Friday 1 October 2010

Now the Republicans have a Plan-with Almost No Detail.

In the news here it is being reported that the Republicans have pledged to cut $100 billion from the federal budget next year by slashing discretionary domestic spending-i.e. education, health and public services..

This would be a 21% reduction of the current domestic discretionary spending budget. Of course they haven't specified any major targets before election day.

They have however earmarked where they wouldn't take it from: the military, and any programs for seniors or veterans.

Their argument is that spending is more effective than tax increases to start balancing the budget.

The overall budget is $3.6 trillion. Social Security, Medicare, servicing the National Debt and discretionary spending on defense eat up almost $3 trillion of the budget. Discretionary spending outside defense is less than $500 billion- and that is where they want to remove the 21%.

If the U.S. doesn't address Social Security and Medicare the cuts in health, education and public services will wreak hardships to many, without providing any real relief to the overall budget picture.

But this is an election year and the Republicans, and the Tea Party are targeting "big government". Cut taxes and you cut the government. So the Republicans advocate cutting $100 billion while they advocate maintaining the tax cuts for the nation's wealthiest that could cost over $40 billion.

It is strange how in a democracy some 5% of the population seems to rule the other 95%. I'm not sure that's what our founding fathers had in mind.

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