Trillion Dollar Deficits

The proposed federal budget was released this week and everyone was “shocked” to find that it contained more government spending than expected and a trillion dollar deficit. The fact is, this was easy to see coming over a year ago. There is simply no major constituency for cutting spending. And this being an election year, the number of politicians that would run on taking things away from people are even fewer and more far between than ever before.

Aside from the horrendous deficit there is one thing I like in the budget and that is that the infrastructure proposal returns the responsibility to the states and cities. It also cuts the time for permits to two years, and basically gets the federal government out of the way. It proposes eliminating 80% of the agencies down to one agency thereby cutting bureaucratic red tape. It is a major move toward returning state control and reducing federal control. We need to remember that this is the United STATES of America — not the Federal Government of America. States need their independence and need to assume their own responsibilities.

Someone argued that we can’t return the responsibility of fixing roads and bridges to the states because some, like New Jersey, are broke! So tax payers in Oregon should pay for the repair of roads and bridges used by the citizens in New Jersey? That’s the way it is today and it needs to stop! New Jersey and others like it need to fix their own problems at their own expense.

Next year congress will hopefully address the budget deficit. Inevitably, congress is going to have to tackle entitlements. Either they will do it — or the markets will eventually do it for them. As interest rates rise, the cost of servicing the debt will soar. That will, over time, take away all of the money the government has to spend on social programs. The result is either defaulting on the national debt or cutting programs. There will be no choice. Today, we still have choices.

If it is a crisis we need to give the government spine — so be it. But today we still have choices that will avoid a crisis. There are plenty of areas where we can cut. I suggest we cut entire agencies on the federal level that will help reduce the deficit. Many agencies are failing to do what they were set up to do. They only cost money and produce nothing except negative results. The Department of Education comes to mind. States and local cities can educate far more efficiently than a distant bureaucrat.