Saturday, May 2, 2009

Obama's $100M budget Cut Visualized

Here is a good visualization of Obama's $100 Million dollar budget cut from the roughly $3.5 Trillion dollar budget. Note that there are actually not enough pennies on the table. That means that as bad as it looks, it is actually worse.

Let me use this visualization to help explain one of the real fears of conservatives. Unchecked and without serious reform, Medicare, Medicaid, and Social Security will continue to grow at well above inflation rates. As far as the example goes, that means that the white line will continue shifting to the right. The closer the white line gets to the blue line the less money we have for roads, bridges, schools, defense... . Once the white line reaches the blue line, we either stop all other spending (except Medicare, Medicaid, and Social Security) or go further into debt. The only alternative at that point would be to raise taxes, which is not good. That is why conservatives are trying to reform Medicare, Medicaid, and Social Security before it is to late.

Video embedded below. (from http://meganmcardle.theatlantic.com/archives/2009/04/penny_wise_pound_foolish_1.php)



Past related post:
Berman Post: Obama Orders $100 Million of $3.5 Trillion Budget Identified to Cut

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