12 Days Of Christmas: Government Spending Edition

[8] [4 trillion] [12] times the debt ceiling has been raised since November 2004 CBO estimate for federal gov't spending in 2014. The U.S. always has a "debt ceiling" – the amount over which the appropriations acts of FY2010 Running as the party of fiscal restraint, the GOP won big in Novem- ber. As government spending is projected to continue to increase to unsustainable levels, the new Congress has to be closely scrutinized to make sure they're held accountable for their promises to cut spending. national debt cannot grow. Increasing the ceiling requires congres- sional approval. With the government continuing to spend at unprec- Every year, Congress is supposed to pass 12 appropriations bills to fund all the operations of government in the coming year. (This, edented levels, the debt ceiling, currently at $14.2 trillion, will have to be raised again within the next few months. of course, did not happen this year. See #1.) These spending 12 DAYS OF bills, intended to fund the government, often become weighed down with earmarks – so-called pork, or lawmakers' "pet" proj- ects. Last year's appropriations bills were laden with them and [7 trillion | 3.8 trillion came at a taxpayer cost of $16.5 billion. amount debt has grown since 2000 projected FY 2011 expenditures [11%] As our deficits continue to grow larger and larger, so does our na Federal government spending has averaged around one fifth, or spending related tional debt. The government's debt grew $2.9 trillion during the 19.7 percent, of our economy since World War II. Last year, federal spending increase from 1990 – 2000 1980's, it "only" grew $1.7 trillion from '90 – '00, but has grown spending accounted for 23.8 percent of the nation's GDP. Govern- a staggering $7 trillion since 2000. As the sum of our annual defi- cits, the rapid growth of our debt betrays the unsustainable rate of ment spending is on track to never return to its historic average. Most people realize we have a spending problem. But it's impor- tant to recognize the urgency of the problem. The 11 percent the government's spending. CHRISTMAS increase in spending from '90 – '00 seems modest compared the 62% increase in inflation adjusted spending from 2000 – 2010. | 2.28 million I 6 billion euro ] [10¢] jobs lost since the stimulus was signed into law. government my true love gave to me... in proposed cuts by Ireland When the recession hit, many European countries were simply of every tax $ used to fund gov't [ the other 90¢ used to fund entitlements & interest payments ] Vice President Joe Biden's promise that the $787 billion stimulus unable to afford the overly generous benefits promised to citizens. package would keep unemployment below 8.5% is now very well The fiscal disaster hit first in Greece, then spread to other countries. During the holiday season, giving is celebrated. Unfortunately, the government seems In the year 202O, 90% of federal revenues will be consumed by en- known - and very far from the truth. With the unemployment rate Most recently, Ireland accepted a bailout and proposed billions in increasing to 9.8% last month, we have a very concrete example titlements (such as Medicare, Medicaid, and Social Security) and interest on the debt – which by then will cost an unbelievable $1 to have gotten caught up in the festivities and decided to be a bit too generous. cuts. If America takes a hint from its European counterparts and cuts that government spending is not only ineffective at creating jobs spending now, it can avoid a similar fate. In honor of the classic song, a 12 item countdown of our spending problem. trillion per year. and economic growth, but is also a serious detriment to an economy in recession. [ 9% ] [5%] [1] missing budget. amount Boehner wants to cut deficit-to-GDP ratio the Congressional budget An important measure of spending levels is the ratio of the deficit to our GDP. Currently at almost 9%, our deficit in relation to our The incoming Speaker of the House, John Boehner, was swept into In the words of House Majority Leader Steny Hoyer (D-MD), pass- entire economy is three times the recommended 3% or less. To put the majority promising spending cuts and fiscal responsibility. Cut- ing a budget is the most “fundamental responsibility" of Congress. this in perspective, Greece's estimate for its 2010 deficit-to-GDP ting the congressional budget by 5 percent isn't a bad place to start, Congress not only failed to pass a budget, but also neglected to ratio is 9.4% but it's a fraction of what's required. pass a single appropriations bill.