It always sickens me when corrupt politicians say we can't cut the federal budget. They say we have to keep spending our way into bankruptcy to save the economy. Here are 8 simple way to cut $672 billion from the federal budget:
1. End the Wars in Afghanistan and Iraq--Cost savings $160 billion
2. Reduce Defense Department budget by $100 billion. In 2010 we spent $530 billion on Defense. And before people say I am weak on defense let me remind you that the majority of the US defense spending goes to private contractors, bureaucratic expenses, and soldier salaries (+medical, educational programs, day care,etc). I am all for purchasing next generation weapons and keeping the military strong. I just don't like squandering money on a giant bureaucracy, corrupt military contractors (Halliburton, etc), and maintaining a global military empire.
3. Close the Department of Housing and Urban Development--savings $48 billion. It is a complete waste of taxpayer money and completely unconstitutional. More importantly, it has failed in its mission of restoring urban cities. In fact it has made urban cities worse. You can thank the communist liberals for this department.
4. Close Department of Education--savings $47 billion. Federal government has no right to meddle in education or provide student loans. Since the Federalization of education the quality of education has consistently fallen. Our children have been reduced to the level of brain dead zombies who simply repeat government propaganda.
5. Close Department of Commerce--savings $14 billion. Talk about a complete waste of money. The only good this department does is assemble some useful statistics about the economy. I would transfer the statistics people to the Treasury department.
6. Close Department of Labor--savings of $13.3 billion. Another useless government agency.
7. Eliminate Corporate Welfare-- According to the CATO Institute, the US government hands out over $90 billion dollars a year to corporations through direct subsides, tax credits, and other schemes. This is egregious considering corporations never had it so good. They are making record profits while the American economy is trapped in a depression. These companies do not need any more taxpayer funded giveaways.
8. Reduce Government Fraud and Redundancy--The Government Accountability Office has identified approx $200 billion in government waste, fraud, and incorrect payments. If we simply implemented the GAO's recommendations we could save at least $200 billion. This should be easily accepted by both sides of the political spectrum because the GAO is independent and non-partisan. See here for more info. And here
Total Savings: $672 Billion
While $672 billion is a significant amount of money, it is only a portion of what we need to cut in order to balance the budget and restore America's dire financial outlook.
Black Swan Insights