Obama's Economic Waste Campaign Littered With Vagueness

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President Obama has put Vice President Biden in charge of the "Campaign to Cut Waste," but they don't seem to be taking it too seriously.

Last week, President Barack Obama issued an executive order beginning a “renewed effort to hunt down misspent tax dollars in every agency and department of this government.” The president announced his so-called “Campaign to Cut Waste” by posting a short video message on YouTube. Vice President Joe Biden will lead the campaign, which will initially consolidate or eliminate some 500 federally maintained websites.

The president’s video message could prove to be the starting point of an important effort to bring government spending to heel, but the message itself lacked specific and meaningful long-term proposals to correct the government’s fiscal imbalance. To be a success, the campaign must go far beyond assessing the value of the government’s websites, and question the value of myriad agencies and programs throughout the government. The president should show that he is serious about “going after every dime” by instructing the vice president to report back to him with a comprehensive list of programs and agencies that can be sensibly eliminated along with their websites.    

Despite the campaign’s lackluster beginning, the president’s statement that “no amount of waste is acceptable” represents an encouraging departure from some of his recent remarks. In a speech at George Washington University in April, Obama diminished the importance of efforts to address the government’s fiscal difficulties by stamping out waste and abuse, maintaining that “politicians are often eager to feed the impression that solving the problem is just a matter of eliminating waste and abuse … The implication is that tackling the deficit issue won’t require tough choices.”   

In fact, true fiscal responsibility requires both a willingness to make difficult choices and a commitment to ensure an honorable management of public money by pledging that none will be wasted. Whether the campaign lives up to this necessarily high standard or focuses more on campaign trail-like platitudes remains to be seen. 

In his video message, the president emphasized the importance of putting an end to more substantial “ridiculous practices” that lead to “pointless waste and stupid spending that doesn’t benefit anybody.” For instance, the federal government holds title to approximately 12,000 buildings and structures, which are currently designated as “excess,” and Obama stressed his intention to cut through red tape to ensure that these buildings are sold. He also announced a plan to curtail the daily printing and shipping of the Federal Register to thousands of government offices since the Federal Register is available online.

The video also specifically targeted several federal websites as a part of the campaign’s initial work – including a website dedicated to the desert tortoise, a page featuring a forest rangers’ folk music group called the Fiddlin’ Foresters, the National Invasive Species Council’s homepage, and another webpage with information about the International Polar Year, which apparently concluded in 2008. In sum, the president asserted that his administration has already identified $33 billion in similarly sensible savings that could be realized just this year.

Make no mistake, unnecessary government websites should be shut down, but such an initiative will yield no more than meager savings. Selling off excess government property makes sense in a general way, but might not be the best immediate plan of action considering the low prices of the still-recovering real estate market. Regardless of the state of the real estate market, revenue from property sales would only provide a one-time boost to the government’s balance sheet, and would do little to solve the government’s long-term fiscal problems.

The campaign has a broad mandate to investigate the federal government’s operations. To truly be meaningful, the campaign must use that mandate to include both a full accounting of what constitutes waste as well as serious, specific proposals to bring about long-term systemic changes that will streamline the government. The campaign needs to ask not just whether the Fiddlin’ Foresters and the National Invasive Species Council need websites, but whether the Fiddlin’ Foresters and the National Invasive Species Council should exist at all. Anything short of arriving at a broad, comprehensive series of recommendations for the elimination of not just websites, but agencies and programs, should be judged as a failure and a missed opportunity.

Photo Credit: Wikimedia Commons

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Christopher P. Ryan

Christopher P. Ryan currently attends The George Washington University. He previously ran his own business and did volunteer work in his communit...

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Sure, spending should be cut, but shouldn't we also generate revenue by raising taxes on the rich and closing corporate loopholes. Companies that place money offshore undermine this nation and are almost parasitic. Also, what programs should be cut? The EPA, so our water and air get contaminated and kill us? Medicare, so our elderly do not receive needed healthcare?

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You make some good points, and the time has certainly come for a more fundamental assessment of just what activities the federal government should be involved in. In anticipation of the comments to come, I can't help but think back to Bastiat, in that those who oppose such cuts "typically confuse the distinction between government and society. As a result of this, every time we object to a thing being done by government, they conclude that we object to its being done at all...It is as if they were to accuse us of not wanting persons to eat because we do not want the state to raise grain." There is no reason to believe that we cannot simultaneously reduce government obligations and improve general welfare.

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The waste, fraud, and abuse is in Medicaid and the Pentagon. There has been a big sea change in the efforts to tamp down on Medicaid abuse. The Bush administration (like most Republicans) didn't care if businesses were overbilling the government. But other than the Pentagon, there just isn't that much waste and abuse. It's there. It's real. But the President is right that focusing on it is often a mathematically meaningless distraction.

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3 Replies

  • Christopher P. Ryan 10 months ago Thanks everyone for reading! The...

  • Christopher P. Ryan 10 months ago Obviously more is better, but thatâ...

  • Christopher P. Ryan 10 months ago That $1.2 billion could pay 24,000 ...

Thanks everyone for reading!

The common feeling that “it’s only $33 billion, it’s not even worth the trouble” is extremely frustrating. The problem for someone who feels the way I do is that we can’t escape that apathy, which is contagious and gives rise to further waste and foolishness throughout government. From a practical standpoint, you can’t condone your tax money being spent wastefully without also condoning my tax money being spent wastefully. In a roundabout way, this apathy is actually more like contempt. Like it or not, those who condone government waste impose their values on others, and that’s offensive to liberty generally and to me personally.
Remember—the White House is estimating $33 billion in savings just this year. Savings in subsequent years would undoubtedly total billions more. What amount of savings would be worth bothering with? Obviously more is better,

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Obviously more is better, but that’s exactly why Obama should be fiercely criticized if he does not live up to his strong rhetoric. As an example of the kind of work Obama should be doing, consider the National Invasive Species Council (NISC) from above. I have no idea what they do, and I have asked many people informally and don’t know anyone who has any idea what they do, or even that they existed. Yet their budget in FY 2007 (the last year information is available on their website) totaled $1.2 billion. Since I am not an invasive species expert I will stop short of saying that the NISC has no value. Yet I don’t recall a national outcry for an NISC prior to its founding in 1999, and I know this country was pretty successful for its first 220-odd years without one. None of the economy’s seismic changes since then mean we should fail to ask if we spent that money wisely. That $1.2

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That $1.2 billion could pay 24,000 teacher salaries at $50,000 each.

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Great points. The size and scope of government is at a tipping point and true reform should be on the table. The inaccurate view that the Bush tax cuts or the wars led to a large portion of our national debt over the last ten years, which amount to only about 14% of the total debt over that period, will lead some to incorrectly believe that higher taxes and ending the wars will solve the problems. The recession had an impact on the reduction in tax revenues, but the problem has been excessive government spending from stimulus spending and expansion of many government programs. Reducing the deficits over time will only come from shutting down programs, as you mentioned, reform our tax code to make it more efficient, and restructure Medicare and Social Security. The President has given speeches about reducing some programs, but let's see if he will put this into action. I highly doubt it!

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9 Replies

  • Andrew Chesley 11 months ago This is just plain false. I'd ...

  • Vance Ginn 11 months ago Thanks for the reply, but to argue ...

  • Paul Anderson 11 months ago Most estimates say that the current...

This is just plain false. I'd refer anyone interested to this CBPP report (http://bit.ly/mvtyVL) on what is contributing to budget deficit projections. Yes, there is spending to be cut, but we can and must raise tax revenues.

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Thanks for the reply, but to argue against the CBPP (liberal) "evidence" here are two other articles to check out from the Heritage Foundation (conservative) (http://www.heritage.org/Research/Reports/2010/06/The-Three-Biggest-Myths-About-Tax-Cuts-and-the-Budget-Deficit) and the Cato Institute (libertarian) (http://www.cato.org/pubs/pas/pa673.pdf) that beg to differ. Therefore, I stand behind my previous comments.

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Most estimates say that the current deficit is caused by the following policy changes/circumstances: (a) $500 billion - the economy downturn (less revenue + more automatic social spending), (b) the remaining stimulus policies ($400 billion or so), (c) the Bush tax cuts ($300 billion), (d) the wars in Iraq/Afghan ($200 billion). The short term deficit is mostly caused by the economic downturn.

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The Heritage Foundation is not a credible source for anything. Or at least that's what my conservative friends tell me. I know they predicted 2.9% unemployment (???) in 2022 if the Paul Ryan plan was enacted. And they predicted that the Bush tax cuts would eliminate FEDERAL DEBT all together. That was one of the funniest/worst predictions in the history of economics. For a laugh, read the report on the Paul Ryan budget. It's hysterical.

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I'd also add that the size and scope of our government is small. We're one of the leanest governments. Our social safety net isn't terribly generous. Workers can barely form a union. Our taxation is historically low. We have a short term deficit problem (could be easily cured with a tax increase and some spending cuts) and a long term deficit problem (healthcare - which the ACA partially addressed but needs further work). No reason to panic.

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The problem with the Heritage analysis is that it takes the indefinite extension of the tax cuts as given and calculates deficit contributions around that assumption.

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Looking at that world, of course health spending is the largest share of the deficit. What CBO does with its Alternative Fiscal Scenario (and CBPP did in its analysis) is compare this to a world in which the tax cuts expire.

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I like Chart 1-1 in CBO's 2011 Budget Outlook - http://1.usa.gov/kotzYR - the chart illustrates the difference between the "Baseline Scenario" and the "Alternative Fiscal Scenario". Spending is very similar, revenues differ.

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Social Security isn't contributing to our National Debt issue so why do feel that restructuring it should be included in these talks. I agree that some restructuring is needed with SS, but that should be a standalone conversation and not one the gets included in any debt talks. The issue is with SS running out of money, a simple fix for that is not raising the retirement age or privatizing it , but rather raising the salary ceiling that which with the SS tax is applied.

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Cutting waste is a fine way to save some money, but at the end of the day, it's only $33 billion. By far the biggest drivers of our short-term deficit are the Bush tax cuts, wars in Iraq and Afghanistan, and the recession.

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Sure, spending should be cut, but shouldn't we also generate revenue by raising taxes on the rich and closing corporate loopholes. Companies that place money offshore undermine this nation and are almost parasitic. Also, what programs should be cut? The EPA, so our water and air get contaminated and kill us? Medicare, so our elderly do not receive needed healthcare?

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7 Replies

  • Paul Anderson 11 months ago Agreed - except with the part about...

  • Michael De Los Santos 11 months ago I agree Paul that the offshore mone...

  • Andrew Chesley 11 months ago The problem with cutting corporate ...

Agreed - except with the part about "companies that place money offshore". That's just a political talking point that polls really well. The reality is that we'll have a hard time recapturing that money over the long term (corporations will find another way to shelter it). The best way to ensure that US corporations pay taxes is to cut the corporate tax rate and close loopholes.

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I agree Paul that the offshore money is just a great talking point. Companies worried about their bottom line will always find a tax shelter somewhere. Those companies would bring that money home to invest here if the corporate tax rate was cut, but your also right in that tax loopholes have to be cut as well. Cutting loopholes will generate significant revenues over the long haul.

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The problem with cutting corporate tax rates to encourage repatriation is that businesses have their money in places where they're paying no income tax. A slightly lower income tax won't help bring money back home.

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In addition, there are all sorts of reasons why a temporary tax break on bringing money back to the US (a "repatriation holiday") is a really bad idea, which I'll export to Jared Bernstein: http://bit.ly/kllYOA

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I understand your correction. The point is closing the kinds of loopholes that allow corporations to pay next to zero in taxes need to be dealt with.

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The whole idea of the "repatriation holiday" is one that is harmful to our economy here. Thanks for the link.

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I'm not advocating for a "repatriation holiday" I am not in favor of temporary measures as they usually don't have any long term impact. I think in general lowering the corporate tax rate combined with closing loopholes is a good thing.

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