Budget Nonsense

Barack Obama:

As a start, I called for a freeze on annual domestic spending over the next five years. This freeze would cut the deficit by more than $400 billion over the next decade, bringing this kind of spending -- domestic, discretionary spending -- to its lowest share of our economy since Dwight Eisenhower was president.

Let me repeat that. Because of this budget, this share of spending will be at its lowest level since Dwight Eisenhower was president.

The only way we can make these commitments [to education, etc.] is if the government starts living within its means.

This whole this is tragic and hilarious and ridiculous.

Obama wants to cut 400 billion from the deficit over the next 10 years. In other words, 40 billion per year. He says this is the most responsible budget since Eisenhower.

The deficit THIS YEAR is $1.65 TRILLION. Cutting $40 billion shaves off only 3% of THIS YEAR'S deficit. (The overall debt is $14 trillion). The total budget is $3.82 trillion, and revenue is $2.17 trillion.

I think it's funny that going $1.6 trillion dollars over the budget (9% of GDP, 76% MORE than income) is not only considered responsible, but AS responsible as Eisenhower, who - oddly enough - balanced the budget.

Here's the household analogy (all these number are proportionally scaled down from the federal budget):

Let's say I make $100k a year. I am currently $645k in debt. This year I WAS going to spend $176k, but decided to be Eisenhowerly and spend ONLY $173,720.

This way, over the next 10 years, I'm cutting out a total of $22,800 from what I want to spend. And I'll only be $645k + (10*$73.7k) =

$1,382,000.00 in debt.

But I DIDN'T spend that additional $22,800!!!

Now, IF I earnestly bragged about that, you'd think I was a fucking moron.

EDIT:

Also, the whole argument Obama presents is just rhetorical. He can cut discretionary spending to a tiny percentage without cutting ANYTHING - all he has to do is classify it as mandatory spending. The whole thing is huge a fraud.