What does a $1.1Trillion Federal Spending Bill buy these days?

At first, I read the CNN article on the $447 billion spending bill that the Senate passed this weekend and then I came across an AP article on the Lynchburg News Advance web site that listed the same story as a $1.1 trillion spending bill. Why the massive discrepancy between the two stories on the same spending bill? The CNN article highlights the domestic, non-Defense spending while the AP article adds both the domestic ($447 billion) and the Defense spending ($626 billion) to arrive at the $1.1 trillion figure. The problem with the AP article is that the Senate hasn’t passed the Defense part of the spending bills yet. But this raises the question: what kinds of Christmas goodies do you get from the Federal Government for $1.1 trillion?

For starters, it will likely mean that the Federal Government’s credit card limit will have to increase. The Senate will have to vote to raise the debt ceiling to accommodate the end of the year funding for the Defense budget. On the $447 billion portion, that goes to mandatory payments towards Medicaid and Medicare and also increases funding to things like the FBI, the Veterans Health Administration, and the National Institutes of Health, public schools, highways, and even NASA. It also covers $3.9 billion in spending on more than 5,000 local projects (a.k.a. Pork Projects), a 2 percent pay increase for federal employees and funding for other small scale projects.

Then there is the $626 billion Defense bill that will likely be passed this week, to continue funding the military and other National Security agencies and includes billions of Pork Projects (most all of them inserted anonymously). While there are certainly loads of things that can be and should be cut from the domestic spending bill the Senate just passed, but is there nothing in the Defense bill that can’t be cut? Defense spending accounts for a third of our Federal Budget. According to the information about the Federal Budget on Wikipedia, the 2009 Department of Defense Budget is $515.4 billion and the Global War on Terror Budget is $145.2 billion (2008). The Defense Budget accounts for around 55% of the Discretionary spending side of the Federal Budget ($1.21 trillion). This is compared to the mandatory spending, which is $1.89 trillion includes things like Social Security, Medicare, Medicaid, SCHIP, Unemployment, Welfare, interest on the National Debt, and other mandatory programs.

Discretionary means that you don’t have to spend the money. In tough times this also means that things will get a harder look and might not get the money they did the previous year or two. In the uncertain economic times we live, and with the fluid situation in the Persian Gulf region, the Defense Budget is the only part of the Discretionary budget that gets a pass with very few exceptions. The Defense Budget dwarfs everything else (even when you don’t add the Global War on Terror). Keep in mind, the Federal Government has no separate funding for the Global War on Terror. Every other war we’ve fought has been funded by some other means than just spending money out of the current Federal Budgets.

So, what does a $1.1 trillion spending bill get us as we head into the Christmas Holidays? We get to keep the Federal Government running. As painful as that is to small government and Tea Party blowhards, it means that maintenance will continue on our roads, bridges, and overpasses. It means that law enforcement agencies (like the FBI) will continue to be funded, as well as keeping open the thousands of crumbling public schools and pay for the teachers, staff, and administrators. State budgets, already cut to the bone, will get another shot in the arm to keep them functioning as well. It also means that the most powerful military in the world will continue to function and they can continue to recycle the thousands of brave men and women that have gone above and beyond the call of duty and get them the best socialized (military) medical treatment in the world, as well as provide them with mental health services that have been severely lacking.

Regardless of what people have been led to believe, our tax money is spent relatively wisely. But, at some point, we are going to have to face reality of choosing between cutting services or raising taxes to pay off the Federal Credit Card (a.k.a. the National Debt).

Picture found at: http://www.lowculture.com/archives/images/budget.jpg

Time Magazine Article: The ‘00s – Say Goodbye (at Last) to the Decade From Hell

What will we remember from the first decade of the 21st Century? Time Magazine concludes that it was one of the worst post-World War II, peacetime, decades ever. Quite a bit was pure nature unleashed but most of it was self inflicted. An excellent article by Time’s Andy Serwer hits the highlights spanning the decade from 2000 to today. Even though we haven’t even reached 2010 yet, and 2011 is still a little more than a year away, I have to agree that the faster we can get out of this decade the better.

Regardless of your political views or economic philosophy, the measurable events of this last decade are pretty bad. While my generation, Generation x, is just starting to flex its collective economic and political muscle, I hope that this trial by fire experience has instilled a sense of practicality and common purpose that has been missing for quite some time. A lot of mistakes were made during this decade, mistakes that have rocked us to the foundation of our economy and society. In short, it will get better, it should get better, and it has to get better (just have to get past December 21, 2012).

Please feel free to click on the hyperlink above to the article and come back to offer your thoughts and perspective. Could it be that Generation X is the next Greatest Generation since the generation that led us through the Great Depression and World War II?

Picture found at:
http://www2.ttcn.ne.jp/~voce-someno.y/images/open_fire.gif

RNC Purity Pledge: And they call me a COMMIE

I don't know if I should laugh, shrug it off, or be fearful that the Republicans have a list like this. This has the scary ring of "Party Loyalty" that Communist Totalitarianism (or National Socialism) demands. In similar fashion, the Republicans are PURGING the Party of anything that whispers of cooperation, bi-partisanship, or a moderation of Conservative Ideology.

In case you missed it, in order to get Republican endorsements or financial support, you have to support 7 out of the 10 Republican Commandments:

(1) support smaller government, smaller national debt, lower deficits and lower taxes by opposing bills like Obama's "stimulus" bill;

(2) Support market-based health care reform and oppose Obama-style government run healthcare;

(3) Support market-based energy reforms by opposing cap and trade legislation;

(4) Support workers' right to secret ballot by opposing card check;

(5) Support legal immigration and assimilation into American society by opposing amnesty for illegal immigrants;

(6) Support victory in Iraq and Afghanistan by supporting military-recommended troop surges;

(7) Support containment of Iran and North Korea, particularly effective action to eliminate their nuclear weapons threat;

(8) Support retention of the Defense of Marriage Act;

(9) Support protecting the lives of vulnerable persons by opposing health care rationing, denial of health care and government funding of abortion; and

(10) Support the right to keep and bear arms by opposing government restrictions on gun ownership; and be further.

Boy! I'm sure glad they clarified all that. I guess that I'll just have to live with the disappointment of knowing that I won't get their support or money.

Healthcare Reform: Expanding quality, affordable health care options no help to Virginia according to Gov-Elect McDonnell

In case you missed it, Gov-Elect Bob McDonnell made the Sunday morning news circuit to crow about last Tuesday’s sweeping victory in Virginia. When asked about the U.S. House of Representative bill that was narrowly passed (220-215) just before midnight on Saturday, Gov-Elect McDonnell admitted that he hadn’t read the entire bill but that “either way my preference would be not to have Virginia participate from what I know this plan contains.” He went further stating that he’s “very concerned about turning this significant section of the American economy over to the federal government.” Where do I begin…?

First, for all the ranting and raving from the Tea Baggers, Birthers, and the rest of the Conservative Purists about Congressional Members (Democrats and President Obama) about not reading the bill, when are they going to pick up their pitchforks and torches and go after the Gov-Elect for not having “read the entire bill?” The answer… They’re not. They got their guy and they are just fine to continue using duct tape and Crisco for their version of health care.

Second, while the U.S. Federal Government is the largest employer in the nation and has greater collective bargaining power to negotiate rates and reimbursements to private insurers, and the Medicaid and Medicare systems (along with the VA, and Armed Services) are government run and for the most part work very well, they still don’t have the 25% administrative costs that private insurance has and passes along to their policy holders. Also, private health insurers are exempt from federal anti-trust laws which allow them to collaborate and “conspire” to set rates in a totally un-capitalistic and non-competitive system. For all their hollow advocacy for pure market competition, fiscal and social Conservatives continue to support the private health insurance industry which already has a non-competitive advantage over this “significant section” of the American economy.

I guess that the additional public options that Gov-Elect Bob McDonnell supports are laying hands, speaking in tongues, dancing with rattlesnakes and drinking their venom, or praying in front of a TV tuned to the 700 Club. Lest we forget that God gave man FREE WILL to make rational decisions. There’s nothing rational about healthcare reform that doesn’t have some form of a Public Option and doesn’t take away the anti-trust exemption from private health insurance to make them compete. It just isn’t Christian to support suffering and greed.

Healthcare Reform: If you can't get a Public Option, repeal the McCarran-Ferguson Act

The calls are growing louder to repeal a little known law that exempts the Health Insurance Industry from Federal Antitrust laws. On Wednesday, Senate Majority Leader Harry Reid (D-NV) testified before the Senate Judiciary Committee about the competitive advantage that the Health Insurance Industry has due to the exemption that the McCarran-Ferguson Act gives the industry from Federal Antitrust laws. This latest salvo comes in response to a questionable report from the Health Insurance Industry that if the current Senate Bill becomes law, that premiums will skyrocket for all Americans. Passed back in 1945, the McCarran-Ferguson Act exempted the fledgling Health Insurance Industry from antitrust laws. Only Major League Baseball is exempt from antitrust laws in the same way.

This exemption has allowed the Health Insurance Industry to work together to collectively establish rates on premiums and manipulate other costs associated with payments to doctors for treatments. We see how well being exempt from antitrust laws has helped Major League Baseball - with multi-million dollar contracts for players and billion dollar ballparks in NTC. The affordability of going to a Major League Baseball game has long since left the average American to enjoy a day a the ballpark with their family. Now, the affordability of Health Insurance is beginning to cripple the financial underpinnings of the nation.

Most Americans, I'm willing to assume, didn't know that the Health Insurance Industry was exempt from Federal Antitrust laws. If Congress repeals the law, it would allow them to break up large Health Insurance Companies the same way that they did to Ma Bell (AT &T) back in the 1980s. This make the most sense, and if the Health Insurance Industry wants to compete across state lines, then do it without the security blanket of the McCarran-Ferguson Act.

The Nobel Peace Prize goes to... Barack Obama?

Certainly a surprise choice, but if you can't land the 2016 Olympics not a bad consolation PRIZE. Sooo... TAKE THAT SATURDAY NIGHT LIVE!!!!

President Obama is only the third sitting United States President to wind the prize, joining Presidents Theodore "Teddy" Roosevelt and President Woodrow Wilson. Wilson won his in 1919, after the end of World War I. This is truly an exclusive club and also puts President Obama is rarefied company.

Obama has been widely criticized by Republicans and many conservatives for spending too much time traveling the world and not focusing on domestic economic issues and not being more engaged in the Healthcare Reform efforts in the United States. The truly stunning move by the Nobel Prize Committee in naming Barack Obama the recipient of the Nobel Peace Prize is that it usually goes to someone who has spent a significant part of their life in the pursuit of peace. President Obama has only been in office for 9 months.

I don't think that the Nobel Peace Prize has ever gone to a leader of any nation that is engaged in any war, let alone two wars. But, Obama has reached out to almost every corner of the world to make that case that the United States is back and intends to full fill the promise that it has been hyped up to be for so long.

So again, TAKE THAT SNL!!!

VA 5th Congressional District: State Senator Rob Hurt signaling he intends to run

I've had many conversations over the last year about the bench strength of the Republicans in the 5th Congressional District. Nearly 15 people have either announced or indicated their intent to run, but the strongest among them has now indicated he intends to challenge Tom Perriello. According to the Lynchburg News Advance, State Senator Rob Hurt (R-Chatham) will file papers with the Federal Election Commission to become a candidate for the GOP nomination in the 5th Congressional District. While Hurt is little known outside of Southside Virginia, he definitely fits the mold of the young conservative with a traditional wife and kids. Just to be clear, there is absolutely nothing wrong with this.

Rob Hurt's campaign themes are clear - low taxes, less government, less regulation, conservative social values will put this country back on track. There is little doubt that he is going to bang this drum all day and everyday through the 2010 Midterm Elections, but the questions that he will have to answer at some point are how are we going to pay for all the rural infrastructure that is needed spur economic development, promote job growth and creation, and also digitally connect rural communities with high-speed Internet that is holding so many things back. Our overall national infrastructure has been rated a "D" and this has the greatest impact to economic development and commerce than cutting taxes. At some point, we have to pay for something and cutting taxes will not build roads, bridges, and overpasses. But again, we get the government we deserve.

I can see the money spent in this race exceeding $5 million, easily. The only other question about Rob Hurt is his ability to raise the kind of money it is going to take to mount a serious challenge, and he has not had a race where he has needed to raise more that $200,000 to win. We shall see...