Government Spending: What Does The Comptroller General Say?
David M. Walker is Comptroller General of the Government Accountability Office (GAO)
Mr. Walker is "talking to anybody who will listen, about the fiscal black hole Washington has dug itself."
He states "If the United States government conducts business as usual over the next few decades, a national debt that is already $8.5 trillion could reach $46 trillion or more, adjusted for inflation. That's almost as much as the total net worth of every person in America" -...
Citizens Against Government Waste (CAGW) has been tracking wasteful government programs since 1984. This watchdog group's latest yearly figure of how much is unnecessary is $232 billion dollars. Remember this gets piggybacked every year. Over 5 years, it amounts to more than $1 trillion dollars-yes that is trillion with a t.
For decades we have waited as congress tells us what it will do. With the means of communications now available to millions of voters we should attempt to work at the grass roots to tell congress our limitations on spending.
We should also seek 25-30 year old men and women to run for congress. Studies have proven that overall, members of congress change spending habits, as they stay longer and gain more seniority. Unfortunately that change is for more spending.
Every year congress spends above the rate of inflation. Millions of Americans don't have that luxury.
The president's latest budget proposal calls for $118 billion of new spending that begins on October 1, 2008. Let's tell congress and the president, we would like the spending increase to be held to the rate of inflation.
The past federal budget spent $2.78 trillion. Let's allow for an inflation rate of three percent for the fiscal year-a number probably generous to the government. This would reduce the $118 billion dollar increase to $80 billion dollars, saving about $38 billion dollars from the proposal-a good start.
Long range, we should target spending as a percent of GDP. The federal government is spending 20.3% of GDP. If we can restrict congressional spending to the rate of inflation over say 3 congressional terms, it would almost certainly:
1. Grow the economy because that $38 billion dollars would be efficient in the private sector creating more jobs.
2. Increase per capita income, because of a tighter job market.
3. Increase revenues to the government because of a broader work-base.
This would be a true win, win, win.
A suggested longer range target for federal spending would be 18% of GDP at the end of the third congressional session-2012, followed by a target of 17% by 2016.
Keeping a higher percentage of GDP in the private sector creates "net wealth". Giving it to government shrinks "net wealth."
There are 200 million Americans of voting age. There are only 535 in congress, plus the president.
Americans of both major parties, believe, almost unanimously, the government spends too much. If we restrict the total amount to be spent, the two parties would be forced into a power struggle over which waste must be sacrificed. Both parties would have some victims, but America would be the winner.
Let's set the above goals and start discussing how we join forces to bring federal spending down to a reasonable level. It is anything but reasonable now.
Platitudes suggesting we already have the power every two years are a proven failure.
Congress will never do it on its own; it must come from us. We must be active.
Hello 25-30 year olds. Are you out there?
Mick McNesby is a former tax advisor, consultant and negotiator. He was a frequent guest on political talk shows in Atlantic City, N.J., discussing the benefits of the lower cost of government. He can be visited at Source: http://ezinearticles.com/
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