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Tag Archives: Government projections

Does this concern you in the least bit?


I know I go on about balanced budgets and massive deficits, but it is because I think they are a real problem. It seems that neither party wants to address the elephant in the room, with the exception of a few individuals. This article by Jeffrey Anderson on the Weekly Standard site emphasizes the point, Mandatory Spending Exceeds all Federal Reveunes for Fiscal Year 2011

That’s right, the mandatory portion (medicare, social security) of the budget exceeds the revenue that the government will collect in 2011. That means that if we cut all discretionary (defense, interstate highways, homeland security) we would still run a deficit. As the article points out, just 4 years ago the Bush administration projected that this would occur in 2057. So much for accurate projections by the government experts.

We need to get serious about cutting spending and reforming entitlements now. Our representatives in Washington are dithering around talking about $60 billion or $100 billion in cuts which are essentially meaningless in light of the magnitude of the problem. In 2011 there is a $20 billion deficit between revenue and mandatory spending. When you add in the $207 billion interest payments the total is a $227 billions deficit before we spend $1 on discretionary spending and we can’t get agreement on a measly $100 billion in cuts. When you add in the discretionary spending the deficit is over $1.5 trillion. When are our representatives going to get serious about this issue. How long will they kick the can down the road?

Because the amount of money is so large, people lose perspective of the scale of the issue. To give you an idea of the scale, please check out this video from 10000 Pennies

I urge you to contact you Senators and Representatives and insist that they vote against another extension of the continuing resolution. Also, insist that they pursue significant budget cuts across the board.

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When a decrease in the unemployment rate is not a good thing


The unemployment rate dropped .4% from 9.4% to 9.0% in January.  After first glance this appears to be great news.  But only 36,000 net jobs were added, so why was there such a large drop?  It is because the number of people dropping out of the labor market increased.  People are just giving up looking for jobs and they are no longer counted.  The full picture of unemployment if you account for those who are underemployed is around 18.9%.  I wonder what it would be if we counted those who have just given up.  It is hard to fathom that nearly 1 in 5 people who want to work are not working or are working part-time.  I can’t image how hard it must be for them.  I am sure they had great hope in the promises of the stimulus.

The graph below compares what the current administration promised us in order to justify the $900 billion stimulus plan vs. what they actually delivered.  When I see how well the ‘experts’ in Washington are at predicting outcomes, I realize that we really can’t trust any of their predictions.  Think about the promises this same administration has made in light of the impact of ObamaCare will have on our deficit and economy.

 
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Posted by on February 6, 2011 in Unemployment

 

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