Tuesday, May 4, 2010

Budget and Citizen Cuts

Some numbers. The budget for the U.S. in 2011 totals 3.834 Trillion dollars. This can be broken down into Discretionary and Non-Discretionary Spending.

Non-Discretionary Spending is made up of those expenses that have been agreed to or contracted; expenses that cannot be avoided without disruption. These include a) Payment on the National Debt: 251 Billion, b) Vet Benefits: 68 Billion, c) Social Security: 730 Billion, d) Income Security (Dept. of Labor): 580 Billion, e) Medicare: 491 Billion, f) Medicaid 297 Billion. Total: 2.417 Billion Dollars.

Discretionary Spending is more arbitrary and reactionary; these expenses are current non-contractual costs and are military. They include a) Military National Security: 895 Billion, b) Non-Military National Security: 520 Billion. Total: 1.415 Trillion.

The debate over the direction of the government has been poorly focused but seems to be generally concerned about federal government growth of responsibility with a parallel growth in size, expense and influence. (Some would refer some of these areas to the states.) So apparently these people hope to cut the expenses. Where? Social Security? Medicare? These programs were started not as "entitlements" but as "investments", "savings accounts". People put money in with the expectation of taking money out later. And, having done that, they did not save that money themselves. Payment on the National Debt? Medicaid? Where will the cuts come from? The Military? And all of these expenses are rising as the population grows older. And the Debt Service: It is 251 Billion this year but rates are low and the deficit this year will be at least 1.2 Trillion Dollars and there is no reason to think it will be lower next year. All of these expenses are permanent and rising. How will this be solved?

There has been some scorn leveled at those who want less spending because of this very conundrum. But it is unfair to blame these people because they can not solve this problem now. The problem was initiated long ago. The problem is that the government has promised more to its citizens than it can deliver. It is no more complex. The complex part occurs when the government stops or decreases its payments. Then the burden of cutting the costs will slide away from the complainers and return to those who created the problem: The elected officials. They will have to decide where the cuts will come, whose promise to renege on, which citizen to sacrifice.

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