How to Cut $343 Billion from the Federal Budget

 Federal spending is on an unsustainable path that risks disaster for America. Runaway spending has increased annual federal budget deficits to unprecedented levels, adding $2.7 trillion to the national debt in the past two years alone. Each year’s huge federal deficit increases the mountain of national debt borrowed from future generations of Americans. Congress needs to cut federal spending sharply and quickly.

This paper lays out $343 billion in available spending cuts. The Heritage Foundation - Read The Full Article

Welcome Home Mr. President: Plans For Our Future

There are a few good plans out there to deal with the deficit and reduce taxes.  A blueprint was unveiled Tuesday by Democrat Erskine Bowles and Republican Alan Simpson to address just that. It's bi-partician for at starter and sounds good.  It's a start. One thing thats needs to be pointed out is that any plan Congress considers must start at a baseline figure before the 2008 Obama stimulus package to be taken seriously by the American public. Another thing the Bowles Simpson plan does not include is Obama-care.  

Arthur Laffer today in the Wall Street Journal lays out another simpler plan for Congress to consider. Extend all the Bush tax cuts. An easy thing to do at this point. The full repeal of ObamaCare.  A tougher sell to the President and Congress, the cancellation of all spending that punishes those who produce and rewards those who don't,  the enactment of stalled free trade agreements with South Korea, Columbia and Panama, a true flat tax, price stability, passage of a balanced budget and incentive pay for politicians based on stock market performance and economic growth.

The last thing is for the President to change his approach to the job. Quoted as saying Thursday "I'm going to need Congress to work with me" on the tough decisions.  He might consider saying he needs to work with Congress. - DSMW

Obama and G2 Don't Mix

Beijing's concerns about inflation have come to the forefront in the Group of 20 Summit.  With the Federal Reserve's plan to pump $600 billion into the U. S. economy, coupled with President Obama's party on the ropes, China was emboldened to lecture the US on its currency plans.

Not only did Mr. Obama find himself the victim of bad political timing at home, the G2 meetings underscored the fact that China, Brazil and Germany have emerged from the global economic crisis faster and stronger than the U.S.

President Obama also failed to reach a free trade agreement with South Korea by a self imposed deadline set for Thursday. All this comes as a blow to a president who pledged to double U.S. exports over the next five years.

The Pelosi-Reid Congress Deficits

The Democrat Congress under Speaker Pelosi and Majority Leader Ried are responsible for our perilous financial situation, not presidents Bush or Obama

Look at the facts. First, spending bills originate in the House, under Pelosi. Next they are approved by the Senate, under Reid. Only then are they are they signed into law, or vetoed, by the President. And a veto is hard to sustain politically. 

In January 2007 when Reid and Pelosi took power the federal deficit was $167 billion and on a trajectory down from $413 billion in 2004. By the time they got through with the country three years later the deficit was $1.2 trillion, a seven-fold increase.

Do you remember these Congressional leaders promising “pay as you go” budgeting as part of their campaigns?  It’s no wonder voters are looking forward to replacing these two architects of disaster. - DSMW

Two Wars Are Not The Problem

Even while the U.S. has fought two wars,  the core defense budget has increased by only $220 billion since 2001.   Sounds like a lot,  doesn’t it?  But in reality it is only about one-tenth as much as the government spends each year on mandatory programs such as Social Security, Medicare, Medicaid, and lesser entitlements such as food stamps, cash payments and interest on the debt. 

In fact the Congressional Budget Office projects that Obama’s proposed budget will add $10 trillion dollars to the national debt over the next ten year period.   By that time,  in 2020,  the national debt will be $20 trillion dollars or $170,000 for every American household.   This crushing beast must be stopped. 

Cash-Poor Cities Take On Unions

But with the city facing a budget deficit that could drain its reserves by summer, Mayor Villaraigosa wants to re-open contract talks with 45,000 cops, firefighters, librarians and other city employees in hopes of persuading them to contribute more to their pensions and health-care costs. His deputy chief of staff, Matt Szabo, puts it bluntly: "Unions have priced themselves out of a job."

Conor Dougherty - Wall Street Journal

ObamaCare and American Power

The U.S. can't fund a health entitlement and maintain superpower status.  There was a time when the federal government spent most of its money on the armed forces  It wasn't until 1976 that entitlement spending exceeded defense spending. Since then the totals have been getting more lopsided-more for social programs, less, in relative terms, for defense.

Read Max Boot in the Wall Street Journal

CBO: Obamacare Would Cost Over $2 Trillion

The CBO’s most recent analysis is out, and it’s not likely to convince wavering House Democrats to jump to the Obamacare side of the fence.  Even the Democrats are granting that the latest version of their proposed health care overhaul would cost $69 billion more than the previous version.  According to the CBO, this version would siphon even more money out of Medicare, make even further cuts to Medicare Advantage, and levy even higher taxes and fines on the American people.

Read the Weekly Standard

Tea-Party Power to Solve the Debt Problem

Gridlock in Washington is good, since it will stop the assault of big government until the end of the year when Congress could be overturned by independents, tea partiers, Republicans, and probably some Democrats as well. Just take a look at the high spirits at the CPAC convention, where tea partiers are reinvigorating conservatives and Republicans.

Larry Kudlow says there is a revolution going on in the heartland of America

Government Deficits and Private Growth

Washington hasn't been able to milk the taxpayers sufficiently to finance its massive deficit. The Chinese are getting skittish as well. So tapping bank deposits is yet another avenue to a big pot of cash.

George Melloan says the bankers have been given the easy life.