Purely Political DOGE

by Jim Buckley

Another Debt “Crisis” Averted

As “news”-readers on cable and broadcast stations, as well as uninformed note-takers (once referred to as “print journalists”), wailed about the dangers of the potential failure of the most recent debt-ceiling and budget talks, it would have been wiser to have turned off the unending stream of nonsense and to have tuned into more meaningful brain fodder, such as “Pets on Parade,” or the Comedy Channel.

One can compare these irregularly scheduled Congressional debt-limit confrontations with kabuki, the classical Japanese theater pieces that feature elaborate costumes and silent-movie-style over-the-top dramatic performances that depend upon extravagant costumes and ostentatious showmanship – and very little upon any kind of content – to tell their story.

This time around – as always – there was talk of “budget cuts” that would “slash” spending for (name any one of thousands of useless and ineffective federal programs), and lamentations that a certain program (name any one of thousands of ineffective and useless federal programs) will be “gutted” or worse, eliminated (though that never actually happens). Grim-faced mainstream media talking-head opinionators decried the “cuts” and found some individual Republican “budget-cutter” (maybe even the President) to shame for taking money from the poor and giving it to his rich friends.

On the other side (FOX Cable News, OAN, and a smattering of others), there was talk of “giving in” and gutless “compromising,” etcetera.

“Agreement” Reached

During this “turmoil,” financial marketeers played their part, sending various stocks skyward upon leaked “news” of an impending agreement, then causing them to plunge upon word of a failed “compromise.” Finally – just in the nick of time! – a deal was made. It was examined and, lo and behold, each side gave a little and got a little.

In the end, the two sides held hands and took their respective bows for “compromising” and “doing the right thing” as printed press note-takers and TV and Radio “news” readers delivered the results, spinning it based upon the audience to whom they were directing their conclusions.

The stock market recovered, the country was saved, democracy prevailed, and life goes on.

Just as you don’t have to speak or understand Japanese to follow the plot of kabuki, neither are you required to know anything about how the U.S. budget process works or is supposed to work. You are only expected to be afraid and then relieved that the reckless spending will continue… for “the good of the country.”

Multi-Generational Success Story

The U.S. official debt held by the public now exceeds $36 trillion. A number too large to imagine, but one that represents a debt of nearly $120,000 for every U.S. resident, or nearly $500,000 for a family of four.

Most family fortunes are dissipated by the fourth generation, no matter how large the fortune was to begin with. The U.S. became a debtor nation by the end of the 1960s, making our run an historic 10-generation success. Since then, however, we’ve been using other people’s money (read: borrowing) to maintain our lifestyles.

If you really want to cry, visit the U.S. Treasury website (fiscaldata.treasury.gov) whereupon you’ll read that “The U.S. government has spent $3.61 trillion ($3,611,239,136,330.00) in [the first six months of] fiscal year 2023. And why was so much money squandered… er, spent, you ask? Well, according to the U.S. Treasury website, the spending is “to ensure the well-being of the people of the United States.” (Italics are mine.) The site goes on to report that “Compared to the federal spending of $3.35 trillion for the same [six-month] period last year (Oct 2021-Apr 2022) our federal spending has increased by $266 billion.”

Which is an increase of 8%.

The site is updated monthly.

Which also means, dear friends, that, in the Treasury’s own words, “In fiscal year 2022, the government spent $6.27 trillion, which was more than it collected (revenue), resulting in a deficit.”

‘Ya think?

The amount of the deficit isn’t delineated, so I had to go to a different site to find out how much the U.S. government collected.

The answer is it took in $4.9 trillion in fiscal year 2022 (minus $641.7 billion in tax refunds).

The real deficit between input and output was nearly $2 trillion.

Despite the caterwauling and boasting by all parties concerning the economic “near-calamity,” U.S. spending exceeded the previous year’s.

Again.

By a lot.

Oh, and you should know that total U.S. expenditures for fiscal year 2019 – before Covid-19 appeared – amounted to $4.407 trillion.

If we had simply returned to fiscal year 2019’s spending pattern, we’d have posted a five-hundred-billion-dollar budget surplus in fiscal year 2023!

Possible DOGE Effect

More tellingly, if Elon Musk and Vivek Ramaswamy manage to cut two trillion dollars out of the upcoming budget, that would put spending on par with the last pre-pandemic government spending.

How “tough” would that be?

Not sure, but the gnashing and caterwauling, especially of overpaid and underworked government bureaucrats (who are neither required to show up for work nor illustrate their value) will be heard far and wide.

In just four years, the U.S. has increased its yearly budget expenditures by nearly $3 trillion (can you say “inflation?”). All the excess “emergency” pandemic spending has been rolled into yet another budget year. Apparently, the “emergency” continues.

This can only be called fiscal insanity.

Clearly, had Kamala Harris won the 2024 election, she and her team would have continued the spending spree.

There are no guarantees, but sanity could return with President Trump. He and his Department of Government Efficiency (DOGE) team of Musk and Ramaswamy and others seem to be making an honest effort to rein in what is now out-of-control government spending. If they do make even a dent, regardless of how small, it would be a landmark indication that not only do “elections have consequences,” but may also put the U.S. on track for an additional multi-generational run.

Fingers crossed.