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More Large Numbers About the Economy

2014-07-24

Here’s from a new op-ed by Paul Krugman in the New York Times online, more statistics and large economic numbers:

” The budget office predicts that this year’s federal deficit will be just 2.8 percent of G.D.P., down from 9.8 percent in 2009. ”

So, those claims by Tea Partiers that Obama is racking up the deficits with verve and abandon are absurd– he has (actually, his government has) reduced the deficit by three-quarters.  Not bad at all, and just goes to show that Democrats reduce deficits; Clinton managed to eliminate the deficit, and Bush promptly ballooned it again.

and:

“…stabilizing the ratio of debt to G.D.P. at its current level would require spending cuts and/or tax hikes of 1.2 percent of G.D.P. if we started now, or 1.5 percent of G.D.P. if we waited until 2020. ”

To do better than Obama has done, we would need a 1.2 percent correction in the budget– achievable if it is thought to be essential.

Alan Greenspan warned in 2008 of rising inflation:

“But that was more than four years ago, and both inflation and interest rates remain low. Maybe the United States, which among other things borrows in its own currency and therefore can’t run out of cash, isn’t much like Greece after all.”

Alan Greenspan has been thoroughly discredited, first for his advocacy of deregulation for financial markets, and now for his claims of impending inflation.  There’s no inflation because the spending power of the average American has weakened dramatically, especially over the last five years.  Without demand, you can’t have inflation.

This from commenter Karen Garcia:

“It’s been estimated that the $398 bn wasted on the F-35 fighter alone could buy each of the 600,000 homeless Americans a $600,000 home.”

Sleater, another commenter:

“The supposed “deficit” and “debt” crises were always a tale fostered and furthered to ensure fiscal austerity now (which we’ve had), and lock in those lower Bush tax rates and the giveaways they enabled, to the tune of $6.6 TRILLION, as that recent study by Pulitzer Prize-winner David Cay Johnston showed. ”

Now recall that the costs of the Iraq and Afghanistan wars exceeded $3 trillion, and you can understand the $17 trillion debt of the US gov’t.  Besides, the US has $300 trillion in assets according to another commenter… so plenty of collateral.

Another view of debt, from John F. McBride of Seattle:

“Since Ronald Reagan Conservative fiscal policy proposal resulted in:
* Reagan and Bush: $3.4 Trillion increase in debt
* George W. Bush: $6.1 Trillion

A total of $9.5 Trillion.

But wait! There’s more! Just as all of us who borrow also owe interest by September 2010 alone:
* Interest on Reagan-Bush debt under Clinton: $2.2 trillion
* Interest on $11.7 trillion after G. W. Bush: $0.3 trillion

Total Reagan-Bushes debt with interest: $12 trillion.”

It seems that Republicans create deficits, and Democrats get blamed for them.

 

 

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