Obama Administration Makes Good on Spending Cuts Pledge

[babylonsister]

http://blogs.wsj.com/washwire/2009/07/28/obama-administration-makes-good-on-spending-cuts-pledge/

Obama Administration Makes Good on Spending Cuts Pledge
Jonathan Weisman reports on the White House.


It may be a drop in the $2 trillion deficit bucket, but the federal government has made good on President Barack Obama’s promise to find $100 million in spending cuts this year.

Under presidential marching orders, cabinet secretaries actually produced $102 million in cuts for the current fiscal year and another $140 million for fiscal year 2010, which begins in October. The White House budget office released the details Monday night.

Some of the cuts appear to be a significant sacrifice. The Department of Labor has proposed disbanding the nearly 40-year-old Employment Standards Administration, the department’s largest agency, eliminating an assistant secretary of labor and two deputy assistant secretaries at a savings of $1.75 million through 2010. Cabinet secretaries are usually loathe to make such cuts on their own.

Other cuts fall into the category of “They did what?” The U.S. Forest Service will save $1.8 million this year by ceasing to re-paint vehicles as soon as they are purchased – probably a good idea. The Animal and Plant Health Inspection Services canceled a meeting in Australia, saving $36,000. The Bureau of Reclamation’s Pacific Northwest office will get rid of its airplane for a quick $845,000.

The Justice and Treasury departments will turn off their computers at night.

Justice will encourage double-sided printing at the copy machine, and DOJ appears to have discovered Expedia and Travelocity. For a cool $4 million, government lawyers will start making travel arrangements online rather than through travel agents.

Others may be a dig at newspapers and their incessant demands for cost-cutting and sacrifices. The Department of Homeland Security has promised to consolidate subscriptions to newspapers and professional publications and get their information where everyone else seems to be, on line, for free. The savings? $47,160. Ouch.

[bbinacan]

1. Yippee

I just saved 30 cents. We need to cut more waste.

[babylonsister]

4. So doing nothing a la idiot son would be better? $100M isn't

chump change; I give them props for trying.

[TTUBatfan2008]

6. $100m isn't chump change unless...

you're spending trillions.

[babylonsister]

7. So nothing would be better?

That's depressing.

[TTUBatfan2008]

10. No, nothing would not be better...

What would be better is (1) getting rid of the Federal Reserve, which currently holds 40% of our debt against us and (2) enacting stricter campaign finance laws that prevent the bankers from buying politicians. Look at Obama's cabinet. Look at the $13.9 trillion that has gone out the door under the TARP program to the bankers. I'm shocked that any mainstream media outlet actually brought this up given the fact that the bankers own the corporations that run the media:

http://www.msnbc.msn.com/id/21134540/vp/32124060#32124060

[johnaries]

11. Instead of spouting RW Libertarian talking points about the Fed,

you might want to check up on the history of it. It has been an excellent tool. It just helped keep us out of a Depression. Again.

[TTUBatfan2008]

13. So Elliott Spitzer is a right wing libertarian?

Listen to what the man says in that clip. The Fed has done a horrible job lately. And even Bernanke admitted that the Fed was a big contributor to the Great Depression.

And I am a libertarian, but not a right wing one. Unless of course you think being pro-choice, pro-gay marriage, pro-affirmative action, anti-war, anti-death penalty and on and on are somehow right wing positions.

[johnaries]

15. Eliot Spitzer advocates reviewing the Fed, not getting rid of it.

Bernanke's analysis of the Fed's role in the Great Depression was about HOW it responded, not that it should not have responded at all or not existed.

"Getting rid of the Fed" is a favorite meme of Austrian School Economics (supply-siders) and a favorite of RW Libertarians in particular. Keynesians recognize it's usefulness and importance when it is used correctly. And Keynesian Economics ahs once again proven it's worth, and the Austrian School has been discredited.

[TTUBatfan2008]

16. I am not a supply-sider...

I don't think giving a corporation a tax cut is going to "create jobs." I think the corporations will take the money and run, just like they always have.

[johnaries]

18. Well, you and I certainly agree there!

But "getting rid of the Fed" actually is a major supply-sider argument. Actually, during the Reagan Admin which most Supply-Siders and Austrian-School hold up as a "shining example" of the superiority of SS/Austrian School economics when we were dealing with "stagflation", it was the Fed that brought us out of it. Reagan's only contribution was when he actually applied Keynesian economics. It was after that he tried SS/Austrian School which led to the recession that eventually defeated Bush I ("it's the economy, stupid!").

The Fed plays a very important part in our economy. I feel that it's independence of any Admin influence outside of Presidential Appointment is vital, but I can agree with Spitzer that some Congressional oversight might not be a bad thing. However, the Fed must act quickly and must have a certain amount of freedom to act if it is to be effective. So any oversight would have to be "after the fact".

As far as the Fed's action contributing to the Great Depression, remember that was before FDR embraced Keynesian Economics.

So, I apologize for implying that you are a RW'er. I think you have received some bad information, however. I hope we can work together.

:toast:

[bbinacan]

17. I agree but he

needs to do more.

[Uzybone]

2. wow

well done by our admin but wow.

A lot of waste has been going on.

[asphalt.jungle]

3. Exactly what I was thinking. This small exercise just revealed how much waste has been going on

for years. I think that was the point of the exercise. The media and some citizens might smirk at $100m in savings, but if this creates a culture of govt employees who are more protective of tax dollars and willing to look for cheaper options then this will be worth more than just 100m over time.

[Uzybone]

5. yeah...its like welcome to the 21st century

using online travel booking, double sided printing, not repainting a brand new vehicle? Its amazing that such practices were not standard already.

[babylonsister]

8. What's really amazing is

good news not being appreciated, because so many would prefer to whine.

This is small change, but it needed to be done.

[4lbs]

9. The 100 million in savings could go towards saving 2,000 government jobs from being axed.

That's not chump change then is it?

[babylonsister]

12. Yup! Good point. nt

[Kdillard]

14. Thanks as always k and rec. This is good news and hopefully others will follow.