Is government spending out of control?
*Texas Straight Talk, by Congressman Ron Paul, February 13, 2006
The Ever-Growing Federal Budget
“The Bush administration released a proposed 2007 budget last week that increases federal spending to a staggering $2.77 trillion, a sum that is 4 times larger than the Reagan-era budgets of the early 1980s. With a public angry about useless earmarks and bridges to nowhere, and a Republican congressional delegation promising to restore some small measure of fiscal discipline, it’s troubling that the administration chooses to ignore economic reality and increase spending without regard to revenues and deficits.
Consider these sobering facts:
-With a 7% rate of growth, federal spending will double in a decade.
-Federal spending has grown twice as fast under Bush than Clinton, averaging 6 and 7% increases compared to the 3 and 4% increases of the 1990s.
-The biggest increases in federal spending under Bush are not related to the war on terror or homeland security. Education spending, for example, grew a whopping 137% between 2001 and 2005.
-The projected deficit for 2006 is $423 billion, $100 billion more than 2005. The real 2006 deficit, including the $5 billion per week we spend in Iraq, will be much, much higher.
-The administration will ask for at least $120 billion in so-called “off budget” funds for Iraq and Afghanistan over the next year, perpetuating the deception that war spending somehow doesn’t count toward the budget deficit.
-The new Medicare prescription drug benefit will cost at least $30 billion in 2006, and is projected to cost $1.2 trillion over the coming decade. The program creates an unfunded liability twice the size of future Social Security obligations.
There has been a great deal of talk in Washington about scandals lately, but few seem to understand that enormous federal budgets provide the mother’s milk for every backroom deal, questionable earmark, and sleazy lobbying trick.”
*This information is solely a highlight of the opinion of a third-party publication and is incomplete. Please subscribe to this publication for the full and timely opinion of the author and call a Monex Account Representative for any additional up-to-date information. This is not an offer to buy or sell precious metals. Investors should obtain advice based on their own individual circumstances and understand the risk before making any investment decision.