Friday, February 12, 2010

Is it true that the Federal Budget increases automatically every year NO MATTER WHAT?

If this is true, what is the automatice percentage rate increase each year and how can we ever reduce the size of Government?Is it true that the Federal Budget increases automatically every year NO MATTER WHAT?
No it's not true, but considering we are in a state of constant inflation (it's still small rate of inflation, but it's still inflation), it's natural that prices/costs go up every year, so it's natural that the federal budget would go up every year.Is it true that the Federal Budget increases automatically every year NO MATTER WHAT?
Not automatically, no. Budgets have to get passed by Congress every year.
There's not an automatic increase in the budget itself every year, but a large part of the budget is various entitlements that DO increase automatically with inflation, so it would be highly unlikely there would ever be a year without an increase in the total budget.
No. It is not true. Congress votes each year on what size the budget will be. If Congress does not decide on a size, not only does it not automatically increase, it automatically decreases to almost zero, because no money can be spent except for a few things that are required by law (including, unfortunately, Congress's salaries).
It is not automatic, but it is largely inevitable, both because of inflation and because ';we'; are always asking the government to do more for us, which of course costs more.


Did you ever hear of a constituent asking his Congressman to please provide less education, roads, parks, police and fire protection, etc?
We cannot reduce the size of gov't. Think of our country as highly inefficient for example as of May 06' 1 penny cost about 1.2 cents to manufacture.





Why do we still use them?

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