View Full Version : The Budget Dilema - A Simple View
10-18-2012, 05:32 AM
Not from a politician.
From an accountant.
Who's accountable ?
It does not matter. Now.
Did Obama ever claim this budget would be balanced?
10-18-2012, 09:24 AM
The Ryan plan would achieve a balanced budget after 30 years. Until then, no debt reductions are possible under his plan. He'd add debt each and every year to finance his very large tax cut proposals, even after he savaged the entire domestic discretionary budget by 60%.
And add more debt in the meantime than the Obama budget projections.
It's extremely simple, although painful. It's what the GOP won't allow. It's paying more for the government we have through higher taxation. It's what the lauded or sworn at Simpson-Bowles plan said. It's what Alice Rivlin and other fiscal hawks have said.
It's against the religion of the GOP, and they will not allow it. But this guy explains that even zeroing out most of the government will still not do the trick.
Now, revenues are depressed, and expenditures are up, because of the continuing slow growth and high unemployment situation. Getting that turned around might close about 60% of the gap between receipts and expenditures. He should have admitted that or mentioned it, as otherwise it's pretty misleading.
Similarly, under plausible assumptions, the publicly held debt can be stabilized at about 80% of the gdp and kept there indefinitely, plateauing, as the gdp continues to grow. So he shows some accounting but not the economics of it. Just as a person can safely have a larger amount of debt if he has a higher income, similarly as the size of our economy is larger, we can carry more debt and it will be an equal burden to lower debt.
Don't know but Obama did declare he would halve the deficit and we know where that got him.
10-19-2012, 11:08 AM
Didn't realize it until yesterday, but George W also made that same promise as to his second term.
The difference? He had created the entire deficit in his first term, having inherited a $200 billion dollar surplus.
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Didn't realize it until yesterday, but George W also made that same promise as to his second term.</div></div>Well I guess it goes to show, if you continue to copy W then you will get the same results. What a tool you are.
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