Budgets and Spending: Obama’s “Budget Cut”

Imagine you come home one day, and find fire engines in front of your house, significant damage has been done, and the home is no longer habitable without major repairs.

You call your insurance company, and they come out and estimate the repairs.

You go to the office to review the claim and find out how much it will cost.

The Agent says ” Well we looked at everything, and the work has already begun! We hired the finest contractors, and repair crews.

They’re going to redo everything. We’re installing new sod; a sprinkler system is being installed.

Your neighbor’s home got some smoke and water damage too, so we have to repair that as well. Since your home is nicer, and you have insurance and he doesn’t we agreed to upgrade his house, and landscape his yard as well. We’re also putting in a pool for him to compensate him for his hurt feelings since you have one, and he is not as fortunate as you, and deserves one too.

So, your total bill will be $34,000.

You naturally get a bit angry, telling him that he is spending way too much of your money, and giving it to others who have done nothing to earn their own nice home and pool.

He nods, and then says, ‘Ok, you’re a bit upset, and I understand that, but the neighborhood will never get nice unless we prime the pump so to speak.’

Finally, he agrees that the bill is just way too large. He says he’ll call a meeting of all the contractors and have then cut back the amount they’re spending.

They get together, and he calls you when the meeting is finished.

OK, we did it. There’s way too much being spent, so I told everyone they needed to get tough and cut back on everything that is not essential. $34,000 is a lot of money.

So, we reduced the spending plan.

Everyone agreed to reductions, and we will cut the cost by a dime.

 

Do a fast calculation:

Obama is crowing that he has called his cabinet together, and demanded $100 million in budget cuts.

If you reduce it down, (yes, a hundred million dollars is a large amount of money) and look at that amount as a portion of the incredibly huge spending he proposes it is the equivalent of discounting a bill of $34,000 by ONE DIME.

 

If someone offered that as a discount, on anything else, anyone would laugh. Instead he trumpets that  as if it’s some draconian slashing of necessary spending in an emergency. I think it’s an insult to taxpayers, and shows once again his self centeredness. He seems to believe that since he ordered it, it MUST be important. His press secretary was at a loss yesterday to even make it look good when asked about the paltry nature of the ‘cuts’.

It is a sign of just how completely out of control the DC government has gotten when One Hundred Million Dollars is literally pocket change compared to the rest of the spending proposed by the president. No economy can sustain this kind of wild spending and the stress it will bring.  Continued spending at this kind of deficit level will bankrupt the treasury, and eventually induce inflation on a scale we have not seen in a generation. The scope of the debt being passed along to the next generation has never been seen in history.

If you follow the comments of President Obama, he often references events as to how old he was when they happened.  He dismissed terrorist charges against Bill Ayers by saying he could not be held accountable for things someone did when he was eight years old.  During the recent meeting of heads of state of the Americas, he responded to an anti American tirade by Hugo Chavez by saying he was at least glad that Chavez had not blamed him for things that happened when he was three months old. Noting exists for President Obama outside his life experience.  This mindset explains much of his actions and plans. Certainly he is incurring a huge debt which will have to be repaid by future Americans. However, when the bill comes due, Mr. Obama will no longer be president, and thus can say, “Well, I’m not in charge now. Someone else handed you the payment slip; you can’t blame me for it.” Or worse, he simply cannot imagine a time without him, so when someone says the debt will need to be repaid down the road, he simply cannnot imagine that time, so for him it does not exist.  On so many fronts this is a dangerous man we have put into the Oval Office. Our children and grandchildren will pay for the mistakes we are making now.