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DownsizeDC.org
February 3, 2010
Posted by James Leroy Wilson

On Monday, President Obama proposed a federal budget for 2011. It features record-setting spending and borrowing. We believe it will do more harm than good. Please tell Congress to oppose this budget and work to cut federal spending.

You may copy or borrow from the following letter . . .

I demand that you oppose President Obama's $3.83 trillion budget with its $1.56 trillion deficit. http://abcnews.go.com/Business/wireStory?id=9715793

* the deficit alone will be larger than individual and corporate income taxes combined http://www.usgovernmentrevenue.com/classic.html#usgs30210
* the cost of the federal government will be over $36,000 per family
* of which $17,000 will be new debt http://www.washingtonwatch.com/blog/2010/02/01/washingtonwatch-com-digest-february-1-2010/

The cost of the federal government is vastly greater than the benefits it provides. And the American people don't want such a bloated budget. According to a January 29 Rasmussen Report . . . http://tinyurl.com/yb7v9tp

**53% of likely voters now believe that decreasing the level of government spending will help the U.S. economy**

They're right! A report by the Heritage Foundation shows that . . . http://www.heritage.org/research/budget/bg1831.cfm

* numerous studies indicate that growth in government spending harms the economy and increases unemployment
* nations such as Ireland, New Zealand, and Slovakia experienced tremendous growth once they slashed the size of government

This is because government spending is less efficient and often destructive . . .

* government spending is less efficient because it allocates resources based on politics, not on market price signals
* if the spending is funded by taxes, private consumption and saving is reduced
* if the spending is funded by borrowing, there is less capital for private investment
* borrowing could also lead to monetary inflation, resulting in price inflation
* government programs distort personal incentives in many areas, such as retirement savings and healthcare

Follow the will of the American people. We understand that Big Government is harmful. Make it your priority to work on cutting the size of government and reforming our entitlement programs. The proposed spending freeze isn't enough, and is clearly fraudulent given the fact that federal spending will continue to soar. Give us real spending cuts, not con jobs.

If you take the lead on this issue, you will be rewarded, but if you don't, you may be fired from your position.

END LETTER

You can send your message using DownsizeDC.org's Educate the Powerful System. https://secure.downsizedc.org/etp/campaigns/104

Please also consider making a contribution or starting a monthly pledge to further our work. https://secure.downsizedc.org/contribute/

Jim Babka
President
DownsizeDC.org

2 comments posted so far
mhuggins
February 17, 2010 11:00 AM (EST)
I agree that the government spending is getting out of control. But we must dig deep to figure out what the government is spending on. According to the CBO's website,the mandatory spending (Social Security, Medicare, Medicaid, Food Stamps, and Veterans Retirement Program among others)is approximated to be $1.9 trillion, an increase of approximately $900 billion from 2000. Discretionary spending, however, has only increased by approximately $250 billion. One can see that that the mandated programs take up the bulk of government's spending.
The main issue with the mandatory spending is that it falls under the "entitlements" part or duty of the government to the people. This is the point of disagreement. Some will argue until foaming at the mouth that because he or she is a citizen of the United States, he or she in return is "entitled" to certain benefits. Although it may have some ring of truth to it, it is a slippery slope to pick up the tab for 300 million citizens.
The other side of the coin is the lack of incentive. I understand that the underlying goal of welfare policy is to provide a safety blanket, to provide work incentive, and to limit the costs. It is clear that all three criteria cannot be fullfilled. If assistance is provided as a safety blanket for those in an unfortunate situation through no fault of their own, the incentive to find a job and to get back on own two feet are thrown out the window.
It's understood that no one wants to be the bearer of the sour truth but something must change. People are not entitled to financial relief by its government. The government does not have a duty to bailout its people. Capitalists, are we not?
JanelleR
February 19, 2010 05:39 AM (EST)
The government has proposed several budget cuts. Nevertheless, it's obvious that government spending affects each one of us, retirement funds for instance. Retirement funds are one of the hottest debate for the past few years. If you have a retirement plan through your employer, but become subject to layoffs or downsizing and don't know what to do with your retirement funds, a withdrawal and taking the hit with penalties just to have cash on hand isn't always the best idea. If you don't have much – go ahead – but a substantial amount should probably be transferred or rolled into another account, as having some retirement savings are always better than looking at payday loans when you retire. Also, the penalties are worse with 401(k) plans than Roth IRAs, as 401(k) contributions are pretax, and Roth funds are not.