Tuesday, October 19, 2010

Topic 2: Spending

If my inbox is any indication taxes were a bit of a hot button issue, so why not dive into the latest hot topic of campaigns around the country - spending.

For what it's worth, we should note that CONGRESS, not the President, controls spending but it's easier to blame (or on those rare, rare occasions credit) the President when it comes to spending.

The above chart looks at the spending patterns of the Federal Government and resets the spending at 100 with each new administration. The key take-aways?

1) EVERY President increases spending. Although, Clinton and the Republican Congress of the early 90's really kept a lid on things.

2) For all of the vilification of President Obama consider the rate of increase of these 5 Presidents over the first 15 months of their administrations:

Bush Sr. — 115.6
Bush Jr. — 115.1
Obama — 109.5
Reagan -- 100.9
Clinton -- 100.2

Again, these numbers exclude defense spending which makes the Bush numbers even more surprising.

President Obama has been hit with a double whammy. Falling tax revenues coupled with rising spending and that has sent the Tea Partiers into the street. However, I don't remember them complaining this much about out of control spending under Bush 1 or Bush 2. Could there be another rationale for their anger? I'll let the talking heads figure that out on their own.

Oh, boy. I'm really hesitant to hit the publish button on this one because I'm afraid it might blow up my email server, but here goes....


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