Archives For spending

2014-07-10_07-56-04By its own estimate, the government made about $100 billion in payments last year to people who may not have been entitled to receive them — tax credits to families that didn’t qualify, unemployment benefits to people who had jobs and medical payments for treatments that might not have been necessary. Congressional investigators say the figure could be even higher.

The Obama administration has reduced the amount of improper payments since they peaked in 2010. Still, estimates from federal agencies show that some are wasting big money at a time when Congress is squeezing agency budgets and looking to save more.

SOURCE: Government made $100B in improper payments – Yahoo News.

Government waste is one area where I pretty much agree with my Republican friends. I worked hard to pay my fair share of taxes to keep our nation in business and it makes me mad when I see so much of it is wasted. The chart above show that $36 billion was paid out to perhaps fraudulent Medicare billers in 2013.

I know that the total Medicare spending for that year was almost $600 billion and that makes the fraud about 6% of the total spending. Those folks in Washington probably deem that an acceptable level and in reality that might be right in that we would probably spend more than that to catch the criminals bilking the system. But to me it is more a matter of principle. It would almost be worth it to spend more than we save to catch the offenders.

The number two thing on the list is the Earned Income Tax Credit. I’m not sure how this credit is abused to the tune of $15 billion? It goes to families with annual income up to $51,000. The amount of the credit is dependent on the number of children in a family. Are families claiming children they don’t have? I don’t know.

The current gridlock and the Republican’s constant demands to cut all budgets, except the military of course,  it is more likely that these abuses will increase rather than decrease in the coming years especially now that the GOP has control of congress. There seems to not be a government budget that they don’t want to cut. But again if the Democrats were in charge they would probably spend it on other things. How do we get ourselves out of this mess???? I think maybe the only answer it to keep voting the “ins” out of office until they get the message…

Capitalism….

February 10, 2014

2014-02-10_09-03-23

Can a capitalistic consumer driven society survive when so many have so little money to spend???

If nothing changes I guess we will soon find out the answer to that question…

Pile of Money“Lord, the money we spend on government. And, it’s not a bit better government than we got for one-third the money twenty years ago.” – Will Rogers, 27 March 1932

Lord knows we spend hundreds of time more for our government than we even did in Will’s day so his words above are even more appropriate today. I am proudly a social liberal but at the same time I am a fiscal conservative.  No, neither word insults me as is does many other around me these days. Being a fiscal conservative I want government to spend my money as frugally as I do and of course that is not what is happening today.

But being a social liberal I don’t want our representatives to save money by taking away things like food stamps from those who don’t get enough to eat and that is what the House conservatives are currently trying to do.  They say they will get around to putting food stamps back together sometime in the future.  Given their past performances “sometime in the future” could be decades away!

No, I don’t want them to take food out of people’s mouths in order to say money. It totally dumbfounds me that the conservatives, and the not so conservatives, in congress can’t see the mammoth elephant in the room when it comes to spending my dollars. It is widely recognized that those yahoos have thrown so much money at the folks at the Pentagon that they really can’t even figure how to spend it all.  Why can’t they see all this useless spending when it is so obvious to so many of us?

 

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Source: Why Pentagon won’t say how it would cut $55 billion starting Jan. 1 – CSMonitor.com.

BudgetsOne reason is because the Pentagon would then have to show its cards, some argue. That is, it would have to tell Congress how it would reallocate funds from its lesser priorities to its higher priorities, says Todd Harrison, senior fellow for defense budget studies at the Center for Strategic and Budgetary Assessments (CSBA), warned back in August.

“Once you show people there are higher- and lower-priority items in your budget, then the lower-priority items become the target, and they’re likely to get cut no matter what,” he says. Mr. Harrison is one who suggests that the Pentagon “would be wise to start planning.”….

Now that we are finally winding down Mr. Bush’s wars in Iraq and Afghanistan I hope the budgeters in congress take a serious look at our defense spending. The Department of Defense is the only department that has more than doubled during the last twelve years.  I pray that President Obama will also live up to his pledge to begin stepping back from being policemen of the world. I am hoping that he will have the guts to take on the industrial/military establishment and put then into a peace time mode from a financial standpoint. That alone would go a long way to balancing our budgets.

During the later parts of my employment in the corporate world I was required to set up budgets on an annual basis. Part of the process of allocating the money was I was forced to give priorities to where my group would spend the dollars allocated to us.  How the Department of Defense can get everything they want year after year is dumbfounding to me. What is even more dumbfounding is that they also frequently get money for projects they don’t even want.

I have no problems making sure that the boys and girls who make up the bulk of our military forces get a living wage but even there I hear that many are living below the poverty level! Much of the money seems to be spent on things related to  cold war strategies.

I mourn the fact that so many in the GOP are more willing to put cuts on seniors and the poor rather than to reign back some of these unknown military expenses.  Lets start these forthcoming budget talks by requiring the DOD to actually tell us where they spend all the money we throw at them. But, then again I doubt if they could even do that. Are we still buying $10,000 toilet seats. I wouldn’t be surprised.

But I am just a simple guy so what do I know….