Wednesday, February 3, 2010

The Budget Problem is Simple: LOOK!

To see what is going wrong with the Budget one need look at some simple historical numbers. Just to to the GPO web site and start looking. I want to go over four charts and show what specifically is going wrong and how it can be fixed NOW.

1. History: The following chart shows that the problems began in 1932-1934. It was how FDR responded to the then Recession and growing Depression. This shows the rate of outlays starting to explode and do so significantly over the past four years as well as going forward.

2. Outlays: The actual outlays by category for 2008 and 2011 are shown below. One must ask why DoD, HHS, Treasury and Agriculture are growing at the rates they are. We are leaving a War in Iraq, we have no real farm problems, HHS does nothing of any merit, and Treasury needs money like a drunk need a drink! The massive amounts of the Budget explosion are all here.

3. Percent Change 2008-2011: Why has GSA exploded to a 550% change! Can anyone explain that? Is is the new furniture for the new Administration? What in God's name caused this increase. It dwarfs all others. Yet look in the swamp and we see almost every department with over a 50% increase, every department! Why should Labor have doubled! What has State done to warrant a 75% increase from Bush!

4. Annualized Percent Increases: As the working person sees more than 10% unemployment, no salary increases, increases in Federal and State Taxes, we see bloating across the board in almost every department. Energy is growing at a 40% annual rate! What are they doing, one would have though electric cars are now a reality. We are not building nuclear weapons, and they only cost about a half a million a piece anyhow! What is Labor doing at a 37.5% annualized rate of increase! Department by Department has been uncontrolled.

The Budget Problem, simple, there is no management control. The people in charge have just allowed rampant explosions on a Department by Department basis. The solution, simple, the Department must keep their budgets at or below the annualized salary increase rate of the typical non Government worker. Also Government salaries must be no more than 80% of comparable commercial salaries.

There are so many obvious solutions to the budget that one is amazed. Having run many companies and having sat as heads of Public Board Audit Committees, even after Sarbanes Oxley, I am amazed as to how abusive of the taxpayer the Government is. One truly wonders where the Press is. Or perhaps as I noted yesterday they are now all in the pay of the Government!