How to Calculate the Federal Budget

I've gotten into several arguments over the years about what the US Federal Budget is and how it should be calculated. Planet Money tried to do a humorous take on the budget this week, and frankly, now I want to argue with them about it.



Here's the problem with Planet Money's budget. Social Security and Medicare are paid for in advance with premiums like any other insurance program. So, the cost of their outlays should be (and are) on a separate ledger because (and this is the important bit) if the premiums do not cover the cost of outlays that is not the beneficiaries fault. The government must honor the rightful demands of beneficiaries or it will cease to serve any real purpose. The government will fail because the people who paid for benefits they won't receive will make sure it comes crashing down.

The end of government is (again​, important) the real goal of those who call these program's future into question. They want to end government and enjoy the knife & gunfire filled blessings of anarchy. Oh, who am I kidding? The brief period of anarchy involving nuclear physicists building hydrogen bombs for the highest bidder (at the point of a gun if necessary) before whatever form of life succeeds after humans are gone establishes their unquestioned rule of the planet. Here's hoping that form of life is smarter than human life was.

The budget presented by the Planet Money Team is similar to this one,




You should immediately note that most of the budget is already spent, as in mandatory expenditures. These are the services that have already been paid for. The services that the average citizen can be said to expect from their government in this day and age. Access to healthcare. Insurance against disability. Assistance to families with dependent children. The latter being properly seen as investing in the future, something we don't do nearly enough of. Something that the Orange Hate-Monkey's budget wants to do a lot less of.

The discretionary spending, the only part of government outlays that the currently sitting government should have any control over, looks like this;


As this image should make clear, the only thing that can be easily cut from these expenditures is the military. A military that we spend as much on as the next 9 countries combined. Now, we probably need a good portion of that to continue, but I've heard many people say over the years "we need those numbers to continue because they provide jobs for people who need them."

Here's a thought. How about we don't spend money on new and better ways to destroy the world another ten times over? How about we just give the people working for the military the same amount of money but not require them to do any work. The soldiers, I mean. All of the poor, for that matter. I hear you saying "but what will they do to occupy their time?" Let them decide, or give them constructive advice on what kinds of things need done. Forestry and game observation. Construction of infrastructure in other countries as well as infrastructure in our own country.

Spend money on the future and not on the biggest, most glorious explosion ever seen in human history, a history ending nuclear holocaust. Food for thought.

No comments:

Post a Comment

Ad Hominems, Spam and Advertisements will be mercilessly deleted. All other comments are eagerly anticipated.