Budgeting and Pork Spending

Okay, as both candidates are making certain pledges about their spending and savings, I feel the need to weigh in. I have been a budget analyst for only five years now, but I have come to learn a few things on the job. Some other things I have learned just by following the news.

First, one of McCain's big messages is how he will change Washington. And one of his biggest projects will be cutting pork barrel spending. Now, pork spending does make me angry too - it is often a misuse of scarce resources and also is a factor for why it is so hard to vote out incumbent politicians from office. At the same time though, it is less than one percent of the federal budget, which means it is hardly worth the time and effort spent opposing it. Also, it's not like this is a new gripe for Presidents. Bush has long opposed pork spending, but he has so far been unable to do anything about it. So I know McCain claims he will end pork spending, but as long as Congress controls the purse strings, he is going to have trouble getting a budget through Congress without any pork in it.

Second, Obama says he is going to eliminate programs that don't work. By doing this he claims he will fund his new programs. This is nothing new either. In fact, Bush has also tried this to limited success. The fact is, many programs that seem ineffective have Congressional support for one reason or another. So as I said about McCain, Obama will have trouble getting his budget through Congress when he cuts some of their beloved programs.

Look, budgeting involves making real choices about priorities. Money, even for the federal government, is a scarce resource. You can make changes on the margins by improving efficiency, cutting ineffective programs, and eliminating pork spending. But you don't make any significant impact on the budget that way; it won't help you cut taxes or create new programs. In the end, the real choice is between the level of services you want and the amount of revenue you want to raise. If you cut taxes, at some point you are going to have to cut services. And if you want to provide more services, you are going to have to raise more revenue. Don't listen to anyone who tells you otherwise.