Random thoughts and insights – always shaken, never stirred

A Further Thought About Debt

with 6 comments

Now that the debt crisis is behind us, I would like to add some thoughts.

Firstly, I am pleased that the focus has shifted from spending to cutting. By no means does this bill cut enough spending, but directionally it is good. The democrats have been forced to accept that cuts are good and spending is too high. More needs to be done, but the national conversation has moved to the idea of fiscal responsibility.

Secondly, I very pleased to see that the Left is going absolutely apeshit over this deal. I wasn’t all that thrilled – thought it was as good as could be gotten – but not convinced it went far enough. The Left has convinced me – the comments I’m reading are positively unhinged.

But here is the thing I would like to change: this notion that we are cutting a trillion dollars, or cutting 2.4 trillion dollars. We are doing no such thing. These numbers are over ten years. I don’t know about you, but I budget in annual terms. So what we are really doing is cutting 100 billion or 240 billion – real money as far as I can tell – but nowhere near what it sounds like. Now, I expect this kind of obfuscation from democrats, but I’m disappointed to see it from republicans. Our deficit is running at 1.6 trillion a year, which means that 100 billion is less than a month’s overspending. When we’re cutting a trillion a year, we’ll be serious. Indeed, I wonder what the harm would be to roll back all spending to the level of 2008?

So I’m still happy. The Left is apoplectic, and that has to be a good thing. But in terms of getting the Federal beast under control, we have a long way to go.


Written by martinipundit

August 4, 2011 at 12:28 am

6 Responses

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  1. Yeah, cutting jobs will help our economy recover.

    Ben Hoffman

    August 4, 2011 at 2:01 am

  2. I agree – we need to recreate an environment in which job creation is paramount. This means cutting taxes, rolling back regulation, and government basically getting out of the way. In short, the policies that worked under Presidents Kennedy, Reagan, Clinton, and Bush (43).


    August 5, 2011 at 12:30 am

  3. I don’t see the connection Ben makes with jobs here. If he means stimulus, it did not work. It just ramped up the deficit spending. Government cannot create jobs to support the economy, only business can do that and in the current unstable environment with the government adding costly burdens they will or cannot do so. With Obama talking about higher taxes for what he calls the rich, what incentive is there to risk capital for a venture that, statistically, has a greater chance of failure than success? His “shovel ready” projects were fictional and a whole lot of money went to fund large unfunded union pensions. Spending no more than you take in seems the best way to survive to me.

    David Turnbull

    August 7, 2011 at 11:31 pm

  4. Well, I think Ben was saying something different. I was allowing that his definition was vague. I’m inclined to err on the side of economic logic. I could be wrong. 😉


    August 8, 2011 at 12:49 am

  5. If my reading was incorrect I do apologize. The object of his statement is kind of ambiguous.


    August 8, 2011 at 2:04 am

  6. I was being sarcastic.

    Ben Hoffman

    August 8, 2011 at 10:57 am

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