Those include cuts in defense spending, the elimination of a diplomatic position in Paris (saving $630,000 per year) and a few other cuts. All-in, the President says the cuts will trim about $17 billion from the budget.
Cuts of any kind are generally a good thing. The government has grown too big for too long. That said, let's not pretend this $17 billion will even put a scratch - much less a dent - in spending trends or debt levels.
The proposed total budget is $3.40 trillion. That's up 14.5% from the 2009 budget (this is the expected figure, but with TARP, TALF, stimulus, etc the numbers get murky). Regardless, The $17 billion in proposed cuts is a mere 0.5% of the total expected budget. That's right, about 1/2 of 1% in 'savings' vs. a 14.5% jump in spending. Net result: about 14% more in spending overall. If the 2009 numbers come in higher than expected (as I noted above) the $17 billion will look even smaller.
The Chicago Tribune notes that discretionary spending in the budget is estimated to jump 7.5%.
Look at this chart from the Congressional Budget Office. It is clear we have never seen this rate of spending increase in such a short time:
House Speaker Nancy Pelosi issued a statement shortly after the President's speech, saying:
“President Obama and the New Direction Congress are united in our commitment to restoring fiscal responsibility and eliminating waste, fraud and abuse in government spending. The legacy of fiscal recklessness inherited by President Obama and the Congress will make our task more difficult, but we are prepared to make the difficult choices that are required to restore fiscal responsibility and strengthen our economy for the long-term.”
Please, Congresswoman.
If you have a coupon for $5 bucks off of a flat panel television that costs $1,000, you didn't "save" $5 bucks ... you spent $995!
Americans know if you spend 14% more than the previous year, it is far from a "new direction." It is Washington and spending as usual. Political parties and control change, apparently the spending trends do not.
The scary part is how many people will believe he is an amazing man making the tough decisions and bringing discretion back to discretionary spending.
I was surprised to see MSM (ABC) interviewing people on the streets, showing their response that 17 billion was a lot of money, and then showing their reaction to hearing the percentage of the total, and showing the same people realizing how different things are when you hear more of the story. Who knows, maybe in a decade or so, an MSM outlet will include the comparison to the overall increase in spending as well.
May 8, 2009 at 6:53 am
Mark
It is amazing. I'm in business and business is off almost 30% year over year. We obviously just can't keep spending money we don't have. We have to make hard choices every day to survive. It isn't a lot of fun some days.
Yet our taxes and government don't go down, and in fact as this article and new budgets in various states point out the government doesn't get it - taxes and spending are on the increase. The government cannot continue to live a champagne life while most of us are having a hard time buying beer.......
May 7, 2009 at 6:22 pm
Paul E. from Indiana
As long as Americans VOTE the same idiots into office we will get the same results - the real idiot - the American voter who goes to the poll and VOTES for ANY politician currently holding office and expects change - every single encumbent politician needs to be sent home - we need a 100% turnover of our Government - that's change!!
We need a CONSTITUTIONAL AMENDMENT CAPPING FEDERAL, STATE and LOCAL TAXES TO NO MORE THAN 20% OF INCOME (CORPORATE OR PERSONNEL). When the Government is constitutionally constrained and forced to operate on a real budget we'll have a government that focuses on the true needs of the populace – that’s change!!
Our tax money is being handed out to banks, given to folks so they can buy the houses at an $8,000 discount, $4,500 dollars to buy a car - and on and on - enough already - I am not being taxed - I am being robbed - politicians do not generate income - they spend - they all need to go home - that's change!!
Please help me get the word out VOTE:
(V)ote
(O)ut
(T)he
(E)litism
e•lit•ism
n.
The belief that certain persons or members of certain classes or groups deserve favored treatment by virtue of their perceived superiority, as in intellect, social status, or financial resources.
The sense of entitlement enjoyed by such a group or class.
Control, rule, or domination by such a group or class
VOTE! -- if they hold an office and it's the same old same old - VOTE them all out until we get a Government OF THE PEOPLE FOR THE PEOPLE.
Why are we voting these people in? Or, maybe, who is voting these people in and why?
May 7, 2009 at 12:51 pm
Carla,Ballwin,MO
This is maddening! US Rep Paul Ryan in 2012!!!
May 7, 2009 at 12:51 pm
Ron
How in the world can she say that Congress inherited this problem? The house had a 98% re-election rate, and the Senate had 86%. This does not even take into account retiring incumbents, or incumbents that did not make it through a primary.
THIS PROBLEM WAS CREATED BY THE SAME PEOPLE THAT CLAIM TO BE FIXING IT!!!!!!
May 7, 2009 at 12:41 pm
Bill
That's the logic of Congress. I remember not too many years ago Congress talking about cuts to different programs. But they weren't cuts. Instead of getting something like a 5% increase over a previous year, there's was going to be a 4% increase. A 1% cut! My numbers here are not precise, but the concept is the same. It's 1948/84 all over again!
May 7, 2009 at 12:35 pm
Shawn
hey Brian, good analogy, but it sure seem that there aren't nearly enough voting Americans that see it. Obama "had" to increase the budget to "save" our economy, now as promised he's going to "change", so he's going to start by saving the country 17 billlion, which is a LOAD of money to the average person, but as you pointed out is pocket change compared to the 3.4 Trillion the current administration is planning on spending (and hat doesn't even figure in all the interest on that borrowed money". More people need to see through the "fluff" and start voting out these political crooks we have in charge! It's not just Obama, it's most of our elected officals.
May 7, 2009 at 12:31 pm
aboutthis blog
Brian Sullivan joined FOX Business Network (FBN) in April 2008 as an anchor. He co-anchors the 10am-12pm ET hours of the FOX Business block.
Prior to joining FBN, Sullivan served as an anchor for Bloomberg Television where he hosted the programs Morning Call and In Focus.
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Corey in GA
The scary part is how many people will believe he is an amazing man making the tough decisions and bringing discretion back to discretionary spending. I was surprised to see MSM (ABC) interviewing people on the streets, showing their response that 17 billion was a lot of money, and then showing their reaction to hearing the percentage of the total, and showing the same people realizing how different things are when you hear more of the story. Who knows, maybe in a decade or so, an MSM outlet will include the comparison to the overall increase in spending as well.
Mark
It is amazing. I'm in business and business is off almost 30% year over year. We obviously just can't keep spending money we don't have. We have to make hard choices every day to survive. It isn't a lot of fun some days. Yet our taxes and government don't go down, and in fact as this article and new budgets in various states point out the government doesn't get it - taxes and spending are on the increase. The government cannot continue to live a champagne life while most of us are having a hard time buying beer.......
Paul E. from Indiana
As long as Americans VOTE the same idiots into office we will get the same results - the real idiot - the American voter who goes to the poll and VOTES for ANY politician currently holding office and expects change - every single encumbent politician needs to be sent home - we need a 100% turnover of our Government - that's change!! We need a CONSTITUTIONAL AMENDMENT CAPPING FEDERAL, STATE and LOCAL TAXES TO NO MORE THAN 20% OF INCOME (CORPORATE OR PERSONNEL). When the Government is constitutionally constrained and forced to operate on a real budget we'll have a government that focuses on the true needs of the populace – that’s change!! Our tax money is being handed out to banks, given to folks so they can buy the houses at an $8,000 discount, $4,500 dollars to buy a car - and on and on - enough already - I am not being taxed - I am being robbed - politicians do not generate income - they spend - they all need to go home - that's change!! Please help me get the word out VOTE: (V)ote (O)ut (T)he (E)litism e•lit•ism n. The belief that certain persons or members of certain classes or groups deserve favored treatment by virtue of their perceived superiority, as in intellect, social status, or financial resources. The sense of entitlement enjoyed by such a group or class. Control, rule, or domination by such a group or class VOTE! -- if they hold an office and it's the same old same old - VOTE them all out until we get a Government OF THE PEOPLE FOR THE PEOPLE.
Anna
Why are we voting these people in? Or, maybe, who is voting these people in and why?
Carla,Ballwin,MO
This is maddening! US Rep Paul Ryan in 2012!!!
Ron
How in the world can she say that Congress inherited this problem? The house had a 98% re-election rate, and the Senate had 86%. This does not even take into account retiring incumbents, or incumbents that did not make it through a primary. THIS PROBLEM WAS CREATED BY THE SAME PEOPLE THAT CLAIM TO BE FIXING IT!!!!!!
Bill
That's the logic of Congress. I remember not too many years ago Congress talking about cuts to different programs. But they weren't cuts. Instead of getting something like a 5% increase over a previous year, there's was going to be a 4% increase. A 1% cut! My numbers here are not precise, but the concept is the same. It's 1948/84 all over again!
Shawn
hey Brian, good analogy, but it sure seem that there aren't nearly enough voting Americans that see it. Obama "had" to increase the budget to "save" our economy, now as promised he's going to "change", so he's going to start by saving the country 17 billlion, which is a LOAD of money to the average person, but as you pointed out is pocket change compared to the 3.4 Trillion the current administration is planning on spending (and hat doesn't even figure in all the interest on that borrowed money". More people need to see through the "fluff" and start voting out these political crooks we have in charge! It's not just Obama, it's most of our elected officals.