Kirk’s Rant . . . It’s Time We Learn the Truth!

I wrote this in response to another post because I had posted something to all the “Obama Haters” on here. This is a completely neutral discussion for Democrats, Republicans, Liberals, Conservatives, Blacks, Whites, Hispanics, Asians, Muslims, Jews, Buddhists, Hindus, gays, straights, men, women, children – EVERYONE!

I get amazed at how people like to ‘debate’ when they don’t know what the hell the issues are or even better . . . what the facts are! People . . . DO YOUR HOMEWORK!!! Then, you can debate intelligently! If you’re going to make a statement about ANYTHING, be prepared to back it up with FACTS, not rhetoric.

I literally spend hours and hours of time doing research because about 90% of what the media reports is completely jaded and it’s diving our country! They’re just trying to get ratings and they will do any and everything to try to suck the American people in. You have Fox and CNN sparring back and forth, making jabs. Glenn Beck is a joke. Rush Limbaugh is a complete idiot. I watch both cable news networks, ABC, CBS, NBC, etc. I gain just enough information from them so I can do my own research and get the REAL story and the REAL facts and try to put them out there so people can read it.

These networks don’t give “fair and balanced” reporting. Such a thing doesn’t exist. It’s all lip service. THEN, factor in the internet. In the internet age, ignorance travels as rapidly as great ideas. Now, not only great minds can find one another and compare notes. So too, can the nuts and the perverts and those who are simply looking to validate their prejudices. The purpose here is not to argue politics, but just to underscore how this illustrates the downside of the internet, the only news delivery system we’ve ever had that has no editor. We must always remember that what we read or hear there, may not always be true.

I lost my respect for Limbaugh when he was asked to write a 400 word publication for the “Hope of the Obama Presidency.” On the radio, he said. . . .”I’m thinking of replying . . . . . . I don’t need 400 words. I need four, ‘I hope he fails.’ “ I’m STILL reeling over that comment. WHY IN THE WORLD WOULD ANYONE want their president to fail unless he/she were un-American, an enemy, a spy, or just plan stupid? I honestly feel that some people do wished Obama would fail. They just won’t admit it. I’ve never heard such hatred, ridicule, filth, slander, bashing, and preposterous things about a public figure in my entire life! Is this the American way? This is what’s dividing our country and it needs to stop AND it’s running rampant!

Then, you get people posting ridiculous comments about Obama’s trip to Asia, and how it’s going to cost $200M per day, and a 2000 personal entourage, 870 hotel rooms, 34 diverted naval ships, yadi, yadi, yadi. This is Michelle Bachmann trying to stir the pot. His trip isn’t a vacation. This was reported by a single anonymous source by an individual who works for India’s Press Trust, the largest news organization in that country. Does anyone even know why Obama went to India then on to other Asian countries? If you would like, I can enlighten you – because, I’ve done my homework. Don’t forget, he’s

still a prominent world leader. He can’t stay home and lick his wounds after his “shellacking.” India has the 5th largest economy in the world. They are also the largest consumer of U.S. manufactured defense equipment. India is going to spend more than $50 billion building up their military over the next few years. They are in talks with major U.S. defense companies as we speak! USA is India’s largest investment partner, with a 13% share. If they purchase from U.S. companies, that might translate into more jobs. I could go on and on here, but I’ll spare you guys. Just do your homework please. That’s all I ask. If you have any questions, I’ll fill you in. It’s MY DUTY as an American.

I’ve said it once and I’ll say it again. I DO NOT agree with everything our government does. No one does. Hell, half the people who write such ridiculous things on the internet haven’t done one iota of research. They hear something on the internet and take it for Gospel. Then, it goes viral, and that’s what’s happening today. Then, these ridiculous talk show hosts pick up on it, then suddenly it’s plastered all over the news stations, newspapers, then we . . . us vulnerable little Americans take it to heart! We’re too lazy to do our research on our own.

While I’m on a roll, let’s review the unemployment figures for the USA for the past few years. Keep in mind, the recession, according to economists, officially began in December of 2007. The current unemployment rate has doubled since the recession began. It will probably stay between 9.5% and 10% through 2010, even the recession is “over” according to economists. Employers are hesitant to hire new workers until they have a comfort level that the economy will stay strong. It is for this reason, that the unemployment rate is a lagging indicator. It’s not good for predicting trends, but it is useful for confirming trends. I’ll start from March of 2007 and work my way to current, month by month. Keep in mind, in order to keep the economy stable, we need to add about 150,000 jobs per month. This accounts for people leaving the workforce and for new people entering the workforce – attrition, I guess you’d say. I’ve put the current rate as of that month in parenthesis and made comments where I thought it was important.

2007 (Bush as President)

March - 180,000 jobs added (Rate 4.5%)

April - 88,000 jobs added (Rate 4.5%)

May – 157,000 jobs added (Rate 4.5%)

June – 132,000 jobs added (Rate 4.5%)

July – 92,000 jobs added (Rate 4.6%)

August – 89,000 jobs added (Rate 4.6%)

September – 110,000 jobs added (Rate 4.67%)

October – 166,000 jobs added (Rate 4.7%) – Note: Manufacturing jobs begin downward spiral

November – 94,000 jobs added (Rate 4.7%)

December – 18,000 jobs added (Unemployment rose to 5%) – Recession officially began!!

2008 (Bush as President)

January – LOST 17,000 jobs (Rate 4.9%) – Note: Manufacturing jobs continue to decrease

February – LOST 63,000 jobs (Rate 4.8%)

March – LOST 80,000 jobs (Rate 5.1%) – Total number of unemployed is 7.8 million with over half (4.1 million) unemployed due to losing their job. Note: Manufacturing is tanking terribly!

April – LOST 20,000 jobs (Rate 5.0%)

May – LOST 49,000 jobs (Rate 5.5%)

June – LOST 62,000 jobs (Rate 5.5%)

July – LOST 51,000 jobs (Rate 5.7%)

August – LOST 84,000 jobs (Rate 6.1%) Note: Manufacturing jobs continue to spiral out of control

September – LOST 159,000 jobs (Rate 6.1%)

October – LOST 240,000 jobs (Rate 6.5%) Note: 10 million people are now unemployed (Bush signed TARP into law – the $700 Bailout)

November – LOST 533,000 jobs (Rate 6.7%) – Note: Obama was elected president to be sworn in on January 20, 2009.

December – LOST 524,000 jobs (Rate 7.2%) – Faster rate of employment decline since the 2001 recession. Total of 11.1 Million people unemployed. Manufacturing has suffered a 2 year decline.

Note: Unemployment rose between January 2007 and January 2009 from 4.5% to 7.6%, an increase of 41.79%. This did not happen on Obama’s watch. Hold that thought!

2009 (Obama as President)

January – LOST 598,000 jobs (Rate 7.6%) – Obama sworn into office on January 20, 2009.

February – LOST 850,000 jobs (Rate 8.1%) – Obama signs the $787 Billion stimulus package

March – LOST 694,000 jobs (Rate 8.5%)

April – LOST 611,000 jobs (Rate 8.9%)

May – LOST 787,000 jobs (Rate 9.4%)

June – LOST 467,000 jobs (Rate 9.5%)

July – LOST 247,000 jobs (Rate 9.4%)

August – LOST jobs (Rate 9.7%) – 1982 recession, the unemployment rate was above 10% for 10 months.

September – LOST jobs (Rate 9.8%)

October – LOST jobs (Rate 10.2%)

November – LOST jobs (Rate 10.0%)

December – LOST jobs (Rate 10.0%)

2010 (Obama as President)

January – Added 52,000 temporary jobs (Rate 9.7%) Note: Added jobs as a result of the census

February – Added 48,000 temporary jobs (Rate 9.7%) Note: Added jobs as a result of the census

March – Rate holds at 9.7% although 1 million discouraged workers are no longer counted among the unemployed.

April – Added 290,000 jobs even though 66,000 temporary Census workers are taken out, it is still more than the 150,000 increase needed to keep the economy growing. Rate 9.9%. Why did it rise? Because the number of unemployed rose from 15 Million to 15.3 Million. Second, the number of people in the labor force grew by 805,000. The rate increased because the number of unemployed grew faster than the labor force itself. Overall, the employment situation is improving.

May – Added 431,000 jobs. (Rate 9.7%)

June – LOST 125,000 jobs because of a loss of 225,000 Census jobs. (Rate 9.5%)

July – Added 71,000 jobs. (Rate 9.5%)

August – Added 67,000 jobs in August or 229,000 more jobs than August of 2009. (Rate 9.6%)

September – Added 64,000 jobs in September or 344,000 more jobs than September of 2009. 3rd month in a row for employment increase. (Rate 9.6%)

October – Added 151,000 jobs in October (Rate 9.6%)

Essentially, the 8.1% unemployment rate in February of 2009 and the 9.6% unemployment rate as of October of 2010 is an increase, under Obama’s watch, of 15.625% Compare that with Bush’s unemployment percentage increase of almost 42%. I rest my case on this issue.

Now, let’s talk about where our Federal tax dollars go.

The federal government collects taxes in order to finance various public services. As policymakers and citizens weigh key decisions about revenues and expenditures, it is instructive to examine what the government does with the money it collects.

In fiscal year 2010, the federal government is projected to spend $3.6 trillion, amounting to 24 percent of the nation’s Gross Domestic Product (GDP). While the level of 2010 expenditures — as a share of GDP — exceeds those of recent years, the composition of the budget largely resembles the patterns of recent years. Of that $3.6 trillion, almost $2.2 trillion will be financed by federal tax revenues. The remaining $1.4 trillion will be financed by borrowing; this deficit will ultimately be paid for by future taxpayers. (See box for the recession’s impact on the budget.) As shown in the graph below, three major areas of spending each make up about one-fifth of the budget:

Defense and security: In 2010, some 20 percent of the budget, or $715 billion, will pay for defense and security-related international activities. The bulk of the spending in this category reflects the underlying costs of the Department of Defense and other security-related activities. The total also includes the cost of supporting operations in Iraq and Afghanistan, which is expected to total $172 billion in 2010.

Social Security: Another 20 percent of the budget, or $708 billion, will pay for Social Security, which provided retirement benefits averaging $1,117 per month to 36 million retired workers (and their eligible dependents) in December 2009. Social Security also provided survivors’ benefits to 6.4 million surviving children and spouses of deceased workers and disability benefits to 9.7 million disabled workers and their eligible dependents in December 2009.

Medicare, Medicaid, and CHIP: Three health insurance programs — Medicare, Medicaid, and the Children’s Health Insurance Program (CHIP) — will together account for 21 percent of the budget in 2010, or $753 billion. Nearly two-thirds of this amount, or $468 billion, will go to Medicare, which provides health coverage to around 46 million people who are over the age of 65 or have disabilities. The remainder of this category funds Medicaid and CHIP, which in a typical month in 2010 will provide health care or long-term care to about 64 million low-income children, parents, elderly people, and people with disabilities. Both Medicaid and CHIP require matching payments from the states.

Two other categories together account for another fifth of federal spending:

Safety net programs: About 14 percent of the federal budget in 2010, or $482 billion, will support programs that provide aid (other than health insurance or Social Security benefits) to individuals and families facing hardship. These programs include: the refundable portion of the earned-income and child tax credits, which assist low- and moderate-income working families through the tax code; programs that provide cash payments to eligible individuals or households, including Supplemental Security Income for the elderly or disabled poor and unemployment insurance; various forms of in-kind assistance for low-income families and individuals, including food stamps, school meals, low-income housing assistance, child-care assistance, and assistance in meeting home energy bills; and various other programs such as those that aid abused and neglected children. A Center analysis shows that such programs kept approximately 15 million Americans out of poverty in 2005 and reduced the depth of poverty for another 29 million people. (Such programs likely kept even more Americans out of poverty since the recession began. For example, seven provisions of the Recovery Act enacted in February 2009 kept more than 6 million additional people out of poverty in 2009, according to a Center analysis.)

Interest on the national debt: The federal government must make regular interest payments on the money it has borrowed to finance past deficits — that is, on the national debt, which is projected to reach $9 trillion by the end of fiscal 2010. In 2010, these interest payments (net of some interest income) will claim $209 billion, or about 6 percent of the budget.

2009 and 2010 Budget Outcomes Skewed By the Recession

Due to one of the worst economic downturns since the Great Depression — and the policies enacted to combat it — 2009 and 2010 tax and spending levels diverged from recent patterns. Preliminary data show that plunging federal revenues amounted to less than 15 percent of GDP in 2009 and 2010, the lowest levels in decades. The efforts to prevent collapse of the financial system and to deal with the failure of Fannie Mae and Freddie Mac, the automatic expansion of programs like unemployment insurance and food stamps (which always grow during economic downturns to meet rising need), and spending from the February 2009 stimulus package together pushed federal outlays to more than 24 percent of GDP in both years. As a result, deficits reached record levels.

It will take the economy several years to fully recover, and during that time federal revenues and expenditures will continue to differ from historical experience. However, the composition of the budget in 2010 largely resembles recent federal spending patterns.

As the graph shows, the remaining 19 percent of federal spending goes to support a wide variety of other public services. These include providing health care and other benefits to veterans and retirement benefits to retired federal employees, assuring safe food and drugs, protecting the environment, and investing in education, scientific and medical research, and basic infrastructure such as roads, bridges, and airports. A very small slice of this remaining 19 percent — about 1 percent of the total budget — goes for non-security programs that operate internationally, including programs that provide humanitarian aid.

While critics often decry “government spending,” it is important to look beyond the rhetoric and determine whether the actual public services that government provides are valuable. To the extent that such services are worth paying for, the only way to do so is ultimately with tax revenue. Consequently, when thinking about the costs that taxes impose, it is essential to balance those costs against the benefits the nation receives from public services.

Appendix

I pulled almost ALL of this last part from an article and data released by the Congressional Budget Office (CBO). (The Federal fiscal year 2010 runs from October 1, 2009 to September 30, 2010.) I adjusted the CBO data to accommodate the additional costs of continuing certain current policies. Specifically, I assumed that Congress would provide additional funding for the wars in Iraq and Afghanistan and would cancel the scheduled Medicare fee cuts for physicians. These adjustments do not materially change the composition of the budget.

The broad expenditure categories presented in this paper were constructed on the basis of classifications commonly used by budget agencies. The categories are constructed by grouping related programs and activities into broad functions, which are further broken down into sub functions. The details of how the categories used in this paper were constructed from those functions and sub functions are described below.

Defense and security: The largest component of the “defense and security” category is the national defense function (050). In addition, this category includes the international security assistance sub function (152) of the international affairs function.

Social Security: This category consists of all expenditures in the Social Security function (650), including benefits and administrative costs.

Medicare, Medicaid, and CHIP: This category consists of the Medicare function (570), including benefits, administrative costs, and premiums, as well as the “Grants to States for Medicaid” account and the “Children’s health insurance fund” account (both in 550).

Safety net programs: This category of programs includes all programs in the income security function (600) except those that fall in the following two sub functions: federal employees’ retirement and disability (602) and general retirement and disability insurance (601). The latter contains the Pension Benefit Guarantee Corporation and also covers programs that provide pension and disability benefits to certain small groups of private sector workers.

Interest on debt: This category contains the net interest function (900).

Everything else: This category includes all federal expenditures not included in one of the five categories defined above. The subcomponents of this category that are displayed in the graph are defined as follows:

Benefits for federal retirees and veterans: This subcategory combines the veterans' benefits and services function (700) and the federal employee retirement and disability sub function (602, which is part of the income security function).

Education: The education subcategory combines three sub functions of the education, training, employment, and social services function: elementary, secondary, and vocational education; higher education; and research and general educational aids (sub functions 501, 502, and 503 respectively).

Scientific and medical research: This subcategory consists of the general science, space, and technology function (250), and the health research and training sub function (552).

Transportation: This subcategory consists of the entire transportation function (400). Non-security international: This subcategory consists of the international affairs function

(150) except for international security assistance, which is included with defense, above. All other: This subcategory consists of all other federally subsidized programs

Now . . . you have the “Rest of the Story!” Feel free to share with your friends or post comments back to me.

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