US federal spending FY 2010:
This is the
complete federal budget FY 2010 and it presents a very very different picture than you see with the "discretionary" chart. This, not that other chart, is the budgetary reality that we must deal with; there are five major spending areas in the budget that make up more than 75% of all spending.
Here's our revenue chart, same fiscal year:
Here's the OMB source data:
http://www.whitehouse.gov/sites/default/files/omb/budget/fy2012/assets/hist01z1.xlsNow here's our problem:
Total spending: $3.45 trillion
Total revenues: $2.16 trillion
Spending as a percentage of revenues:
160%If that weren't bad enough, drilling down further we can see that cutting the
entirety of "discretionary" spending isn't even enough to get us to the break-even point:
Total mandatory spending: $2.32 trillion
Total discretionary spending: $1.13 trillion
Mandatory spending minus total federal revenues: $0.16 trillion
Mandatory spending as a percentage of revenues:
107%In other words, we
start $160 billion in the hole before ANY discretionary spending at all is even proposed - before we've spent a dime on our bloated military, we're already in the red!
Bottom line: There's no fixing the federal budget without reducing not just the military budget, but also Social Security, Medicare, Medicaid, and other entitlement programs (unemployment, VA, food stamps, and so on).
Medicare and Medicaid are particular problems because the rate of growth of health care expenses (which has accelerated, not slowed down under HCR) will cause the former alone to eclipse even Social Security spending in the
near term.
I'm being a stickler on this, because
until we recognize the basic facts of the matter, there is no basis to make any rational policy decisions about what to do next.My position here is that we need to find less expensive solutions to our societal problems, and that this is the central fiscal challenge for the Democratic Party for the foreseeable future.
Now, some will say "raise taxes" at this point. I refer any who might to the results of the 2010 election - you might ponder why exactly things went so badly for us (our leadership sure hasn't). Your average Joe who is already suffering greatly from this Depression is in zero mood whatsoever to pony up additional money, when he needs that money himself to survive.
(By the way, this is just the
federal budgetary picture. For many states and local governments the problems are far worse!)
Everybody needs to sober the fuck up, stop making emotion-based judgments on fiscal matters, and get serious about solving this problem. A failure to do so will mean being further cut out of the decision-making processes at all levels of government, leading to what we see happening today in Wisconsin, Indiana, Michigan, Iowa, and in many other places.