Senate “All Bush’s Fault” Non-budget

Jobs and the economy are and will remain America’s #1 issues. Period.

Both the House and Senate proposed competing budgets last week, supposedly to fix things. The news tells us that, along with President Obama’s charm offensive, it sets a hopeful tone for real progress this time around.

Such is not the case. Heck, the Senate budget isn’t a budget at all! Its more of the same old, worn-out, recycled blame game platitudes that Americans got tired of hearing long ago.

The Senate and House Budgets

A budget has boring stuff in it like revenues and outlays spelled out in detail. The Senate budget doesn’t have any of that; therefore it can’t be a budget. You discover that trying to find what percent of spending growth the Senate budget allows. That’s how I found out.

It has been so many year’s since the Senate proposed a budget, they forgot how! They did not forget how to ask for a half trillion more in new spending.

Not that the House budget is good; it isn’t, but at least it has those details; which makes it a real budget proposal.

Senate Budget:
Foundation for Growth: Restoring the Promise of American Opportunity
– Senator Patty Murray (D-WA), Chairman Senate Budget Committee, 3/13/2013

House Budget:
The Path to Prosperity: A Responsible, Balanced Approach
– Representative Paul Ryan (R-WI), Chairman House Budget Committee, 3/12/2013

Neither budget is in the form of an actual bill having a CBO analysis attached to it yet. That makes them both mostly just noise.

It’s all Bush’s Fault, Still!

As ridiculous as it sounds, that is the main thrust of the Senate budget! In it’s 114 pages it spends more time trash talking Republicans than it does proposing anything concrete.

Its very first two graphics prove it. They begin a theme that runs throughout the document.

The graphic at left shows a CBO projection made the month George W. became President in January 2001. It projects that debt held by the public would be paid off by 2009! That didn’t happen.

Unreported is it was based on ridiculously optimistic numbers; like a >5% GDP growth rate and unemployment around 4.6%. That wasn’t even remotely close to their 10-year averages. Then we were hit with the 2001/2003 recessions as well as the wars and prescription drug program which were fully supported by both parties.

The graphic on the right shows where, according to the Senate, the debt came from. It’s a graphic from the ultra-liberal Center on Budget and Policy Priorities.  It erroneously claims 50% of debt growth is from the Bush-era tax cuts and the wars! They conclude “the fiscal policies of the Bush administration, generated a significant portion of today’s debt.”

Obama, of course, tried to stop it with $6.3 trillion (so far) in debt growth but can’t reverse the trend.

Conclusions

The House budget calls for repeal of Obamacare to balance the budget. It ain’t gonna happen.

Voters haven’t discovered its true price tag yet and until costs start piling up in mid-2015 or so then there will not be any public outcry for changes. Most folks think Obamacare is free.

The House budget proposal balances the budget in 10 years by limiting the GROWTH in federal spending to just 3.5%/yr.  This cant’ be verified, but it is said the Senate budget allows for 5%/yr growth and never balances the budget. Current inflation is under 3% right now.

A 3.5% growth rate still allows for inflation adjusted current spending every year with money left over for job creation and economic development.

If true, it doesn’t matter which side of the political fence you live on, if you can reduce spending growth to 3.5%/yr then the federal budget can be balanced and job creation funded. It doesn’t matter how you get there!

However, looking at the two budget proposals, it is obvious that Democrats and Republicans will never agree on a path to get there… charm offensive notwithstanding.

Looks like we are back to square one… bickering!

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About azleader

Learning to see life more clearly... one image at a time!

Posted on Mar 18, 2013, in Business, Debt, Deficit, economics, Economy, Government, news, Opinion, Politics, Taxes. Bookmark the permalink. Leave a comment.

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