Searching desperately for a post subject I stumbled across a great article by Gary North. The robots are coming for your jobs – maybe mine. There’s no stopping them short of a war. Several folks, Elon Musk included, have lately floated the idea that everyone may become unemployed and thus need welfare. North thinks that is implausible given the shape of the existing federal budget.
I’m going to leave the robots alone, minus the ones I come across all alone, somewhere remote, in the dead of the night. Instead I’m taking aim at the budget. I’ll use the same budget graph North used:
Gary North / Wikipedia.
That’s $3,689,000,000 in federal spending. I’m not sure if that’s the current year; close enough by the numbers. And it’s not really a budget. Congress has yet to pass a real budget in nearly a decade. It’s just spending measure after spending measure. It works out to the same thing – tons of money wasted on any and everything.
Whatever else he may have been, president Obama is one hell of a tax collector. Last year the U.S. brought in a record $3,248,000,000 in tax revenues. One will note that even that impressive sum falls short of financing the spending. And that is why we have a debt problem. Previous years have seen much higher deficits. My plan would cure all of this.
Let’s examine the above graph staring around “6 o’clock” and working counter-clockwise. 24% or $882 Billion of the spending is for social security. Let’s go ahead and include “healthcare” in that too – Medicare and Medicaid. All of this equates to nearly $2 Trillion or roughly 50% of the “budget”. All of this is welfare and it is unconstitutional. Thus it may safely be abandoned. The budget is cut in half already.
Next there’s $223 Billion in debt interest payments. The debt will never be paid off and someday will be defaulted on. There’s no avoiding it. No reason to worry as the money never existed in the first place. Let’s go ahead and get through that now. Repudiate the debt and all the interest payments cease. While we’re at it, I’d abolish ALL debt – a jubilee of sorts – for everyone. I’d make new debt issuance a felony. I’d also run the central banksters and their friends out of town on a rail.
Next comes “other mandatory” spending. This is more welfare, most of it corporate and agricultural. None of it passes Constitutional muster and therefore is gone.
Next we have $583 Billion for “defense” spending. Almost all of this is for offense and graft. The Constitution provides for a navy and directing of the militias. That would hardly require a tenth of the current budget. We’ll say it’s cut down to $60 Billion. And that is until privateers and the States can fully take over. Of course, this means no more wars for profit but, remember, I’ve already run off the banksters.
Finally, there’s $585 Billion in discretionary spending. This is the stuff that can be cut by existing law, but isn’t. Likely three-quarters of this spending is for things not in the Constitution.
So it is that, if I had total budget powers, I could whittle the spending down to around $200 Billion per year. Such spending could easily be paid for with existing tariffs and excise taxes. Consequently, that’s how the government was supposed to be funded.
Originally, under the Articles, Congress had to beg the several States for funding. If a state objected, they just didn’t pay. Under the old Constitution, the tariffs covered the budget. Then along came the income tax and the Federal Reserve. Those, and the debt, I would kill. It would all work out wonderfully.You could keep all of your money and the money would be worth something.
Accordingly, this will not happen anytime soon. You can still thank me for the thought. I thank Gary North.