Quantifying Change

by: Chris Bowers

Fri May 15, 2009 at 12:13


Many of the arguments about the Obama administration that have played out among pundits and activists alike are based on whether or not the Obama administration is living up to the abstract vagaries of Obama campaign rhetoric. Is President Obama changing the government enough? Is he being bipartisan enough? Is he really avoiding ideology? It was an intentional part of then-Senator Obama's campaign strategy for these terms to be vague, thus allowing voters to read their own hopes and desires into Barack Obama. That we are still arguing over these terms is a testament to the success of the execution of that strategy.

Personally, I am tired of these arguments, because they don't seem to ever lead to new knowledge. Instead, I now find it much more interesting to actually try and quantify how much the federal budget has changed from the Republican trifecta (FY 2002, 2004-2007) to the Democratic trifecta (FY 2010-2013). This way, we can develop a quantitative metric for understanding what our electoral fights in this country are really all about. What sort of change really takes place from strong Republican control of the federal government to strong Democratic control of the federal government? Rather than arguing over vague abstractions-which essentially means we don't even know what we are arguing over--let's put a price tag on change.

I have already done some work on this front. Two weeks ago, the total spending difference from the 2009 to 2010 budget, broken down by federal department, were listed here on Open Left. Also, earlier this week, I was able to quantify the difference in total social spending between the Republican trifecta, the Democratic trifecta, and the Congressional Progressive Caucus. The overall results were surprisingly minimalist: shifting from Republican to Democratic control of the federal government resulted in a shift of about 2% of the national economy away from what might loosely be termed "private enterprise" and toward "social investment" in things like education, energy, health care, infrastructure, and pensions. Lest people think this is only an issue of the wrong type of Democrats being in charge, my research also showed that if the Congressional Progressive Caucus was running the show, the difference would have been 3% of the national economy instead of 2%.

Apart from these big-picture analyses, it is important to catalogue all of the differences on a more specific level, as well. For example, yesterday, the Huffington Post took a look at the differences between spending on the "drug war" from 2009 to 2010. Again, the results were minimal (more in the extended entry):

Chris Bowers :: Quantifying Change
In the 2010 budget, prevention takes a 10.6 percent hit while domestic law enforcement gets a boost of 2.3 percent, with "interdiction" (military and police actions designed to stem the flow of drugs into and about the country) gaining 4.4 percent. On the positive side of the ledger, treatment shows a 4.4 percent increase. And what of the never-ending seesaw battle between supply and demand initiatives? Unfortunately, demand reduction efforts (education, prevention) are down 0.8 percent, while (generally futile) supply reduction initiatives (enforcement, burning or poisoning crops) gets a 2.7 percent bump.

In terms of actual spending figures, here is the breakdown from the Obama administration itself:

Interdiction: $4.004 billion (2010) vs. $3.836 billion (2009)
Domestic Law Enforcement: $3.737 billion (2010) vs. $3.654 billion (2009)
Drug Treatment: $3.566 billion (2010) vs. $3.416 billion (2009)
Drug Prevention: $1.602 billion (2010) vs. $1.791 billion (2009)
International Enforcement: $2.160 billion (2010) vs. $2.174 billion (2009)

Overall, there is a slight shift away from treatment / prevention (combined, they are roughly static), and toward law enforcement (which experienced a slight overall rise). Adjusted for inflation, this means that federal drug treatment / prevention spending went down slightly, while federal drug law enforcement spending stayed roughly static.

Quantifiably, there will be basically no real change in federal drug policy from fiscal year 2009 to fiscal year 2010. This is a pattern that we will see when looking at most areas of federal spending (which I intend to do in much more detail next week), once the stimulus and bailout spending packages have run their course. Spending patterns under Democrats and under Republicans are not dramatically different from one another. Even most of the 2% shift of the economy toward social investment will be due to mandatory spending from previous laws on Social Security and Medicare.

I am not arguing that this shift is unimportant, and that we should stop fighting for it altogether. It is still important, even if it is small. For example, while it would start at only 0.5% of GDP, over the long-term a public health care option has the ability to potentially change the overall picture quite a bit. Further, I am certainly not arguing that people interested in wider change should look to third parties, given just how ineffective the third-party electoral route has been at changing public debate over the past several cycles. Rather, I am just trying to help people better conceptualize what we are actually fighting over in electoral and legislative campaigns.

There are few types of human interactions less valuable than arguments where the participants do not even know what they are fighting over. If more people began to realize that are only arguing over how to manage 3% of the economy, the entire course and tone of public political debate might change. Not only could we argue over specific amounts rather than amorphous rhetoric, but we would come to better understand the broad national consensus on government spending.  


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Quantifying Change | 13 comments
Thanks (4.00 / 2)
This is the kind of analysis you can really sink your teeth into.

Montani semper liberi

great analysis (4.00 / 2)
thanks again,  

whatever you think people owe you, that is what you owe people

What About The Expansion Of Government Agencies? (0.00 / 0)
I am presuming that--it they keep to their word--that the EPA will be enforcing, taxing, etc. greenhouse gases?  

From my reading, we are going to have more "police" at the SEC and FCT to investigate and enforce--hopefully better laws--the market (the term in a broad sense)?

Where do they categories of spending fall under?


Wait until the bill passes (4.00 / 1)
Before we know how much this will be, we have to wait and see on the size of the cap and trade bill that passes. A 100% auction would shift about 0.6% of GDP. The far more likely 25-60% figures would shift between of 0.2%-0.4%.



[ Parent ]
Sorry, One More Question?] (0.00 / 0)
     Will it be in the budget? The EPA having purview over emmissions.  Or will be considered discretionary spending?

[ Parent ]
It is a separte bill (0.00 / 0)
Cap and trade will be passed through a separate bill, not the budget. That was determined a couple months ago by an overwhelming Senate vote.

[ Parent ]
Thanks, I Got Confused (0.00 / 0)
    Anyway, again this really important data.  The data belies the rhetoric of "big spending".  Amazing.

PS  Chris, weren't you an English major?  If so, how did you become a mathemical and statiscal genius? lol  
You probably weren't an English major, right?


[ Parent ]
Turning leviathan (4.00 / 2)
We need more people pushing on the opposite side of the rudder. (It would be easier if we had access to the tiller, but we don't.)

I think a key (4.00 / 4)
objective for the progressive blogsphere is the creation of metrics that would allow us to judge the extent to which Obama has brought change.

One particular area I am interested in is the transition to green technologies.  A significant part of the stimulus package - by my count about 125 billion - was aimed at new technology.    


Very Interesting (4.00 / 1)
But I think what this tells us is the true difference between liberals and conservatives isn't the amount of money they want to spend or the size of their government, but what the money is spent on and the objectives of government agencies. Just look at the EPA and potential enforcement under the "Clean Air Act". That may be a minuscule change as a percentage of GDP, but compared to Bush it's a world of difference. Another example is the Dept. of Labor going from trying to break up unions to enforcing good labor practices by companies. Once again, thats probably a minuscule shift with respect to GDP but its night and day to unions and union members.

One thing we should always remember, and something Obama, to his credit, mentions, is that the Ship of State moves slowly. A progressively tilted government puts the country in a different trajectory, one that may not be evident in %GDP in budgets, but one that shows itself 20-30 years from now. Chris inferred this with the public plan in healthcare, and how, over time, it would be a considerable change in government, let alone the obvious change to the american people. Another example is Climate Change legislation, which may not bear fruits right away, but 50 years from now may be the most important thing Obama ever did.  


Except (0.00 / 0)
when the Ship of State is heading for an iceberg (take your pick -- global warming, financial meltdown, loss of respect abroad) you don't have fifty years.

If Obama doesn't disentangle himself from Versailles and start making things better for regular people he's only got four.

Montani semper liberi


[ Parent ]
billions and billions (0.00 / 1)
So what about that 100 billion-worth part of the economic stimulus package that was intended for alternative green energy? Stacey

I think your picture is really incomplete (0.00 / 0)
1) increased spending by government can be a result of conservative measures triumphing over a progressive philosophy.
A)One example would be Medicare subsidizing HMO's for patient care it could do for lower cost itself.
B)Another would be the huge financing costs of infrastructure projects, costs that are borne by local communities because the the federal government (post-Reagan) no longer believes in subsidizing public investment, costs that raise the total cost of the project itself.
C)Thousands of people process student loans and their repayment, when alternatively the government could just pay the expenses of the college directly.
D) And of course, there are massive bureacracies all over DC, Maryland, and Virginia, precisely because the federal government chooses to flexible regulation (with lots of loopholes and fine print) instead of ironclad directives or outright ownership.
E) There are numerous examples of government propping up the market, at greater expense to itself, simply out of a philosphy that values the market above all else.

2) Conversely, if greater government spending can be the result of conservative measures, some of the greatest progressive measures can be achieved with relatively little funding
A) Public Financing of campaigns
B) Requiring H1-B applicants to join a union, or better yet, deny any renewals for the same applicant after an initial two-year visa is exhausted.
C) Mandating Employee Councils, the legally enforceable right of employees (and their representatives) to information and consultation
D) A public-private partnership that guarantees job slots for high-performing students studying in selective fields
E) Combining all transportation funds into one funding bucket, with awards for all projects based on the same criterion, instead of having different funding levels for different types of transportation (this would get us away from a knee-jerk support of highways, and would ensure that the best planned projects are the ones that get funding).

So I welcome your attempts to simplify, but perhaps you have over-simplified the issue.

Besides, if the campaign is nothing but a charade, what is the point of voting? We should always hold politicians to their promises, or a very explicit explanation of why they abandon this promise or that.


Quantifying Change | 13 comments
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