Archive for January 28th, 2010|Daily archive page

Solutions That Fit The Problem

President Obama’s explanation of why we got into the budget hole:

At the beginning of the last decade, the year 2000, America had a budget surplus of over $200 billion. (Applause.) By the time I took office, we had a one-year deficit of over $1 trillion and projected deficits of $8 trillion over the next decade. Most of this was the result of not paying for two wars, two tax cuts, and an expensive prescription drug program. On top of that, the effects of the recession put a $3 trillion hole in our budget.

So to review: generalized tax reductions, unfunded wars, economic recession and medicare expansion are the drivers of increased federal debt. And his spending side plan to address the debt issue is to freeze spending except for “national security, Medicare, Medicaid, and Social Security”. All the stuff that didn’t contribute to the problem needs to be cut back.

The freeze proposal contributes to the false belief that runaway government spending is primarily related to some bureaucrat in Interior, Agriculture, Energy, HHS, or HUD successfully talking Congress into spending ever greater amounts of money into their programs. That’s just not what’s happening.

We need to fit solutions to problems or else long term problems just won’t get solved.