Monday, April 27, 2009

Obamanomics

How to claim you are saving money while simultaneously spending like a drunken sailor.

There was an interesting interview published in the Journal with Senator Judd Gregg of New Hampshire. One thing I found really rich was the chicanery in the budget process that leads to false claims of budget savings...

Well, except for one point: "the huge savings that they claimed on defense spending, which was a total fraud." Mr. Gregg refers to the fact that the administration's budget builds the full cost of the surge in Iraq into the budget baseline. Under that assumption, we would continue to appropriate money for the surge every year for the next 10 years. That allows the administration to "find" $1.6 trillion in savings, "all of which is spending we would never do," according to Mr. Gregg.

It is a fine example of budgetary shenanigans. Claim we are going to spend money that we really were never going to spend in the first place and then slash that imaginary spending and claim to have saved money. That is like me saying I was going to buy a Porsche this year even though that would never happen, and then announce that I saved $80,000 this year by not buying a car that I never would have bought in the first place! Or imagine a store marking the price of a gallon of milk up from $3 to $6, and then putting it “on sale” for $3.25. You haven’t saved anything, in fact you are spending more for it but the store spins it as a savings.

This is the thinking behind Obamanomics and that is the kind of neo-socialist thinking that is going to destroy this nation.
Post a Comment