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social security and medicare
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How The Government Spends Money
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How the Government Spends Money

From the earliest days of the founding of our republic, the United States Government has taken more and more interest in the affairs of out states and we individuals. Some politicians, lobbyists, or bureaucrat decides there is a problem and the next thing you know we have a new agency or department in government where the money flows in and trickles out. That is how the government spends money. This is how politicians provide jobs to their friends.

An older department of the Federal Government is the Department of Agriculture. It has a fiscal year 2011 budget of $149 billion. That compares with $93 billion in 2008, with the budget increasing linearly during that period. The Department of Homeland Security, a department founded because of 9/11 has a budget of about $50 billion dollars which has increased slightly in percentage over the last few years.

As you know, the government has many departments. About one-third of the money needed to run these programs comes from borrowing which is why, on a financial rating of A to F, our Congress gets an "F." That is why we have all the hassle in Congress because the surplus left by Clinton went the way of the wind during the Bush II Administration and has been carried away even further by the Obama Administration. The "planned" budget for 2015 would supposedly reduce this borrowing to about 24 percent.

A good part of the budget is paid out for entitlements like Social Security and Medicare. The Government spends a great deal of money just servicing the debt. Yes, the Government has to pay interest too. And don't forget the military. There are so many ways the government spends money.

The Federal budget for 2011 is near $4 trillion and the deficit is expected to be about $1.6 trillion.

The Obama Administration wants to raise taxes (on the more wealthy, the Bush tax gift) to increase revenue. Many congressmen do not like this because they are millionaires and so are their major supporters. They say the recession will deepen if taxes are raised. The Republicans also say that if more revenue came in, Obama would immediately spend it on his pet programs and not use the money to pay down our tremendous debt.

Changes in government programs affect those who are working under a program. That is why so many dairy farmers have been suffering. NASA is in the process of making changes that put thousands out of work. (The aerospace industry has always been cyclic.) Politicians fight to keep programs in tact, especially in their home state, but still clamor about making cuts. It is all politics.

We know how the Government spends money. They over spend continually. The spending is almost one-third of the GDP (Gross Domestic Product). There are 42 agencies and departments that start with the letter "A." There are only 18 that start with "W' and there are still X, Y, and Z to be used, plenty of room to add more pork. We could cut the total number by one-half and nobody (but the laid-off government workers) would notice.

No true reform will ever take place as long as we have all the moaning and groaning when budgets are reduced or cut. But Congress could decide which departments could be eliminated or combined with for more efficiency. In those departments and agencies, absolutely no hiring would be allowed. They would be phased out. Meanwhile, all hiring should be frozen. This easing out would remove much of the hardship of closing agencies and departments. Like General McArthur said, they would just "fade away."

If the states could not tolerate such disastrous changes, they could start their own replacement agencies but the Federal Government would tell them that they are on "their own."

While Americans are trying to make ends meet, some homes have both parents working two or three jobs, the Federal Government needs to focus on the economy and the debt with real intent, restoring industries that have been farmed out and showing that they mean business by reducing the cost of government. Jobs need not be lost forever.

Teaching children starting in junior high school how are great corporations were built, and about the men who built them, would make creating jobs a fact of life in America. Many businesses would be started at home as people take their talents, hobbies, experiences and put them to work in a new business enterprise. Educational institutions would increase their efforts to teach about business start-up and operation, making courses available in the evening and online at little or no cost.

Then we would have something going.

Fly Old Glory!

Street Talk

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