Cuts? What Sequester Cuts?
This especially becomes aggravating when we consider that these so-called cuts are not really cuts at all. According to an article from Forbes, the $995 Billion Sequester Cut Is Actually A $110 Billion Spending Increase!
Meanwhile, we travel headlong at breakneck speed towards economic collapse as the National Debt Clock ticks ever forward at a steadily increasing pace. Either we cut dramatically now and suffer the pain or become yet another world empire in the dust bin of history and suffer the massive dangers of that scenario. Either way it will not be pretty. That’s what happens when you don’t pay attention to reality as as Ayn Rand put it, “You can ignore reality, but you cannot ignore the consequences of reality.”
For more read about the entitlement issue that government is promoting and what led us here: