Federal Budget Czar

Are you paying attention? Do you see what is happening here?

We are entering a phase of government spending that is unprecedented. And, as you know, there are only three ways to pay for this: Tax, Borrow, and/or print mo' money. I am betting it will not be the first two.

Be they Republican; be they Democrat - neither party has shown a willingness to address the elephant in the room - how are we going to pay for the bailouts and stimulus packages that have been proposed and in some cases adopted?

If things work out well - we, the taxpayers, will get our money back on the bailouts of the financial institutions and Car Industry.

While this is going on, we are at war, the funding of which is coming from somewhere - and, while I do support the war, the Hawks in Congress are not willing to fund it currently - they are passing the bill on to the next generation.

So, with neither party ready, willing or able to wield power responsibly, is it time to appoint a Budget Czar?

First, I do not like the "Czar" title. It smacks of power that is not on loan, but bestowed permanently. It also implies that our elected representatives do not have the fortitude to enact responsible fiscal legislation. So, we need a different title. "Commissioner" worked when Baseball dealt with the Black Sox Scandal - maybe that is what we need.

For those of you who are students of History, it is interesting to note, that the term Czar comes is the Russianized word for "Caesar"; and over time it became not just a name, but a title when the Roman Republic could no longer rely on its Senate... I digress.

Second, as we look at the budget - tough decisions need to be made. Some programs need to be cut. By doing this, some people/constituents are going to be unhappy. But I will take a stab at this - and I am betting we can come up with a few $100 Billion, which is a start:

1) Lead by example. Take a pay cut, and cut legislative staff. It is time. Everyone else is getting by with less. It is time for our leaders to do the same.
2) Federal Workers. Wages and Benefits have gradually risen to far out pace the growth in federal revenue and comparative pay in the private sector. Either people need to be laid off, or federal workers need to take reductions in pay and benefits. A reasonable goal here could be 10 - 15% which could save $25 billion annually.
3) Subsidies - Farm and Energy. Little is gained through these programs and they should be cut, or gradually phased out. Lumping them together may be unfair, but frankly they are the same and result in mal-adjusted industries. Ending energy subsidies while at the same time coming up with a comprehensive energy policy should be a Mandate of the Executive Branch. Frankly - coming up with effective, efficient energy solutions should be the "Manhattan Project of our generation. We are failing. Eliminating these two programs will force a more efficient market/industry and eliminate $40 billion in annual spending.
4) Social Security - it is time for an overhaul... No one likes to admit that George Bush was right about anything... he was right on this one. The retirement age needs to be increased, the FICA wage base needs to be increased, and people with means, should not receive a check from the system.
5) Wars/Nation Building - if I were playing risk, I would want to isolate Syria and Iran. I would do exactly what we have done. However, I am unsure a "Western" style democracy can exist in a Muslim State. AND, this is not a game. They, the people we are trying to "build up", may not want a democracy. They deserve to choose their own system of government. We need to get our people out of Iraq and Afghanistan. As for the terrorists who hide among the populations of the poor and uneducated - sounds like a job for a drone to me. Fiscal Responsibility forces diplomacy. AND, when diplomacy fails, in a democracy, the people support the war effort with increased burdens (they pay for it in both blood and wealth).
6) Defense - In my mind, this is one of the two key functions of government (Defense and Justice). We need to gain control of defense spending. As a percentage of GDP, this is out of hand.
7) Education - this is a state and local matter. The Federal government needs to end its mandates - many of which were unfunded (which encourages teacher to teach to the test) and rely on teachers, parents and local government to do this properly. No Child Left Behind is a nice saying, but we are making education a commodity. It should be unique. It should be diversified. We are going to end up with a population that has the same mediocre knowledge base.

To be sure, the Federal Reserve just ended a phase of "quantitative easing" - where the Federal Reserve buys government securities. Quantitative easing is essentially when the Federal Reserve devalues the currency by printing more currency. While this should have the short term effect of propping up the financial markets, it will not encourage spending on the part of tapped-out/over-extended American Consumers. AND, I am relatively sure it will not encourage businesses to expand. It should strengthen exports (because a cheaper dollar makes our goods less expensive abroad).

Additionally, it will be interesting to see how our debtors (chiefly - China) view this. We have been working for years to get them to change their policy relative to their own currency management, and they have been slow to do so. Essentially, what we are doing is sending them the bill.

Lastly, it is time for the Congress to end the practice of adding funding for regional pet projects to important pieces of legislation. If they cannot contain themselves, then the President should have the authority to veto a line item.

AND, there is part of the solution - it is the President. We do not need a Czar or Commissioner, we need an executive branch that Executes the will of the people, and if necessary, exercises restraint. Just because the congress approves it, does not mean that the Executive Branch has to spend it.