Posted on 08/12/2013 5:57:01 AM PDT by cotton1706
The biggest underreported story out of Washington this year is that the federal budget is shrinking and much more than anyone in either party expected.
Consider the numbers: According to the Congressional Budget Office, annual outlays peaked at $3.598 trillion in fiscal 2011. After President Obama's first two years in office, many in Washington expected that number to hit $4 trillion by 2014. Instead, spending fell to $3.537 trillion in fiscal 2012, and is on pace to fall below $3.45 trillion by the end of this fiscal year (Sept. 30). The $150 billion budget decline of 4% is the first time federal expenditures have fallen for two consecutive years since the end of the Korean War.
This reversal from the spending binge in 2009 and 2010 began with the debt-ceiling agreement between Mr. Obama and House Speaker John Boehner in 2011. The agreement set $2 trillion in tight caps on spending over a decade and created this year's budget sequester, which will save more than $50 billion in fiscal 2013.
As long as Republicans don't foolishly undo this amazing progress by agreeing to Mr. Obama's demands for a "balanced approach" to the 2014 budget in exchange for calling off the sequester, additional expenditure cuts will continue automatically. Those cuts are built into the current budget law.
In other words, Mr. Obama has inadvertently chained himself to fiscal restraints that could flatten federal spending for the rest of his presidency. If the country sees any normal acceleration of economic growth (from the anemic 1.4% growth rate so far this year), the deficit is on a path to drop steadily at least through 2015. Already the deficit has fallen from its Mount Everest peak of 10.2% of gross domestic product in 2009, to about 4% this year.
(Excerpt) Read more at online.wsj.com ...
Let's defund Obamacare and eliminate the deficit entirely!
And bonehead is reported as having been part of this trend.
It’s too bad it’s on the backs of the defense dept. almost exclusively.
Social spending is still out of control.
BWAHAHHAAH OH YEAH WE’RE SAVING MONEY BY THE BARREL-FULL.
YESTERDAY I SEEN A MIDGET TAKE A LEAK INTO A FORREST FIRE..PUT THE DANGED THInG RIGHT OUT! film at 11..
The article is way too rosy. Spending was at an artificial high in 2008 through 2012. Its cold comfort that it shrunk from those levels. We are nipping at the edges of a huge problem. We are still headed toward national bankruptcy because Americans fundamentally don’t want the good times to stop. They want to get a government check and pay little or no taxes, or have “the rich” pay for everything. Unless Americans finally sober up and agree to seriously cut entitlements, the only way they will be cut is a crisis like they are having in Greece.
I’ll take any budget cuts I can get, but it sure seems like most of the current cuts are in stupid areas. Government does have a role to play — but we cut funding for those necessary activities. Meanwhile, the government charity which teaches huge demographic groups the benefits of being completely unproductive — funding for that is mostly untouched.
The author is quite clear that trying to defund Obamacare is counterproductive.
To my mind, something is way, way off here. Some of the increase-limited government agency spending may be down, I’m betting the whipping boy is the DoD, but I’ve seen no information where Herr Obama’s extra entitlement spending he’s instituted to the tune of an extra Trillion Dollars per year (85+ programs, not including SS or Medicare). Nor do I think it accounts for the extra $85 billion per Month the FED is creating electronic scrip for to purchase our own T-Bills and to invest (half) in a stock market that is avidly eager to take in about $40 billion/Month of government money (no wonder the NSYE looks so good).
Revenues may be up because of the extra revenues from taxes resulting from Zero’s new orders and laws, and we may have a smaller deficit (or even surplus). That DOES NOT mean our spending has gone down.
In short, I just don’t believe this. It is sleight of hand book keeping in my opinion.
“The author is quite clear that trying to defund Obamacare is counterproductive.”
Yeah, that’s why I don’t exactly buy this article.
Some years ago the powers that be made a switch from debt to deficit. So that, “we need to shrink the national debt” has now become, “we need to shrink the deficit” They think we are too stupid to understand the difference.
Yes it forced reductions but Obama used it to close “his” White House off from the public due to lack of funds...but then he spends the money to have his fn dog air lifted to Marthas Vinyard for his vacation.
Its a start but wake me up when they cut 25%.
let me sleep till 50%.
I’m sure the rats will say it’s due to the tax increases. So once again mixed news with everyone able to claim their policy is what is helping.
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