7. The Federal Budget

Let me explain the problem this way: The law requires that the House go over the cost of each of the 12 government departments annually and agree on spending limits by September 30. Not only have our politicians failed to consider each of the departments separately, but the House of Representatives has not completed any budget timely by September 30 this century.

A small group of so-called dissident Republicans is demanding that each agency be considered separately as the law requires. So far, this group has caused the House Republicans to vote on and pass proposed funding for three of the twelve agencies' budgets for fiscal 2024 individually. This scrutiny should be welcomed by all of us. For 27 years, back to 1997, we have thrown all 12 agencies into an omnibus bill which also contained numerous other expenditures and finally voted on it during the holidays when very few people were paying attention.

But it’s worse than that. Consider this: the expected tax revenues in calendar 2023 are $4.5 trillion or about 16.8% of all goods and services during the year. To illustrate my point, I will use the so-called 'mandatory spending' of fiscal 2022, which was $4.1 trillion. This spending is automatic and not subject to Congressional review. It is also more than twice as large as the spending for the whole government. Neither Biden nor Trump will agree to reduce it.

Taking the mandatory spending number away from the revenue number would leave only $400 billion to fund the twelve government departments. First, we must fund defense at $865 billion! Not to mention the other 11 agencies: Agriculture, Commerce, Energy, Financial Services, Homeland Security, Interior, Labor, Legislative, Transportation, State, or Education?

The largest expenses in mandatory spending are the entitlements, and both Biden and Trump have said they will not touch them. If we are to survive as a nation, we must reduce mandatory spending. In the year just ended, fiscal '23, the government is expected to have borrowed another $1.6 trillion to fund the 12 government agencies. Next year it will surely be more.

The group of eight dissident Republicans wanted the House to deal with this shortfall now, even if it means stopping the government. That doesn’t sound too unreasonable, does it?

Inflation is the most destructive thing to America’s wealth and welfare, and raising interest rates is an effective way to stop it. However, raising rates also raises the annual cost of our huge national debt, which is headed toward a cost of one trillion and more per annum by fiscal '28. We don’t need presidential candidates or incumbents who refuse to reduce mandatory spending. To fail to deal with this will ensure our insolvency as a nation.

Have a blessed week!

Tony Christ