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US Gov’t Spending Up 21.4% In 2 Years

Some news from the editorial pages of the Wall Street Journal:

The 2010 Spending Record

In two years, a 21.4% increase.

OCTOBER 12, 2010

Perhaps you missed it, but then so did the Washington press corps. Late last week the Congressional Budget Office released its preliminary budget tallies for fiscal year 2010, and the news is that the U.S. government had another fabulous year—in spending your money. We didn’t expect President Obama to hold a press conference, but why are Republicans so quiet?

Spending rolled in for the year that ended September 30 at $3.45 trillion, second only to 2009’s $3.52 trillion in the record books

What did Washington spend more money on? Well, despite two wars, defense spending rose by 4.7% to $667 billion, down from an annual average increase of 8% from 2005 to 2009.

Gee, that’s not the way Mr. Obama tells it.

Once again domestic accounts far and away led the increases. Medicaid rose by 8.7%, and unemployment benefits by an astonishing 34.3%—to $160 billion.

And yet healthcare has been reformed.

The costs of jobless insurance have tripled in two years.

And yet the Obama administration has saved and created untold numbers of jobs. Besides, unemployment is great for the economy — according to Nancy Pelosi.

CBO adds that if you take out the savings for deposit insurance, funding for all "other activities" of government—education, transportation, foreign aid, housing, and so on—rose by 13% in 2010.

As for the deficits, the 2010 total was $1.29 trillion, down slightly from $1.42 trillion. That’s a two-year total of $2.7 trillion, or more than the entire amount during the Reagan Administration, when deficits were supposed to be ruinous. Now liberal economists tell us that deficits are the key to restoring prosperity. But all we have to show for spending nearly 25% of GDP for two years running is a growth rate of 1.7% and 9.6% unemployment.

How does the editorial board of the Wall Street Journal dare to doubt the wisdom of the Nobel Laureate Paul Krugman?

Those slow growth numbers have contributed to the deficits by yielding paltry tax revenues. Individual income tax receipts fell again in 2010, by 1.6% to $901 billion. As recently as 2008, individual income tax revenues were $1.15 trillion. Corporate tax revenue climbed a healthy 38.6% to $192 billion, but that’s still well below the $304 billion of 2008. This only underscores how much deficit reduction depends on a growth revival.

Here’s the kicker: By far the biggest percentage-gain revenue winner for the taxpayer in 2010 was . . . the Federal Reserve. Thanks to the expansion of its balance sheet with riskier assets, the Fed earned $76 billion during the year, a 121% increase. The Fed’s windfall is a perfect symbol of our current economic policy. The government is making money because it now controls so much capital, but it is robbing that money from the private economy in the process. It is never a good sign when your central bank is a national profit center.

On the contrary, it is a very good sign if you are a socialist who believes in running a command economy.

The nearby table shows the increases in spending overall and in certain major categories over the last two fiscal years. You might call it the fiscal scorecard for the 111th Congress, and that’s before the ObamaCare subsidies begin in earnest. (We’ve excluded TARP and deposit insurance to better capture the underlying spending trend.)

The 21.4% federal spending increase in two years ought to put to rest any debate about the nature of America’s fiscal problem. The Pelosi Congress has used the recession as an excuse to send spending to record heights, and its economic policies have contributed to a lousy recovery. The solution is to stop the spending and change the policies. Polls open on November 2.

To put this in perspective, a trillion is a million million. We now have at least $1.3 trillion dollars deficit.

To paraphrase Everett Dirksen, ‘a million million dollars here and a million million dollars there, and pretty soon you’re talking about real money.’

This article was posted by Steve on Tuesday, October 12th, 2010. Comments are currently closed.

6 Responses to “US Gov’t Spending Up 21.4% In 2 Years”

  1. Reality Bytes says:

    To say Congress spends your money like a crack whore would be an insult to crack whores.

  2. proreason says:

    These numbers don’t make sense with what we know about the Stick-it-to-us and the increase in government hiring.

    None of the top 5 categories are Stick-it-to-us spending. The remainder of the increase from 2008 is only 232 Billion. But the Stick-it-to-us alone certainly is much more than that. Stick-it-to-us was for 800 Billion. Hard to believe that only 29% has been spent so far.

    And what about the meme that the “fiscal problem” is all about Social Security, Medicare and Defense? The “other” spending for 2010 is 1.370 TRILLION. That’s bigger than any 2 of those 3 categories combined. CUT THAT CRAP FIRST, starting with the Moron’s vacation sprees.

  3. heir2freedom says:

    Up is down, jobs lost are jobs gained and families grossing $250,000/yr. are “millionaires and billionaires”.

    “If you’re going to stay here Wonderland, Alice, you really need to learn to speak the language.”

    I think I saw Paul Krugman drinking from the Democrats’ trough of Kool-Aid in the break room at the NYT. Amazing what qualifies a person to win a Nobel prize. Oh, wait, Obama won one for “peace” didn’t he? Never mind.

    “WE” @ http://heir2freedom.blogspot.com

  4. pamypo says:

    It must be Bush’s fault.

  5. canary says:

    What’s the difference between Obama & his dog? Pro Reason should get the answer.

  6. finebammer59 says:

    “Stick-it-to-us was for 800 Billion. Hard to believe that only 29% has been spent so far.”

    yeah, there’s like 500 + billion yet unspent from that original “stimulus” and obama’s out there pushing for another 50 billion.

    “What’s the difference between Obama & his dog?”

    the dog craps from only one end.

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