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Federal Budget in Balance FY 2011: Comparison of Bush and Obama HA-28-2-10

 

By Tony J. Sanders

sanderstony@live.com

 

“We do not inherit the Earth from our ancestors we borrow it from our children.”

                                                                                  Native American Proverb

 

Part I Constitutional Rationale

Part II Economic Damages

Part III Operation

Part IV Concluding Remarks

 

Table 1: Federal Budget Master Balance 2009-2012 (in millions)

Table 2: Overview of the President’s Budget 2005-2012 (in billions)

Table 3: Gross Domestic Product Annually and Quarterly 2008-2009 (in billions)

Table 4: Revenues 2005-2012 (in billions)

Table 5: Gross Federal Debt 2005-2012 (in billions)

Table 6: Status of the Troubled Asset Relief Program as December 31, 2009 (in billions)

Table 7: State Budget Shortfalls FY2009 (in millions)

Table 8: Presidential Outlays by Agency, and Annual % Change 2002, 2005-2012 (in millions)

Table 9: Legislative and Judicial Spending FY 2005-2012 (in millions)

Table 10: Department of Treasury Balance 2008-2012 (in millions)

Table 11: Department of Justice Spending 2008-2012 (in millions)

Table 12: Departments of State, International Assistance and Homeland Security Spending 2009-2012 (in millions)

Table 13: Department of Defense Spending 2008-2012 (in millions)

Table 14: Veterans Affairs Spending 2008-2012 (in millions)

Table 15: Civil Corp of Engineers Spending 2008-2012 (in millions)

Table 16: Department of Health and Human Services Spending 2008-2012 (in millions)

Table 17: Department of Interior Budget Authority and Receipts 2009-2011(in millions)

Table 18: Department of Agriculture Balance FY 2008-2009 (in millions)

Table 19: Department of Commerce Spending 2008-2012 (in millions)

Table 20: Department of Labor Spending 2008-2012 (in millions)

Table 21: Social Security Administration Balance 2008-2012 (in millions)

Table 22: Housing and Urban Development Spending 2009-2012 (in millions)

Table 23: General Services Administration Recovery Act Spending 2008-2012 (in millions)

Table 24: Small Business Administration Budget 2008-2012 (in millions)

Table 25: National Aeronautics and Space Administration and National Science Foundation Spending 2009-2012 (in millions)

Table 26: Department of Transportation Spending 2008-2012 (in millions)

Table 27: Environmental Protection Agency Spending 2008-2012 (in millions)

Table 28: Department of Energy Budget 2009-2012 (in million)

Table 29: Office of Personnel Management Budget Appropriations 2008-2012 (in millions)

Table 30: Department of Education Spending 2009-2012 (in billions)

Table 31: Savings to the Deficit Accrued by Imposing Agency Spending Limits 2009-2012 (in millions)

Table 32: Impact of FY 2011 Revenue Proposals 2010-2020 (in millions)

Table 33: Impact of Health Insurance Options on the Budget 2011-2020 (in billions)

Table 34: Effects of Spending Limit, Revenue and Health Measures 2009-2012 (in millions)

 

I.                   Constitutional Rationale

 

Although most of it holds true, several provisions of the Hospitals & Asylums Political Platform 2009-2012 are reversed in order to more precisely and proportionally neutralize the armed attack by President of the United States and Democratic and Republican (DR) partisans that has needlessly taken an estimated 211,002 lives 2009-2010 and lead the economy from the Great Recession.  To make peace on a spirit level the tobacco tax of April 1, 2009 must be amended to provide for a flat 159% increase, reversing the greater than 2,000% increase on hand-rolling tobacco and small cigars and taxing the large cigars favored by investment bankers, while the Economic Stabilization Act of 2008 and the American Recovery Reinvestment Act of 2009, that were formerly called upon for repeal to limit damages there-under to the 111th Congress, that has been dissolved in its entirety, are herein reconciled.  Like in the colony of Virginia, the normalization of tobacco prices can be accepted as payment in lieu of currency, however immediate payment is imperative whereas this work accounts for a deficit of less than 3% of GDP by 2011, otherwise neither the Administration nor Congress will have performed.  If the President cannot, henceforth, keep the Peace, to the satisfaction of the Armed Forces Retirement Home Trust Fund, he shall be impeached under Art. 1(6), Art. 2(4) of, and Amendment 25(2), to the US Constitution, by the 111th Congress, that would otherwise be dissolved, and a Chief Justice, who would otherwise be dismissed.  This work, like all of my work, however, is not intended to create strife, it has been carefully crafted, with less than 1% deviance from Office of Management and Budget (OMB) figures, to correct the budgetary imbalances in the Historical Tables of the Office of Management and Budget (OMB), for the vindication of OMB Director Peter Orszag.

 

I have reviewed the written opinions of the principal officers of the executive departments, relating to their agency budgets under the FY 2011 Federal Budget pursuant to Art. 2(2)(1) of the U.S. Constitution. I have taken the liberty to faithfully transcribe, and in some cases justify, agency budget requests for the realization of our common goal of a balanced federal budget.  I brought the federal deficit under 3% of GDP FY 2005-2007, and after taking a leave of absence in FY 2009, I am proud to announce the FY 2011 budget is balanced on paper.  The deficit, after being adjusted upward from $1.4 trillion, 9,8% of GDP, to $1.6 trillion, 10.9% of GDP, in 2009, to account for the American Recovery and Reinvestment Act of that year, goes down dramatically.  With Recovery Act capital to soften hardship agencies enjoy financial stability under reasonable 1-5% growth rates using 2008 as a base year.  Many agencies did this themselves, but several recapitalized upon Recovery Act funding levels, they were corrected.  Others, namely OPM with no FY 2011 budget, have been over-reported by OMB for years, others like SSA and DHS are limited to OMB appropriation levels.  DOE needs to take responsibility for the Low Income Energy Program to justify budget increases and control energy prices. The entire column Defense – Civil is a duplicate of mostly mandatory VA benefits and the cost of reconstructing my beloved AFRH Gulfport home needs to be put on the VA books to justify its large increases.  Congress is punished with 2007 levels of revenue until they produce a deficit less than 3% of GDP.  Their social health insurance agenda is censured until its cost would not cause more than a 3% deficit, some talk of nationalizing health insurance to balance the budget is okay.  Health and Human Services spending growth is limited to an annual 2.5% from 2008 and health care industry price increases are limited to 3% by law.  The $200 billion annual DoD lending is forfeited to the General Fund of the Treasury and the Overseas Contingency Operations fund is terminated in FY 2011 for a DoD budget of $400 billion, world peace and a $214 billion deficit, 1.2% of the GDP, in FY 2012.  The $200 billion TARP fund shall be returned in FY 2011 when a disciplined administration would enjoy a $427 billion deficit, 2.8% of GDP, not quite enough for health insurance, but better than one with a $1.067 trillion deficit, 6.9% of GDP.  In other words, this document can save FY 2011, FY 2012 and the first term of the President.

 

Table 1: Federal Budget Master Balance 2009-2012 (in millions)

 

2009

2009 s

2010

2010 s

2011

2011 s

2012

2012  s

Legislative Branch

4,702

4,702

5,423

4,294

5,579

4,294

5,292

4,294

Judicial Branch

6,645

6,645

7,159

6,711

7,512

6,777

7,351

6,845

Executive Office of the President

742

742

715

715

501

501

427

427

Agriculture

114,440

100,334

142,016

89,689

145,748

100,452

137,917

105,474

Interior

11,775

11,371

12,042

12,216

14,045

12,177

12,803

12,000

Environmental Protection Agency

8,070

7,600

11,301

10,300

11,177

10,000

9,980

9,624

Energy

23,683

70,581

38,278

26,525

44,390

28,400

34,792

30,311

Commerce

10,718

10,718

16,714

16,714

11,500

8,400

10,430

8,600

Education

53,400

137,600

106,900

59,200

94,300

77,800

85,200

80,000

State

21,472

15,826

25,726

17,613

28,754

16,400

30,065

16,500

International Assistance

14,794

34,308

23,899

35,441

24,343

36,400

28,223

38,500

Homeland Security

51,725

51,725

52,903

52,903

54,723

54,723

46,847

46,847

Housing and Urban Development

61,019

61,811

62,518

49,347

53,082

48,913

48,153

48,153

Transportation

73,004

112,344

90,944

68,899

86,665

70,966

82,817

73,095

Office of Personnel Management

72,302

41,158

71,603

42,200

73,463

44,000

75,956

46,000

General Services Administration

319

319

1,782

1,782

2,279

2,279

2,170

2,170

National Aeronautics and Space Administration

19,168

18,784

19,123

18,724

17,863

19,000

18,953

19,570

National Science Foundation

5,958

6,872

7,819

7,424

7,647

7,500

7,558

7,725

Small Business Administration

2,246

2,127

5,978

5,598

1,388

1,228

1,112

1,112

Justice

27,711

27,711

30,333

23,816

31,924

24,054

33,700

24,295

Labor

138,157

142,503

209,265

162,003

116,902

79,982

90,790

70,000

Treasury

701,775

896,972

502,980

400,472

593,550

560,863

685,279

600,000

Veterans Affairs

95,457

97,000

124,565

111,035

124,215

121,604

122,369

125,252

Defense- Civil

57,276

0

54,317

0

55,719

0

56,457

0

Civil – Corps of Engineers

6,842

5,242

10,536

10,189

6,929

5,438

5,879

5,500

Defense – Military

636,775

464,775

692,031

497,031

721,285

508,000

653,424

400,000

Health and Human Services

796,267

858,953

868,762

735,902

934,426

754,299

911,291

773,157

Social Security Administration (on-budget)

78,657

78,657

85,108

85,108

80,933

80,933

77,304

77,304

Social Security Administration (off-budget)

648,892

683,000

683,867

709,000

708,620

735,000

738,430

773,000

Other Independent Agencies (on-budget)

47,636

47,635

2,001

2,001

31,832

31,832

26,928

26,928

Other Independent Agencies (off-budget)

304

304

6,426

6,426

4,226

4,226

-13

-13

Allowances

-4

-4

18,750

18,750

21,676

21,676

-4,187

-4,187

Undistributed Offsetting Receipts

-274,193

-274,193

-271,127

-271,127

-283,287

-283,287

-288,823

-288,823

Effect of Agency Spending Limits

 

 

 

 

 

 

 

 

Total Outlays

3,517,734

3,724,122

3,720,657

3,016,901

3,833,909

3,194,830

3,754,874

3,139,660

Total Receipts

2,105,000

2,105,000

2,165,000

2,165,000

2,567,000

2,567,000

2,926,000

2,926,000

Total Deficit

-1,412,734

-1,619,122

-1,555,657

-851,901

-1,266,909

-627,830

-828,874

-213,660

% GDP

9.8%

11.3%

10.6%

5.8%

8.2%

4.1%

5.1%

1.2%

Total Public Debt

11,876,000

12,082,000

13,787,000

13,289,000

15,144,000

14,008,000

16,336,000

14,584,000

% GDP

83.4%

84.7%

94.3%

90.9%

99.0%

91.6%

100.8%

90.0%

Effect TARP Termination

NA

NA

NA

NA

200,000

200,000

NA

NA

TARP Termination Effect on Deficit

NA

NA

NA

NA

-1,066,909

-427,830

NA

NA

% GDP

NA

NA

NA

NA

6.9%

2.8%

NA

NA

TARP Termination Effect on Debt

NA

NA

NA

NA

14,944,000

13,808,000

16,136,000

14,384,000

% GDP

NA

NA

NA

NA

97.6%

90.3%

99.6%

88.7%

Effect of Revenue Provisions + TARP

 

 

 

 

 

 

 

 

No on Make Work Pay Extension

NA

NA

NA

NA

30,132

30,132

31,075

31,075

No on Information Reporting Tax

NA

NA

NA

NA

-326

-326

-1,029

-1,029

Total Effect of Revenue Provisions

NA

NA

NA

NA

29,806

29,806

30,046

30,046

Revenue Provision Effect on Total Deficit

NA

NA

NA

NA

-1,036,000

-398,000

-799,000

-184,000

% GDP

NA

NA

NA

NA

6.7%

2.6%

4.9%

1.1%

Revenue Provision Effect on Public Debt

NA

NA

NA

NA

14,914,000

13,778,000

16,106,000

14,354,000

% GDP

NA

NA

NA

NA

97.5%

90.1%

99.4%

88.6%

Effect of Health Care Proposals + TARP + Rev.

 

 

 

 

 

 

 

 

Social Health Insurance Plan

NA

NA

NA

NA

-75,000

-75,000

-80,000

-80,000

 Effect of Social Health on Deficit

NA

NA

NA

NA

-1,111

-473,000

-909,000

-294

% GDP

NA

NA

NA

NA

7.2%

3.1%

5.6%

1.8%

Total Effect of Social Health on Debt

NA

NA

NA

NA

14,989,000

13,833,000

16,186,000

14,434,000

% GDP

NA

NA

NA

NA

97.9%

90.5%

99.9%

89.1%

National Health Service

NA

NA

NA

NA

688,000

688,000

709,000

709,000

Effect of NHI on Deficit

NA

NA

NA

NA

-379,000

+261,000

-119,000

+495,000

% GDP

 

 

 

 

2.5%

+ 1.7%

0.7%

+ 3.1%

Effect NHI on Debt

NA

NA

NA

NA

14,256,000

13,120,000

15,427,000

13,875,000

% GDP

NA

NA

NA

NA

93.2%

85.8%

95.2%

85.6%

Source: Table 31 and Table 34

 

The correlation between war and debt has haunted the United States Constitution since the Revolutionary War.  In the 18th century both Adam Smith in his Inquiry into the Nature and Causes of the Wealth of Nations (1776) upon which our free market economy is founded and Immanuel Kant in his essay Perpetual Peace (1795) held that nations at war tend to get into debt to evade the people, who quickly tire of such a poor game, and act to end such nonsense.  A Balanced Budget Amendment to the United States Constitution is called for in Chapter 8-D of the Constitution of Hospitals & Asylums Non Governmental Economics (CHANGE) that recalls as early as 1798, before the Louisiana purchase, Thomas Jefferson apologized, “I wish it were possible to obtain a single amendment to our Constitution… taking from the Federal Government the power of borrowing. I know that to pay all proper expenses within the year would, in case of war, be hard on us. But not so hard as ten wars instead of one. For wars could be reduced in that proportion”. Unfortunately, James Madison, in drafting the Bill of Rights (1791), aggravated the debasement of the Supremacy clause at Art. 4(2) to public debt, by brandishing an unconstitutional right to bear arms in the face of the First Amendment right to sue the government for a redress of grievances, he and Jefferson had fought so hard to defend. Later Civil War debt was written into the Fourteenth Amendment.  Several balanced budget amendments have been proposed however no one proposed Amendment has yet been agreed to, probably because the duty to balance the budget is subjugated by these technical errors in the Constitutional law that need to be repealed, for economic and constitutional law and reason in general to be truly superior to threats of violence, as is the true intention of all law and writing and learning. 

 

While avoiding all contact with the family and government, to escape persecution, in 2009, I took the time, four hours, having already been fully briefed, to fully amend the U.S. Constitution HA-26-7-09, to create a government I could deal with, wherein the Balanced Budget Amendment replaces the Second Amendment right to bear arms.  The general idea is the same one that brought immigrants fleeing tyranny to the American continent in the first place. We claim the privilege of worshiping Almighty god according to the dictates of our own conscience, and allow all men the same privilege, let them worship how, where, or what they may (Articles of Faith 1:11).  For the most part all the people want is the freedom of the press, trade, speech, religion, association and peaceable assembly.  As for government, in the words of Thomas Jefferson, in his inaugural address in 1801, all that is wanted is “for a wise and frugal government, which shall restrain men from injuring one another, and leave them otherwise free to regulate their own affairs and industry”.  Milton Friedman and his wife Rose’s classic inquiry into the relationship between freedom and economics Free to Choose (1980) explains the superiority of capitalist self-interest over socialist collectivism whereby “No external force, no coercion, no violation of freedom is necessary to produce cooperation amongst individuals, all of whom benefit.”  In other words to enforce the law is to break the law and one would prefer to petition the government rather the barrel of a gun, or General of the United Nations (GUN) for that matter.  By associating the First Amendment right to sue the government for a redress of grievances and a Second Amendment duty to balance the budget, rather than a bizarre right to bear arms, never before heard, never again repeated in any other countries and in a strictly legal sense definitely inferior to a constitutional right that is specifically intended to be superior to the awesome power of State sanctioned violence.  More than any other Amendment to the U.S. Constitution this duty to balance the budget would bring the government into harmony with the writer rather than the fighter, and thereby forever increasing the peace and prosperity in our society.

 

The proposed Second Amendment duty to Balance the Budget states:

 

Section 1 Total outlays for any fiscal year shall not exceed total receipts for that fiscal year.

 

Section 2 Prior to each fiscal year, the President shall transmit to the Congress a proposed budget for the United States Government for that fiscal year in which total outlays do not exceed total receipts.

 

Section 3 The Congress shall enforce and implement a balanced budget by appropriate legislation.

    

II. Economic Damages

 

As everyone is well aware, the federal government, usually runs on a deficit, with some famous exceptions, such as when Andrew Jackson paid off the federal debt in 1835 and more recently when Bill Clinton ran a surplus in 1998-2000, is running the highest deficit in dollar terms in national history, well over $1 trillion in 2009, 2010 and 2011, the second highest as a percentage of GDP since WWII and the Confederacy during the Civil War.  Unless federal spending is corrected the public debt will exceed 100% of GDP as soon as 2012.  This 2010 the President and his Cabinet have proposed an FY 2011 budget that, although they freely admit outlays exceed receipts, can theoretically be balanced.  At war since 2001, and financially dependant upon Hospitals & Asylums after bombing the largest reparation in world history on the Spring Equinox of 2003, and being directed to international economic cooperation in 2004, and national fiscal responsibility in 2005, by 2006, the war economy had been completely decoded whereas the deficit was neatly financed with bonds issued by the SSA off-budget surplus and military budgetary funds in excess of $300 billion propped up the stock market.  The budget could be balanced if the military budget surplus and half of the social security revenue surplus was returned to the federal treasury.  Under my command surplus defense spending was called in, by locally infringing OMB Director Robert Portman (now with Squire, Sanders and Dempsey a law firm receiving TARP funds), bringing the deficit from a high of $414 billion in 2004, 3.5% of GDP, to -$318 billion in 2005, 2.5% of GDP, to -$248 billion in 2006, 1.9% of GDP, and more effectively in 2007, when the deficit was reduced to a socially responsible -$161 billion, 1.1% of GDP.  But without official acknowledgment of the source of these surplus military revenues, SSA could not be divested of their property, to achieve the common goal of peace and a balanced budget. 

 

Table 2: Overview of the President’s Budget 2005-2012 (in billions)

                                                                                                                                                                                    

 

2005

2006

2007

2008

2009

2010

2011

2012

GDP

12,638

13,399

14,078

14,441

14,259

14,624

15,299

16,203

% Change

 

6%

5.1%

2.6%

-1.3%

2.6%

4.6%

5.9%

Receipts

2,154

2,407

2,568

2,524

2,105

2,165

2,567

2,926

% GDP

17%

18%

18.2%

17.5%

14.8%

14.8%

16.8%

18.1%

% Change

 

11.7%

6.7%