Joe & Jane Citizen - Lessons on Budgeting

[Editor’s Note: Here’s a tale of budgeting that may sound familiar. Many thanks to guest blogger Rick Albertson for sharing it with us.]

Joe & Jane Citizen – Lessons on Budgeting

It’s that time of year again, when legislators wrangle back and forth about how the country is going to spend its money. Essential budget bills are held up in Congress while every item gets pushed and prodded, amendments and earmarks are inserted and removed, supplemental funding clauses added and subtracted, and approximately-acceptable compromises are worked out in the House and Senate. Then they are sent upstream to the legislative branch, where the president gets to exercise his power of the pen over line items before the annual budget is finally passed into law.

This year the budgeting process is particularly critical, with military funding and financial reforms at the top of everybody’s hot list. The legislative branch knows there’s a great deal at stake this time, and the executive branch is all set to go toe-to-toe with the lawmakers when it comes down to who gets money for what. Because of the key issues involved, the press and the voters are watching Washington’s every move with unusually intense interest this year as well.

“Laws are like sausages. It is better not to see them being made.”
   —Otto von Bismarck

Bismarck’s statement about laws and sausages is true at any time, but it’s truer than ever at times like this when such huge sums of money are involved. The public is expecting to get plenty of steak as well as sizzle for its hard-earned tax dollars. But when the process finally grinds out a ton of sausage instead, though, the public ends up scratching its collective head and asking “Huh? How did that happen?” instead.

Appropriations bills, and for that matter any other kind of bills, are incredibly complicated documents by the time they ever come up for a vote. Even the simplest, most obvious proposal gets bogged down in subclauses and disquisitions and legal caveats and so on before it ever gets introduced, and then they all get even more weighted down with amendments and exceptions and corollary clauses and such before they ever reach the floor. The bigger the bill, the more barnacles that it’s encrusted with before it ever even leaves the dock.

That’s why it’s equally inaccurate to make oversimplified statements like “Congressman X voted against tax cuts for the middle class” and “Representative Y voted to spend billions on selfish pork-barrel projects” and “Senator Z voted not to fund our brave troops fighting overseas.” The devil is in the details, and boy howdy, are there ever a devilish bunch of details to deal with whenever we look at the legislative process. So let’s see if we can’t use a simpler example to address this topic instead:

Let’s say that Joe and Jane Citizen have two kids, Jody and Jill Citizen. It’s time for Jody and Jill to go back to school in the fall. They need all kinds of stuff for the new school year—notebooks and pencils and backpacks, shoes and shirts and skirts, soccer balls and gymnastics outfits, you know the drill. That’s a lot of stuff. How much is it going to cost, and who’s going to pay for it, and how?

So Joe and Jane have to sit down and work out all the details before they can even start to shop for the kids’ school needs. How much do they have to spend? They add up what’s left in their paychecks every month after taxes, SSI, etc. They balance that number out against what it costs to pay the mortgage every month, the utilities, the car and health insurance, the groceries, etc. Then they can see what they have left to work with for the kids’ back-to-school stuff. <!-more-> So then Joe and Jane have to sit down and figure out what the kids’ stuff is actually going to cost this year. The odds are pretty good that what they have to work with is less than what it’ll cost to get the kids all the stuff they need, or at least all the stuff they want. This is when it starts getting messy, because the devil is in the details.

Joe and Jane both agree that to make this work, they’ll have to cut expenses wherever they possibly can. So they forget about putting money into the kids’ college fund again this year, because that’s a laudable goal but they need to focus on what the kids need for school right here, right now. Some things are pretty much a given: books are books, backpacks are backpacks, and ya gotta have ‘em, so that’s that. But in the real world, shoes aren’t always shoes, and all that other stuff isn’t always a given either.

So Joe says, “Well, I know that Jody has to have new shoes, but I don’t think he really has to have the hundred-dollar sneakers he’s asking for.” And then Jane says, “Well, I know that Jill’s gymnastics classes aren’t absolutely necessary, but they really make her happy and besides, the personal discipline she’s learning in those gymnastics classes is one reason her grades went up last year.”

So Joe and Jane keep sitting down and they keep figuring it out until they come up with something that pretty much works, more or less. Jody does get his new shoes, but he doesn’t get the hundred-dollar sneakers. Jill does get to take gymnastics classes again this year, but she won’t get to go to computer camp next summer too because there’s just not enough money to pay for both right now.

Jody gets the new glasses he definitely needs and Jill gets the braces her dentist says she needs. But Joe doesn’t get the new glasses his eye doctor says he needs, because there’s just not enough money left in the till to pay for both right now. And Jane skips lunches at the office to save money, and she works extra overtime to help pay for Jill’s braces, even though that means she also has less time to spend helping Jill with her homework after gymnastics class.

And so it goes. You know the drill. It’s a constant battle of give-and-take, of trading these means off against those ends, of balancing one set of needs against another set of needs and weighing all of them against these choices and those options. Eventually it all gets done. The kids get the stuff they get and they go back to school. And Jody complains to his pals about how his parents don’t care about him because they stuck him with these crummy ol’ cheap sneakers. Jill’s bummed out about having to miss computer camp this year, but at the same time she’s happy because at least she gets to keep doing her gymnastics.

Meanwhile Joe gets eyestrain headaches and squints a lot, and Jane is exhausted by the time she gets home from work. And God only knows how they’ll manage to pay for college when that comes around. But they both know that everything’s a compromise and the devil’s in the details and so life goes on somehow.

So how are you going to summarize all of that in 5-second sound bites and 2-sentence talking points? ... “Joe is anti-education because he voted against letting children go to computer camps” ... “Jane is a bad mother because she’d rather work than stay at home with her kids” ... “The economy’s in trouble because people like Joe and Jane are spending money on non-essentials rather than putting it into private accounts for their future retirement” ... and so it goes.

You see what I mean here? You ask for a steak, but you end up with a sausage. That’s unfortunate, but it’s also inevitable. And after-the-fact talking-point statements like “Senator Z voted against funding our troops and defending our country” are every bit as invalid as statements like “Joe is anti-education and Jane’s a bad mom.”

Everything’s a compromise. The devil is in the details. And it’s never that simple. Not in the real world, anyway.

&nbsp; -- &nbsp; Rick Albertson

 

12 Comments

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Thank you, Rick. Your Joe and Jane analogy for appropriations bills is excellent. Sadly enough, because of the complexity of these bills, a vote can really be twisted into something entirely unrecognizable by just omitting some of the details that were involved.

Posted by Kerstin | 01/16/07, 12:54 PM EST

Amen Rick…to all of it!

Posted by Tia | 01/16/07, 01:04 PM EST

Terrific analogy Rick.

Compromise is good: Jill and Joe bought one pair of glasses and put off purchasing the second. Imagine if they had purchased a single pair of glasses with a lens for Jill and one Joe. Compromise still needs to make sense.

Posted by ProSense | 01/16/07, 02:01 PM EST

This analysis is spot on, but there’s something more to be said.  This argument assumes two reasonably kind and kinda reasonable parents. It assumes Joe isn’t gambling away, and Jane isn’t drinking up the college fund, nor are they taking money from computer camp and giving it to freeloading friends and relatives with a real case of the Veruca Salts. It’s assuming Joe doesn’t make up a bunch of things that Jill never said she wanted just to make sure Jane throws up her hands and says “OK, so we’ll make the budget *your* way.”

And it’s assuming Jane doesn’t tell Joe he’s sleeping on the couch (or in a basement) until he agrees with her.

Just sayin’.  The 109th Congress is still fresh in my mind.

Posted by Nobby | 01/16/07, 02:05 PM EST

Great post, Rick! You really nailed the analogy there.

Speaking of the sausage factory, just the other day I discovered a nice blog titled “Tales of the Sausage Factory.” It’s oriented toward media reform, so the last couple posts were about the National Conference on Media Reform that just ended. But last week he had an interesting (and refreshingly informative) post on net neutrality, and gave JK a thumbs-up for the Wireless Innovation Act.  Very nice.

Posted by MH | 01/16/07, 04:13 PM EST

About time we explain the voting difficulties, yes but or no but decisions, as I’ve heard Kerry say.

Knowing the difficulties in legislation, writing and passing it, should be a requisite for electing a president, and educating the electorate before they go the polls.

Civics should really be a taught again.

Great entry, both of you.

Posted by Marjorie G | 01/16/07, 04:21 PM EST

Violet and Rick,

Great post.

It is a shame but this is the reason that some strategists believe that we shouldn’t choose Senators to be our nominees.  They say they have too long a track record.  Better to pick a governor I have heard.

America needs more than dumbing down.  Obama isn’t better because he has less experience.  He isn’t more electable because he hasn’t voted on many bills.  It is time that we elect qualified leaders like Senator Kerry to higher office.

As we talk about budgeting, it is also imperative that we move the discussion from lower taxes to the larger crisis which is our national deficit and the debt that has been running higher each year that this country has been led by a Republican Congress and now Republican President.  Bush and company have irresponsibly spent our children’s and our children’s children’s future on a war built on lies without sacrifice as Nancy Pelosi asked Condi Rice.  “Who is going to pay the price?”  Not us.  Just the brave men and women who will pay with their lives, their limbs, and their mental health.  We don’t even have to pay more in taxes; the wealthiest among us have to pay even less!

Government isn’t something horrible that we need to bankrupt so that we can shrink it to the size we can drown it in a bathtub a la Grover Norquist.  The biggest responsibility for government is not to reduce the tax burden upon taxpayers, but rather to be a responsible steward with those funds.  To spend money appropriately and balance the budget. 

Government is just all of us together working to accomplish things that we would not be able to do one by one or even charity by charity.  Government is appropriately responsible for responding to national disasters like Katrina.  And this President and the Republicans with him failed miserably.  We see to value the reconstruction of Baghdad more highly than reconstructing the 9th Ward.

And the saddest part about it is that when we have people that hate government, they expect government to fail.  And when they fail to responsibly carry out their elected duties; they believe that it was a foregone conclusion that government would fail so it isn’t their fault at all.

So as we learn the lessons of budgeting and the difficulty of having a Senatorial record, let us not get bogged down in the $87 billion question.  All of the Republicans first voted against it before they voted for it as well.  We cannot simplify a record of someone like Senator Kerry.  We cannot try to hide from his experience and years of leadership.

We can only proudly present his unmatched record of experience to our fellow Americans. 

“Run John, Run!”

John Kerry for President 2008

Posted by Robert Freedland | 01/16/07, 06:13 PM EST

Rick,

Forget about the Washington pundits that politicians rely on in order to get their message to the people. You know the score and have the message that anybody with a kid can relate to. Excellent analogy that the “big guns” in D.C really can’t speak to with any authority.

It is terribly frustrating that our media (and I use the word “our” cautiously) can’t do what you have done in just a few paragraphs.

Despite the videos posted on this site, we have witnessed the media turn a man of integrity, honor and patriotism into a punching bag. The media has found it too easy to resort to mindless cliches about Senator Kerry and I have my doubts that he will ever be able to break through their prejudices. I know that is not a very popular thing to say on this blog, but I am very frustrated by our “media”, and after reading Rick’s post, I am convinced it (the media) will do nothing to clarify the situation surrounding complex issues. They will actually continue to repeat the mindless and unfounded attacks on Senator Kerry. I am sure that others have different opinions and I am anxious to read them.

Posted by oncall | 01/16/07, 06:35 PM EST

Posted by oncall | January 16, 2007 11:35 PM

Oncall,

They will turn each of the contenders into a punching bag.  This is true of Obama (who they’ve already started on) and Clinton, etc.  As the candidate gains strength and name recognition, the media has to do the bidding of their corporate owners and rachet up the smear campaigns.

And even in 04, they sat there saying, “When will they talk about issues?” when John Kerry and John Edwards had a book for purchase (over 200 pages) listing their issues and ideas or they could have downloaded the program for free. 

The reason I turned off CNN, MSGOP, FOX, ABC, CBS, and NBC was because I saw the way they were brainwashing us.  I saw the articles in Europe that they were not showing us here.  I heard them admit that “People think what we want them to think.”

I admit, nowadays, I am not a valid commenter about the status of the media bias because I don’t watch them. 

...Please, Senator Kerry and all of the Democrats in Congress… Please, tell me that you’ve learned you’re lesson and that you will take a bite out of the media’s power by enforcing the fairness in media act.  And also if you could end media consolidation and corporate owned media, it would save our democracy.

Posted by Tia | 01/17/07, 03:07 AM EST

In an editorial about what matters in presidential campaigns, the Globe says it best:

http://www.boston.com/news/globe/editorial_opinion/editorials/articles/2007/01/17/ready_set/

...
Is America ready? Surely, the nation is ready for a leader who knows that America’s place in a shrinking world is pre eminent but not all-powerful, who understands that unilateralism is bankrupt, who would protect Americans’ rights rather than maximizing his own, who demands integrity, who will move toward energy independence without stripping the land of its natural treasure, who believes in—and can deliver—economic opportunity for all.

This year and next, voters across America can expect a watershed campaign likely to be among the most dramatic in recent times. The great majority will rightly focus, we believe, not on whether they are “ready” to support a black candidate, or a woman candidate, but on which of the candidates has a vision of where the nation should be going, and the strength to lead in that direction.

Posted by FrenchGirlFomMA | 01/17/07, 04:13 AM EST

Hmm. Journalist Bill Moyers gave a passionate but crystal-clear speech to the National Conference for Media Reform last week in Memphis (see http://www.freepress.net/news/20357 for full transcript). Moyers had this to say about the financial aspect of legislative sausage-making and how the corporate-controlled mainstream media reports it:

“...people have to see how money and politics actually work and concretely grasp the consequences for their pocketbooks and their lives before they will act. But while media organizations supply a lot of news and commentary, they tell us almost nothing about who really wags the system and how. When I watch one of those faux debates on a Washington public affairs show, with one politician saying, ‘This is a bad bill,’ and the other politician saying, ‘This is a good bill,’ I yearn to see the smiling, nodding, Beltway anchor suddenly interrupt and insist, ‘Good bill or bad bill, this is a bought bill. Now, let’s cut to the chase. Whose financial interests are you advancing with this bill?’”

Posted by Otter | 01/18/07, 02:22 AM EST

Posted by Tia | January 17, 2007 8:07 AM

Well, I guess it is a damned if you do, damned if you don’t type of thing. If a politician makes the effort to communicate, s/he is skewered. If they don’t make the effort, the message never gets out.

Posted by oncall | 01/18/07, 01:28 PM EST