February 19, 2025
The goal – zero-based versus baseline
In case you don’t understand what’s going on right now here’s a rundown.
I read an article this morning about what Trump and Musk are trying to do. I’m going to simplify it a little bit to make it easily understandable.
It has to do with baseline budgeting versus zero-based budgeting. Each time congress puts out a budget they take the previous (baseline) budget and then they add 5% to it for their new budget. It doesn’t matter what inflation is doing, it doesn’t matter if the programs they’re financing are working, it doesn’t matter if the program has expired and funding is no longer required, that’s their baseline, the previous budget plus 5%. Then people screech and they go . . . “okay, we’ll cut the budget”. By that they mean instead of adding 5% to the previous budget, they add 2% and they call it a budget cut.
What Trump and Musk are trying to do is remove all the funding for all the stuff that’s not working, not in our nation’s best interest, programs that have expired, programs that are costing citizens and companies money they shouldn’t have to spend, etc. The goal is zero-based budgeting. Each budget starts from zero and departments have to produce a budget that lists all the things they want to spend money on for the next fiscal year. Not a blind pot of money to spend, individual line items that are specific to what they intend to support for the year.
The way things are now they get extra money every year whether they truly need it and they’re forced to spend it or lose it. They spend it on really stupid shit that isn’t in anyone in the US’s interest except those who are getting kickbacks. You can see this in a lot of the last minute spending the Biden admin did.
Make sense? Trump/Musk’s goal isn’t to destroy the gov’t and remove effective programs, it’s to right the ship and get us out of the hole we’re in financially.
Right now it’s a bit of chaos. People are getting fired, rehired, fired again and rehired again. That’s just stupid, people moving too fast. That’ll get fixed but in the short term, chaos will ensue. Patience and understanding is required. This massive effort includes a learning curve. Get out your popcorn and enjoy the show.