Friday, September 30, 2016

Comparing Trump & Hillary - Economy: Budget & Deficits

The budget and the debt just might be the single greatest advantage Trump has over Hillary.  Both candidates are making some hefty promises regarding certain issues that will cost the taxpayers a lot of money.

Hillary wants to push the healthcare button towards full and complete government run healthcare.  But she not only wants to push that button, she wants to include illegal immigrants into that equation as well.  Her solution to paying for this…as is the case with every liberal entitlement, by taxing the rich.  As though the rich will just keep paying more and more while getting less and less for their money.

Hillary also wants to make a college education free for all who want it.  This is yet another nine figure entitlement that will bankrupt this country.  And, of course, the rich will pay for this too.  Because the rich want to.

Trump also wants to revamp the healthcare programs.  He wants to get rid of Obamacare and push the healthcare industry back in the direction of free market competition.  He wants to allow for cross-state competition and to restrict lawsuits against doctors.  Thus lower costs for Americans.  He does want to try to extend our medicare program to those who have no group coverage and can’t afford health insurance.  But his solution to paying for it is to go hard after corruption and theft in the system and to inject competition into Medicare that would lower costs, thus opening the doors to paying for others to be a part of the Medicare system without raising costs.

Trump’s child care program is another that would cost money.  However, he is going into this with the idea of paying for it by finding waste and corruption in the current budget. 

Having read Martin Gross’ book, The Government Racket: Washington Waste A to Z, I can tell you unequivocally that hundreds of billions of dollars could be saved every year by simply imposing a simple rule on the federal budget.  It’s called the Zero Base Budget rule.  It requires every department and agency in the government to start from zero every year when submitting their budget requests. 

Let me explain by telling you what happens now.  As a particular budget year comes to an end, agencies and even individual congress persons rush to spend the budget they were given that year.  You hear about, for example, congressional overseas trips at the end of the budget year.  These are done a simple reason: they want to make sure they spend all that was budgeted to them.  The reason for this is that when they submit their budget request for the following year, all they have to do is show they spent their entire budget the previous year and thus all they need to do is ask for some percentage increase.

They don’t have to justify the increase except by showing they spent everything the year before.  It doesn’t matter whether they actually need the increase.  They’ll just take it. 

Every agency does this.  Imagine the Department of Agriculture requesting an additional $200m to build a new Midwest office for their Dept.   The next year, with the building complete, they show that they spent their entire budget the year before and request an automatic increase of 10%.  It doesn’t matter that they don’t have to spend $200M on a new building this year.  There is no justifying the increase.  They just get the increase.

A Zero Based Budget would require each department and agency and congress person justify their budget requests each year.  It is estimated that using a ZBB on the federal budget would save between $50B and $500B/per year.  And that compounds because every year the ZBB prevents an agency or department from just automatically increasing their budget saves exponentially.

Combined with millions more jobs contributing to the treasury with taxes, the better trade deals that benefit Americans and also increase the treasury, negotiating contracts to build what we need at a reasonable cost and more, this is how Trump plans on balancing the budget while still doing so much to rebuild our country. 

No comments: