Trump budget increases Medicare funding $4 trillion in next decade

After seeing dozens of news reports about “devastating cuts” to Medicaid, you might think the Trump budget reduces the amount of spending on Medicaid. In reality, the proposed spending for Medicaid would increase by $4.7 trillion during the next decade.

Welcome to the world of baseline budgeting. Forecasters assume spending will go up in future years, and if a new budget still spends more – but less than what was planned previously – the media gets to use the “cut” word and liberal politicians get to claim “this budget will kill people.”

I have a huge problem with the way the media deals with this. But it really should be expected, since most are in total support of the liberal agenda – and the goal to destroy the Trump administration. You’ll have to ask them why they refuse to take just a few moments to provide the real information, instead of dishing out not even half the story.

Let’s say you take over leadership of a large sports apparel marketing department. Your budget this year is $1 million, and your predecessor’s budget assumed a $100,000 increase in spending every year for the next 10 years. Eventually, the budget would be $2 million per year.

You’ve been hired to run the department more efficiently, while still providing a quality product and good service. You work with your team and come up with a budget that increases $50,000 each year for the next 10 years. Your budget will be $1.5 million per year 10 years from now.

After you release your budget plans and inform the media, the financial reporters announce you’re cutting the marketing budget to the tune of $500,000 over the next decade. How absolutely absurd is that?

That’s exactly what the mainstream media does. And the liberal politicians love it. They absolutely love to cry wolf, claiming the Republicans and the Trump administration have no problem with kids and adults dying with “no access” to health care. Right from the playbook.

ABC News is the only mainstream media outlet to attempt to explain this. That said, they still used the term “artfully evasive” when referring to Budget Director Mick Mulvaney’s real-world, easy-to-understand explanation. But still, right there in the story, they admit…

So, yes, Medicaid spending would increase by $4.7 trillion over a decade.

I guess they figured they had to explain things in a “AP Fact Check” article.

Below, is Mulvaney’s tutorial during a press conference earlier this week.

Wondering how bad it is? Just take a look at media headlines concerning Trump’s budget. Keep in mind, the proposed budget* does not cut funding dollars much at all, if anything. The federal government spends more and more every year.

The above are just a few of the examples. In my world, if you spend more money next year than you did this year, you’re increasing your budget. Sure, many will claim it’s “more complicated” implying you’re too stupid to understand. Many will state it’s important to look at budget numbers as a percentage of GDP. Many will state it’s important to consider inflation. Fine, do that if you wish, but stop claiming there are cuts. Be honest, and say the budget reduces the previous administration’s rate of growth. We’re spending more than previous years, just not as much as proposed previously.

Don’t let the media and Washington insiders brainwash you with claims of “devastating cuts” to any program when the federal government’s budget for those programs continues to grow.

* The Trump Administration did remove the budget [PDF format] from the White House website. Do you blame them? In the document they clearly show increases in spending, but the media ignores the facts. I don’t blame them for pulling it, why bother even publishing it if the media will lie about it?

Clinton actually tries to walk back her “businesses don’t create jobs” statement

Hilarity from Hillary. Really? Really? Hillary Clinton’s statement at the Elizabeth Warren event was clear as day. It was clear and concise, and now liberal news outlets are claiming she fumbled the line?

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Billionaire USA families couldn’t cover one-fifth of Obama’s deficits

It’s time to bash the wealthy! News media love to tell the common people just how rich the top 1 percent are, letting us know what kind of stuff they own and remind us that most of them contribute to [evil] Republicans.

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The value of a mortgage investment vs renting

Recently, we’ve seen multiple news stories suggesting buying a home and having a mortgage is not necessarily a good investment, and when making the decision to buy a home, you really should not consider it as an investment vehicle since your “rate of return” would suck. Why has this become a news-cycle theme all of a sudden?

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Does a higher minimum wage effect job stability?

Jim asked me to reference this article as he plans to discuss it on the big radio show this morning between 9 a.m. and noon on WTIC. The minimum wage has been a frequent topic here at RVO, and this story illustrates another – yet foreign – example.

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Hinderaker: Obama is a liar of epic proportions

So true it seems. Our friend John Hinderaker over at Power Line reflects on the just-released Obama administration 2015 budget proposal and President Obama’s own comments concerning the budget at an elementary school in Washington, D.C. earlier today.

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Minimum Wage… President Obama, where does the extra $3 come from?

It’s a very honest question, but my guess is nobody – not one person – will dare to ask President Obama when he arrives at my alma mater on Wednesday. When you arbitrarily increase the minimum wage one, two or three dollars per hour, where does the money come from?

On Feb. 4, Gov. D.P. Malloy (D-Conn.) put forward the notion of a $10.10 state minimum wage. He says phasing in the increase over three years will “move as many people as rapidly to the middle class as we can.” Malloy’s lieutenant, Nancy Wyman said the change “will not put any kind of burden on our employers and it will start to really help those people that work the hardest.” Got that?

  • You people who make $20 per hour don’t work as hard as those making minimum wage,
  • there will be zero burden on employers, and…
  • the result will be to move people “rapidly” to the middle class.

Hail the utopia! But the same question must be asked of Malloy and Wyman. Where does the money come from?

I know where the money comes from, and I’ve written about this multiple times. When you raise the minimum wage one quarter from the current $7.25 federal minimum, that’s a payroll increase of at least 3.5 percent, and for a small business with 20 teenagers working 20 hours a week in the summer, that’s “only” $100 per week, or $433 per month.

But where does it come from? Businesses can and will end up doing a combination of the following.

First, they are going to see if they can increase prices for their goods and services. Of course, you can’t blindly increase prices as a result of higher costs, because demand is changed by price. It would be nice if you could tell customers your price is higher because your costs are higher and they buy anyway, but consumers make decisions on price, quality and service. You’re not guaranteed they will buy, and some will go elsewhere.

Of course, higher wage costs for low-wage employees effects those making more than minimum wage. Union pay scales are based on a minimum wage. If the minimum goes up, everyone’s wages go up. When consumers are paying more for goods and services, isn’t a portion of their wage increase flowing right out of their pocket for the higher prices? That’s what we call inflation don’t ya know? Nobody wins.

Second, the business owner can take a look at their own salary. Some will certainly be willing to take a cut in pay and hand some of it over to employees, but business owners have bills to pay and a retirement to plan for too. Remember, the entire sales pitch from Obama, Malloy and other Democrats is people making minimum wage are not being treated fairly by business owners, and the government must step in to solve the issue. That theory ticks me off to no end.

That $433 per month (or whatever) could be money the employer planned to use to expand their business through a variety of means. Maybe now they won’t do that? Maybe they wanted to start increasing the staff from 20 to 22 to 24 to 28 to 40? Maybe they wanted to increase hours and make more employees full time? Maybe that won’t happen now?

Third, they have to look at the value of the employees they currently have on staff. If the minimum wage goes up – let’s say from $7.25 to $10.10 like Obama did with a stroke of a pen for federal employees a couple of weeks ago – can the business owner get a higher quality employee for $10.10 as compared to $7.25? We know they can. You might be worth $7.25 per hour to the business, but you might not be worth $10.10. If you’re not, you get laid off and replaced by someone with more experience.

Fourth, they look at their total payroll. Can a business owner cut the payroll costs of those making minimum wage and get the salaried employees to pick up the slack? Give more hours to the more experienced employees making more than minimum? Would the business owner be willing to step in and work more hours? Would it make sense to open the business at 10 a.m. instead of 9 a.m.? Those are all real-life examples of what small business owners look at!

Finally there is benefits. What benefits are necessary? What benefits are mandated? What benefits can be cut? Those training programs small employers offer employees to improve their value to the workplace costs money, and a small business might just cut the funding for training and development of employees.

That’s where the money comes from, and it’s an honest evaluation. What good comes from those changes? If you claim more money will allow you to contribute more to the economy, get a nicer apartment for your family or maybe buy a home, you totally missed the point of the previous seven paragraphs. Let me make it clear, if you don’t think there is a connection between the rent you pay and the minimum wage, you’re head is buried in the sand. By no means is it a one-to-one connection, but when a landlord or property management company is mandated to pay a higher wage to employees and contractors, your rent goes up.

Got that?

The left’s argument is specific to “raising people out” of poverty, and that it’s impossible for a family to earn “a living wage” when they only make minimum wage. Pulls on the heart-strings does it not? Yet, they know it’s not that simple, and they refuse to discuss where the money comes from, and you should know why.

Don’t let emotion rule the day. It’s an election year, politicians want to hand out candy for votes. Don’t be a low-information voter. Share this post with someone who thinks the minimum wage will improve the economy for individuals and start a conversation.

Symptom of the Disease: Federal funds used for N.J. Hurricane Sandy relief

This is the kind of stuff that always comes up when the federal government steps in to provide funding to a local area with a bail out. New Jersey and Gov. Chris Christie is being investigated concerning how they spent federal dollars for a marketing campaign to promote the state and its shoreline.

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Seattle Socialist council member – “Take over factories … shut down profit-making machine”

On Nov. 6, I told you how Prop 1 in SeaTac, Washington passed, requiring businesses to pay a minimum wage of $15 and provide paid sick leave. Now, a Seattle City council member – who ran as a Socialist – suggested “workers should take over the factories, and shut down Boeing’s profit-making machine.”

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The $15 per hour minimum wage experiment comes to SeaTac

Let’s see how this goes during the next two to three years shall we? It’s not a done deal, but SeaTac Proposition 1 looks like it will pass, requiring businesses to pay hospitality and transportation workers a minimum wage of $15 per hour. The previous minimum wage was $9.19, but I’m not sure what the average pay was for an entry-level employee.

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