Economics, Pethokoukis

What do we make of this chart?


This illustrative chart from the House Republicans certainly shows what a massive spending problem Washington has. A few thoughts:

1. More and more, Democrats and liberals don’t buy CBO analysis showing a huge future increase in Medicare spending.

2. I am not sure that the green section, revenue, doesn’t need to tick up at some point.

3. Notice how spending escalates early in the next decade. That explains why Obama never offers a long-term budget plan. If he did, the game would be up. The need for middle-class tax hikes would be evident — hello value-added tax –or else modernization of the welfare state: premium support Medicare reform, consumer-driven healthcare, etc.

4. Oh, and Medicare reform should start ASAP, not a decade from now.

5. To paraphrase Soren Kierkegaard, “We are like spectators in a theater who applaud the announcement — and repeated announcement — that the building is on fire.” Time to fix the debt.

9 thoughts on “What do we make of this chart?

    • Boehner’s horsecrap? I believe it’s a graph of CBO projections – could still be horsecrap, but not Boehner’s.

      Do you have any alternative projections? Or is your position that all projections, all attempts to plan, are horsecrap? We should just spend however much we please and assume there’s a Scrooge McDuck money bin somewhere that we can tap to pay for it?

    • These projections are bloody meaningless! You just take Boehner’s horsecrap and say “SEE?”

      Look at the source, chief:

      OMB: currently run by the Obama Administration.

      CBO: Supposedly non-partisan

      HBC: Fictional television network in the South Park Universe.

      So, no he is not looking at Boehner’s horecrap and saying “SEE?” He is looking at the Obama Administration and CBO’s horsecrap and saying “SEE?”

    • Look, just google federal government revenues and federal expenditures over 10 years. It is no secret. The $850 billion stimulus goes into the budget in 08 and then never goes back down the $850 billion. They built it in and then claims there are no cuts to be found. The revenue they want is only$80billion a year which doesn’t even get them below 1 Trilllion dollars. These are facts easily found with a touch of a button. Senator Tom Coburn has identified $300 billion in cuts a year but the Democrats have blocked it and decided to demagogue the issues.

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