[Rhodes22-list] Economics - More Good News

[Brad Haslett]

Stan,

Here is one of the simplest explanations of deficit vs debt on the net.

http://www.citizenjoe.org/node/270

Looking at raw numbers unadjusted for inflation is meaningless.  Trying to
pin down which Presidential administration was responsible for what is
difficult since you have to look at the make-up and actions of the Congress
in power at the same time.  Anyone can cherry-pick the data and spin their
own BS.  The meaningful number is debt as a percentage of GNP.  Ours is now
around 65%, high for us but in line with Germany and France and well below
Japan.  Where things get scary is looking down the road.  The annual budget
is composed of two parts, mandatory spending and discretionary spending.
Fighting a war, rebuilding from Katrina, etc. is discretionary spending.
Mandatory spending is long term social programs like medicare and social
security.  Those of us like myself, small government conservatives, cringe
when the folks we send to DC increase mandatory spending (think Bush 43's
enhancements to medicare) knowing that these obligations are headed for a
demographic peak down the road.  We don't like fighting expensive wars
anymore than anyone else.  That's why I think we should declare victory on
the "war on poverty" and move on. Solving the discretionary spending issue
is incredibly simple.  Give the President line item veto authority and
establish term limits for Congress.

Dave,

The prime result of 'printing' money is inflation.  Inflation is low.  Show
me the money!

Brad


On 7/15/07, DCLewis1 at aol.com <DCLewis1 at aol.com> wrote:
>
>
> Stan,
>
> I'm sure your daughter knows this stuff better than any of  us, but
>
> National debt/deficit - synonyms;  see
> _http://www.investorwords.com/3201/National_Deficit.html_ (
> http://www.investorwords.com/3201/National_Deficit.html)
> although I've seen some literature that would make me think the deficit is
> the difference between revenue and expenditures, and debt is the portion
> of
> that  deficit that's made up by borrowing - another portion of the deficit
> can be
> made  up, for example, by just printing $.
>
> Comparison figures for the same years for the national debt and deficit: I
> think Brad posted the PROJECTED INCREASE to the national debt, not the
> national debt.  The national debt is many trillions of dollars.
> Additionally, I
> don't think his numbers represent intergovernmental borrowing  (i.e.
> borrowing
> from the Soc Sec funds) which are substantial for each  year. For
> quantitative
> chronological info re the national debt  see:
>
> _http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo4.htm_
> (
> http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt_histo4.htm
> )
>
> Dave
>
>
>
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