100 Days: With a Hole in Your Pocket
It Must Grow on Trees
- The Stimulus Bill: In his first 100 days, President
Obama signed a $787 billion "stimulus" bill that with interest
totals $1.1 trillion in new spend-ing. At no time during these 100
days did anyone on Capitol Hill read the entire bill, despite its
rapid growth of government in size and scope.
- Is Not Temporary: All projections on stimulus spending
assume that none of the new government programs will continue ad
infinitum, which goes against the Washington trend of making
programs longer, bigger, but never over. As Milton Friedman said:
"Nothing is so permanent as a temporary government program."
- CBO on the Stimulus Bill: If even some programs become
perma-nent, the CBO estimates that the true cost of the stimulus
bill could be over $3.27 trillion. The CBO also projects that the
stimulus bill will actually hurt the economy.
Earmark Love: President Obama came into office pledging
to "slash earmarks to no greater than 1994 levels" of 1,318 per
budget. In his first 100 days, he signed an omnibus spending bill
that contained 9,287 earmarks, the second most in U.S. history>,
including funding for tattoo removal and a Buffalo Bill
- Spreading the Wealth: President Obama has been spending
through the tax code in order to "spread the wealth around." He
passed the Making Work Pay Credit and increased the Hope
Scholarship Credit, the EITC, and the child tax Credit; meanwhile,
he has proposed hiking taxes by $300,000 (over 10 years) for 3.2
million higher-income tax filers to pay for more spending in his
He Hopes It Grows on Trees
- Debt for Your Family: The President came into office
promising a "net spending cut" then signed the stimulus bill, which
will dump $9,400 in new debt on the average American household.
Under CBO's estimate, if some programs become permanent, this will
skyrocket to $26,600 per American household.
- Failed Logic: In his first 100 days, President Obama
will have quadrupled the budget deficit he inherited while pledging
to cut it in half, which would still leave a deficit double the
size it was in January 2009.
- And Even More Debt: In his first 100 days, President
Obama proposed a budget that would dump a staggering $9.3 trillion
in new debt--$68,000 per household--into the laps of American
children. This is more debt than has been accumulated by all
previous Presidents in American history combined.
It Does Not Grow on Trees
- Spending Cuts: In his first 100 days, President Obama
recognized out-of-control government spending and demanded that his
cabinet identify $100 million in administrative spending cuts, this
after proposing a $3.69 trillion budget and signing a $787 billion
stimulus bill and a $410 billion omnibus spending bill.
- What $100 Million Means to You: Cutting $100 million
from the annual budget is equivalent to a family of four earning
$40,000 a year cutting one dollar from its budget or paying off one
dollar on $11,000 of Credit card debt.
- There Was Another Choice: In his first 100 days,
President Obama could have embraced tax relief policies that have
proven successful and rejected unprecedented and shockingly large
spending increases that have spawned tea party movements across the
- There Is Still Time: President Obama should freeze
stimulus spending planned for 2010 and beyond, when the recession
is expected to be over and place a moratorium on earmarks until the
system can be cleaned up.
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