The Congressional Budget Office says the current year's budget deficit will be a record $1.5 trillion. It also says that over the next decade we're on track for annual deficits of "only" $768 billion. I suspect the CBO has hired Rosy Scenario to do the bookkeeping, but let's take that number at face value.
I'm now going to balance the budget, with the help of some experts.
I'll begin with things I'm most eager to cut. Let's privatize air traffic control. Canada did it, and it works better. Then privatize Amtrak. Get rid of all subsidies for rail. That'll save $12 billion.
End subsidies for public broadcasting, like NPR. Cancel the Small Business Administration. Repeal the Davis-Bacon rules under which the government pays union-set wages to workers on federal construction projects. Cut foreign aid by half (although we should probably get rid of all of it). So far, that's $20 billion.
Oops. That doesn't dent the deficit. We have to do much more.
So eliminate the U.S. Education Department. We'd save $94 billion. Federal involvement doesn't improve education. It gets in the way.
Agriculture subsidies cost us $30 billion a year. Let's get rid of them. They distort the economy. We should also eliminate Housing and Urban Development. That's $53 billion more.
Who needs the Energy Department and its $20 billion sinkhole? The free market should determine energy investments.
And let's end the war on drugs. In effect, it's a $47 billion subsidy for thugs in the black market.
I've already cut more than six times more than President Obama proposed in his State of the Union address. His freeze of nondefense discretionary spending would save only $40 billion.
But my cuts still total only $246 billion. If we're going to get rid of the rest of the CBO's projected deficit, we must attack the "untouchable" parts of the budget, starting with Social Security. Raising the retirement age and indexing benefits to inflation would save $93 billion. I'd save more by privatizing Social Security, but our progressive friends won't like that, so for now I'll ignore privatization.
The biggest budget busters are Medicare and Medicaid, and get this: the 400 subsidy programs run by HHS. Assuming I take just two-thirds of the Cato Institute's suggested cuts, that saves $281 billion.
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