US Budget, Very Cunfusing?
January 8th, 2012I was listening to the reports of the trillion dollar cut to the military budget by President Obama and I decided to look into it. How much is the military budget? How much would it affect their budget. It turns out their annual budget is a little over .6 trillion so according to that they will owe the budget .4 trillion each year. Obviously something is amiss. It turns out numbers are confusing and the military is even more confused. The GAO (Government Accounting Office) can’t rate the military budget as accurate or misleading because of the lack of proper accounting practices. That’s reassuring. The costs for wars in Iraq and Afghanistan are not even included in the military budget and are classified as supplemental budget items so the actual military budget is actually higher than the .6 trillion. An accurate cost of the wars isn’t available since there are the direct costs of killing and blowing things up and then there are the indirect costs of the impact on the Vetrans Administration and the like. The one trillion dollar cut must be a multi-year total cut?
The one piece of information I did find on the budget that I think I can trust as accurate is available on Wikipedia. Two graphs that I find most interesting show where the money comes from and where it goes in pie charts. US Federal Spending and US Federal Tax Receipts.
There are three interesting items that become obvious when looking at the pie charts. The military budget, Social Security budget, and Medicare budget amounts are about equal. From a cost benefit analysis I would think the military proportion is too high. But the second thing that becomes obvious is that social security taxes account for about 33% more than social security benefits. The rest is used by other items in the budget like the military. That tears a hole in the argument that cutting social security payments is needed. Obviously they wouldn’t be cutting the social security taxes so the intent would seem to be to move the benefit payments to other budget items for which they are not intended. The third thing that is obvious, looking at the tax receipts pie chart, is how corporations really do pay nothing relative to their income. We really do need to increase corporate taxes. Yes we might pay the increased taxes in the end but we also might not. It would provide a great incentive to buy from the little businesses that are not corporations like your neighbor. He’s already paying his share.




An observation today on the state of the economy and wise decisions. Our neighborhood, like most, has a lot of traffic. Some of that traffic is the postman, the UPS, Fedex, and other deliveries. Much of that traffic has gone down recently. High gas prices, failing economy? The real interesting thing is that the postman still drives into the neighborhood every day to deliver less mail (Is that what it takes to reduce junk mail, a bad economy?). They tend to drive a lot more than necessary driving to each block segment to deliver both sides of the street. Some in the past drove to each house but that seems to have died down. Back in the old days, postmen used to be dropped off and they carried the mail house to house and picked up more as needed in a lockbox on the street that a delivery truck dropped off after delivering the postmen. Quite efficient. I don’t know why each postman now has a vehicle. Is that the main reason for the rise in postage?Anyway, I noticed that the UPS truck doesn’t come by any more and I rarely see the Fedex truck. That is probably a sign of the reduction in the economy, but what is really interesting is that the UPS man does still come by, just not in his truck. He pushes a handtruck down the street with all sorts of packages on it. I don’t even see his truck anywhere nearby? I don’t know what the Fedex guy is doing since I don’t see it come by as often but haven’t seen him walking either? Looks like UPS is smarter than the postal service, as usual. In lean times, reduce costs, do things more efficiently. Take notice USPS! I don’t know if this is UPS wide or just a smarter driver but I like the idea.