Budgeting--Washington Style

It’s been a tough Monday. A lot of people are hurting today. Some of them are very close to me. Most of them I don’t know. Another local employer announced it was closing, the third in a week’s time. And to make matters worse, I listened to Kenneth Heaghney, Georgia’s Fiscal Economist, speak at lunch. He presented a fresh set of U.S. and Georgia statistics—and they were very sobering. Georgia’s economy, much like the nation’s, continues to spiral downward. Surprisingly, the state’s unemployment levels have exceeded the nation’s.

It’s no surprise that Americans are conserving cash, sending the purchase of durable goods crashing downward. From cars to air-conditioners to washing machines, the choice to repair rather than purchase replacements seems obvious. Americans are frightened. Even those with seemingly secure jobs are cutting budgets, saving money for the unexpected. So why is it that our country’s leadership doesn’t see the same need?

Just days after signing a mind-boggling $787 billion stimulus bill, President Obama declared that it was time to begin work on the country’s budget deficit. To celebrate, he authorized a $275 billion mortgage plan. And today, while Obama was hosting a “fiscal responsibility summit”, Congress introduced an omnibus bill increasing spending over 2008 levels by 8.7%. And the Democrats are predictable--$1.2 billion more for WIC, $335 million for the FDA, $174 million for the EPA (read as “more regulation and higher energy prices”), and $77 million for the Department of Energy (read as “more government subsidies for those who don’t pay taxes”).

But spending is nothing new to Washington. There must be something that gets into the bloodstream of every politician when they reach DC. Spending bucks equates to votes, and votes keep them there. But if the first few days are any sign, this will be a very expensive four years. And somehow, all of us suddenly owe a few more trillion dollars. How many zeroes is that, anyway. And where’s my cut of the stimulus money?

And one last thought about stimulus money. Do you realize that between the bank bailout bucks, the stimulus plan, and the funds to shore up failing mortgages, Congress has spent nearly enough money to give every American a million dollars. Think about it.