Obama Wants To End The Era Of Sequestration
Source: Huffington Post
WASHINGTON -- President Barack Obama will propose a budget on Monday that calls for an estimated 6.8 percent increase in discretionary spending -- an approach diametrically different from the last time Democrats sustained major midterm election losses.
The spending proposal will almost assuredly get strong pushback from Republicans in Congress, who now control both the House and the Senate and wield even more power than they did four years ago. For that reason alone, the budget is another sign of a president feeling unhindered in his final years of office and eager to take advantage of an improving economy.
Details of the budget have been guarded closely by administration and Capitol Hill officials. But sources on both ends of Pennsylvania Avenue said Obama will propose increasing discretionary spending by about $70 billion (several sources cautioned the proposed increase likely will be slightly less). The money would be divided equally between defense and non-defense accounts.
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The President will propose to end the across-the-board sequester cuts that threaten our economy and our military," a White House official said. "The Presidents budget will fully reverse those cuts for domestic priorities, and match those investments dollar-for-dollar with the resources our troops need to keep America safe.
Read more: http://www.huffingtonpost.com/2015/01/29/obama-sequestration-budget-2016_n_6567816.html
William769
(55,147 posts)for sanity. However, wonder what insanity will reall happen, Repugs don't do sanity at all and will never approve this. Gasp, it raises taxes on the (non)jobs creators.
onehandle
(51,122 posts)Dont call me Shirley
(10,998 posts)for middle class and working poor, poor, homeless, disabled, veterans)
progree
(10,911 posts)Fiscal year 2014 ended September 30, 2014. Similarly for all the other fiscal years.
Note: all figures in this section are actual, not budgeted. I only point out that Bush signed the FY 2009 budget.
[div style="display:inline; font-size:1.37em; font-family:monospace; white-space:pre;"] v-last Bush budget was FY 2009 (all figures are actuals, not budgeted)
[div style="display:inline; font-size:1.37em; font-family:monospace; white-space:pre;"] 2008 2009 2010 2011 2012 2013 2014 Fiscal Year
[div style="display:inline; font-size:1.37em; font-family:monospace; white-space:pre;"] 2,983 3,518 3,457 3,603 3,537 3,454 3,504 Total Outlays, $Billions
[div style="display:inline; font-size:1.37em; font-family:monospace; white-space:pre;"] (450) (1,413) (1,294) (1,300) (1,087) (680) (483) Surplus (deficit), $Billions
[div style="display:inline; font-size:1.37em; font-family:monospace; white-space:pre;"] (3.1) (9.8) (8.7) (8.5) (6.8) (4.1) (2.8) Surplus (deficit), % of GDP
Source:
. . . https://www.cbo.gov/publication/49759 which links to the complete document at
. . . https://www.cbo.gov/sites/default/files/cbofiles/attachments/49759-MBR.pdf
. . . See also www.whitehouse.gov/sites/default/files/omb/budget/fy2015/assets/hist01z1.xls for receipts, outlays, and surplus (obtained by link from http://www.whitehouse.gov/omb/budget/Historicals . As of 1/29/15 this his01z1.xls spreadsheet still only has a "2014 estimate" that has outlays of 3,651 B$ and a 649 B$ deficit -- disagreeing with the numbers in the above table from cbo.gov/publication/49759 . I believe the hist01z1.xls numbers for 2014 are older than /49759's numbers)
Source for the 2008 numbers (and 2009 thru 2013 except these were revised by the document above):
. . . http://www.cbo.gov/publication/43698 which links to the complete document at
. . . http://www.cbo.gov/sites/default/files/cbofiles/attachments/44716-%20MBR_FY2013_0.pdf
So FY 2014 federal spending is 14 B$ (0.4%) LESS THAN FY 2009 (the last Bush budgeted year).
Since the nominal (current dollar) GDP increased by 22.36% between FY 2009 (a recession low point) and FY 2014 (see next paragraph), while federal spending dropped 0.4%, that means federal spending as a percentage of GDP dropped substantially during those 5 years -- from 24.46% of GDP to 19.91% of GDP (calculations below). Something to keep in mind when some rightie rants and raves about the socialist Obama spending us into the poor house.
In Current Dollars: GDP FY 2009 (2009 Q3) = $14,384.1 billion . GDP FY 2014 (2014 Q3) = $17,599.8 billion -- an increase of 22.36% over FY 2009.
Source of GDP figures: http://www.bea.gov/national/xls/gdplev.xls
where FY 2009 = Q4 2008 through Q3 2009. And FY 2014 = Q4 2013 through Q3 2014.
FY 2009: Spending / GDP = 3518/14384 = 24.46% . FY 2014: Spending / GDP = 3504/17600 = 19.91%
See the previous section (in http://www.democraticunderground.com/111622439#post5) that explains that the Fiscal Year 2009 budget (Oct. 1, 2008 - Sept 30, 2009) was signed into law by G.W. Bush, and how the CBO on January 7, 2009 (13 days before Bush left office) projected a $1.2 trillion deficit for FY 2009. So all but about $200 billion of FY 2009 spending and deficits was "baked in" before Bush left office.
{#} The FY 2014 deficit (483 B$) is about 1/3 of what Obama inherited (1413 B$)
Reasons for deficit reduction (July 7, 2013): https://www.fidelity.com/viewpoints/market-and-economic-insights/us-federal-deficit-shrinking?ccsource=email_weekly
As for the national debt (the accumulation of all deficits and surpluses, throughout history), the picture is not quite as appealing:
National Debt as Percent of GDP
62.7% 1993 Q1 - When Bush I left office and Clinton took office
54.9% 2001 Q1 - When Clinton left office and Bush II took office
77.4% 2009 Q1 - When Bush II left office and Obama took office
101.5% 2014 Q3 - latest on this graph
Source: http://research.stlouisfed.org/fred2/series/GFDEGDQ188S?cid=5 [font color=red]<-graph[/font]
. . . . . http://research.stlouisfed.org/fred2/data/GFDEGDQ188S.txt
So by cutting the deficit, we've been cutting the rate at which the national debt has been growing. But the national debt is still growing, although as a % of GDP, it has been leveling off (see graph link above).
More on the national debt and deficit: http://www.democraticunderground.com/111622439#post5