Politics: Can you cut $100 billion from the Federal Budget?

According to Wikipedia the US government spent $3.55 trillion in 2010.

I don't think there is an actual 2011 budget on the books as of this writing.

So I can only use the 2010 numbers to try to cut $100 billion.

It should be noted that cutting $100 billion (considered drastic by the people in DC) still leaves the budget over $1,000,000,000,000 in the red.

Anyway, right now, neither party will touch the "mandatory" programs and the Republicans won't touch defense. Thus, the cuts have to be made from everything else. Note the debt can't be cut because if one doesn't pay one's debts one is in default which would result in major chaos in the financial markets.

As you can see, 14% across the board cuts would be needed to reach the target.

But what if everything except the debt was on the table?

Here is my attempt to make cuts:

Rationale

Start with 2% cuts on the premise ALL must give up at least a little.
Medicare - turn the program into vouchers
Medicaid - turn program to block grant to states
Other mandatory - I wonder what these are? But in the effort to have shared sacrifice they too take a small hit
Social Security - alter the benefit calculation so it is 2% less generous
EPA and Interior - we do need to protect the environment and natural places
DOJ - law enforcement is a proper government function
VA - our veterans need medical care
HHS - programs for public health and medical research are in this department

4% cuts
Treasury and Labor - they also have some law enforcement functions
Agriculture - the farm subsidies should take a hit but the food stamps and other social services for the poor should take a smaller trim

6% cuts
DHS and Defense - security is a proper government function but some gold plated weapons systems could be trimmed and homeland security probably has some overlap and fat
State - cut some foreign aid to get some savings
DOT - infrastructure work is needed but the Amtrak subsidies and the high speed rail projects are doubtful

8%
Commerce - its a real grab bag of programs which can be trimmed
NASA - if we don't fly humans into space we can really save money
DOE - are corn ethanol subsides in this department? Energy subsides and research projects are a result of lobbyists from those industries which need to be trimmed.

10%
HUD and Education - long known for wasteful spending and probably better handled at the state and local levels

12%
Others - there is probably a plethora of programs that don't fit into neat categories that could be trimmed.

To save even more money look at the ambitious (probably too ambitious) effort at Downsizinggovernment.org.

The sad part is even with $130 billion in cuts, my proposed budget is still over $1 trillion in the red! To actually balance the budget, one needs 30% across the board cuts or corresponding tax increases or a combination of both. That is how out of balance the budget is right now.

Science: How much vitamin D to take?

Recently, the Institue of Medicine issued a report on vitamin D.

Some in the research community disagreed with their recommendations.

Disclaimer: My research projects are in the realm of assessing the role of vitamin D on immunity. I personally take 2000 IU/day.

Politics: Health Care Bill, where the Dollars go?

A helpful article on where the cost is.

Health care is valuable and helping more people gain better access is a good thing.

However, is this the best way to do it?

The "how" question is where there is a difference of opinion.

It is a national shame that so many people have a hard time with our health care system. No question we need to spend money to do better but are we spending it wisely in this new health bill?

We need to recheck our assumptions about some of the solutions that have been passed. Good intentions are not enough.

As in previous posts, I'm a big fan of vouchers (part I in the bill according to this article). It puts $$$ in hands of people who need it to buy health insurance. My guts tell me that is the part of the bill that should be protected. But many of the other provisions that come with it place too much power into the hands of too few regulators in DC. That is the part I think is upsetting people.

If anything, my assessment is that the states should have the option of converting their Medicaid and CHIP programs (section II of the health bill as summarized in the article) into voucher programs and see if that works better.

As for part III, a truly radical reform would be to decouple insurance from employment by phasing out the tax sheltered status of insurance benefits. That simple but dramatic shift in policy would level the playing field for small businesses in a more clear cut fashion that providing them tax credits and puts more control into the hands of the individual.

There will always need to be some social safety net because a certain segment of the population will fall through the cracks. As an honorable society, we need to own that duty.

But also, we need to own up to our duty to look closely at our health care system rather than continuing to let more power flow to DC. For the vast majority of Americans, we need to request that the government provide that safety net for those who truly need it and give the rest of the people the options and flexibility that will shrink as the regulatory power of the government grows in the health care industry.

Life: Remembering the I have a Dream Speech

Simply wonderful!



Students recite portions of MLK's famous speech at the Lincoln Memorial.

Devotional Thoughts: Thinking about the Puritans

What do you think of when you think of the Puritans?

I think of the Puritans coming to America and the courage it took to cross the sea and try to scratch out a new life in the New England colonies. In that regard, I admire them.

Of course, there are the negative connotations of the word puritanical.

Its a given that any group will have its successes and excesses.

But what did they believe about their faith?

One of my reading goals for the year will be to work my way through this book that excerpts some of their writings. The book also gives a brief sketch of the historical context of the Puritan movement and short biographies of the writers of the excerpts contained in the book.

What I'll do here for blog posts is to share a tidbit here and there.

According to the book, the English Puritans (1560-1710) sought reform of the Church of England. The Westminster Confession and Catechisms (1647) that are still widely respected today was strongly influenced by Puritan theological perspectives. Alas, their drive for reform took a setback with the Act Of Uniformity (1662) that resulted in the expulsion of most Puritan clergy. Nonetheless, their ideas endured even though they lost official status within the church.

Lord help us in the modern world to learn from the best of the past. Taking in what is good and true and beautiful for those things stand the test of time. Amen.

Money: Final Four Stock Picks

Disclaimer: not in the financial planning business, investments can and do lose money, and this is offered as opinion and does not constitute advice for your specific financial situation, etc.

SYT
What?
Agribusiness based in Switzerland.
Why?
People have to eat and this company is one of the big players on the world stage.

CSCO
What?
Internet hardware.
Why?
The internet is going to keep growing and this company is one of the top companies in that industry.

DUK
What?
Electrical utility.
Why?
Great dividends and people need electricity and this is one of the biggies that is well-run.

VZ
What?
Telecom.
Why?
Great dividends and by all accounts VZ's cellphone coverage beats everyone else in the USA and they just got rights to sell iPhone. This could be good in getting more customers but it could be bad if their network gets clogged!

Life: Sal Giunta, Medal of Honor Recipient

Thank you Sgt. Giunta for your service.

And thank you to all who serve to protect freedom and freedom living people around the world.