President Obama's New Voodoo Economics

by Gerri Willis

Defending his budget only moments ago, President Obama says that his plan would bring spending to the levels of Dwight Eisenhower. Here's the exact quote, "Rather than throwing money at programs with no accountability or measured results, we are committed to funding only those things that work. All told, the budget cuts that I've proposed will bring annual domestic spending to it's lowest share of the ecomomy since Dwight Eisenhower."

True, but tricky. In reality, the spending that the president is talking about - domestic discretionary spending - is just 16 percent of the total that the federal government spends every year. It doesn't include entitlement programs like Medicare, Medicaid, or Social Security. Neither does it include defense spending. The truth is spending on those categories of the budget has grown like topsy.

Any real debate over reigning in government spending will have to talk about those programs.