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)