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A little reality check on the so-called “spending freeze”

Is this *really* a spending freeze? And does it even matter?

By: Bill S (Diary)  |  January 25th, 2010 at 10:00 PM  | 

RESIZE: AAA

Teh Twitter is abuzz with posts on the rumor that Barack Obama will be announcing a “spending freeze” on discretionary spending during the State of the Union address.  Pay close attention to the words:  discretionary spending.  The word on the street is that his request will exempt “the Pentagon, veterans programs, foreign aid and homeland security” from this so-called “freeze.”  There are a couple of key items to consider:

  1. What exactly does he mean by “freeze?”  Does it mean “freeze the level of spending at the bloated 2009 numbers”?  Or does it mean “don’t increase these programs any more in 2010 than we did in 2009?  Or does it mean “stick to historic growth levels, rather than Obama-caliber spending increases”?  Inquiring minds want to know.
  2. Discretionary spending means non-entitlement spending.  When you subtract out entitlements:  Medicare & Social Security, and then you subtract defense-related spending, there is precious little left.  In fact, it comes out to less than fifteen percent of the federal budget.*  Barack Obama’s so-called “stimulus” program totaled around $750B – that’s almost 50% greater than the entire non-defense discretionary budget for 2009. Freezing 15% of the federal budget is a drop in the bucket.  (see page 8 of this PDF)

Note one other key item in that Federal Budget PDF document.  As of the year 2017, “Net Interest” – the interest paid on the national debt – exceeds ALL non-military discretionary federal spending.  If Barack Obama wanted to have a real impact on the federal budget, both now and in the future, he would cease and desist from these so-called “stimuli” that are doing little or nothing to fix the Obama Recession.

To propose a spending freeze of any sort is good political theater for Obama, but it will have virtually no impact on the financial standing of the United States of America.

* – 15% = $586B non-military discretionary spending / $3801B total outlays in 2009.  I was right in the first place.

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COMMENTS

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  • bk

    I wish someone from the GOP would offer a standalone bill that includes those cuts from the HCR package. Obama and the Dems said that it wouldn’t affect services one bit, and the AARP gave it their unequivocal blessing.

    Let’s go for it – Who could be against that? Wouldn’t every Democrat line up to vote for it, getting a little nudge to do from the AARP? That should be easy to pass, right?

  • cary_grant

    He was able to reach the presidency, though utterly unqualified, because he is a talented showman (and because nearly every political wind was blowing against Republicans). By speaking dramatically but vaguely, he managed to appear moderate to moderates and liberal to liberals. (Even a few misbegotten conservatives were fooled.)

    His sales strategy for his healthcare legislation – as far as a strategy exists – has consisted of trying to look good on television while his aides make secret deals with companies and congressmen.

    So am I surprised that he’s engaging in more theatre for his State of the Union?

    No sir.

  • abeldred

    Obummer’s usual tricks…say what needs to be said to “pacify” his audience and then do whatever…one can rest assured that there will be nothing frozen except the people who continue to be frozen out of the conversation.

    The MSM will make it look like he’s doing some great thing, but if you read the WSJ article on this today, it is clear that it’s a fly speck in the big spending picture.

  • bs

    “So, Mr. President, if you’re REALLY interested in fixing the fiscal situation, why don’t you give us a bill with JUST the Medicare savings? We’ll vote for that tomorrow”

    Call his bluff. He’ll fold like a cheap card table.

  • bobojake
  • http://erickbrockway.wordpress.com/ Erick Brockway

    …especially when TehWon says he’s going to “cut something”;

  • http://www.suvstrategery.blogspot.com SoFiMil

    ..

  • snowshooze

    And thanks…I been yellin’ that all day.
    If they have identified $500 Billion in waste fraud and abuse….why haven’t they done anything about it?
    Fraud is a criminal act to be prosecuted, and waste and abuse can be handled with competent Management, and sending fraud to prosecution is part of Management as well….
    But I guess we’ll not rock the boat over a paltry $500 Billion, but we might look into it if we need some money for Health Care Reform…
    NO LITIGATION SHOULD BE NECESSARY!
    It is supposed to be part of the job, running a responsible program.

  • 6eorge Jetson

  • http://www.suvstrategery.blogspot.com SoFiMil

    Obama said quite the opposite in all thee debates.

  • cwilson

    Dem leaders unite on health care strategy
    Jan 25 07:36 PM US/Eastern

    http://www.breitbart.com/article.php?id=D9DF3I180&show_article=1

  • Third Street

    …actually getting enough of the rank-and-file to go along with it is another matter altogether.

    And I don’t think they can do it.

  • http://www.suvstrategery.blogspot.com SoFiMil

    Debate #1 http://www.debates.org/index.php?page=2008-debate-transcript

    MCCAIN: How about a spending freeze on everything but defense, veteran affairs and entitlement programs.

    LEHRER: Spending freeze?

    MCCAIN: I think we ought to seriously consider with the exceptions the caring of veterans national defense and several other vital issues.

    LEHRER: Would you go for that?

    OBAMA: The problem with a spending freeze is you’re using a hatchet where you need a scalpel. There are some programs that are very important that are under funded. I went to increase early childhood education and the notion that we should freeze that when there may be, for example, this Medicare subsidy doesn’t make sense.

    Debate #2 http://www.debates.org/index.php?page=october-7-2008-debate-transcrip

    OBAMA: And that’s why I think it’s important for the president to set a tone that says all of us are going to contribute, all of us are going to make sacrifices, and it means that, yes, we may have to cut some spending, although I disagree with Senator McCain about an across-the- board freeze.
    That’s an example of an unfair burden sharing. That’s using a hatchet to cut the federal budget.I want to use a scalpel so that people who need help are getting help and those of us, like myself and Senator McCain, who don’t need help, aren’t getting it. That’s how we make sure that everybody is willing to make a few sacrifices.

    BROKAW: Senator McCain?

    MCCAIN: Well, you know, nailing down Senator Obama’s various tax proposals is like nailing Jell-O to the wall. There has been five or six of them and if you wait long enough, there will probably be another one.

    Debate #3 http://www.debates.org/index.php?page=october-15-2008-debate-transcript

    OBAMA: Well, look, I think that we do have a disagreement about an across-the-board spending freeze. It sounds good. It’s proposed periodically. It doesn’t happen. And, in fact, an across-the-board spending freeze is a hatchet, and we do need a scalpel, because there are some programs that don’t work at all. There are some programs that are underfunded. And I want to make sure that we are focused on those programs that work. ?When President Bush came into office, we had a budget surplus and the national debt was a little over $5 trillion. It has doubled over the last eight years. And we are now looking at a deficit of well over half a trillion dollars.

  • bs
  • izoneguy

  • http://www.suvstrategery.blogspot.com SoFiMil

    …and cut it down by two-thirds. : )

  • nessa

    …gradually their determination ebbs away and soon the arctic sea is dotted with tiny bobbing bodies… …And so is acted out… …the destruction of a species.

    Especially that last part!!

  • cwilson

    That whole lemmings thing? not true

    Still…if lemming suicide were NOT a myth, then it’d be a great metaphor for these Congressional Dems.

  • http://nanosecondinv.proboards.com/index.cgi? trapeze

    …because, gosh darnit, he’s just so believable and trustworthy. You can file this right next to that promise about the healthcare hearings being carried live on CSPAN.

    I miss Bill Clinton. He was a much better liar.

  • dabeall

    … and propose a 10% across the board spending CUT! Everything,

    Surely the “smart President we’ve ever had” can figure out how to make that work, right?

  • RedBeard

    “We’re going to lose weight by refusing to buy any more ice cream than we did last year. Pay no attention to the lack of limits on Ding-dongs, Twinkies, Ruffles and dip, Oreos, Krispy Kremes, Snickers………………….”

  • 6eorge Jetson

    Me no how 2 spel

  • 6eorge Jetson

    Does this mean were stopping it?

  • http://www.ssce.net/Web-Articles/Web-articles-indexed-authors.html#authors-l JLenardDetroit

    does anyone believe they aren’t going to keep funneling more and more money FOR THE ARTS? so people can keep pissing on crosses and get paid for it by the Govt. —- yep, real seperation of Church State messaging there, ‘ey???

    PBS isn’t gonna get Slush funds? oh please…..

    HOW ABOUT A GOVT. WORKER HIRING FREEZE?!?!?! if they need someone to do something, transfer them from another do-nothing job from within Govt. and actually expect some of the Liberal Democrat low-lifes hiding in Govt. jobs to do something for a change. Better yet, of course, time for a 10% Staff reduction Act over the next 3 years. Need more “front line actual foot-soldier workers?!?!” then fire some do nothing staff in exchange!!!!

  • mutantone

    It is even worse than stated they are counting income sources that are in fact made up.
    They count revenue generated by climate revenues and then the wonderful Health Savings all added towards the deficit reduction. Then they add on the TARP expenditures for the coming years starting out at 260 billion dollars and then the obsequious ?Place holder for potential additional financial stabilization efforts? with a miserly 250 Billion dollars.
    They have made up expenditures as well as income to ?cook the books?. All ready there is no likely outcome that shows a true deficit reduction and the so called spending freeze is noting more than a falsehood

  • Conservative_not_Republican

    immediately after President Obama calls for fiscal austerity.

  • kevan1957

    This is a marvelous illustration…1/4 penny…hmmm…

  • http://www.suvstrategery.blogspot.com SoFiMil

    After bs mentioned he was thinking of including a pic, I immediately thought: “I bet 6eorge Jetson can do something with this.”

  • izoneguy

    ABC – owned by Disney – follows Disneys lead as they fabricate and invent a liberal reality everyday. Thus the demorats of today are the lemmings from 1958 – fabricated into another reality as they blur the lines between fact & fiction……..