While Obama repeatedly has said he would go over the budget line by line, his options are limited. Only about 20 percent of the federal budget is considered "discretionary" spending, with the rest devoted to defense and entitlement programs such as Social Security. Most of the discretionary funds are politically popular and go to an array of agencies, such as the Department of Transportation.A majority of Americans might object to a majority of the programs enacted by Congress.Logrolling and rent-seeking are quite effective when a majority can steal from a minority through voting.Anyway,do you think it's wise for Warren Buffett to get free medical care because he's over 65?
Obama offered only one example of the kind of spending he wants to end. He cited a government report yesterday that said farmers earning more than $2.5 million annually have collected $49 million in federal subsidies over a three-year period. "If it's true, it is a prime example of the kind of waste that I intend to end as president," Obama said at a Chicago news conference.
However, such savings are relatively small compared to a stimulus program that might cost as much as $700 billion over two years. Moreover, while it may be relatively easy to cut benefits to the wealthiest farmers, it is bound to be more difficult to eliminate entire programs that benefit a broad range of constituents. For example, Obama has been a major backer of federal subsidies for ethanol, which benefit his home state of Illinois but have been criticized by some taxpayer watchdog groups.
Wednesday, November 26, 2008
Obama's budget-cutting options are limited-Boston Globe Claims
The Boston Globe claims Obama can't cut much spending because programs are "popular":