An Alternative Budget Setting Process

The current level of deficit spending by Congress and the Whitehouse is unsustainable. The massive annual budget deficits only add to the $12+ Trillion national debt. That’s the number 12 with 12 zeros behind. This is what we want to leave for our children’s children? This intergenerational thief is immoral and not the sign of an intelligent society.


What I want to present here is an alternative means for setting spending targets and making decisions about the budget. Currently, Congress and the Whitehouse set their targets on what they think will help them get re-elected and “mandatory spending” programs. The alternative is based on reality and looks back three years and sets the budget on actual revenues. I believe this is a much more prudent means of fiscal responsibility then continuously piling up debt on our children’s children.


In example, say that in 2009 the Federal Government takes in $2.2 Trillion in tax revenues and fees. That would drive the budget in 2012 to be approximately $2.0 Trillion, with approximately 0.2 Trillion to pay down the $12 Trillion debt. The $2,000,000,000,000 number would be hung on the wall and be the ceiling of the budget.


Congress and the Whitehouse would have to proportion the dollars in a way that serves the Taxpayers of the country best. A prioritized list of departments, bureaus, projects, and entitlements along with the dollar amount for each would be published for review by the Taxpayers and voted on in Congress. A running total of the amount would drive a line be drawn on the list (a.k.a. “water line”) when the money runs out. If your project, bureau, or department does not make the list above the line, then there is no funding and you spend no money.


Congress and the Whitehouse would have to make their case to prioritize all programs; Department budgets, pet projects, and entitlements (personal and corporate) would either be above the water line, or get zero funding. This would have to be done each year.


This would necessitate the abandonment of the current fiscal irresponsibility and the ability to hide behind the weak argument of “mandatory spending”. Every program, bureau, and entitlement would need to be reassessed each year. Like families, small business, and private organizations, Congress will be forced to live within a budget set by the American People, not the special interests and campaign contributors.

Intergenerational thief is immoral and not sound economic policy. The insanity must be stopped.