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Old 07-14-2011, 10:29 PM
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Default Nonsense

Quote:
Originally Posted by BBQMan View Post
...For the last four decades Federal outlays have averaged between 18 & 19% of GDP - a sustainable level. Today Obama and his various 'stimulants and investments' have increased the Federal budget to 24.1% of GDP and project it going above 30% - totally unsustainable levels....It is not that income to the Federal Government has significantly fallen, but that expenditures have gone out of control....
Quote:
Originally Posted by BBQMan View Post
...Today Obama and his various 'stimulants and investments' have increased the Federal budget to 24.1% of GDP and project it going above 30% - totally unsustainable levels....
It is not that income to the Federal Government has significantly fallen, but that expenditures have gone out of control....
The Villages Florida

You're only partially...and selectively...right. Check the chart.

From about 1975 until 2000, government spending actually exceeded 20%...it looks like it averaged about 22-23% of GDP for those 25 years. Would you call that "unsustainable"? You might, depending on which party was in power, I suppose. But during that quarter century, our economy performed pretty doggone well. The chart below shows that our GDP grew in all but a few years at a rate that looks like it averaged about 3-4%.

The Villages Florida

But you're quite wrong regarding your statement that "...It is not that income to the Federal Government has significantly fallen..." That's plainly wrong. Federal revenues have fallen, from an average of about 17-18% of GDP from 1975 and as high as over 20% in 2000. But they have declined dramatically since then, to as low as about 15% now. Presumably, the Bush tax cuts had quite a lot to do with that result. A lowered GDP that resulted from deep recession also had a lot to do with the result.

As far as government spending is concerned, you are quite right. Since 2008-9 spending as a percentage of GDP has skyrocketed. How much was the result of unecessary increased spending and how much the result of a reduced GDP resulting from the worst recession since 1929? That takes a lot more analysis, but it certainly has an effect.

On the spending side, I guess I might ask how much of the increased spending was done to address the financial crisis that was reaching full-blown proportions just as Obama was being inaugurated? How much was the result of the two wars which he inherited from the prior administrations? Again, more analysis is needed. But unless you're a complete partisan and maintain an ignorance of recent history, you've got to conclude that both had significant economic effect.

I won't defend the actions of the Congresses that were in power since 2000, regardless of their party or ideology. They were all profligate spenders as well as people who paid absolutely no attention to governing in the way their predecessors did. And that spending and inattention to governance is largely what got us where we are now.

For you to place all the blame on one President who came into office 30 months ago to find two wars and the worst financial crisis in 75 years is complete hogwash. Look at the charts. More importantly, tell us all what you would have done facing the same circumstances?

Barack Obama will have to take responsibility for his presidency. That assessment will be made sometime in the future. But to say that he is totally responsible for what has happened in the last 30 months and what may happen in the next year or so is nonsense.

Who will you blame if the current fiscal crisis is permitted to spin out of control? The POTUS? Or the polarized and partisan politicians who refuse to negotiate short- and longer-term solutions that people from all political or ideological persuasions know are necessary.

Ahh forget it...I already know your answer.