Spin the budget: This is how government lies to you

We got an update today on how the whole austerity thing is going in Greece — where, last you may have heard, protesters were killing innocent bank employees in defense of their unsustainable government-provided benefits.

Bottom line: It’s not going so well. But what’s most interesting here is the bald-faced way in which the Greek government is lying about its performance. It’s a type of lie that sounds the same in any language. From The Wall Street Journal’s report (subscription required):

The Greek government Monday vowed to press ahead with tough fiscal action despite an upward revision in its 2009 deficit by the European Union’s statistics agency.

In a statement following the release of Eurostat’s revised data, the finance ministry said Greece had already surpassed its 2010 budget goals by shrinking its deficit to 9.4% of gross domestic product this year. It also reaffirmed its plan to cut the deficit to below 3% of GDP by 2014, in line with its agreement with international lenders.

Eurostat earlier Monday said Greece’s budget deficit in 2009 reached 15.4% of GDP, nearly two percentage points higher than previously forecast.

“Despite the data revision, the deficit reduction in 2010 is larger than initially targeted; six percentage points of GDP against a targeted reduction of 5.5 percentage points,” the Greek finance ministry said. “The 2010 deficit resulting from the new revised figures and general government accounts after the reclassification is estimated to be 9.4% of GDP, a reduction in excess of €14 billion ($19.17 billion) compared to 2009.”

The revision comes as Greece scrambles to meet its deficit targets for this year and next under the terms of a €110 billion bailout agreed to in May with the International Monetary Fund and the European Union. A delegation of IMF, EU and European Central Bank officials are in Athens Monday to review Greece’s progress in meeting those goals, and to decide on its eligibility to receive a third installment of that loan this year.

Under the terms of the loan, Greece must cut its budget deficit to 8.1% of GDP this year—from a previously estimated [13.6%] gap in 2009—and to 7.6% of GDP in 2011. (Emphasis added throughout.)

Did you see what happened there?

The Greek budget deficit was originally estimated to have been 13.6 percent of the country’s gross domestic product (GDP) in 2009, and the government in Athens agreed to cut the 2010 deficit by 5.5 percentage points, to 8.1 percent.

Now, the deficit turns out to have been much, much higher — 15.4 percent of GDP. Athens is now pledging a reduction to only 9.4 percent of GDP.

But the Greek government actually wants more credit for this turn of events, because it says it will be cutting the deficit by 6 percentage points instead of 5.5. The government wants us to completely ignore the fact that its deficit was larger in 2009 than it was supposed to be, and remain larger than it was supposed to be in 2010.

We are talking about nearly enough beyond-budget deficit spending over those two years to negate the $19.2 billion in deficits that Athens says it will be cutting. And at this point, who believes that the Greeks will hit even that upwardly revised target?

I would ask, “What’s Greek for chutzpah?” except that it sounds the same the world over. Politicians find one way to describe their actions as terrible rather than horrendous, and then want the public to pat them on the back for it.

As I warned over the weekend, be wary of this kind of talk when Congress and the White House start considering proposals from the president’s deficit commission. Increasing spending by a smaller amount than expected is not good enough.

60 comments Add your comment

Peter

November 15th, 2010
1:44 pm

Gee Kyle the Republican’s created the deficit…… how do you spin that excuse ?

barking frog

November 15th, 2010
1:47 pm

I guess the Greeks have their own Laffer mathematics…

barking frog

November 15th, 2010
1:49 pm

Do the Greeks not know that all they need to do is
cut taxes?

Tyler Durden

November 15th, 2010
1:51 pm

Gee, Kyle. I remember the following as offered as truths from the previous administration:

Iraq/Saddam Hussein was directly involved with 9/11
Iraq/Saddam Hussein has nuclear weapons and is capable of using them within 45 minutes
Pat Tillman was killed as the result of enemy fire
No one in the White House was involved with, or had knowledge of, the disclosure of Valerie Plame’s identity/role with the CIA

Where do you stand on these issues, Kyle? Remember: it’s only a ‘principle’ if you apply it objectively and consistently. Otherwise, it’s just partisan hackery…

rdh

November 15th, 2010
1:53 pm

Peter, go back to eating your pumpkin:
Gee Kyle the Republican’s created the deficit…… how do you spin that excuse ?

Congress writes ALL budgets.
If you look at the average deficit per Congress, and which party controlled Congress at the time, then Democrats are responsible for about 80% of the deficit. If it wasn’t for the spendthrift Republican Congress of GWB (6 years), Democrats would own about 95% of it.

Dave

November 15th, 2010
1:59 pm

“Iraq/Saddam Hussein was directly involved with 9/11″
I don’t recall them saying that. The reason we went into Iraq was that we believed they had WMD’s.

“Iraq/Saddam Hussein has nuclear weapons and is capable of using them within 45 minutes”
Horsepuckey. The Bush administration never said anything of the sort.

“Pat Tillman was killed as the result of enemy fire”
The Defense Dept. said that, not the White House.

“No one in the White House was involved with, or had knowledge of, the disclosure of Valerie Plame’s identity/role with the CIA”
Richard Armitage was the one who provided that information to the press, no Scooter Libby. And Armitage was not in favor of the Iraq invasion. Guess that puts the lie to your loony-tune imaginings of the White House going after Valerie Plame to punish her husband for his hilarious denials of the obvious interest that Iraq had in Niger.

ExRepublican

November 15th, 2010
2:00 pm

Bush said he had no regrets, too, about his decision near the end of his second term to push the 2008 federal bailout that loaned hundreds of billions of dollars to companies including AIG, Citigroup, Bank of America and General Motors. Spin the source of the bailout. This is how the Party of No used Fox News and AM talk radio to lie to you.

Churchill's MOM

November 15th, 2010
2:00 pm

cut & paste from the peach pundent.. they say it better than I can write it..

Senate Republicans will vote tomorrow on a moratorium on earmarks, line-items requested by members of both chambers of Congress for their home state or district.

Earmarks are an issue for several reasons. They can distort the marketplace, allowing the government to pick winners and losers. More often than not, the cost of an earmark is greater than the benefit. And there is almost no sunlight on how they are inserted into spending bills.

Members of Congress use the practice in order to secure funds for their districts and proudly point them out during their next campaign to prove they are in Washington to “bring home the bacon.” Leadership of parties in Congress will often use earmarks to entice members to vote a certain position on legislation. The 2003 expansion of Medicare and the 2007 emergency spending bill for Iraq are both examples of this practice.

Twenty-four votes are needed to pass the moratorium. According to Taxpayers Against Earmarks, 19 Senators have expressed support for the proposal. Absent from the list are Saxby Chambliss, who received $90,785,000 in earmarks in FY 2010, and Johnny Isakson, who received $65,943,000.

Opponents of the ban, such as Sen. James Inhofe (R-OK), have offered a weak defense of the practice, complaining that they will somehow cede constitutional authority if they give up their pet projects. James Madison, the Father of the Constitution, vetoed a spending bill because the spending was unconstitutional. In his veto message to Congress, Madison wrote:

I am not unaware of the great importance of roads and canals and the improved navigation of water courses, and that a power in the National Legislature to provide for them might be exercised with signal advantage to the general prosperity. But seeing that such a power is not expressly given by the Constitution, and believing that it can not be deduced from any part of it without an inadmissible latitude of construction and reliance on insufficient precedents; believing also that the permanent success of the Constitution depends on a definite partition of powers between the General and the State Governments, and that no adequate landmarks would be left by the constructive extension of the powers of Congress as proposed in the bill, I have no option but to withhold my signature from it, and to cherishing the hope that its beneficial objects may be attained by a resort for the necessary powers to the same wisdom and virtue in the nation which established the Constitution in its actual form and providently marked out in the instrument itself a safe and practicable mode of improving it as experience might suggest.

Since earmarks represent a small portion of overall spending, this is largely a symbolic issue. However, if they can’t win the fight on earmarks, they’re not going to win the fights on other spending battles. They’re not going to slash the budget and we’re most certainly not going to reform the entitlements that represent a threat to our fiscal security.

If Chambliss and Isakson are serious about backing up all of their talk about cutting spending, they need to get behind this moratorium as a sign of good faith that they are ready to walk the walk.

Call both of our Senators and let your opinion be known on this issue.
Chambliss: (202) 224-3521
Isakson: (202) 224-3643

j

November 15th, 2010
2:10 pm

Kyle you are absolutely right. It’s about time the state really clamped down on the UGA program. Those clowns in Athens just keep spending like it’s going out of fashion.

CJ

November 15th, 2010
2:11 pm

Kyle: “…what’s most interesting here is the bald-faced way in which the Greek government is lying about its performance.

Maybe I’m missing something, but I’m having trouble identifying exactly what Kyle is up in arms about. Greece promised that their 2010 deficit would be about 40.5 percent lower than their 2009 deficit—measured as a percentage of GDP ([13.6 minus 8.1] divided by 13.6). It appears that, using Eurostat’s revised economic numbers for 2009, Greece actually reduced their 2010 deficit by about 39 percent from their 2009 deficit ([15.4 minus 9.4] divided by 15.4). Not too far off, considering. What Kyle should be angry about is that such an austerity program was put into place in the first place.

Austerity programs increase deficits by contracting the economy. During a recession. the private sector (i.e., business and consumers) are spending less. Hence the recession. Right?

Austerity programs insist that the public sector, the government, also spend less. So, lowering government spending when the private sector is also lowering its spending is the equivalent to putting economic contraction on steroids when an economy can least afford it.

Less public sector spending spending, most of which goes directly to private sector vendor businesses, (1) leads to even fewer customers (2) which leads to higher unemployment (3) which leads to less taxes being paid (4) which leads to bigger deficits (5) which leads to demands for more austerity (see Kyle’s post above), and the vicious cycle continues. I understand that thee multiple causes and effects of austerity programs are more difficult to absorb than “when families tighten their belts, government should tighten its belt,” but that’s no reason that the press and politicians should parrot and reinforce economic stupidity for mass consumption.

Austerity fails to save Ireland: http://finance.fortune.cnn.com/2010/11/15/austerity-fails-to-save-ireland/

Peter

November 15th, 2010
2:34 pm

Weapons of Mass destruction…..that is how the government lies to us.

Saddam and Bin Laden worked together to create 911….that is how Government lies to us.

Mission accomplished…….that is how the government lies to us.

Cost plus Contracts……..that is how the government lies to us.

Taking a budget surplus and turning it into a deficit, and creating such a bad economic environment, that we almost had a 2nd depression…..that is how the government lies to us.

Bailing out Big Banks, Insurance Companies, and Wall street……..that is how government lies to us.

Praying for rain…that is how government lies to us.

Not closing the 400 Toll Booth…that is how government lies to us.

Creating a Fish Farm for 425 million, and cutting the education budget……..that is how government lies to us.

Creating special laws to save personal tax money for the Republican Governor…….that is how government lies to us.

Not telling the truth about your current personal economic situation, and running for Governor………that is how government lies to us.

Kyle we know how the Republican’s lie to us….what is your spin on the truth ?

Are you dizzy yet from the Rush spin, the Fox spin……… the Republican lies of small government ?

JF McNamara

November 15th, 2010
2:35 pm

I don’t think the Greek government is lying. I think the original numbers were wrong and they adjusted. It appears they are hitting their proposed cuts, so that’s what they were asked to do. Who cares how they spin it. I guess they could get out the knife again, but that’s between them and their creditors.

As long as you agree that its both parties in government that are using the funny math as justification, I’m fine with that assertion. It’s pretty much true.

Kyle Wingfield

November 15th, 2010
2:40 pm

CJ, look at the absolute numbers instead of the percentages.

In 2009-2010, the Greek government promised to borrow only $68.7 billion. In reality, it is on track to borrow $78.3 billion.

Only in the bureaucratic mind does an upward shifting of the goal posts make that an improvement.

A Hearty Cheese Sauce

November 15th, 2010
2:53 pm

Sounds like Obama/Reid/Carter/Pelosi-Speak to me.

Bryan G.

November 15th, 2010
2:56 pm

Peter –

actually, any good economist will tell you that the real “lie” was that Bush inherited a budget surplus since the “surplus” was really just a projection based on the unsustainable income levels in the last 90s and early 2000s.

CJ

November 15th, 2010
3:12 pm

Actually Kyle, it’s all relative. It is the percentages that tell the story. For example, we’d be thrilled if the United States was on track to borrow $78.3 billion.

In fact, if Europe continues this austerity insanity, then they’re only going to get more of the same in the years to come.

“We are seeing a pattern – first in Ireland, now in Greece and Portugal – where cuts are failing to close the deficit as fast as hoped. Austerity itself is eroding tax revenues. Countries are chasing their own tail.”

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/8039789/IMF-admits-that-the-West-is-stuck-in-near-depression.html

Anyone want a peanut?

November 15th, 2010
3:14 pm

YOU’RE the one what lies, Kyle. The Greeks are George Washingtons compared to you and your stinking conservative ideology of lies, wartime tax cuts and making collateral damage out of human beings in the name of capitalism.

You’re a bad man. You’re a VERY bad man.

jt

November 15th, 2010
3:18 pm

TARP will make a profit.
That’s a good one.

Or better still ,,,,,,,,

GM paying the American tax-payer back. (from the 70’s or the most recent?)

Or what about this………………………..?

They hate us for our freedom.

Kyle Wingfield

November 15th, 2010
3:20 pm

If it’s percentages you want, CJ, then here’s the most relevant one: The Greeks are going to borrow 14 percent more than their goals called for.

And no, I wouldn’t be thrilled with that if it were the case here.

Question Authority

November 15th, 2010
3:27 pm

By some sound estimates, the actual US debt obligations when you add in SS, Medicare, the Medicare Drug benefit and current spending projections is $200 Trillion!!!!

Good luck spinning that.

Meanwhile every dollar Bernanke prints adds another dollar plus interest to the bill.

We are doomed!

Paul

November 15th, 2010
3:28 pm

The quote is “The Iraqi regime possesses biological and chemical weapons, is rebuilding the facilities to make more and, according to the British government, could launch a biological or chemical attack in as little as 45 minutes after the order is given.” — Bush, 9/28/2002

There is a saying “the truth will set you free” – that applies to many areas….
hard to believe it is at the CIA but….

CJ

November 15th, 2010
3:35 pm

Kyle,

I forgot my wallet and planned on borrowing $5 for lunch. I ended up borrowing $10–100 percent more than my goals called for. Of course, that extra $5 is a tiny fraction of my income. I’m curious, what does that 14 percent amount to as a portion of Greece’s GDP?

Note that I was comparing $78 billion with our 2010 deficit of 1.29 trillion. Maybe you misunderstood my meaning, but otherwise, I’m not sure why you wouldn’t be thrilled about us having a deficit that’s down by $951 billion (92+ percent).

Libby

November 15th, 2010
3:35 pm

How refreshing to hear you admit that socialism doesn’t work!

get out much?

November 15th, 2010
3:43 pm

two words: “Laffer Curve”

CJ

November 15th, 2010
3:45 pm

Question Authority: “Meanwhile every dollar Bernanke prints adds another dollar plus interest to the bill.

The level of stupidity these days is off the charts.

If Bernanke “prints money”, then the Fed hasn’t borrowed that money, and therefore has not added another dollar plus interest to the bill.

I know that the media-driven, ethically-challenged, former half-term Governor Sarah Palin has indoctrinated her base to believe that printing money is, by default, a bad thing. But where do they think that the cash in their wallets came from? It really doesn’t grow on trees.

I’m looking at a bill right now that has Bush’s first treasury secretary’s signature printed on it. Is printing money only acceptable when a Republican is in the White House?

You guys find the strangest things to be outraged about.

Kyle Wingfield

November 15th, 2010
3:53 pm

CJ: The 14 percent works out to about 3 percent of Greece’s GDP. So, I guess your lunch analogy might work for someone who earns $165 a year. (In which case, $5 for one lunch would be a heckuva lot of money.)

I understood your meaning. I just think it is completely pointless to say that a country of 310 million people and a $14 trillion economy “would be thrilled” to have the budget deficit of a country with 10.7 million and a $310 billion economy.

In case *you* misunderstood *my* meaning, the relevant comparison here would be for the U.S. deficit in 2009-2010 to be 14 percent higher than forecast. I still wouldn’t be thrilled at that. How about you?

Bring back "Babe Alley" to the Georgia Capitol! (Unidentified State Representative)

November 15th, 2010
4:08 pm

“Spin the budget: This is how government lies to you”

But, Kyle, I love it when the government lies to me! The truth is such a turn-off and completely unsexy, and believe me, I know ALOT about sexy.

Jefferson

November 15th, 2010
4:13 pm

Sounds like Wall St. back in 2007 eh?

CJ

November 15th, 2010
4:18 pm

In case *you* misunderstood *my* meaning, the relevant comparison here would be for the U.S. deficit in 2009-2010 to be 14 percent higher than forecast. I still wouldn’t be thrilled at that. How about you?

If the relative short-term deficit is more important than jobs to me, as it is to you, then a relative deficit that 39 percent lower than the previous year, instead of 40.5 percent lower, would make me pretty happy. As I said, you guys find strange things to get outraged about.

Me? I’m outraged that Ireland’s austerity measures have contributed to the tripling of their unemployment rate, and I’m outraged that we’re still listening to the people who believe that following their lead would somehow help us create jobs.

Bring back "Babe Alley" to the Georgia Capitol! (Unidentified State Representative)

November 15th, 2010
4:19 pm

CJ
November 15th, 2010
3:45 pm

“I know that the media-driven, ethically-challenged, former half-term Governor Sarah Palin has indoctrinated her base to believe that printing money is, by default, a bad thing. But where do they think that the cash in their wallets came from? It really doesn’t grow on trees.”

DUH!!!!! Of course money doesn’t grow on trees……Money comes from lobbyists employed by big corporations who will go to ANY lengths to their piece of highly favorable legislation passed!

“I’m looking at a bill right now that has Bush’s first treasury secretary’s signature printed on it. Is printing money only acceptable when a Republican is in the White House?”

Short answer: YES. Printing money is only acceptable when a tax cut-and spend big government conservative Republican is in the White House, but is totally unacceptable when a tax hike-and-spend big government liberal Democrat is there. CJ, my friend, you are a quick learner!

CJ

November 15th, 2010
4:19 pm

Redo:

Kyle: “In case *you* misunderstood *my* meaning, the relevant comparison here would be for the U.S. deficit in 2009-2010 to be 14 percent higher than forecast. I still wouldn’t be thrilled at that. How about you?

If the relative short-term deficit is more important than jobs to me, as it is to you, then a relative deficit that 39 percent lower than the previous year, instead of 40.5 percent lower, would make me pretty happy. As I said, you guys find strange things to get outraged about.

Me? I’m outraged that Ireland’s austerity measures have contributed to the tripling of their unemployment rate, and I’m outraged that we’re still listening to the people who believe that following their lead would somehow help us create jobs.

Bring back "Babe Alley" to the Georgia Capitol! (Unidentified State Representative)

November 15th, 2010
4:23 pm

With all this talk about spending cuts, huge deficits and out-of-control national debts, I think that we’re all forgetting one thing: that exotic dancers and escorts like “printed money”, too, you know?

Bring back "Babe Alley" to the Georgia Capitol! (Unidentified State Representative)

November 15th, 2010
4:34 pm

Kyle Wingfield
November 15th, 2010
3:53 pm

“I understood your meaning. I just think it is completely pointless to say that a country of 310 million people and a $14 trillion economy “would be thrilled” to have the budget deficit of a country with 10.7 million and a $310 billion economy.”

Completely pointless, but completely TRUE! If the U.S. of A., with budget deficits in excess of $1.5 trillion dollars and a national debt of well over $13 trillion dollars only had the deficits and debts of Greece, after what we’ve got now, I and nearly everyone in this country would be doing cartwheels in the streets and partying superhard because that means that the economy would be white-hot and ON FIRE!!!!!!!!!!!

Left wing management

November 15th, 2010
4:36 pm

“What’s Greek for chutzpah?”

D E M O K R A T I A

Lil' Barry Bailout

November 15th, 2010
4:37 pm

“[B]e wary of this kind of talk when Congress and the White House start considering proposals from the president’s deficit commission.”
—————————–

This is why we must insist on spending cuts FIRST before any changes to the tax code. Show us some REAL spending cuts, and then we can talk about “revenue enhancements”.

Rafe Hollister

November 15th, 2010
4:43 pm

Both sides lie when they have the opportunity, but one side wants more government and therefore more lies, and the otherside wants less government and less lies.

Just to even the score for all the Bush lies. Going to close Gitmo, going to have the most transparent administration ever, not going to have any lobbyist in my administration, going to work with both sides, going to change our foreign policy and talk with our enemies, blah, blah, the war is lost, drain the swamp, Fannie and Freddie are in good shape, whadda you think a stimulus is, universal mandate in not a tax but a fine, is a tax, bring down the cost curve, keep your insurance if you like, whoa, enough already.

Dr. Pangloss

November 15th, 2010
4:45 pm

The homeless are homeless by choice.
The Contras are the moral equivalent of the Founding Fathers.
Trees pollute more than cars.
I was with the troops who liberated the Nazi death camps.
Nazi soldiers were victims, too.
Mount St. Helens pollutes more than all our cars combined.
You can fire an ICBM and then call it back.
We’ve hit the jackpot (on de-regulating the S&Ls).
Fascism was really the basis for the New Deal.
All the waste in a year from a nuclear power plant can be stored under a desk.
She [the imaginary Chicago welfare queen] has eighty names, thirty addresses, twelve Social Security cards and is collecting veteran’s benefits on four non-existing deceased husbands. And she is collecting Social Security on her cards. She’s got Medicaid, getting food stamps, and she is collecting welfare under each of her names. Her tax-free cash income is over $150,000.

Yep, the government lies to us sometimes.

Jefferson

November 15th, 2010
4:46 pm

You folks deserve it, with your attitudes.

Road Scholar

November 15th, 2010
5:04 pm

RDH: Who signed the budget? Someone who signs a legal document is on record as being responsible!

Kyle I see that you aren’t making anything out that their deficit was estimated at 13.6 % GDP but that , in reality it was 15.4% of GDP. But when it came to this administration’s estimate that the stimulus would hold unemployment at 8% but it rose to 10%, it was a horrndous mistake on their part. Estimates are estimates; wait 5 minutes, it will change again!

TnGelding

November 15th, 2010
5:13 pm

Beware of journalists that likewise misconstrue the facts and report only what they want you to know. I don’t look for much to come out of the commission’s report, thus no need to lie.

JohnnyReb

November 15th, 2010
5:15 pm

Instead of trying to take the subject off track with Bush lied, etc., how about something a little closer to the subject and you Progressives try to defend the current BS from the White House and its supporters that if tax cuts for the rich are extended it will mean growing the deficit?

First and foremost, there are no new tax cuts being discussed. The only discussion is extending the tax cuts to all or letting them expire for the so-called rich (and mind you, 250K for a married couple is not rich).

Obama and the Democratically controlled Congress have not passed a budget. That means, if the tax cuts are extended for all the only true explanation for it raising the deficit is, Obama will not present a budget based on revenue. He intends to continue his deficit spending no matter what.

The so-called “borrowing money to pay for tax cuts to the rich” is more Barry bull$hit.

Jefferson

November 15th, 2010
5:22 pm

250k for a married couple is rich, you are out of touch with working men and women.

I Report (-: You Whine )-: mmm, mmmm, mmmmm! Just sayin...

November 15th, 2010
5:23 pm

dummycrat message to obozo- Any time you want to split is fine with us, just sayin…

JohnnyReb

November 15th, 2010
5:38 pm

Jefferson, you are looking at the 250K from an Atlanta or similar area standpoint. The issue is for all Americans. I think California, New York, Chicago, Denver, etc. would tell you that amount does not make you rich.

JohnnyReb

November 15th, 2010
5:46 pm

Another point on the 250K; it is likely most who make that much are not working for someone else. There could be some brokers, CEO’s, etc. but many will be business owners. They are sole proprietors, LLC’s, S-Corps who have to report what they make on their personal return. For most, taxing them more because of having that amount of income will mean no reasonable return on their efforts and investments. That equates to no growth, no jobs.

Jim

November 15th, 2010
6:10 pm

Kyle and all the other “conservatives” who constantly complain about the government,

I find it really humorous how conservatives constantly complain about how inefficient goverment is when your idols are part of that waistful organization.

I Report (-: You Whine )-: mmm, mmmm, mmmmm! Just sayin...

November 15th, 2010
6:59 pm

Senate Minority Leader Mitch McConnell (R-Ky.) announced Monday that he will join a GOP effort to ban congressional earmarks.

McConnell, one of the Senate’s biggest proponents of earmarks, said Monday he had come to the conclusion that he had to lead by example in agreeing to the ban.

Taking away all the lib whining points, aren’t we?

jconservative

November 15th, 2010
7:02 pm

Greece, Greece, Greece.

In a few years at our current pace, there stands the USA.

Greece bit the dust giving away their treasury as a form of welfare.

We are doing the same. Only we disguise the welfare. We call it “tax cuts” that will result in millions of jobs and billions in additional tax receipts. And as a result we have not had a deficit in 30 years.

Oh, we can surely cut expenses and reverse the downward trend. We can cut the waste and abuse and balance the budget. No need to cut defense spending or raise taxes. Or so the claim is made.

Just remember, as Kyle warns, not to believe what you hear. A government cannot spend three trillion with two trillion in revenue and not have a deficit.

But for 30 years we have been spending more than the revenue received.

Folks the following is what you have been told for the past 30 years:

We cut taxes and I am sure that somewhere in this land there are 15 million jobs just waiting to be filled. After all, we did cut taxes and that did increase the number of jobs and increase revenues and we have had a balanced budget for the past 30 years.

And that is what you are still being told.

CJ

November 15th, 2010
7:16 pm

NYTimes: “Greece’s jobless rate rose to a record 12.2 percent in August,…

Where’s the outrage?

Kyle is cheesed off that Greece “only” reduced their relative deficit by 39 percent in just one year, but couldn’t care less about the additional joblessness that arises out of these austerity demands—as I said, equivalent to putting the recession on steroids.

Greece has 12 percent unemployment, Ireland’s unemployment is around 13 percent and growing, and Spain, also enacting severe austerity cuts, has employment approaching 20 percent.

Austerity measures aimed at the poor and middle class when the economy is weak is like taking poison to relieve a headache. To eliminate the deficit, grow revenues. To grow revenues, focus on job creation (i.e., customer creation).

luangtom

November 15th, 2010
7:19 pm

So, this is where Obama, Geithner and Bernanke learned their economics…………