President Obama today urged his Cabinet members to find $100 million in savings from their departmental budgets.
It’s easy to harass the president about such a miniscule figure compared with the kind of spending he’s enacted and proposed of late. But he rightfully recognized that $100 million is a “drop in the bucket” compared to overall government spending and debt — and that, frankly, you have to start somewhere.
Plus, from a communications standpoint, $100 million does sound like a lot of money to people whose lives aren’t routinely saturated with references to “billions” and “trillions.”
I did some very quick math to figure out how tiny a drop that $100 million is. If you take FY2008 federal spending of around $3 trillion, $100 million is about 1/30,000 of total outlays. Translating that to a family budget, a person or family with $90,000 a year in income would have to find $3 in savings to meet the president’s goal.
Pretty easy, right? So maybe the president’s team can use similar numbers to inspire government. If the average family can find three dollars in savings over the course of a year, surely the government can match that rate, no?
Furthermore, maybe President Obama should encourage families to actually find the savings in their budgets. Many already are. Granted, saving doesn’t necessarily help the economy now, but if people put a few bucks more toward, say, paying off credit card debt or paying extra principal on their mortgage, that would help their personal financial situation and help credit issuers reduce their exposure.
(Yes, I know the people most likely to behave this way are the people least likely to default, but no plan’s perfect.)
By playing up the Cabinet Challenge, the Administration (and others) could turn some drops in the bucket into a rivulet of responsibility.