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The Diaper We Know as Obamanomics

Jeff2422 Wrote: Feb 05, 2013 9:46 AM
One would think that all spending starts in the House since the Constitution says that, but that is not today's realty. The House has been abdicating its perogatives for a very long time. When they create these agencies, like the 100 or so under Obama care, they include spending increases for 5 to 10 years. In other words, the budgets are placed on auto-pilot. It takes a bill, passed in both houses, to "cut" these automatic spending increases.This is what they are talking about in DC when they say "cuts". It is this "baseline budgeting" idea which assumes an absolute baseline of spending and builds from there. As you can see, there is no incentive for an agency to be more efficient. Thus, spencing spirals out of control. (cont)
Jeff2422 Wrote: Feb 05, 2013 9:51 AM
The only time spending has been reigned-in was during and after the 1995 shut down when 85 House Repubs, nearly all new to DC, refused to supprt a CR (continuing resolution) to fund the government. These CR's are all that is left to the House, it is all or nothing thing. If you remember in 1995, the Dems and Clinton made a lot of political hay out of the shut-down. However, it slowed the growth of spending enough to allow the economy to catch-up and showed people that we can live without the massive spending. This resulted in the Graham-Rudman Bill which essentially required a balanced budget. This law expired in 2002 and Bush (and House Repubs) was OK with that because he had a war to fight and a new Homeland Sec Agency to fund.

Yes, it’s that time of year again.

It’s time to hold our nose and check the diaper that we have all come to know as Obamanomics.
While rightly this review should have been completed closer to the first of the year, there were too many events in the offing that were likely to impact the economy to take a stab at the broad outlines of an economic outlook nearer New Year’s Eve.

But now that congress and the president have agreed to get the tax increase off the table that they didn’t dare pass while campaigning, clear the children...

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