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Let’s Get Serious About Cutting The Federal Budget and the National Debt
By Scott Rohter, February 2011

The CATO Institute’s Report, Downsizing the Federal Government recommends that the following steps be taken to reduce the size of the Federal Government, and to reduce our national debt and annual deficits.

CATO Institute’s Report - Recommendation with Notes
Total Annual Savings
Rec #1 Eliminate Dept. of Energy (DOE) established under Jimmy Carter.
Terminate federal research grants and subsidies.
Defense related activities to be merged with DOD.
$17 billion
Rec #2 Eliminate Dept. of Education established under Jimmy Carter. 
Terminate grants to state and local governments.
Return the education of our children and the funding of their education to local control. There has been no corresponding improvement in educational achievement over the years as a result of increased federal intervention.
Top down approach stifles innovation and perpetuates mediocrity.
$107 billion
Rec #3 Eliminate Dept. of Housing & Urban Development (HUD) created 1965 under LBJ 
      • Misappropriation of public funds
      • Better left to local governments
      • Has created more problems than it has solved
$63 billion
Rec #4 Downsize Dept. of Agriculture by 90% created 1862 under Abraham Lincoln, but has grown drastically in size and scope since then.
Eliminate all functions except for inspecting food, animals, and plants entering the US from foreign countries.
$131 billion
Rec #5 Downsize Dept. of Health and Human Services (HHS) by 10%. Recreated in 1980 from the Dept. of Health Education and Welfare.
      • Repeal Obama Care
      • Fix Medicare (created in 1965 under LBJ).
         -Replace Medicare with a system of individual vouchers and Health Savings
         Accounts (HSA’s).
$81 billion
        • Fix Social Security (created in 1935 under FDR).
         -Index Social Security benefits to prices instead of wages.
$60 billion additional savings
  Total estimated annual savings if all of these  recommendations are enacted is: 
$459 billion

Note: To read the entire report go to

Nothing in the CATO Institute's plan was done to elminate or substantially change Social Security. Besides saving real money these cost saving measures will give our bloated Federal Government many less reasons to print or borrow more money on the credit of the United States.

"The truth, the political truth, and nothing but the political truth.
A journalist has no better friend than the truth."
- Scott Rohter

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