$700 Billion bailout… so who’s paying?

So the Gov’ment is on a shopping spree.  Well like all post shopping hangovers, the bill can be quite sobering.  So here is a little graphic to explain just who is paying for this bailout and how much.

The data and forumlas used were crafted when I was doing research on the “Who pays?” section of the Death and Taxes poster.

$700 Billion bailout… so who’s paying? has 6 responses Add your thoughts.

Bush’s new Alternative Energy is powered by smoke and mirrors.

Keeping America competitive requires affordable energy. And here we have a serious problem: America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology. Since 2001, we have spent nearly $10 billion to develop cleaner, cheaper, and more reliable alternative energy sources — and we are on the threshold of incredible advances.

So tonight, I announce the Advanced Energy Initiative — a 22-percent increase in clean-energy research — at the Department of Energy, to push for breakthroughs in two vital areas. To change how we power our homes and offices, we will invest more in zero-emission coal-fired plants, revolutionary solar and wind technologies, and clean, safe nuclear energy.

(Applause.)

Huzzah! The administration finally (2006) acknowledges that we need to do something about this oil habit.  Clean energy here we come!

Of course the State of the Union address is like the worlds fair of spin and political cover.  A time to take note of all your achievements however slight and fleeting and spin them up into a whirling tornado of progress.  The more out-of-context your point is, the more magical it becomes.  And don’t worry, Congress will duly applaud and cheer as if they were auditioning for the role of the laugh track on Save By The Bell.

Two years ago Bush acknowledged your addiction to oil.  Last year here echoed his commitment to altenative energy.

“It’s in our vital interest to diversify America’s energy supply — the way forward is through technology. We must continue changing the way America generates electric power, by even greater use of clean coal technology, solar and wind energy, and clean, safe nuclear power.”

(Applause.)

The 2008 State of the Union address called for more the same, “increase the use of renewable power” and “a new generation of clean energy technology”. It looks like greener pastures are ahead.

Two weeks later the Bush administration released its proposed budget for 2009.  This is where the Death and Taxes poster comes in.  Words are easier to spin than numbers. Ok numbers are just as easy to spin.  But the data doesn’t lie.  The President’s budget and the Death and Taxes poster give a more accurate look at our priorities.

Here is an overview of the Department of Energy as imaged in the poster.

So lets examine further.

First of all, Energy Efficiency and Renewables is being cut by 27%.  Energy Conservation which provides the most benefit per dollar invested is cut 25%.  Solar, which has a potential output of 22-69% of the total US power gets shelved as does Hydrogen.  Does anyone remember that much touted photo op of President Bush filling up a Hydrogen car in California?  It was his magic bullet to make us all forget about pesky fuel efficiency.  Well that experiment didn’t last long.  In fact the only alternative energy that the administration is actually pushing (when the spot light isn’t on) is biomass, or more precisely, corn based ethanol.  Which is unfortunate since ethanol fuel is a disaster in the making.

Are you on the ethanol bandwagon? Well consider this; If we distilled every corn plant in the US, it would only displace 1/6 of our gasoline consumption.  A box of Corn Flakes would then cost hundreds of dollars.  To replace all of our gasoline we would need to plant 71% of our farmland with fuel crops.  The more ethanol, the less food. Not very viable.  It’s also inefficient to produce (costs 7 barrels of oil to make 8 barrels of ethanol), reduces millage per gallon (thanks to the high octane), produces more smog than oil, and would strain water supplies.

Bush keeps pushing it with tax incentives and handouts thanks to the Corn Lobby and the fact that its a useful distraction from other effective methods of reducing gasoline use, like increasing mileage standards.

Ok so if renewable energy isn’t in the budget, then what is?

The largest upswing in funding comes from the Strategic Petroleum Reserve (SPR).  This a large 727 million barrel capacity store of petroleum reserves housed in salt domes along the Gulf of Mexico.  It’s almost full too, you can check the capacity here.  There is enough oil in there to run the country for a month, should there be a world wide embargo as well as disruption of all domestic oil production facilities.

Fossil Energy R&D is on the rise too, mainly a result of Bush’s “clean coal” initiatives.  When large energy companies announce with great fanfare they were are spending billions of dollars funding “alternative energy”, they are not talking about wind and solar.  They are talking about synthetic gas, liquidfied natural gas, and clean coal.  As if burning coal could be a “clean” process, proponents are hoping to just bury all the toxic emissions in the ground.  Coal is responsible for 48% of our power supply and U.S reserves could last 250 years, so when the coal lobby outspends the solar lobby 25 to 1, their voice is heard in the White House.

But you probably thought the Department of Energy was in the energy business.

They are actually in the nuclear weapons business as a majority of the departments funding is used to maintain our nuclear stock pile and turning old nukes into glass.  A new MOX Fuel facility is in the works at just under a half billion dollars.  This place will make uranium and plutonium cocktails to power nuclear plants around the U.S.  With 19% of the power supply, the Nuclear Lobby has some serious clout.

So when the microphones are turned off, and the number crunchers take over, the federal budget becomes the ultimate insight into our national priorities.  The next time you hear a politician talk about funding alternative energy and being addicted to oil, check the numbers, because usually their green tinted glasses are paid for by lobbyists.

(applause)

Bush’s new Alternative Energy is powered by smoke and mirrors. has one response Add your thoughts.

Visualizing One Billion Dollars.

The Death and Taxes poster contains a lot of information and is great for putting federal spending in context.  However, the de-facto unit of measure is one billion dollars.  I realized that people often have a hard time grasping just what one billion dollars is.  So to provide further context to the poster, I am putting one billion dollars into perspective.

There have been other attempts around the web to imagine what a billion dollars might be, but they tend to obfuscate the problem further.  You can go here and learn that one billion credit cards weighs as much as 78 brachiosauruses or that one billion dollars in pennies would cover 14 square miles, but does that all really mean anything?

Let’s investigate what one billion dollars is and how it relates to us and our world.

Now most people will never see $1 billion themselves.  If you live in the United States, there is a 1 in 800,000 chance that you’re a billionaire, which are about the same odds as winning half a million dollars playing Powerball.  So ingenuity, hard work, and inheritance will net you a better rate of return than the lottery, but for those of us without such gifts, one billion dollars is only attainable when working in groups.

If you have a PH.D. then you already have a leg up on everyone else.  Just gather together 278 of your doctorate friends and add up all the money all of you make during the 40 or so years of your career and presto!, One billion dollars.

Of course if you don’t have a PH.D and consider yourself just an ‘average’ guy, you will have to work a little harder, a little longer, or instead, just round up an additional 312 of your ‘average’ guy friends.

If you’re female you will need another 178 doses of girl power to reach one billion dollars over the course of your collective lifetimes.

If you consider yourself black or African-American you will need almost twice the man/woman power to reach a billion.  An additional 656 lifetime contributions will do the trick.

Of course if you are in the unfortunate position of living below the poverty line, it will take an entire regiment of your unfortunate brethren to come up with one billion dollars in a lifetime.

In reality, the federal budget is an annual process, so understanding a billion dollars in terms of lifetime incomes is only of moderate use.  To bring it down to the annual level, you are going to need a lot of friends.  This is assuming you and your friends represent the mean American.  That’s mathematical mean.  I’d imagine an unearthly level of charm is required to achieve this number of friends.

When relating to federal spending, we ultimately have to relate to taxes.  So here is the amount of people required to support one billion dollars in federal spending.    To put it another way, the taxes paid by everyone living in New York City is almost half of the annual cost of the war in Iraq.  You would have to tax everyone in L.A., Chicago, Houston, Philadelphia, and Detroit to come up with the rest.  Again, this is assuming everyone in New York is an ‘average’ American, which is certainly not the case considering 40 of the aforementioned billionaires live there.  But you get the idea.

Before we get too far along on a socioeconomic tangent, lets switch gears.  If you happen to be so lucky as to win the Powerball lottery jackpot, odds being 1 in 146 million, then you are well on your way to being a billionaire.  Now all you have to do is win the jackpot every time for the whole year.  Impossible?  Surely not, why the odds are only 1 in 8 septendecillion.  That’s 55 digits.  If you are a string theorist, you might find those odds attractive.

Now that you are the luckiest person ever to live, what are you going to do with your winnings?  Blow it on something totally ridiculous of course.  That’s right, with your one billion dollar bank account you could purchase every action figure in sold in the US for a year.  Or all the video games for a few weeks.  I think we know that a year long reign as Lord of the Plastic Figurine to be the awesomer option.

Now forget that pipe dream! We are relating to government spending here and the gov’ment ain’t got time fer toys.  Instead of a nations’ worth of plastic superheros, one billion dollars can buy you half a plane.  Now, if we are talking strict off-the-line unit cost, then you could fly away in a B-2 with $250 million in cash stuffed in the weapons bay.  But you would first have to find someone to foot the R&D costs for you, which isn’t likely.  So $2.2 Billion is the total get-my-money’s-worth price for a B-2.  A bit out of reach for a lowly one billionaire.

The black market is where the action for the warlord on a budget.  Especially in Africa where a slightly used AK-47 will cost you 1/4 the price it would if it were bought in the Middle East; around $200.  One billion dollars could corner the entire black market for firearms.  You would need substantially more if you wanted to do it legally, providing the U.S. alone with $1.2 billion.  We are talking small arms here — machine guns, pistols, rifles, grenades, etc, which is only about 20% of the total international arms trade.  Even still, there is plenty of guns to go around, approximately one for every man, woman, and child in North America.  If you include military small arms, we will have to arm up South America as well.

Edit: I tried for about 45 minutes to think of a clever segue from fire arms to breakfast cereal but failed.  If you think of one let me know and I will credit you.

If you bought up all the stock you would enjoy the benefits of General Mill’s one billion dollars in profits.  That’s a lot of Boo Berry.  Yes, to further put the figure into perspective, this food giant, whose cereal you have grown up, with can put together one billion dollars worth of profit on $11 billion in sales.  This would place them somewhere around 200 on the Fortune 500 and 250 on the global Forbes 2000 lists.

Breakfast peddlers can’t hold a candle to the sheer monetary force of international war-making.  The entire yearly profit of a sprawling Fortune 500 company could be absorbed over a weekend in Iraq.  The war in Iraq is the first war in which we have had to borrow money from foreigners since that Revolutionary one we fought 225 years ago.  Back then the movies cost a nickle and a war was only $15 million.  Even adjusted for inflation and its not more than a week’s worth of Iraq’s expenses.  In fact, as you read this post, it’s costing $6,024 per second to wage war over there.

Two days in Iraq, annual income of 25 thousand people, a years worth of lotto winnings, its all one billion dollars.  I hope the preceding images have put that dollar amount into some perspective and that the information in the Death and Taxes poster is of a bit more use.  The National Cancer Institute receives $5 billion per year; that’s 10 days in Iraq, the cost of two and a half B-2’s, the tax revenue from half a million people,  every lotto jackpot for five years, etc.

To really understand federal spending, we need to put the information in to a larger context.  That is what the poster if for.  To relate federal spending to ourselves, we need to bring this large numbers down to eye level.  Hopefully, the next time you hear that the government spent ABC billion on XYZ you will think, “That’s a lot of action figures!”

Source: People. Guns. Toys. Lotto. Planes. War. Boo Berry.

Visualizing One Billion Dollars. has 11 responses Add your thoughts.

Total military and national security spending in the U.S. federal budget.

Every year people ask me, “Just what is all this military/national security spending you list?”. Well I have decided to type it all out once and for all. What qualifies spending as ‘military’ or ‘national security’ is subjective. There is strict interpretations which only includes funding with in the Department of Defense, and there are loose interpretation which include portions of the national debt and subsequent interest payments as a direct result of military spending. I try to strike a balance between loose and strict. Below is a table which includes all the military and national security spending that makes up the $799 Billion listed on the Death and Taxes poster for 2009.

The government has an official categorization of defense spending. It’s function 050.

“National Defense” (”Function 050″): Federal budget category that consists of the Department of Defense budget (”Function 051″); Department of Energy programs devoted to national defense, such as naval ship reactors and nuclear weapons (”Function 053″); and other defense-related activities including the Selective Service System and civil defense programs administered by the Federal Emergency Management Agency (”Function 054″).

But protecting our national borders and interests is not solely contained within function 050 spending. The table below details all the military and national security spending that make up the $799 Billion that I use for the poster. Each function and department is color coded.

Total Military and National Security Spending in the 2009 Federal Budget

source: 2009 Presidential Budget Request

Total military and national security spending in the U.S. federal budget. has one response Add your thoughts.