Family Spending, Government Style

I have a new found interest in and respect for the savings of cold-hard-cash for various reasons; it’s easier to sleep at night with a good cushion, you never know when emergency may strike and I have come to loathe micro-loans known as credit cards.

So this $100M Government initiative is right up my alley right? I mean, this is fiscal responsibility at its best, yes? We’ll use both sides of the paper for printing – technology that has never before been available. We’ll cancel a few phone lines, turn off our computer monitors when not in use, you’ve heard the news reports – hopefully.

Well, let’s take a look at this type of savings plan and what happens when the rubber meets the road for the average American.

The total outlay budget this year for our Federal Government is $3,107,000,000,000 (that is $3.107 Trillion), according to whitehouse.gov and the Office of Management and Budget’s page. Our aggressive $100M savings plan thus breaks out this way:

$100,000,000 savings/$3,107,000,000,000 outlay budget = .000032 or .0032% total savings

That’s right, our Federal Government is tightening the belt an astonishing .0032%.

Now, according to the Census Bureau, the median US Household Income (HHI) was $50,233 in 2007. Let’s say aggressively that income rose 5% in 2008 and 2009 bringing the median HHI to $55,382 at the end of this year. Assuming that the average American family also took it upon themselves to sacrificially save .0032% this year for the security of their future, each average American family would save annually:

$1.77

That’s planning for a solid future, being fiscally responsible with managing your household and truly, cutting back on your standard of living.

Now, in a similar manner the Federal Government, once again according to whitehouse.gov, is budgeting total receipts of $2,700,000,000,000 for a short fall of $407,000,000,000 to expenditures. The spending plan breaks out this way:

$407,000,000,000 deficit/$2,700,000,000,000 receipts = .1507 or 15.07% over spending

Now, when a country overspends, it has to borrow, either from another country (China) or has to mint more money (dilution of gold backed funds aka inflation and borrowing against money that has not yet been earned and taxes paid on those same earnings by my great-grandchildren). In other words, loans are needed to fill the gap.

Once again, let’s bring this down to real life and assume that the average American family is over spending their HHI by 15.07% or $8,307. The average American family now has choices, take out a loan(s), get more open credit or some type of combination of both. However, at some point in time that same family will run out of credit available to them, max out their monthly income to just paying loans and – - – shock, if they cannot up their income will most likely loose everything. We happen to be in this very case in this country. People and business have overspent, primarily with credit and we are no feeling those results nationwide.

To draw this all together, if the average American family were to spend like the Federal Government, we can quickly see the disastrous results. If that same American family, faced with liquidity issues were to decide to start saving like the Federal Government, the savings would only amount to $1.77 against their $8,307 yearly over-spending or .02%. Eventually the over expenditure would catch up and the family would be rendered insolvent.

I’ll let you draw your own conclusions on this. I just thought I’d share the truths of the Feds (all parties are at fault here) compared to the Average American Family.

Couldn’t Say It Better

“The problem of 50% of workers not paying taxes, is that they won’t care how high they go.”

Dick Morris on The O’Reilly Factor regarding the shortcomings of a tax policy that allows a majority to not pay taxes.

Does anyone remember Carter or at least read untainted history?

A New Era

This month, just in case you’ve been under a rock, we inaugurated the first ever African American as President of this famed country.  What remains to be seen is what this means for the country in many respects.  I’ve held no punches in the past as to where my political bents lied, however I must now HOPE that President Obama and his era of CHANGE lead the country in the correct direction.

What I hope for most is the continued protection of our country against attack.  I do not think that there is any more integral job for the President then to ensure the safety of our land.

Secondly, I hope for the economic strength to return – however this cannot be falsified by issuing new currency and inflating the severely damaged tire.  The tire must first be repaired with correct oversight, a natural shaking out of the markets, and individual stimulus in the form of tax breaks/incentives among others.  I am a firm believer that the President often receives too much credit or scorn for the economy, however the plan we seeing now is history repeating itself – be it the American Great Depression of 1929 or the more recent Japanese Depression of the 1990’s (incidentally, if you want to see a mirrored program look at the Japanese v. Obama plans – Japan’s failed miserably with several expensive stimulus packages!).

Thirdly, is the issue of a more Pro-Life direction.  I hold no breath for this as we all know the extensive platform that Obama has laid out – however there is always hope!

We have a historic person in office right now, which is a testament to how far this country has come in basically a generation.  However, what remains to be seen is if this is truly a new era, a correct change of direction or simply just another modern-day “say-anything-to-be-elected” politician of another color.

Dear Mr. Obama – Round Two

I cannot take credit for finding this, my cousin actually posted it on Facebook, I simply copied and pasted.  However, cheers to Cory Miller, I think this sums up the feelings of most people in this country who pay taxes to support those who don’t.  Warning – it’s long.

Mr. Obama,

Given the uproar about the simple question asked you by Joe the plumber, and the persecution that has been heaped on him because he dared to question you, I find myself motivated to say a few things to you myself.

While Joe aspires to start a business someday, I already have started not one, but 4 businesses. But first, let me introduce myself. You can call me ‘Cory the well driller’. I am a 54 year old high school graduate. I didn’t go to college like you, I was too ready to go ‘conquer the world’ when I finished high school. 25 years ago at age 29, I started my own water well drilling business at a time when the economy here in East Texas was in a tailspin from the crash of the early 80’s oil boom.

I didn’t get any help from the government, nor did I look for any. I borrowed what I could from my sister, my uncle, and even the pawn shop and managed to scrape together a homemade drill rig and a few tools to do my first job. My businesses did not start not a result of privilege. It is the result of my personal drive, personal ambition, self discipline, self reliance, and a determination to treat my customers fairly.

Obama and Citizenship

Too good not to see.  The hits keep coming and the public keeps covering their eyes and plugging their ears.

Dear Mr. Obama

How Presidential

Well, I guess we know what we could expect at the White House during the diplomacy meetings.  OK boys, we’re going to settle this the old school way… dance off… see if you can keep up Putin.

 

Lincoln vs. Obama

“I’m so glad President Abraham Lincoln was not “Pro-Choice” on slavery, and that he signed the Emancipation Proclamation ending slavery in America. He could have said, like Obama, that the question of slavery was above his “pay grade.” Great presidents don’t say things like that. They know the buck stops on their desk, and they do what’s right.”

Dick Bott regarding Obama’s “Above my pay grade” response to when babies deserve human rights.

See the entire editorial transcript HERE.

It’s the Economy Stupid

Still need more proof… read THIS article.

Ten Reasons to Vote for McCain

10.  His service to America has proven him to be a leader, a man of integrity and a person we can trust to keep America safe and make decisions in the people’s best interest rather than his own.

9.  His view of life beginning at conception is proof that the Constitutional Rights the American people are guaranteed to all people within our country.

8.  McCain’s judgement of breaking party rank and working on what’s best for the country will help break the useless Congressional gridlock we currently have to produce results.

7.  His view of current needs in energy coupled with the need to strategically grow into renewable, domestic sources will create jobs and help curb our support of terrorist nations.

6.  John McCain cares more about keeping our country safe than pandering to and soft-gloving terrorist or those who seek to harm us.

5.  McCain can make a definitive decision without pondering for a week when necessary.

4.  McCain’s economic policy in general will help Americas corporations, small business, entrepreneurs, middle class, working class and those in need by lowering taxes, reining in government spending and keeping jobs in the USA for those in the USA.

3.  His overall support of the troops, regardless of which war.  He recognizes that when the United States starts something, no matter who the president is at the time, the United State should finish it with victory and honor.

2.  McCain actually stands on concrete ideas and strategy, not lofty candor that is meant to tickle the ears of Americans who may be disenfranchised with their current situation.

1.  McCain values the Constitution, our individual rights, and chose an amazing leader to partner with him in taking on Washington to reform this country and pass it to the next generation.  Go McCain – Go Palin – Go America! 

McCAIN/PALIN FOR THE CHANGE AMERICAN NEEDS.

Don’t ever call me a single issue voter!!!