putting Obama’s $100M budget cuts in perspective

3 06 2009

Recently President Barack Obama proposed $100 million in budget cuts.  That sounds like a big thing, and at least it’s something, but it’s not much compared to what he’s already done and is planning to do.  Look at this picture to put it in perspective.

pie chart showing Obama's budget cuts

Those numbers are bigger than most of us can comprehend, so let me put it in a low-budget perspective.  Suppose you already had lots of debt, more than you could pay off, and you decided to buy a $50,000 Hummer.  Your spouse complains, saying there’s no way we can afford that, but you counter by saying, “I just figured out how to save $1.02!  So it’s all good — I’m saving money!”  Of course that’s foolish — saving a dollar on your yearly budget doesn’t help much when you just extended the budget by $50,000!  (BTW, I didn’t make those numbers up — I took the ratio of $100 million vs the other spending and applied it to $50,000, and it equaled $1.02.  There’s some perspective!)

For extra credit: How was this covered by the various news outlets?  Was Obama mostly praised for this “sacrifice”, or did analysts see it for what it is?

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One response

8 06 2009
Liberal Economist

What you conservatives don’t understand is that Obama is not wasting our money down the drain. Think about it, people. There are some major issues our society has to get corrected before things will get better. We didn’t change our minds about healthcare, social security, job creation, saving the planet, until a crisis hit. We need this government overhaul! In the end, the country will be in a better place.

Using your analogy I propose this explaination for Obama’s Budget.

Just say that you have this great idea to change the way your business is run. An idea (Obama’s budget) so great it would triple the size of the business (America’s Economy). However, you need a loan to get started. and you are already in debt. Though the debt you have is only around 10-15% of your total income (not bad at all. many americans would salivate at those numbers). So as a business owner with minimal debt you need an enormous amount of money to get this wonderful idea off the ground.
What do you do?
What has most of america’s small business owners have done?

A good question to ask is “What did the founders of Google do? What did Bill Gates do? What did the founder of E-bay do?”

They all borrowed money!

An insane amount compared to their current debt/income ration. But now look at these multi-BILLIONAIRES. We will be multi-TRILLIONAIRES when the fruit of Obama’s labor comes to fruition.
You conservatives put faith in God.
We liberals put faith in Obama!

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