(The extended baseline scenario was calculated based on massive tax hikes. Even still, the inevitable is only delayed by a few years.)
Update: The following graph is more, err, 'graphic.' These are White House and CBO numbers.
Friday, July 17, 2009
Fiscal Malpractice
I know that the Democrats are trying hard to do what they think is best. Nevertheless, the cold hard facts show that what is going on in Washington is nothing short of fiscal malpractice. The chart below is produced by the CBO (Congressional Budget Office). The Democrats are under heavy pressure from Obama to pass health care reform before the August recess, but just look at these numbers! I am growing weary of being flabbergasted, but should 'cap and trade' and health care reform go through as designed by the current congressional leadership, our country will be crushed by the mountain of debt. I must repeat, it is selfishness in the extreme for us to continue to spend the money of future citizens of our nation for our own selfishness.
(The extended baseline scenario was calculated based on massive tax hikes. Even still, the inevitable is only delayed by a few years.)
Update: The following graph is more, err, 'graphic.' These are White House and CBO numbers.
(The extended baseline scenario was calculated based on massive tax hikes. Even still, the inevitable is only delayed by a few years.)
Update: The following graph is more, err, 'graphic.' These are White House and CBO numbers.
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3 comments:
I am so lousy at graphs, thanks for posting two of them to help. It is tough for me to respond because I am appalled by irresponsible spending like all of us, and yet, for me at least it is always a matter of priorities (military, health care, bailouts, education, space program, border control, infrastructure), what do we reduce or eliminate?
I suppose that the CBO and White House are figuring that the recession, wars, and health care, all require things to be tough for a long while before they get better. A ten year plan, or more, seems reasonable to get us out of this mess and I don't doubt that the USA will carry such debt for those years. What I want to know is that there is such a plan.
Congress could never keep to a 5-year, 10-year, or even a 15-year plan. What we need is a balanced budget amendment to the constitution, but our current Congress will never do that either. What composition of Congress would make the hard decisions? The current composition is demonstrating quite the opposite. The Republicans came razor thin close to passing such an amendment in the early 90's, but then failed to make any of the necessary hard decisions after that. In short, I have little hope that the budget will be balanced unless under the duress of a severe depression, and even then I am unsure it will happen. What is the result uncontrolled debt spending? Somewhere along the line, the hard choices will be forced on us, and it won't be pretty (no matter which form of government one favors). So at what point do we decide to change our thinking? Political choices are rarely purely intellectual choices, but are rather almost always emotional choices. An emotional approach almost always leads to the wrong answer.
You are right. I don't know what the answer is, as the graph shows, both parties have failed us in this regard, and for a lone time. I suspect uncontrolled inflation will get us and force the hard decisions.
I am for eliminating a lot of spending (as I have said before), but I imagine that we would not agree on most of the cuts. That would be a fun exercise!
I am for the balanced budget amendment except in times of war (and yikes, today we are in two wars!)
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