Wednesday, January 25, 2017

Can Trump Cut $1 trillion a Year?

To put it all in perspective, here is Club for Growth chappie Stephen Moore:
All of Washington seems to be in cardiac arrest over news reports late last week that Donald Trump is planning a budget featuring $10 trillion in cuts over the next decade.
This, as they say, is yuuuge. How huge? Well, to do that we should turn to good old, the go-to-site on government finances. Here are the numbers for FY2017 for federal spending.

Federal Pensions$1.0 trillion
Federal Health Care$1.2 trillion
Federal Education$0.1 trillion
National Defense$0.9 trillion
Federal Welfare$0.4 trillion
All Other Spending$0.6 trillion
Total Federal Spending$4.1 trillion

You can see that $10 trillion over ten years is big. By the way, total spending in FY 2021, which is the limit of detailed budget forecasts in the budget historical tables, is $5.1 billion.

The thing is, if Social Security ($0.97 trillion) and Medicare ($0.61 trillion) and Medicaid ($0.53 trillion) and Defense are off the table, then there is not much left to cut! All Other Spending is a mere $0.6 trillion, and that includes interest payments.

Of course, there is waste, fraud, and abuse. They say that 10 percent of entitlement spending is waste, fraud and abuse. But a lot of that goes to the white working class, part of Trump's base.

So I don't know where all that money is coming from. But I do know this. All government spending, all of it, from Defense to Pensions to Health Care to Welfare is a weight on the economy, on ordinary working stiffs.

See, if I had my druthers, things would look like this. Pensions? Everyone gets their own, but people who don't have any savings through no fault of their own would be helped by liberal billionaires like George Soros. Health care? Everyone gets their own, but people who cannot afford to pay for health care through no fault of their own are helped by trustafarian liberals. Education? If kids in Ethiopia can learn to hack a tablet in six months from a standing start, then we don't need no public education. Instead of this unpaid child labor in schools, we reinstate child labor for pay. And employers would have an obligation to assist kids' education like they did in the old days of apprenticeship. Welfare? Charities and charitable individuals and liberal foundations get to relieve the poor. And they reintroduce the ABCDEFG system.

The only problem with this would be that there would be no way for politicians to reward their supporters, according to my definition of government:
Government is an armed minority that occupies territory and taxes the inhabitants thereof in order to reward its supporters.
And that would be a crying shame.

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