U.S. National Debt

The $3.8 trillion budget that President Obama proposed today to Congress for fiscal year 2011 (starting October 1, 2010) is a record. With two on-going wars, money to spur an economic recovery, enormous costs for entitlement programs, and ballooning net interest payments on an estimated $1.3 trillion deficit ($12 trillion national debt) it seemed almost a forgone conclusion that this year would see the largest budget numbers ever. To be fair, this was not Obama’s making but it’s now his problem. Spending beyond our means has finally caught up to us and foreshadows an erosion of U.S. influence that will change international politics and the global balance of power. The new budget also shows the reality of how low clean energy and green technology rank in terms of priorities.
This New York Times interactive graph shows the budget broken down by department and sized to show how much of the total budget each department represents. Not surprisingly, defense, social security, and medicare are the largest costs. The budgeted net interest on public debt is also enormous, up 33% from last year to $251 billion. In the far bottom right of the graph, there is a tiny section labeled energy. Zoom in to find that nearly half of the $10 billion budgeted for this department (remember, $251 billion just in interest payments) is for Recovery Act grants ($4.5 billion). Money for energy efficiency and renewable energy is even smaller (discrepancy in the NY Times’ graph- we have an email in to clarify as they currently have two squares for the aforementioned, one increasing and one decreasing). To be sure, budget forecasts are notoriously inaccurate and are always shaped by the numerous interests being represented in Congress. However, these first numbers are telling.

We would like to see the government support alternative energy more and help put in place incentives that will jump start whole new industries; industries we need to have in order to compete internationally in the next great economic boom. However, given the political deadlock in Washington and the mountains of debt facing the country, it looks like brave entrepreneurs and businesses in general will have to step up to bring about the change we need. Given the resources that the few massive departments mentioned above consume, other departments get relative crumbs; there is hardly any cake left to have, let alone eat. In fact, it’s increasingly looking like we’re better off baking our own.

- Justin Manger