Berkeley CSUA MOTD:Entry 41996
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2025/05/27 [General] UID:1000 Activity:popular
5/27    

2006/2/24-27 [Politics/Domestic/President/Clinton, Politics/Domestic/President/Bush] UID:41996 Activity:high
2/24    http://www.federalreserve.gov/pubs/bulletin/2006/financesurvey.pdf
        Income gap continues to widen.  Check out the huge difference
        between median and mean incomes and net worths.  Average (mean)
        family income dropped 2.3% from 2001-2004 after inflation adjustment.
        \_ So what is wrong with that? The rich got richer through
           Reagon's new tax cut initiatives in the 80s. Money trickled
           down to the poor, stimulating an economic boom never been
           seen in the history of US. Unfortunately the Clinton
           administration unfairly took credit for it all. Why do
           you hate rich people? Are you a communist?
           \_ if history is any guidance, the poor will eventually rise up
              and overthrow the rich.  Do you want that to happen?
           \_ When did you stop beating your wife?
              \_ the political slant of motd today is: ultra socialist
                 left. Why do you guys encourages lazy people to be even
                 lazier? A great man once said, self-reliance, lower tax,
                 free-market, family values, small government, and fiscal
                 rectitude will save America. The fact of the matter is,
                 commu-socialist programs don't work. Never has, never will.
                 \_ unfortunately the current administration is fiscally
                    irresponsible, corrupt, expanding government, cutting
                    taxes for the rich mainly and taking away assistance
                    for those who want to get an education.  Clinton was
                    the one who cut welfare and forced lazy people to
                    \_ Yeah that was in his agenda from the get-go, he
                       also secretly wrote the Contract With America.
                       \_ Was that before or after he invented the blowjob?
                       \_ congress can make a lot of noise.
                       \_ exactly.  congress can make a lot of noise.
                          but the president gets the job done.
                    get jobs.  And he kept government spending in check:
                    http://tinyurl.com/nuo8b
                    The average American is self reliant and not lazy,
                        \- in what countries are
                           people lazy "on average"?
                           \_ are you implying that peoples of different
                              countries all work equally hard?
                    yet his income has been falling.  As for good ole'
                    Christian family values, sorry, but lying, giving
                    money to Halliburton, torturing people, and
                    eagerness to go to war doesn't cut it.
                    eagerness to go to war don't cut it.
                 \_ The fact of the matter is, the average American are
                    some of the most hardworking and self reliant people
                    in the world, yet their income is falling.
           \_ Average income going down... why do you hate average people?
        \_ BUSHNOMICS WORKS!!!!!! I JUST REFI'D MY MCMANSION TO BUY A
           PORSCHE!!!  FUK OFF COMMMIE!!!!!!11!!!!
2025/05/27 [General] UID:1000 Activity:popular
5/27    

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Cache (8192 bytes)
tinyurl.com/nuo8b -> www.aei.org/publications/filter.all,pubID.23352/pub_detail.asp
The Bush administration recently released its mid-session review of the federal budget for fiscal 2006. The new data reveal that in spite of repeated promises of fiscal responsibility by the Bush administration and congressional Republicans, things are bad and getting worse. After five years of Republican reign, it's time for small-government conservatives to acknowledge that the GOP has forfeited its credibility when it comes to spending restraint. Tom DeLay (R-Texas) crowed a few weeks back during ongoing budget deliberations. But nothing could be farther from the truth, at least since the GOP gained the White House in 2001. During his five years at the helm of the nation's budget, the president has expanded a wide array of "compassionate" welfare-state, defense, and nondefense programs. The recent president he most resembles is in fact fellow Texan and legendary spendthrift Lyndon Baines Johnson--except that Bush is in many ways even more profligate with the public till. The federal pie has two parts, each accounting for about 50 percent of outlays. "Mandatory spending" includes entitlement programs such as Medicare and student loans that are provided by law rather than by annual appropriations. Then there is discretionary spending, comprising most defense spending, homeland security, and programs such as farm subsidies and education. Discretionary spending is what the president and Congress decide to spend each year through appropriations bills. Because discretionary spending can theoretically be zeroed out each year, it is generally regarded as the clearest indicator of whether a president and Congress are serious about reducing government spending. Some major entitlement programs--most notably Social Security--are "off-budget," meaning they are not accounted for in either the mandatory or discretionary figures. Table 1 compares the percentage change in inflation-adjusted discretionary, defense and nondefense spending over the first five budgets of Johnson, Nixon, Reagan, Clinton, and Bush 43 (the figures for the latter incorporate the recent mid-session review estimates). Table 1 makes it clear that Bush has been a big spender across the board. Bush and LBJ alone massively increased defense and nondefense spending. Perhaps not coincidentally, Bush and LBJ also shared control of the federal purse with congressional majorities from their own political parties. Like a lax parent who can't or won't discipline his self-centered toddler, he has exercised virtually no control whatsoever over Congress. In the wake of massive new funding for the Gulf Coast in the wake of Hurricane Katrina, Bush did timidly suggest that some of the new money be matched by reductions in pork projects embedded in the just-passed transportation bill. The Republican response to such efforts is summed up by Alaska Rep. Don Young's reply to critics of a $223 million "bridge to nowhere" in Ketchikan. Proponents of budgetary "offsets" can "kiss my ear," Young told the Fairbanks Daily News-Miner, adding that paying for Katrina-related measures by trimming transportation pork is "the dumbest thing I've ever heard." Figure 1 shows the cumulative real discretionary nondefense spending increases during the first five years of the recent presidents who managed to stay in office for more than one term. Each president's first year in office is set at a base of 100, so any dollar added or subtracted on his watch is clearly reflected. It's no surprise that Reagan, who cut nondefense spending significantly, emerges as the only recent president to have sharply curtailed government outlays during his tenure. Clinton's performance may be a little more surprising: During his first five years, real nondefense spending increased by less than 2 percent. Interestingly, nondefense spending declined during his first two years and only started its upward drift in his third fiscal year--when the Republicans took over Congress. When confronted by its spendthrift ways, the Bush administration argues that much of the increase in nondefense spending stems from higher homeland security spending. It's true that most homeland security spending is tallied under nondefense discretionary spending. Yet when homeland security spending is separated out, the increase in discretionary spending is still huge: 36 percent on Bush's watch. And that's leaving aside the real question of whether even homeland security money--which has gone to pay for items such as Kevlar vests for police dogs in Columbus, Ohio--is being spent wisely. A substantial portion of Bush's increase in discretionary spending stems from new domestic spending initiatives. For a ready example, look no further than the Department of Education, one of three departments targeted for elimination by Republicans in 1994, when Tom DeLay and his budget-cutting friends first took control of Congress. If the performance of the president and Republican Congress is disheartening when it comes to discretionary spending, things look a little better when it comes to mandatory spending. Table 2 compares the percentage change in real total and mandatory spending over the first five budgets of recent presidents. As the architect of the Great Society, Johnson created vast new entitlements such as Medicare and Medicaid, which continue to balloon the mandatory portion of the federal budget. Mandatory spending reached its zenith under Nixon, partly because entitlement spending tends to balloon during recessions, as poverty rates and unemployment increase. Because it is linked to the larger economy and reflects decisions often made before a particular president takes office, spending analysts tend to slight entitlement spending. Yet the president can still have a dramatic impact on entitlement spending. There's the LBJ example, where a sitting president creates new entitlements that drive up government spending. But there are other ways that a president can affect entitlement spending. For instance, by cutting marginal income tax rates, an administration can substantially reduce the number of people unemployed and hence reduce entitlement payments. Also, the president can change the underlying laws that define how and to whom the money is distributed. President Reagan's first budget plan promised to "overhaul the nation's overgrown $350 billion entitlements system"; he also proposed numerous spending reductions to Medicare and Medicaid and was able to make some modest reforms to slow program growth rates. In 1996, President Clinton signed off on vigorous welfare reforms. Chief among them were the strong incentives for welfare recipient to get jobs, which benefited all Americans in the form of lower spending on welfare. The economic boom of the Clinton years--induced in part by large capital gains tax cuts--also worked to decrease entitlement spending. President Bush seems intent on following the LBJ model by making entitlement spending even more overgrown. In a fiscally reckless act, Congress and President Bush enacted the $550 billion (over 10 years) drug bill even though the budget is deep into deficit and Medicare already has a huge financing shortfall. Not only is the new drug program the biggest expansion in Medicare since its inception, it's virtually certain that the $550 billion price tag is a low-ball estimate. Despite the massive cost, some on Capitol Hill now want to expand these entitlements in the name of Katrina victims. To date, the Bush administration has a disjointed, two-track budget policy. It has favored letting Americans keep more of their money via tax cuts while steadily building up the welfare state via unrestrained spending. As Milton Friedman and others have long argued, the size of government is found in its total spending and, ultimately, spending is a taxpayer issue. Higher spending and resulting deficits create a constant threat of higher taxes. It's no surprise that not just Democrats but even moderate Republicans are now arguing that Bush's recent tax cuts be allowed to expire. To be sure, Congress shares the blame for runaway spending in the past five years. Yet Bush has not vetoed a single spending bill during his tenure in...