Poll: Federal Budget cuts

[charrison]

Would you support a 10%-15% across the board federal budget cut? This would come pretty close to delivering a balanced budget.

 

[Lucky]

no, we need to get rid of the crap and waste. Like with the military, getting 400 billion a year and having trillions of dollars unaccounted for.

 

[SuperTool]

Yes. Not only that, but if Bush balanced the budget, he would get my vote.

 

[charrison]

Originally posted by: SuperTool
Yes. Not only that, but if Bush balanced the budget, he would get my vote.

You are not the only one who wants to see it, but I think there will be too much pain in DC for that to happen.

 

[SuperTool]

Originally posted by: charrison

Originally posted by: SuperTool
Yes. Not only that, but if Bush balanced the budget, he would get my vote.

You are not the only one who wants to see it, but I think there will be too much pain in DC for that to happen.

No pain, no gain. GOP has to decide if it's a party of small government or just small taxes.

 

[charrison]

Originally posted by: SuperTool

Originally posted by: charrison

Originally posted by: SuperTool
Yes. Not only that, but if Bush balanced the budget, he would get my vote.

You are not the only one who wants to see it, but I think there will be too much pain in DC for that to happen.

No pain, no gain. GOP has to decide if it's a party of small government or just small taxes.

Well we can fault the GOP for not trying, but do you think such a cut would make it past a DNC filibuster as "vital" programs were cut?

 

[Christoph]

I don't understand how a 15% cut could achieve a balanced budget.

Based on the summary tables from OMB, the total discretionary spending for fiscal year 2004 is $819 billion, while the projected deficit is $307 billion.

Since you're not going to be able to implement cuts in non-discretionary entitlements like social security, military retirement, and interest on the federal debt, wouldn't you have to cut discretionary spending 37% to balance the budget?

 

[charrison]

Originally posted by: Christoph
I don't understand how a 15% cut could achieve a balanced budget.

Based on the summary tables from OMB, the total discretionary spending for fiscal year 2004 is $819 billion, while the projected deficit is $307 billion.

Since you're not going to be able to implement cuts in non-discretionary entitlements like social security, military retirement, and interest on the federal debt, wouldn't you have to cut discretionary spending 37% to balance the budget?

10-15% across the entire budget would bring the budget into balance or very close to it. If cuts have to be made, everyone has to carry the burdon of such cuts(defense contractors and seniors alike). If balancing the budget is for the good of the country, I think everyone would be willing to take a little pain to make it happen.

 

[Lucky]

wouldnt that cause deflation on a serious level?

 

[charrison]

Originally posted by: Lucky
wouldnt that cause deflation on a serious level?

I am sure it would have many implications, both positive and negative. Budget cuts would let more money stay in the economy, but budget cuts would also cause a rise in unemployment as goverment workers get laid off.

 

[SuperTool]

Deflation is good if you have $$$. Not so good if you have debt. Also not so good for earnings and stock prices.

 

[LunarRay]

Originally posted by: SuperTool
Deflation is good if you have $$$. Not so good if you have debt. Also not so good for earnings and stock prices.

Conversely, inflation is good if you don't have $$$ and not good if you don't have debt?

Deflation is simply (IMO) the result of monitary and fiscal policy implemented that tweeked to much in the wrong direction. Inflation the same. I'd rather be somewhat deflated in growth than out of control in growth. Actually, I'd like alternating quarters of 0 growth and 4% growth. Then no one could agree and possibly do nothing and let it fix itself over time to a more reasonable annual growth of 2 to 3 % with low inflation and transition to a stable workforce through mfg and associated service industry gains. Bring back the mfg.

 

[SuperTool]

Inflation: Prices go up
Extra cash: Purchasing capacity goes down - bad.
Debt: The purchasing capacity of the debt goes down - have to give up fewer things to pay off debt - good

Deflation: Prices go down
Extra cash: Purchasing capacity goes up -good
Debt: The purchasing capacity of the debt goes up - have to give up more things to pay off debt - bad.

 

[BaliBabyDoc]

Blind budget cuts are almost as idiotic as tax cuts. Rational minds would set realistic priorities and then manage the budget accordingly. As soon as this administration gives up on "World Domination" as foreign policy and "Starve the GOP-controlled Legislature/Executive so they cannot spend" as domestic policy . . . we might have a chance.

 

[cpumaster]

Originally posted by: HJD1

Originally posted by: SuperTool
Deflation is good if you have $$$. Not so good if you have debt. Also not so good for earnings and stock prices.

Conversely, inflation is good if you don't have $$$ and not good if you don't have debt?

Deflation is simply (IMO) the result of monitary and fiscal policy implemented that tweeked to much in the wrong direction. Inflation the same. I'd rather be somewhat deflated in growth than out of control in growth. Actually, I'd like alternating quarters of 0 growth and 4% growth. Then no one could agree and possibly do nothing and let it fix itself over time to a more reasonable annual growth of 2 to 3 % with low inflation and transition to a stable workforce through mfg and associated service industry gains. Bring back the mfg.

inflation is not good if you don't have debt because it means you're going to make a purchase when prices are going up, which means people with debt are paying less for stuff you're paying now or in the future, plus inflation is good for company earnings and stock prices somewhat, but too much inflation could also lower stock price since it weaken dollar and drive out investors...
too much deflation is also not good because it reflect a stagnan economy such as in Japan...
we not gonna be able to bring back much of mfg without govt subsidize or until our salaries are low enough to compete with overseas... or 100% robot operated mfg.

 

[LunarRay]

Originally posted by: SuperTool
Inflation: Prices go up
Extra cash: Purchasing capacity goes down - bad.
Debt: The purchasing capacity of the debt goes down - have to give up fewer things to pay off debt - good

Deflation: Prices go down
Extra cash: Purchasing capacity goes up -good
Debt: The purchasing capacity of the debt goes up - have to give up more things to pay off debt - bad.

Inflation... wages go up too. extra cash gets higher interest rate
the item the debt purchase is fixed in price and you are using inflated wages to pay the debt (assuming fixed interest rate)
In inflation you spend less this creates excess inventory which begets lower prices and inflation drops.
the national debt rises as debt service rises and drops in deflated or depressed economy. I'd hope we stay depressed until we get some more of the national debt fixed from short term then we can retire the debt in the infation period with higher tax revenue...
I'm tired and hope I made some sense.

 

[zephyrprime]

Now is the worse time to balance the budget! Haven't you guys ever heard of Keynes?! Economic stimulus from the government during recessionary times can help mitigate the pain and duration of recessions. Now is the time for budget deficits. The time for balanced budgets is during boom times.

 

[Linflas]

Originally posted by: zephyrprime
Now is the worse time to balance the budget! Haven't you guys ever heard of Keynes?! Economic stimulus from the government during recessionary times can help mitigate the pain and duration of recessions. Now is the time for budget deficits. The time for balanced budgets is during boom times.

You do realize that Keynesian economics is just one school of economic theory and somewhat out of fashion at the moment?

 

[Alistar7]

Originally posted by: zephyrprime
Now is the worse time to balance the budget! Haven't you guys ever heard of Keynes?! Economic stimulus from the government during recessionary times can help mitigate the pain and duration of recessions. Now is the time for budget deficits. The time for balanced budgets is during boom times.

pretty good evidence to suggest a balanced budget can lead to a boom, foreign investemnt capital raises significantly, as does domestic investment...

 

[Alistar7]

Originally posted by: BaliBabyDoc
Blind budget cuts are almost as idiotic as tax cuts. Rational minds would set realistic priorities and then manage the budget accordingly. As soon as this administration gives up on "World Domination" as foreign policy and "Starve the GOP-controlled Legislature/Executive so they cannot spend" as domestic policy . . . we might have a chance.

Global domination? The rest of the world is very lucky you are wrong about that. They are also lucky the average American doesn't feel that way.

 

[Bigdude]

We need to cut the waste, eliminate all social programs, education programs, state give aways etc... Then we can increase the military budget to 1 trillion a year, $400 billion is a paltry sum of money.

 

[zephyrprime]

You do realize that Keynesian economics is just one school of economic theory and somewhat out of fashion at the moment?

I know it's only one school of thought but I didn't realize it was out of fashion right now. I don't agree with some aspects of Keynesian theory either but I do think that the approach to fix fiscal problems many citizens naturally think of during a recession aren't neccessarily a good idea.

pretty good evidence to suggest a balanced budget can lead to a boom, foreign investemnt capital raises significantly, as does domestic investment...

I would agree with that during non-recessionary times. But right now, trying to get companies to invest too much like trying to push on a string. We have very low rates as it is but because of a poor business climate, companies aren't very willing to invest for the future.

 

[mugs]

Originally posted by: charrison


10-15% across the entire budget would bring the budget into balance or very close to it. If cuts have to be made, everyone has to carry the burdon of such cuts(defense contractors and seniors alike). If balancing the budget is for the good of the country, I think everyone would be willing to take a little pain to make it happen.

Have you talked to any senior citizens about that idea? Many of them are struggling to get by as it is, I'm not sure how many would be willing to take that cut. "Lets see, I can take my heart medication 85% of the time... sounds like good odds to me!"

And where do you think all of that goverment spending goes? To Canada? No, it goes to hard-working Americans (and some not-so-hard-working ones). Trimming the fat would be nice, but budget cuts across the board? I'll pass.

I read in Newsweek I think recently that we currently spend more than the next 11 countries combined on defense, and before long we will spend more on defense each year than the entire rest of the world combined. I guess that's the price you have to pay when you piss off the rest of the world.

 

[Rogue9]

I would like to see the budget cut by much more than 10-15%.

Have you talked to any senior citizens about that idea? Many of them are struggling to get by as it is, I'm not sure how many would be willing to take that cut. "Lets see, I can take my heart medication 85% of the time... sounds like good odds to me!"

Tough. It's not the government's job to provide medicine to seniors. I suppose you believe in socialized health care?

And where do you think all of that goverment spending goes? To Canada? No, it goes to hard-working Americans (and some not-so-hard-working ones). Trimming the fat would be nice, but budget cuts across the board? I'll pass.

Really? If so, why should you give money to the government just to have them dole it back to you?

I read in Newsweek I think recently that we currently spend more than the next 11 countries combined on defense, and before long we will spend more on defense each year than the entire rest of the world combined. I guess that's the price you have to pay when you piss off the rest of the world.

This statistic fails to look at the whole scheme of things. Americans spend more on EVERYTHING then the next ump-teen countries. Defense, education, you name it.

 

[mugs]

Tough. It's not the government's job to provide medicine to seniors. I suppose you believe in socialized health care?

Did you look at what I was replying to? He was suggesting taking away social security benefits. If you take away social security, less well-off senior citizens cannot afford their basic needs.

Really? If so, why should you give money to the government just to have them dole it back to you?

I was referring to people whose jobs are in some way funded by the federal government. That includes not only employees of the federal government, but also educators, defense contractors, and more. If you cut off their funding, those people lose their jobs. Do you think we need more unemployment right now? I know I could do without more competition for jobs.

This statistic fails to look at the whole scheme of things. Americans spend more on EVERYTHING then the next ump-teen countries. Defense, education, you name it.

OK, then you tell me how many countries in the world spend as much on defense as a percentage of their GDP as we do. That would level the playing field, but I'm confident we'd still be on top. If we spend so much more on education than other countries, why does our education system suck?