Combs Spouts Off

"It's my opinion and it's very true."

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Posts Tagged ‘debt’

It’s called the stupid party for a reason

Posted by Richard on March 31, 2011

The Republicans have been pushing for $61 billion in spending cuts for FY2011 (significantly less than the $100 billion they promised before the election), and the Democrats have been denouncing even that modest cut as "draconian" and "extreme."

You'd think this would be a challenge the GOP would be eager to take on. If you have even a modicum of communication skills and public relations savvy, how hard can it be to ridicule the absurd argument that cutting $61 billion — 1.6% — out of a budget of $3,700 billion is "draconian" and "extreme"? It barely puts a tiny dent in the $1,600 billion deficit. Do they really fear that the average American can't grasp that point?

Let's put the federal fiscal crisis into comparable (approximate) household numbers that people can relate to: Let's say your household income is about $42,000 ($3500/month). But you're spending about $74,000 ($6167/month). And you're putting the $32,000 difference on your credit cards (on which you already owe over $300,000). Would cutting your spending by less than $100 a month really be "draconian"? Does it even seriously address the terrible financial situation you're in?

To me, this seems like an argument that's a slam-dunk win, especially in the political climate that gave us the Tea Party movement and resulting electoral tsunami of last November. And yet, the Republican leadership seems terrified of taking a hard stand and drawing a line in the sand. According to the Washington Post, they're ready to cave — settling for $30 billion in cuts and giving up on defunding anything — and Dan Mitchell isn't pleased: 

Yesterday, I analyzed how the GOP should fight the budget battle, but I may have made a big mistake. I assumed the Republican leadership actually wanted to do the right thing. I thought they learned the right lessons from the disastrous Bush years, and that the GOP no longer would be handmaidens for big government. And I naively assumed that the Republican leadership would not betray the base and stab the Tea Party in the back.

I thought the GOP leadership would fight and get a decent deal rather than unilaterally surrender. If the Washington Post report is true and Republicans act like the French army, it will discourage the base and cause a rift with the Tea Party. So it’s dumb politics and dumb policy.

And that display of cowardice by House Republican leaders follows on the heels of the report that Senate Republicans are going to agree to support a debt limit increase if the Democrats merely allow a symbolic vote on a balanced budget amendment. No, Democrats don't have to support it — they just have to allow a vote, which the Republicans are guaranteed to lose. A repeat of a vote they've already had (and lost), a vote that they could force by parliamentary means in any case. In other words, they're giving up their biggest leverage in return for … nothing.

Stupid party seems like such a mild and inadequate term.

There are a few shiny gems amidst the steaming pile of cow-flop that is the GOP. Sen. Marco Rubio won't vote for a debt limit increase unless it comes with a whole bunch of serious conditions: 

"Raising America's debt limit is a sign of leadership failure." So said then-Sen. Obama in 2006, when he voted against raising the debt ceiling by less than $800 billion to a new limit of $8.965 trillion. As America's debt now approaches its current $14.29 trillion limit, we are witnessing leadership failure of epic proportions.

I will vote to defeat an increase in the debt limit unless it is the last one we ever authorize and is accompanied by a plan for fundamental tax reform, an overhaul of our regulatory structure, a cut to discretionary spending, a balanced-budget amendment, and reforms to save Social Security, Medicare and Medicaid.

Bravo. Read the whole thing

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The Obama spending binge in perspective

Posted by Richard on September 14, 2010

Here's a factoid I almost missed, and maybe you did too: In the first 19 months of the Obama presidency, the US government's publicly-held debt increased by more than it did under all presidents from George Washington through Ronald Reagan (emphasis added):

The U.S. Treasury Department divides the federal debt into two categories. One is “debt held by the public,” which includes U.S. government securities owned by individuals, corporations, state or local governments, foreign governments and other entities outside the federal government itself. The other is “intragovernmental” debt, which includes I.O.U.s the federal government gives to itself when, for example, the Treasury borrows money out of the Social Security “trust fund” to pay for expenses other than Social Security.

At the end of fiscal year 1989, which ended eight months after President Reagan left office, the total federal debt held by the public was $2.1907 trillion, according to the Congressional Budget Office. That means all U.S. presidents from George Washington through Ronald Reagan had accumulated only that much publicly held debt on behalf of American taxpayers. That is $335.3 billion less than the $2.5260 trillion that was added to the federal debt held by the public just between Jan. 20, 2009, when President Obama was inaugurated, and Aug. 20, 2010, the 19-month anniversary of Obama's inauguration.

Lots of change. Not much hope.

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While you watched a tennis match, debt grew by $1.7 billion

Posted by Richard on June 25, 2010

Even non-tennis-fans like me are aware of and amazed by the Wimbledon match between John Isner and Nicolas Mahut, which took 11 hours and 5 minutes (Isner won; I got it wrong when I first posted). Shortly after it ended, Republican Rep. Vern Buchanan of Florida tweeted, "Think Wimbledon tickets are expensive? Our National Debt has gone up by $1,729,000,000 during the Isner v. Mahut match."

An interesting factoid. If true. The folks at the St. Petersburg Times' PolitiFact.com decided to fact-check his ass. They determined that not only was he right, he arrived at the number using the most conservative methodology (well, he is a conservative). 

PolitiFact.com initially assumed (quite reasonably, IMHO) that "during the Isner v. Mahut match" meant the time period from when it started until it ended — about two days. Depending on whether they used CBO numbers or OMB numbers, they came up with figures four to six times larger than Buchanan's: 

Why so different? We contacted Buchanan's office and an aide clarified that what they'd actually meant in the tweet was how much the debt had risen during the 11-hour, 5-minute match itself. (The match was suspended for darkness twice and there were delays on the third day to give extra rest time.)

So, using our first method, the 11-hour debt increase works out to $1.718 billion, while using the second, it's about $2.4 billion. Of these two, the first is spot-on.

Since the size of the federal debt is a moving target, and since economists periodically re-evaluate its size, we'll grant Buchanan leeway here. While we think the wording of his tweet suggests the full, 48-hour period, his 11-hour number strikes us as a reasonable estimate. So we rate his statement True. 

Not just true, but conservatively true. 🙂 

But what really gave me a laugh was the USA Today story about Buchanan's estimate. Although they quoted Buchanan's tweet, and thus had the correct number ($1,729,000,000), they described it in the headline as "$1.7T" — "T" as in trillion. That's off by a factor of 1000.

They've since corrected it, but a commenter, urbanrealtor, noted that they weren't exactly open and above-board in their handling of the gaffe: 

I like how when they fixed the error (originally this article said 1.7 Trillion) they deleted all the comments making fun of the mistake. 

They shouldn't have tried to cover their embarrassment by deleting comments (and wording their correction so vaguely). But I can understand their mistake. For one thing, in my experience, most journalists are extremely math-challenged. For another, in this Age of Obama, it's natural for all his MSM sycophants to assume that everything is in the trillions. [rimshot]

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