US spending more as a percentage of GDP? Yup. Ummm, maybe because GDP is shrinking? Yup. But don’t tell Wolf Blitzer; it’s a little too complicated.

 

Not fair! That's hard.

Stuff I wish I’d thought of but didn’t:

Obama is spending way more than _____________ (choose your president/decade). This is true. Krugman ‘splains why:

The fact is that federal spending rose from 19.6% of GDP in fiscal 2007 to 23.8% of GDP in fiscal 2010. So isn’t that a huge spending spree? Well, no.

First of all, the size of a ratio depends on the denominator as well as the numerator. GDP has fallen sharply . . .

A 6 percent fall in GDP relative to trend, all by itself, would have raised the ratio of spending to GDP from 19.6 to 20.8, or about 30 percent of the actual rise.

That still leaves a rise in spending; but most of that is safety-net programs, which spend more in hard times because more people are in distress . . .

That’s another 2 points of GDP, or about half the rise.

So we’re still left with a bit, around 1 point of GDP. That’s the stimulus, more or less. And there are two things you need to know about it. First, it’s temporary, and already fading out fast. Second, a large part of the stimulus “spending” was actually aid to state and local governments, intended not to expand spending but to avert a fall — that is, it was about maintaining government, not expanding it.

Now that wasn’t hard, was it? Of course, that doesn’t change the fact that Obama’s still a commie plant, here to destroy us from within.

11 responses to “US spending more as a percentage of GDP? Yup. Ummm, maybe because GDP is shrinking? Yup. But don’t tell Wolf Blitzer; it’s a little too complicated.

  1. I used to be able to watch wolf…but he’s working TOOOO much….

    He kinda loses it on the air these days……

    Like

  2. A friend forwarded me yet another snarky editorial from Krugman and it was this one.

    Only Krugman has the sheer arrogance to claim that safety net programs don’t count against Obama’s spending because they are “automatic.”

    If the Obama administration had focused on setting certainty in where government regulation was going, and had more people with business experience in his cabinet, we wouldn’t need these stabilizers because the economy would be doing better than it is. That is, he not only has impact on the numerator, but also on the denominator. And the denominator is not doing so well.

    Bush was not responsible for 9/11 either, yet he rightly deserves blame/credit for the costs of Afghanistan during his administration.

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    • A couple of observations here:

      We seemed to have overlooked a mention of the Bush vanity war in Iraq.

      This is but one of three unfunded wars. I’ll nail Obama on the Libyan fiasco, but we are still “spending” to pay for the other two – the ones many special interests in Washington are getting rich from.

      As far as the piss-poor economy is concerned, I agree it could be doing better, but it ain’t doing that bad. Or at least it doesn’t appear to be suffering all that much. My bride and I eat out a lot. We enjoy really good food, artfully prepared, so I’m not talking about the burger-doodle.

      We are constantly amazed at the size of the crowds, not only at restaurants, but also at the shopping malls. If the economy is really as bad as the Republicans claim, then where are these people getting their money. They can’t all be Republicans.

      And, up until the Tea Bagging Republicans started playing Russian roulette with the national debt and the debt ceiling, our investments were perking along just fine, thank you very much.

      “…Obama administration…focused on setting certainty…” Give me a break! There has been nothing that Obama could focus on that didn’t get shot to hell by the Republicans in their monomaniacal attempt to destroy him and the country to boot.

      Obama has tried on numerous occasions to add unbelievably qualified people with business acumen to various positions – Elizabeth Warren ring a bell – and what do the Republicans do?

      That’s a rhetorical question. Don’t bother answering.

      It’s a little after 5 o’clock and I am tired of this crap. I am going out to the patio, smoke a Cuban cigar and drink a beer…maybe more.

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  3. Jon R…..You are one of the lucky ones…..

    Both me and my wife are actually making LESS than we where a few years ago…Hours cut back….
    My son got let go….
    My OTHER son can’t find a decent full time job….
    It’s all relative….
    There are THOUSANDS of people who can’t find a job sir…
    Congrads to you and your wife

    But to say things are Ok is a bit off the wall….

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    • I never said things are OK. I said the economy isn’t as bad as the Republicans claim it to be. Bush had 8 years to totally FUBAR everything. Obama has had less than three years to turn this mess around. Under the circumstances, I think he has done a pretty good job.

      Verizon Business in Tampa laid off my wife on December 25, 2008. Two years later she was lucky enough to land another job with a $70,000 a year pay cut. I have not worked in over six years, but lucky me, I got old and SS and Medicare kicked in. So, I am alright…for now. Just waiting for the Republicans fuck that up.

      Yes, my trophy bride and I are lucky, but we took a hard hit just like everyone else. And, you are welcome…sir.

      Like

  4. Hey Sean …..What about the part wher Bush gives the surplus away with tax cuts…and his GOPer’s now won’t.let the President take them back?

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  5. Jon…..I hope the GOPer’s don’t drag us thru MORE of this…..

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  6. Put the wars and health care legistlation aside; the Bush tax cuts alone, by 2009, had cost between $1.6 and $1.8 TRILLION. Of course, they were renewed last year . . . so it’ll be way more. If the ‘job creators’ had been creating jobs at any time in the last five/six years, one might make a case for those tax cuts. But they didn’t.

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  7. Moe the Congress is gonna do what they ALWAYS DO……

    PUNT!

    All this theatre for nothing but political gain…..

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    • Entirely right james – have you heard a word about jobs from the congresional talkers? They’re wasting time doing stuff that wont make a whit of difference in getting us back on our feet, for a goal that remains entirely elusive.

      You clear debt with more money. YOu get more money when people are working and paying taxes!

      Like

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