28 January 2010

Freeze In Spending

So last night president Obama promised us that he will freeze government spending for THREE years. Then he hold us that is would save X billion dollars i believe it was like 500 or something like that. I apologize that i do not have the actual figure over the next TEN years. Wait, we're freezing spending for 3 years, but measuring the savings over 10 years?

First before i go into that, let me just say, while i would support a full freeze in non-discretionary gov't spending according to George Will it will only actually be 1/6th of the budget. So, so much for that. Um the democrats, after all the spending they have done, well John Boehner put it quite well. "this is like announcing that you were going on a diet after winning a pie eating contest."

Now back to the original point. Let's say i spend 100 dollars a day on goods. Now my budget is about 50, but i spend 100 anyway. So everyday i add 50 dollars to my debt. So clearly i have to cut spending. So i decide to freeze spending for three weeks. So at let's take 50 dollars a day saved, by the end of that three week period, i would save $1,050. Now if we do what Obama is doing, let's measure the savings for 10 weeks. So that would give us $3,500 of savings. But i didn't freeze my spending for 10 weeks. I froze it for 3. So all that other money is not actually saved. So i am accounting for $3,500 saved, but when reality, it was only $1,050.

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