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Chapter 6: Down the Rabbit Hole

stores do the heavy lifting. However, the Senate
continues to throw up one obstacle after another,
preventing further policy changes.

Washington Speak camouflages government
spending. For example, if I spend $100 in year one and
$200 in year two, we would say that I spent 100% more
in year two than I spent in year one. Washington
calculates spending differently. If Congress spends
$100 in year one and says that it plans to spend $200 in
year two, but instead spends $150 in year two, it claims
it cut spending by $50!

TRUMP’S BUDGET PROPOSAL
Social Security and Medicare are two
impediments to President Trump's economic agenda.
Any real reform will have to include these two
programs, but Mr. Trump is fighting an uphill battle
from both the Democrats and the Republicans even
while leaving these programs untouched. These two
programs plus interest on the national debt account for
almost half of the projected federal budget. The interest
on the national debt is how much the federal
government must pay on outstanding public debt each
year—the current interest on the debt is $310 billion.
That's from the federal budget for fiscal year 2018
(October 1, 2017, through September 30, 2018). Instead
of passing an annual budget, in March 2018, Congress
passed a six month budget of $1.3 trillion and President
Trump signed the bill with less than 24 hours before the
deadline. Higher interest costs will force the
government to eventually raise taxes, cut spending or
borrow more to make up the shortfall.

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