Wintery Knight

…integrating Christian faith and knowledge in the public square

GAO report finds that Obama’s massive spending is not sustainable

The Government Accountability Office is a federal government agency that audits the finances of the federal government. They report to Obama and they are part of his administration. So what do they think about his plans to fix the economy?

Take a look at this article from Breitbart.

Excerpt:

The Government Accountability Office (GAO)—the personal auditor of President Obama and the federal government—released its assessment of the federal government on January 17, 2013. The report’s findings illuminate just how dire America’s spending problem is and, therefore, how little the current cuts debated by Congress do to fix it.

The findings of the paper include these excerpts (emphasis added):

  • “The projections in this Report indicate that current policy is not sustainable… Preventing the debt-to-GDP ratio from rising over the next 75 years is estimated to require some combination of spending reductions and revenue increases that amount to 2.7 percent of GDP over the period.”
  • “It is estimated that running primary surpluses that average 1.0 percent of GDP over the next 75 years would result in the 2087 debt-to-GDP ratio equaling its level in fiscal year 2012, which compares with primary deficits that average 1.7 percent of GDP under current policies.”
  • “It is noteworthy that preventing the debt-to-GDP ratio from rising over the next 75 years requires that primary surpluses be substantially positive on average. This is true because projected GDP growth is on average smaller than the projected government borrowing rate over the next 75 years.”
  • “If the primary surplus was precisely zero in every year, then debt would grow at the rate of interest in every year, which would be faster than GDP growth.”
  • “The differences between the primary surplus boost starting in 2023 and 2033 (3.2 and 4.1 percent of GDP, respectively) and the primary surplus boost starting in 2012 (2.7 percent of GDP) is a measure of the additional burden policy delay would impose on future generations. Future generations are harmed by a policy delay of this sort, because the higher the primary surplus is during their lifetimes the greater the difference is between the taxes they pay and the programmatic spending from which they benefit.”

[...]This is the reality: when President Obama’s personal auditor says the federal government has a spending problem, it indeed has a spending problem—and one that is growing rapidly.

Something to think about during the debate on sequestration. We can’t stay on the course that we’re on. Things will not be OK.

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CBO: Unemployment rises to 9.1% in 2013, health care spending doubles by 2022

Here are the raw numbers from the non-partisan Congressional Budget Office, as reported by CNS News:

The Congressional Budget Office (CBO) is projecting that if changes in federal taxing-and-spending policies already enacted and set to take effect at the beginning of next year do in fact take place, the unemployment rate will climb to 9.1 percent.

In a report released on Aug. 22, An Update to the Budget and Economic Outlook: Fiscal Years 2012 to 2022, CBO’s baseline projections show that by the fourth quarter of 2013 the national unemployment rate will be 9.1 percent.

[...]Widely referred to as the “fiscal cliff,” the expiration of the Bush tax cuts and over $1 trillion in automatic defense and discretionary cuts as a result of last year’s failed budget deal are set to take effect in January 2013.

[...]If no action is taken by Congress, current CBO projections show that unemployment will not return to pre-recession levels until 2017.

And more CBO: federal health care spending will exceed all discretionary spending by 2016:

Under current law, federal health care spending is on pace to exceed all discretionary spending by 2016, according to the Congressional Budget Office (CBO).

The change is due to large increases in Medicare and Medicaid spending and added spending under the Affordable Care Act (Obamacare) over the next decade, a feat the Tax Foundation calls a “truly unprecedented and scary” scenario.

The nonpartisan tax research group analyzed recent CBO projections of the budget for 2012 to 2022, finding that over the next decade Medicare spending will increase from $550 billion to $1.064 trillion, while Medicaid would more than double from $253 billion to $592 billion.

In addition, new exchanges and subsidies under Obamacare will force mandatory healthcare expenditures to grow from $25 billion to $181 billion in 2022.

“In total, healthcare entitlement spending is due to more than double, from $828 billion this year to $1.837 trillion in 2022,” according to the Tax Foundation.

“This means healthcare spending will overtake all discretionary spending in 2016 – Obama’s last year in office if reelected,” the group said.

And more CBO: taxes will shoot up by more than 30% between 2012 and 2014:

The amount of money the federal government takes out of the U.S. economy in taxes will increase by more than 30 percent between 2012 and 2014, according to the Budget and Economic Outlook published today by the CBO.

At the same time, according to CBO, the economy will remain sluggish, partly because of higher taxes.

“In particular, between 2012 and 2014, revenues in CBO’s baseline shoot up by more than 30 percent,” said CBO, “mostly because of the recent or scheduled expirations of tax provisions, such as those that lower income tax rates and limit the reach of the alternative minimum tax (AMT), and the imposition of new taxes, fees, and penalties that are scheduled to go into effect.”

The U.S. economy, CBO projects, will perform “below its potential” for another six years and unemployment will remain above 7 percent for another three.

And the GAO reports that the Obama administration has waived work requirements for welfare programs, which reduces revenues from employee income taxes and increases spending on welfare programs.

Now you might expect that the Democrats would have some bold plan to tackle unemployment, spending and high taxes. And they do!

Bold policy ideas at the Democrat National Convention

Take a look at this video on bold, innovative tax policy from the DNC convention:

That will fix unemployment for sure.

And they want to augment that tax policy with some reasonable pro-growth regulations:

If you don’t think that this is a good plan to solve our economic problems, then Democrats will say that you’re a racist homophobic Islamophobic sexist bigot.

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New government report finds $400 billion dollars of waste and duplication

A new Government Accountability Office report uncovers massive government waste.

Excerpt:

The government could save tens of billions of dollars each year if redundant and duplicative programs were cut, according to a report released by the Government Accountability Office on Tuesday.

The GAO report examines programs and services that could be streamlined to increase efficiency of government and save money. It looked at areas of where it found either duplication or overlap of services — when “two or more agencies or programs are engaged in the same activities or provide the same services to the same beneficiaries — and fragmentation, when “more than one federal agency (or more than one organization with an agency) is involved in the same broad national interest.” Fragmentation often amounts to an overlap.

Here are some examples of the $400 billion of wasteful spending and duplication.

Excerpt:

This year, GAO identified 32 new areas of duplication and 19 additional areas of waste and inefficiency. The report cites duplication in almost a thousand individual programs, costing taxpayers over $300 billion per year. This is on top of more than $100 billion identified in last year’s report.

Examples include:

  • 37 uncoordinated EPA laboratories and 94 “green building” programs for which costs cannot be determined because “information agencies provided was incomplete and unreliable.”
  • $736 million spent on 14 different diesel emissions programs and federal funding for 55 surface freight transportation programs.
  • 160 various housing assistance programs at a cost of $170 billion annually.

But that’s not the only way for the government to waste money… they can give it to green energy companies that go bankrupt!

Excerpt:

Abound Solar Inc., which received a $400 million U.S. loan guarantee to build two factories, shut down production and fired 180 people after panel prices fell by half last year.

Abound stopped making its first-generation solar panels and will refit its manufacturing lines to produce more efficient products, the Loveland, Colorado-based company said yesterday in a statement.

The move is a response to the same forces that drove Solyndra LLC into bankruptcy after it received a $535 million loan guarantee from the same U.S. Energy Department program, said Pavel Molchanov, an analyst at Raymond James & Associates Inc. in Houston.

You can read this article to see how Abound Solar was connected to wealthy Democrat party contributors.

Filed under: News, , , , , , , , , , ,

Stephen Harper’s Conservative Party cuts federal spending by 6.2%

Prime Minister Stephen Harper

Prime Minister Stephen Harper

More news from up north. (H/T Ben)

Excerpt:

Federal government expenditures are set to fall next fiscal year by $16.5-billion, or 6.2%, with big cuts to regional development and environment programs, according to documents tabled Tuesday.

That would leave total expenditures for the 2011-12 year at $250-billion, with the bulk taken up by transfer payments to individuals and governments, and operating costs. Just over $30-billion of that expense is attributed to refinancing Canada’s debt.

The figures, contained in spending estimates provided by the Treasury Board, sees budget increases for departments entrusted with security and law enforcement – such as a 21% boost to jails — but cuts of roughly 20% to Environment Canada, Natural Resources Canada and Agriculture and Agri-Food Canada.

Government is supposed to be concerned with security and law enforcement, not with environmentalist wastefulness.

Here’s Paul Ryan. He would like to cut our budget by 6.2% – and maybe even more.

If Canada is cutting their government waste, then why can’t we?

There are a lot of programs that we could be cutting.

Excerpt:

The federal government could save billions in taxpayer dollars annually by consolidating duplicative government programs, according to a new report.

The newly-released report from the Government Accountability Office “makes us all look like jackasses,” Sen. Tom Coburn (R-Okla.) told reporters Monday night.

The conservative senator said the report — which identifies redundancies in more than 546 individual programs — reveals why the United States is $14 trillion in debt.

“Anybody who says we don’t look like fools up here hasn’t read the report,” he said.

[...]The GAO reviewed 34 areas (among them agriculture, defense and social services) where agencies, offices or initiatives have similar or overlapping objectives. The report also looked at 47 additional cost-saving opportunities related to more general government efficiency. For instance, the report said, “Improved corrosion prevention and control practices could help [the Defense Department] avoid billions in unnecessary costs over time.”

Addressing duplicative efforts on even a single issue could save billions, the report found. For instance, the GAO says the government could save up to $5.7 billion annually by addressing potentially duplicative policies designed to boost domestic ethanol production. Additionally, the Defense Department could save $460 million annually by making broader changes to the governance of its military health care system.

The report finds that there are 15 agencies involved in food safety, 80 programs involved in economic development and more than 100 involved in surface transportation. There are 10 agencies and 82 programs involved in teacher quality, and more than 20 agencies and about 56 programs involved in financial literacy efforts. There are about 2,300 investments across the Defense Department to modernize its business operations.

House Majority Leader Eric Cantor (R-Va.) said today that in order to foster long term economic growth, “we’re going to deal with the pressing issues of regulatory waste in our agencies, as well as long term issues facing our country with entitlement programs.”

This is why we have to stop giving private sector money to government. They don’t earn any money by making things or helping people – they don’t sell anything useful. They just steal money from the productive workers and businesses and then they waste it and run up trillion dollar deficits. This kind of corruption, fraud and waste would not survive in small businesses, and probably not even in big businesses. Business have to be efficient or they go bankrupt. They have to perform or their competitors will have them for lunch. The consumer is king in the private sector.

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