FACT
The near meltdown of the financial system in 2008 and the huge recession it triggered is responsible for this huge rise in budget deficits.
To put it in perspective though, the only alternative policy was the collapse of the entire economic/financial system followed by abject chaos - the mad max scenario.
i understand that; everything i've read indicates that we cannot sustain this deficit spending pattern either though. the day will come when the bond market refuses to buy US debt, and at the rate were going it won't be decades away either.
i would love to see a balanced budget. thats probably a pipe dream though
ok - just wanted to get that out of the way.
A balanced budget will be less than a decade away - one way or another.
The accumulated debt will still be enormous, that will take decades to clear.
That test is coming and unavoidable - it will be imposed by the markets - it is why Obama has already been reported to have said that he thinks he will be a one term president because of it.
The national balance sheet is not simple to manage, you can't play around with one side without having an effect on the other.
Drastic cuts in spending might naively be expected to reduce borrowing requirements, but it can be offset by the effect it has on the productive side of the balance sheet and a reduction in the tax take.
An obvious example would be trying to save money on infrastructure at the expense of reducing the efficiency of the economy.
There are going to be hard choices and judgement calls.
Ironically the people who fucked it up in the first place will be able to boo from the gallery.
Republican party in the US
Labour party in the UK
One right wing, the other left wing.
Both sustaining power since 2001, fueled by the feel-good bullshit of and economy on an out of control debt bubble.
Such is the injustice of politics.
The question for me is, was it ever sustainable? The truth of the matter is, our economy was never as good as it looked. For the recent prosperity, we have always relied not on real assets, but on credit. Americans bought so many things with money that didn't exist, that our economy grew way faster than it should have.
I personally always knew these bills would come due.
Am I happy that Obama is spending a shitload of money? No, I am not. Who could be? On the other hand, we can't afford 20% unemployment. We simply can't afford it. Unless we go the India route and just let the poor starve to death, or die of disease, unless we are willing to go all the way with it, and wall off the prosperous in monied enclaves, we have to do something to get people working. So is this the best of all possible scenarios? No, it's probably somewhere in the middle of the worst possible scenarios. But at least some of it needed to be done. Now, we can certainly argue that the debt we are adding now will never be paid off. And in fact, that was likely before we added the bailouts, etc to it. But sitting by and idly steering the ship down to the bottom is not practical either.
The shame of it, to me, is that Obama came in with a mandate to do certain things, and the willingness to get it done. Health care being the primary example. I don't care what you call it, but our country has borne the worst of for-profit healthcare, and it is time that changed. How much can he now accomplish in this climate? Certainly not as much as he could have if he had become president in 2007. Maybe none of it. And that's a real shame.
Chase, you didn't make it to Bowling Green... I heard so many raves about your Axe0fx and I was dying to check it out...
would have loved to have been there, unfortunately i was needed at work and couldn't come. money is a bit tight right now working in the service industry. i couldn't run the risk of losing my job to go play my guitar for a day or 2. i would have MUCH rather been there trying to keep up with you guys.
I think the concern should be focused on the size of government. The money thing will have to stop at some point and I think that is pretty temporary by design.
I like most things Obama is doing but damn...he has to stop the fucking growth of government. They are not a business within America's market system. They have their hand in a lot of shit right now and it's getting worse everyday. All the bailouts, probably needed I guess, tobacco industry now, car business, banks, etc. This is not the role of government. Now Obama is getting government into the healthcare business to top that off, or trying to anyway. This government is growing at a alarming pace. The cost to maintain this growth has to be staggering.
I hope he puts on the damn breaks soon!
Creating jobs that are Government positions doesn't help anything either. Everyone else has to pay for the bulk of those jobs (it's like giving someone a dollar and only getting 28 cents back).
Exactly. That was part of my point. The more government involvement the more government employees needed to be involved. Then there's the cost of implementing what each department of government unneeded bullshit employees dream up while there bored or after they get tired of interns. A vicious circle of money spending on shit that isn't needed. All the while, people who really need help, the poor, elderly and sick, just have it worse and worse. In the end, a government that isn't effective and doesn't work.
Now the repubs aren't any better, to be fair to Obama. In fact, they are just as bad.
But so far....ain't shit changing IMO. Not shit that matters to me, anyway. Another lying politician who gives good speeches. As I've said all along.
Now, all that said.....I wouldn't change my vote if I had the chance. ;D
Holy incredulous vomit Bert Man! Did this guy REALLY say this??! :o :-?
Newsweek editor Evan Thomas brought adulation over President Obamas Cairo speech to a whole new level on Friday, declaring on MSNBC: "I mean in a way Obamas standing above the country, above above the world, hes sort of God."
;D ;D
Those MSMBC people are such smart asses.
