Showing posts with label deficits. Show all posts
Showing posts with label deficits. Show all posts

Monday, June 2, 2025

DOGE, the Big Beautiful Bill and the 'Rich Men North of Richmond

 I was under the illusion that with Donald Trump back in charge and the wind at his back Washington Republicans might actually take off the gloves and say eff-it and take on the swamp.  With the failures inherent in the Big Beautiful Bill, it appears I was wrong.  I don’t blame Trump. This abysmal betrayal of the American people was written in the halls of Congress… 

The Republicans in Congress talk a good game, but when it comes to actually doing what they say they’re going to do, it turns out they’re really snake oil salesmen. Not that this is new.  Remember when they ran on killing Obamacare throughout Obama’s presidency then bungled it when Trump became president?
We’re now watching that same treachery play itself out in real time, and it involves the One Big Beautiful Bill Act that just passed the House. This monstrosity ostensibly does a number of good things.  It extends Trump’s 2017 taxes that were set to expire, it increases spending on border security and apparently it cuts federal support for Planned Parenthood.  All of these are good things… but they’re the equivalent of trying to save the Titanic by emptying water over the side one bucket at a time while a thousand gallons of water pour into the hull every second. 
What this bill doesn’t do is cut spending nor cut the deficit.  Indeed, it puts the deficit on overdrive, just as interest rates on government debt seem to be heading upward. The president’s advisor Steven Miller (who is one of the smartest guys in Washington) pushes back, by pointing out that Reagan’s tax cuts weren’t balanced by spending cuts.  True, but then Reagan didn't have, if I remember correctly, a national debt 125% the size of the GDP that needed to be serviced.
A small part of this problem has to do with the calendar.  The writing of this budget began back in December after it became clear the GOP would have both houses but before they were technically in complete control.  As such, this Frankenstein started being put together long before DOGE started showcasing exactly how dysfunctional the federal government is.  But that’s no excuse.  It’s been over 4 months since the Elon Musk managed vehicle started highlighting problems.
This One Big Beautiful Bill Act demonstrates exactly why the federal government is as screwed up as it is. They say that you can’t turn around a ship on a dime, and that’s true.  But there’s a difference between turning on a dime and setting a course, full speed ahead, for the closest iceberg. 
This bill literally adds $2.5 trillion to the government’s debt and runs a deficit larger than Biden’s last one!  At the same time it basically allows the government to go on, business as usual.  There are no major cuts to spending.  There are no elimination of departments.  There is no substantial paring of regulation.  There’s basically the same budget compiled by the Democrats, RINOs and the administrative state every year with infinitesimal changes except for the taxes.
This bill doesn’t reflect the will of the people, it reflects the will of the establishment and the swamp. 
If Congress really wanted to fix the budget they’d take to heart many of the recommendations and revelations from DOGE, as well as codify much of what Trump has done or tried to do via Executive Orders. Hell, it doesn’t even eliminate the Department of Education, something Trump explicitly ran on. 
This bill cuts $4 billion from the Inflation Reduction Act, Joe Biden’s attempt to get everything, including the kitchen sink into the budget, including green energy, social spending and taxes on the rich.  Four billion sounds like a lot until you understand that the IRA is a $1.4 trillion boondoggle
The reality is, 2/3 of the federal budget, fully $4 trillion out of $6 trillion is wealth redistribution.  Even if you argue that Social Security isn’t that, which is mostly true, and remove it, you’re still looking at almost half the federal budget being wealth distribution of one sort or another.  How much of that is waste, fraud and abuse
Elon Musk had initially suggested that he thought $2 Trillion could be cut from the budget. He lowered that target to $1 Trillion and in the first 4 months of the year DOGE has done a yeoman’s job and cut $170 billion of waste. And that’s with just 100 people on staff and facing a bureaucracy of literally millions who scheme and obfuscate at every turn in order to maintain the cash pipeline.  Imagine how much a DOGE team of 1,000 could do!
But more than actual cuts, DOGE recommended things like personnel cutscutting green energy subsidies and of course cutting regulation.  But relatively little is actually being codified in law. That’s despite the fact that 67% of Americans support DOGE cuts of at least $1 trillion, 77% support looking at the entirety of the budget to find savings and 78% support cutting spending to balance the budget.  Indeed, so little is being cut that Elon Musk has announced that he will be stepping back to refocus his efforts on his companies and playing a much smaller role in political spending.    
Inspired by promises to cut spending, taxes and regulation, MAGA voters powered Republicans to win the White House, take the Senate and retain the House. They had the richest and possibly the smartest man in the world not only on their side, but knee deep in funding them, getting them elected and working around the clock to ferret out corruption and fraud in government. Plus, every day seemed to shine more light on the corruption of Democrat / swamp machine.  As a result of all of this Republicans found themselves the beneficiaries of the most passionate electorate America may have ever seen. They were on top of the world.  And what did they do with all of this momentum? Worse than nothing, they gave us Democrat lite.
No major regulatory cuts.  No major cuts to wealth redistribution programs. No departments and few programs actually eliminated. No reining in of the imperial judiciary seeking to derail Trump at every turn.  No, rather than listen to voters and take a sledgehammer to the twin albatross of regulation and spending they use a dull putty knife to create the illusion of actual progress.
Of course we all know why nothing ever changes in Washington. Politicians go to DC and most get sucked into the Georgetown cocktail party scene grift, into being invited to pontificate on Sunday morning shows and give speeches to groups of deep pocketed donors from industries over whom them hold a sword of Damocles.
The fact that Donald Trump didn’t care about any of that, wasn’t swayed by any of that is one of the things that made him so appealing. That’s the reason MAGA put him back in the White House…
Unfortunately for the country however, the GOP in Congress is led by swamp weasels Mike Johnson and John Thune, and Trump is Gulliver to their Lilliputians. They have no real interest in upsetting the grift applecart despite what America wants.  They put America First lipstick on a Business as Usual pig and call it progress.  If the GOP loses Congress next year, look no farther than its leadership.  Like Paul Ryan and Mitch McConnel before them, they are more interested in the trappings of leadership than actually solving America’s problems. Rich Men North of Richmond indeed.

Monday, May 11, 2015

A Simple Infographic to Understand the Choice in 2016... More Barack Obama or a Return to Reagan

One of the most difficult games to play in politics is the notion of what might have been… How might things have been different had JFK not been shot? How might have things have been different had Al Gore won in 2000? How might things have been different had Mitt Romney or John McCain not run inept campaigns against Barack Obama?

We’ll never know what the outcomes might have been because there really is no way to objectively measure that when it comes to policy. Would JFK have scaled up Vietnam the way LBJ did or, if he did, would the Camelot mystique have protected him from the vilification that LBJ endured? Had Al Gore been in office on September 11th would we have invaded Iraq as he was on record believing Saddam had WMDs? We can speculate, but we can’t know.

We can however play the game that compares real data between presidents. And now might be a good time for that given we’ve got a presidential election coming.  On the one side are candidates seeking to maintain and further the liberal "successes" of Barack Obama, while on the other are a plethora of candidates seeking to harness the spirit of Ronald Reagan, inspired by his less is more approach to government.

And of course the press provides little actionable information when it comes to whose policies really were / are superior.  Witness their crowing about the unemployment rate hitting a seven year low without explaining (or understanding for that matter) the cause, which is certainly not a strong economy, but rather because people are exiting the workforce at a rate not seen since the 1970's.

Given that, I've created a simple infographic that just might help. (Click here for a larger image and here to download a high res version)  It looks eight measures that shed light on whether a future that furthers the ideas of Obama or Reagan might a better choice.  Unlike notions of what might have been, it compares actual outcomes on those eight measures during the first six years of each administration.  From inflation to the LFPR to food stamps, hopefully this handy infographic will help make the decision as to who to pull the lever for in 2016 just a little bit easier.