Do Proposed Federal Budgets Actually Cut Any Real Spending?


We hear a lot about cuts in spending and about how we have not had a budget in the past four years. The latter is true. We haven’t had a budget. The problem is that our elected officials have continued to support funding government without a budget. They’ve done it to the tune of $1 trillion in deficit spending each year over the past 5 years. Both Democrats and Republicans have done it and they are set to do it again in September.

Many people do not understand exactly what happens when budgets are made at the federal level. For instance the Paul Ryan budget was tossed out as other budgets were, including Senator Rand Paul’s budget. The problem with many budgets is that they don’t actually cut any spending.

Ron Paul tried to point this out in the Republican debates as he corrected Mitt Romney who claimed that Democrats cut spending by $1 trillion from the military to fund $1 trillion to Obamacare. Paul told the truth that there was absolutely no cutting of anything, either in Obamacare or the military. “It’s just talk,” he said.

Why is this important? Well, over the next couple of months the issue of a budget will come front and center and I want this audience to see what the real issue is. The real issue is to keep your eye on the ball and when you hear “cuts” or “spending cuts” don’t think of actual spending cuts, instead think of a reduction in projected spending, but never think of an actual real cut where the budget will be less in one year versus the precious year. The best way I can demonstrate what I’m writing about is with a scenario I learned from a good friend of mine.

Let’s take an example of a guy who has been spending $5,000 on guns and ammo each year for the past 3 years. Yes, I like guns and there is nothing wrong with purchasing guns and ammo. I am pro-Second Amendment! Now, this friend has acquired a nice collection for sure. However, he only makes $30,000 a year and has a wife and child. His wife is concerned because he now has two credit cards maxed out and has gotten another to purchase guns and ammo this year. She asks you to go and speak to him about his spending since he is your friend. You agree to do so.

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