Thursday, February 12, 2009

Spending Increases Are Likely Permanent

As an editorial in today's Wall Street Journal clearly demonstrates, spending increases included as part of the so-called "stimulus" are very likely here to stay. This is quite depressing for the younger generation that will be paying all this debt back.

According to the Journal:
"We are thus expected to believe that Democrats will let these additions to their favorite programs vanish after two or three years. To believe this, you have to ignore the last half-century of budget politics. Spending never declines; at best it merely fails to grow as fast as the economy.

"Far more plausibly, Democrats will take the stimulus increases and make them part of a new, higher baseline for future spending growth. Anyone who proposes to cut from that amount will be denounced as "heartless" and Draconian.

"The Republican staff of the House Budget Committee has calculated what happens to future spending if Congress continues to fund 19 of the most politically untouchable programs at their new stimulus levels. The list of 19 includes Pell Grants, Head Start money for poor kids, nutrition programs for seniors, Medicaid, special education, food stamps and cancer research at the National Institutes of Health, among others. Across a 10-year period through 2019, these 19 programs alone would increase federal outlays and tax entitlements by $1.59 trillion."
That is just a depressing number. I hope Barack Obama and the Democratic Congress enjoy their lovely liberal spend-fest. Apparently President Obama's stimulus public relations tour is somewhat working, though Americans are luke-warm at best to nearly $800 billion in most likely ineffective spending. Nevertheless, after the $700 billion TARP episode, what's another $800 billion?

No comments: