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WakeUpAmericaReduceGovtWastePartB

WakeUpAmericaReduceGovtWastePartB

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Published by Kim Newlin
An how to manuel on how to promote and encourage a reduction in governent spending before the USA goes bankrupt.
An how to manuel on how to promote and encourage a reduction in governent spending before the USA goes bankrupt.

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Published by: Kim Newlin on Mar 31, 2012
Copyright:Attribution Non-commercial

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07/04/2014

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edeficitthe
11
'Adeficitoccurswhenthegovernmentspendsmorethanittakesin-muchinthesamewaythat,ifwe'renotcareful,we'mightspendmoremoneythanwemake.The<;:<1usefincreasingdeficits,then,'shouldbeobvious.Eitherthegovernmentis,takingintoolittleoritisspendingtoomuch.Which?Tocomeupwithapossibleanswer,let'scompare1962'with1983.Theyear1962wasthefirstfullyearoftheKennedyAdministration-atimeofpeaceandprosperity.Inflationwas
1,1
nmningatonly1.8%"andtheprimeinterestratewas4.5%.Federalrevenuesaccountedfor18..2%ofthegrossnationalproduct(thenation'stotaloutputofgoodsandservices)andfederal,spendingwas19.5%ofGN~Thedifference-thedeficit-totaledjust$7.1billion.
TotarGo",ernmentSpendlng:Growlng'Without'ContToi
~
DIdyou
know
thatIt
took
federal,
stateand
local
governments:155yeal'S,from
thefoundIngoftheRepublicIn
1789to1944,to
spend
more
than$100billion?
21moreyeal'S,to1965;to
spend
morethan
$200billion?
Ten
mor~
yeal'S,to
1$175,
to
spendoverthe$500bllllot:'
mark?'An
additionaleIght
yeal'S,to1983,toexceed
$1.2trillion?
Atthe1965-1983rate
of
growth,
totalfederal,
rtafeand
local
governmentexpenditures
In1990willJump
more
than
2¥2
times,
to$2.6
trillion.Theywill
more
thandoubleagaIn,
to$7.4
trillion,In
theyear2000.
-6-
 
••
.1SSUelS·Spen
.
By1983,federalrevenueswereholdingsteady-18.6%ofGNP-but.spendinghadballooned_toalmost25%ofGNP.The1983deficitgrewto$195.4billion,or28timesthe1962deficit,becausethegovernmeqthadgrownbiggerandspentmore,notbecauseittaxedless.Ifthegoveimnent'scurrentpoliciespersist,federalspendingwillhit$5.5trillionintheyear2000,oraboutseventimeswhatthegovernmentspen~in1983!(Howtofathom5.5trilljon?Intime,,5.5trillionsecondsaddupto175,000years;ininches,itsalmost90millionmiles.).Bytheyear·2000,unbridledfederal,stateandlocalspendingcouldconsumeabouthalfthiscountry's,GN~Consumistherightword.Gov~rnffientspendingproduceslittle.Itisbigandgettingbigger.Andthedeficitcouldreach$2trillionintheyear2000.Allthisis.bad-ifwewantaf\ttureforourselves,ourchildrenandourgrandchildren..Andifwewantthatfuturewithoutevenhighertaxes,higherinflation,higher,interestratesandhigherunemp~oyrnent.Andifwewanttopreserveoursocialandeconorrucsystems.',Butthat'snotthefuturewe'll~etifthegovernmentdoesnotrestrainits,growthandspending.Ourpoliticallead-,'ersmustactmoreresponsibly.Thiswillcorneaboutonlyiftaxpayersact'moreresponsibly,too,anddemandahalttowastefulspending.
HowBigIsBIG?'
Thefederal
government
Isthenation'sbiggeStborrower,lender,employer,Insurer,landowner,tenantandlandlord,andthebIggestowner
of
shIps,graIn,warehousesand
trucks.
DIdyou
know
thatthe
government:
'I,
l,'
,'~
Accountsfor
25%of
allU.S.economIcactivity?
Owns744
millionacres
of
land,or
one
tlilrdtheU.S.,landmass?
".
Employs
4.9
millionpeople,or
4.3%
ottlreU.S.laborforce?OccupIes
2.6
b,IIIon,squarefeet
of
o,fflcespace,orfourtimesthetOtaloffIcespaceInthe
ten'"
largestU.S.cltle~?Has
an
annualcashflow
of
$2
trillion?That's$8billioncollectedandspenteachworkday,
,or
about
$1
bllllolfanhour.'AdmInIsters
more
than400,000sIngleandmultifamIlyhousingunits?
"'.
Madeavailablecredit
of
more
thanthreequarters
ofa
trilliondollarsIn'1982,equal
to
thetotalcreditprovIdedbythenation's
70
largestcommerciallenders?
.•
Spent
$3.5
billion
on
housekeepIngandgeneralmaIntenanceIn
1983?,Runs963
subsIdIzed
programsatan
annual
cost
of
more
tlian
$400billion?Lays
out
nearly$50million
a
year
to
prInt,
new
food
stamps
anddestroyold
ones?,
:
.
,
Providesmedical
care
for
47
millionpeople,ormorethan
200AJ
of
thep'opulatlon?
.'
Spendsabout
$2..8
billion
on
mailings
a
year?
,
.
'
.'Ownsalmost
437,000nonmIlitaryvehicles?
'))
..
'
,
'.~,
Has
a
computerworlcforcetotaling
moreth!Jn
250,000people,exceedingthepopulation
of
St.Petersburg;Florida,
torunsome
17,000computers?';,!
'',,'""'-
~,'
..
~,,\.::.
Provides
95
millionmeals
a
day?.
Says
Itwillhave
a
n~tlonaldebt
of
$2..3
trillionIn
1984,
but,whencalculated
using
generallyaccepted
accounting
standards,thisfigurewillsoar
to
$4.4
trillion?
-7-
 
mone~andhow?
TheInformationGap
•••
Thefederalbudgetandaccounting
systemsare
a
Joke-abadJoke
on
taxpayers.Informationthe
govemmentneeds
Iseitherunavailable,.lncomplete,wrong
or
outofdate.
For
example:TheSocialSecurityAdmln/stratJonhas138millionpartlclpant-Incomereports,valued
at
$89
billion,whichcannotbematched
to
Individualaccounts
to
determineeventualbenefits.Duplicateand
erroneouspayments
aremade
to
recipientsofAid
to
FamiliesWithDependentChildren,Medicaidandfood
stamps
becausethe
government
has
no
centraldata
baseto
determineeligibility.TheDepartmentoftheArmydoesnotknowhowmuchItspends
on
automaticdataprocessingandofficeautomation,whatkind
or
howmanycomputersIthas,wherethesecomputers
are
andwhether
or
nottheysh9Uldbereplaced•.
•.•
andtheComputerGap
Didyouknow:Mostofthegovemment's
17,000
computers
are
Inco~patlble
?
Halfthegovemment'scomputers
are
obsolete?Their
averageage
IstwicethatofcomputersIntheprivatesector;theyare
so
oldthat
makersno
longerservicethem.Additionaland
unnecessary
employeeexpensestotal
$1
billionoverthree
years.
Thegovernmentneeded
37,000
clerksand
3112
yearsto'process
manually
Its1980census
data
ata
costof
$1.1
billion?
muchdebtiscurrent,howmuchisdelinquentandhowmuchisatsubsidizedinterestrates.Let'slookattwoexamplesoff~derallending.TheRuralElectrificationAdministrationlendsmoneytoutilitiesata.maximuminterestrateof5%.Tomaketheseloans,REAborrowsatabout12%.Asar~sult,itisgoingbroke.(TheHouseofRepresentativesrecentlyapproveda$21billionbailout.)Nexttimeyou'reinthe.nation'scapital,takea-lookatyourtaxdollarshelpingtolightthelightsin"rural"Washington,D.C.IfyouaskmembersofCongress'howmuchtheFannersHomeAdministrationisspending,chancesarethey'llgetitwrong.Federalaccountingalmostguaranteesit.Forinstance,theAgriculturalCreditInsuranceFundspentabout$13.5billionin1984..However,Congresswasasked'to~pproveonly$1.5billion,oralittlemorethanonetenthofactualspending./'Areyouconfused?Yourrepresenta-tivesare,too.HowcanthegoveminentspendninetimesmorethanCongressauthorizes?Well,it'smagic.Ifindividualstriedit,theymightendupinjail.Thegovernment,though,pullsoffthishocus-pocusbysellingitselfabout$7billioninloans.Thegovernmentcanspendintwoways:on-budgetandoff-budget.Theon-budgetAgricu1ttiralCreditInsuranceFundmakesaloan,sellsittotheoff-budgetFederalFinancingBankand,poof,themoney'isgonefromthebudget!Othernovelaccountingconventions,suchassubtractingrepaymentsfromnewloansbeforereportingnewspending,guaranteethatfewtaxpayerswilleverfigureoutthefederalloangame.
-9-

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