This Budget’s defining ambition is to unleash the dreams of the American people. This requires laying a new foundation for American Greatness. Through streamlined Government, we will drive an economic boom that raises incomes and expands job opportunities for all Americans. Faster economic growth, coupled with fiscal restraint, will enable us to fully fund our national priorities, balance our budget, and start to pay down our national debt.Here in this second paragraph of the message, we see some stated goals of the administration and it defines what the administration is looking to achieve with the release of this budget. Indeed, talk of a balanced budget has long been missing from Congress and the Whitehouse. During the 2006-2008 financial crisis, it was deemed necessary to do whatever is required to avert the possibility of a new Great Depression with high unemployment, deflation and mass suffering. The President at the time did what had to be done, damn the consequences to the debt, to keep the greater economy from crashing even though the financial markets had. But in some ways, the previous Presidents failed because in rural American, de-industrialization continued, small towns and family farmers suffered when unlike their urban cousins whose lives did largely return to normal, these rural residents quietly applied for government aid and sometimes resorted to alcohol and drugs when the psychic pain proved to be too much to handle.
In the press, the budgetary control aspect has been described as overreaching as well as cruel. I concur. However, are we on a path that will lead soon (possibly before 2020) to a further financial crisis because of the US Government debt? I have memories of the early 1990's where one of the memes at the time was a hyperinflationary spiral in the style of Zimbabwe besetting the US due to increasing budget deficits. In the past eight years, it seems that there has been a complacency that has set in with regards to government deficits. One would have thought that the Republicans who controlled Congress since 2010 could have negotiated some progress on reducing the deficit, but this has not happened.
Our moral commitment to replacing our current economic stagnation with faster economic growth rests on the following eight pillars of reform:
Health Reform. We need to enable Americans to buy the healthcare they need at a price they can afford. To this end, we must repeal Obamacare and its burdensome regulations and mandates, and replace it with a framework that restores choice and competition. This will lower the cost of care so that more Americans can get the medical attention they need. Additionally, Medicaid, which inadequately serves enrollees and taxpayers, must be reformed to allow States to manage their own programs, with continued financial support from the Federal Government.
At this point, an eight point agenda is laid out to express the key policy aims of the administration and also to discuss briefly how these are achieved through this budget. Up first is Healthcare. The idea that Amercians can "buy the healthcare they need at a price they can afford" is the trick required. Currently, Americans cannot do that. The government does not and will never actually provide healthcare except for Veterans. Most people cannot absorb the consequences of a negative catastrophic health event and need to have insurance. The government largely does not provide insurance other than Medicare and Medicaid. Often right-wing opinion leaders invoke government-run health care or health insurance to argue extreme libertarian positions. This is a straw man argument because if we ever get to universal coverage in the US, it will be because Congress has provided a legal framework that assures that everyone gets coverage although the insurance and services will be provided by private parties. This works in other countries, why not here?
Just one other point. So many people were up in arms because of the individual mandate where everyone has to get healthcare insurance, but yet everyone seems to be fine with requirements for liability auto insurance. That is hypocritical.
Tax Reform and Simplification. We must reduce the tax burden on American workers and businesses, so that we can maximize incomes and economic growth. We must also simplify our tax system, so that individuals and businesses do not waste countless hours and resources simply paying their taxes.
Immigration Reform. We must reform immigration policy so that it serves our national interest. We will adopt commonsense proposals that protect American workers, reduce burdens on taxpayers and public resources, and focus Federal funds on underserved and disadvantaged citizens.
Reductions in Federal Spending. We must scrutinize every dollar the Federal Government spends. Just as families decide how to manage limited budgets, we must ensure the Federal Government spends precious taxpayer dollars only on our highest national priorities, and always in the most efficient, effective manner.
This is the opposite side of the coin from the Tax Reform bullet point above. Republicans have long argued, especially on the libertarian wing, that the US government has become involved in too many facets of everyday life and that it is issuing too many rules and regulations (see below). To achieve a balanced budget, you must reduce spending, increase taxes or a combination of both. I think there is a need to have a look at the effectiveness of spending and do something about programs that can be clearly shown to be ineffective, but this budget makes assumptions wholesale and cuts everything in sight.
Regulatory Rollback. We must eliminate every outdated, unnecessary, or ineffective Federal regulation, and move aggressively to build regulatory frameworks that stimulate—rather than stagnate—job creation. Even for those regulations we must leave in place, we must strike every provision that is counterproductive, ineffective, or outdated.
What is the yardstick to be used? There are regulations relating to the disposal of lead. These lead to companies that utilize lead having higher costs and substitute materials are more expensive to incorporate into processes and products. Should these regulations be repealed because this would stimulate job creation? What of environmental clean-ups and health care costs when factories be toxic to their workers and the surrounding flora and fauna? Do we add these to the additional jobs column as well? And yet regulations were passed because it was determined that the costs in human life, suffering and degradation of the environment, although they cannot be measured in dollars and cents, were more than some number of jobs that were lost.
This approach invariably privatizes the profits but socializes the costs. At some point when plant is shut down and quarantined as a site contaminated by hazardous materials, the corporation will bail and leave government to deal with the mess.
This approach invariably privatizes the profits but socializes the costs. At some point when plant is shut down and quarantined as a site contaminated by hazardous materials, the corporation will bail and leave government to deal with the mess.
American Energy Development. We must increase development of America’s energy resources, strengthening our national security, lowering the price of electricity and transportation fuels, and driving down the cost of consumer goods so that every American individual and business has more money to save and invest. A consistent, long-term supply of lower-cost American energy brings with it a much larger economy, more jobs, and greater security for the American people.
Oddly, this statement is actually oxymoronic. Currently one of the drags on the American economy is actually the low price of oil. Many companies in the oil and gas sectors are reducing personnel and cutting back on capital expenditures because current and future projects will not provide a return on investment unless the price of oil rises somewhat. Yes, this will increase the price of gasoline and electricity, but it is not a 1:1 relationship. Stimulating the Energy sector to pump more oil and gas and create more electricity will lower oil prices because demand will remain flat. Because of the recent increases in energy efficiency and the relatively small size of the manufacturing sector, reduced energy costs will not swell manufacturing significantly or drive down prices for manufactured products.
Welfare Reform. We must reform our welfare system so that it does not discourage able-bodied adults from working, which takes away scarce resources from those in real need. Work must be the center of our social policy.
This statement is dogma disconnected from reality. U3 unemployment rate is at near record lows. The reason why the population participation rates are so low is because of all the old people who have retired but have not died yet.
Education Reform. We need to return decisions regarding education back to the State and local levels, while advancing opportunities for parents and students to choose, from all available options, the school that best fits their needs to learn and succeed.
This statement is a dog whistle to conservative Christians who wish that their schools which include the inculcation of students with unscientific religious based prejudices should also be able to get Federal funding. Words fail me to describe just how destructive this would be if passed.
To unleash the power of American work and creativity—and drive opportunity and faster economic growth—we must reprioritize Federal spending so that it advances the safety and security of the American people.
This Budget, therefore, includes $639 billion for the Department of Defense—a $52 billion increase from the 2017 annualized continuing resolution level. This increase will be offset by targeted reductions elsewhere. This defense funding is vital to rebuilding, modernizing, and preparing our Armed Forces for the future so that our military remains the world’s preeminent fighting force and we can continue to ensure peace through strength. This Budget also increases funding to take care of our great veterans, who have served their country with such honor and distinction.
Echoes of 1984 (the book by Orwell) where war is peace. It is nonsense to try to achieve freedom through a police state. Incarceration rates are the highest in the world and to top that off, recidivism rates are also very poor. With all the extra money pouring into the military there will be reasons to push to use the capability as well. And as it has been discussed above, some of the actions and priorities will decrease the security of the American people rather than increasing it because of unintended consequences of the simplistic thinking that has been applied.
The Budget also meets the need to materially increase funding for border security, immigration enforcement, and law enforcement at the Departments of Homeland Security and Justice. These funding increases will provide additional resources for a southern border wall, expanded detention capacity, and initiatives to reduce violent crime, as well as more immigration judges, u.S. Immigration and Customs Enforcement officers, and Border Patrol agents. The Budget also invests significant resources in efforts to combat opioid abuse.
This strikes me as a move towards a police state. The resources applied to combat the effects of opioid abuse are probably law enforcement and not for prevention or treatment. The administration seems to think that the only solution is to lock up people who have done something wrong, no matter how small. This is headed towards East Germany in many ways.
In these dangerous times, our increased attention to public safety and national security sends a clear message to the world—a message of American strength and resolve. It follows through on my promise to focus on keeping Americans safe, keeping terrorists out of our Nation, and putting violent offenders behind bars.
It does not send a message of strength and resolve. This sends a message of fear, hatred of others and of a new introversion. The unintended consequence of all of the additional law enforcement and military is to instill fear in the population. Yes, there are bad people out there, but not significantly more now than 8 years ago. When the conversation is all about wrong-doing, it ends up being self-fulfilling and one of the things that might drive up crime statistics from their relatively low levels currently is that more people will become desperate. Some of the policies and priorities listed in the budget will have unintended consequences of creating desperation because of cutbacks in the social safety net and other things.
As this Budget returns us to economic prosperity, it will also allow us to fund additional priorities, including infrastructure, student loan reform, and initiatives to help working families such as paid parental leave. We will champion the hardworking taxpayers who have been ignored for too long. Once we end our economic stagnation and return to robust growth, so many of our aspirations will be within reach.
As has been mentioned in the media, the concept that this plan will get us back to a balanced budget is a complete fiction based on bad assumptions and bad math. Based on what has been legislatively achieved in the first 4 months, there is serious doubt that any intricate measures will actually be able to be passed by Congress and signed by the President. "The hardworking taxpayers" that are championed by this budget proposal are not the people who voted for Trump. They are not the urban middle class that voted in high proportions for Clinton. They are the 1% who have disproportionate influence on the politicians. The policies of this administration are not strongly fostering growth, in fact a budget such as this one will actually reduce GDP because it is reining in spending. If the budget were to spend $400 billion less next year, to maintain the current anemic 2% growth, private industry or consumers will have to increase their spending by $400 billion. If they do not, then growth will come in at 0%.
It is now up to the Congress to act. I pledge my full cooperation in ending the economic malaise that has, for too long, crippled the dreams of our people. The time for small thinking is over. As we look forward to our 250th year, I am calling upon all Members of Congress to join me in striving to do big and bold and daring things for our Nation. We have it in our power to set free the dreams of our people. Let us begin.
No comments:
Post a Comment