Wednesday, February 03, 2010

A $1.6 Trillion Dollar Federal Budget Deficit Means Fiscal Restraint

Yes, a $1.6 trillion dollar budget deficit means fiscal restraint. It could have been $1.7 trillion dollars or any number picked out of the surrealistic Democratic sky. It apparently is a bi-partisan budget deficit that Mr. Obama is talking about, a budget deficit which actually saves dollars like the stimulus plan which saved jobs. What dollars that are saved is economically unclear to me (and what do I know about economics?) and how the United States is going to fund a $14 trillion dollar national debt is also economically unclear to me since trillions dollars of wealth have been lost in this recession. Also equally unclear to me is why the Obama Administration wishes to raise so many taxes on individuals and investors especially those making $50,000 to $499,999. a year? What does this prove-greater supposed redistribution of wealth? Isn't there irony in this situation, while Congress controls their personal wealth?
Higher taxes, higher debt and more fiscal irresponsibility by the Obama Administration. 2010 is here and voting has begun. The end of this fiscal irresponsibility is fast approaching. Please do not lie to me about economics, there is no fiscal restraint being shown by this Administration.


SJ Reidhead said...

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Then Brenda left a note, but the cat is the one who recommended I check out your site!

The Pink Flamingo

David X said...

It's depressing to see how economically illiterate this administration is. Either they are seriously illiterate economically and seriously incompetent ... or they are super-smart and have malignant intent to destroy the economy and precipitate a crisis that can be used to martial in their Marxist agenda.

Tax receipts (post-WWII) have always remained at about 18% of GDP no matter what the highest tax bracket is set at (Hauser's Law). Increasing taxes beyond 18% of GDP results in a decline of revenue and a decrease in GDP (the Laffer curve). Therefore, the only way to increase tax receipts is to grow GDP. I see nothing in this administration's plans that do that.

Increasing taxes will not improve GDP and will result in a decline in revenue. The answer is obvious, cut spending.