While I would tag many Wall Street Journal articles as “must reads,” I’d encourage all of you to put this one at the top of your list. It provides an excellent snapshot of 2010 spending – a resource that should come in handy as Americans prepare to head to the polls on November 2.
On October 15, the WSJ published “The 2010 Spending Record” to showcase, with Congressional Budget Office (CBO) numbers, the federal government's 21.4% spending increase in just two short years. I’ll try and summarize as best as I can. At the end of the 2010 fiscal year (September 30), total spending was at $3.45 trillion. The only year that topped that sum was 2009. I know, I know…shocking. BUT, CBO reminds us that the modest decline from 2009-2010 results from three one-time events: TARP, additional payments to Fannie and Freddie, and deposit insurance that fell by $55 billion year over year. CBO reports that spending actually rose 9% if you discount those programs.
According to the WSJ, domestic accounts led the spending spree. Medicaid spending increased by 8.7% and unemployment benefits by 34.3%, to $160 billion. The two-year deficit total clocked in at $2.7 trillion – more than the entire eight years Ronald Reagan was in office. We keep hearing that spending will help, spending will help! But where has it gotten us? Our growth rate is 1.7% and unemployment remains at 9.6%. In my opinion, the following paragraph provides the most infuriating information in the whole piece:
“Here's the kicker: By far the biggest percentage-gain revenue winner for the taxpayer in 2010 was . . . the Federal Reserve. Thanks to the expansion of its balance sheet with riskier assets, the Fed earned $76 billion during the year, a 121% increase. The Fed's windfall is a perfect symbol of our current economic policy. The government is making money because it now controls so much capital, but it is robbing that money from the private economy in the process. It is never a good sign when your central bank is a national profit center.”
Interested in how your Members of Congress faired on NTU’s scorecard? Look them up in our Rating of Congress. You can also view their net spending agenda on the NTUF BillTally page. Be informed so that you can hold your leaders accountable on November 2.