Deficit shrinking faster than any time since WWII

[rdean]

From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.
That's just a bit faster than the 3.0 percentage point deficit improvement from 1995 to '98, but at that point, the economy had everything going for it.
Other occasions when the federal deficit contracted by much more than 1 percentage point a year have coincided with recession. Some examples include 1937, 1960 and 1969.

TARP and the bailouts of Fannie Mae and Freddie Mac also make the deficit improvement look better, boosting the fiscal '09 deficit by about $200 billion more than in fiscal '12 (though the initial cost of TARP was overstated).
Still, military spending is now on the decline due to fewer troops in Iraq and Afghanistan; Medicare costs rose 3% last year vs. the average 7% growth in recent years; and after the last year's Budget Control Act, excluding the automatic cuts set to take effect in January, nondefense discretionary spending is already on a path to shrink to 2.7% of GDP, well below the 3.9% average, notes the Center on Budget and Policy Priorities.

U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff - Investors.com

Republicans were wrong about Romney, wrong about economics, wrong about health care, wrong about Iraq, wrong. Just "wrong". Notice the line at the far right. Every line above zero is the deficit shrinking. I wonder who was in office the years when the deficit was shrinking?

Better yet, after the health care bill goes into full effect, only 19 million won't be covered and a third of them are illegal immigrants. The CBO says we will see major savings after 20 years.

This information is coming from "Investor's Business Daily", not some extreme site. But you can bet, because this information isn't showing up on Fox, these USMB right wingers will call it all "lies". At least we all know they have no proof that says otherwise. Except what comes from the Heritage Foundation, a group that is always wrong. There goes that word again:

 

[Rshermr]

From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.
That's just a bit faster than the 3.0 percentage point deficit improvement from 1995 to '98, but at that point, the economy had everything going for it.
Other occasions when the federal deficit contracted by much more than 1 percentage point a year have coincided with recession. Some examples include 1937, 1960 and 1969.

TARP and the bailouts of Fannie Mae and Freddie Mac also make the deficit improvement look better, boosting the fiscal '09 deficit by about $200 billion more than in fiscal '12 (though the initial cost of TARP was overstated).
Still, military spending is now on the decline due to fewer troops in Iraq and Afghanistan; Medicare costs rose 3% last year vs. the average 7% growth in recent years; and after the last year's Budget Control Act, excluding the automatic cuts set to take effect in January, nondefense discretionary spending is already on a path to shrink to 2.7% of GDP, well below the 3.9% average, notes the Center on Budget and Policy Priorities.

U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff - Investors.com

Republicans were wrong about Romney, wrong about economics, wrong about health care, wrong about Iraq, wrong. Just "wrong". Notice the line at the far right. Every line above zero is the deficit shrinking. I wonder who was in office the years when the deficit was shrinking?

Better yet, after the health care bill goes into full effect, only 19 million won't be covered and a third of them are illegal immigrants. The CBO says we will see major savings after 20 years.

This information is coming from "Investor's Business Daily", not some extreme site. But you can bet, because this information isn't showing up on Fox, these USMB right wingers will call it all "lies". At least we all know they have no proof that says otherwise. Except what comes from the Heritage Foundation, a group that is always wrong. There goes that word again:

Yes, well, it is kind of difficult for the cons. They post dogma. That is their job. Hell, some are paid to do so. Others just love to hate. And con dogma is hate. So, that is what they WANT to believe. Which is so much easier than actually working with truth, doing all that troublesome research.
So if it is not Heritage, which brings in con wanabees, and provides "training", and con talking points, then it is the American Enterprise Institute, which does the same. Or the real bat shit crazy con site, CATO, which pays big bucks to anyone who wants to spout libertarian based dogma. And CATO, which was founded by the Koch brothers, and last I knew was still run by them, has money to spread around.
Then, there are the hundreds of right wing hate talk shows on the radio, and Fox tv. All liberally sprinkled with money from the far, far right. Couple that with about 15 to 20% of the population who want to be told what to believe and who to hate, and you have the cons of USMB. Just normal con tools. Dogma, no evidence. Totally partial sources, if any at all. Just dogma, and group think.

 

[Sunni Man]

^^^^^ Idiotic rant

 

[PredFan]

From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.
That's just a bit faster than the 3.0 percentage point deficit improvement from 1995 to '98, but at that point, the economy had everything going for it.
Other occasions when the federal deficit contracted by much more than 1 percentage point a year have coincided with recession. Some examples include 1937, 1960 and 1969.

TARP and the bailouts of Fannie Mae and Freddie Mac also make the deficit improvement look better, boosting the fiscal '09 deficit by about $200 billion more than in fiscal '12 (though the initial cost of TARP was overstated).
Still, military spending is now on the decline due to fewer troops in Iraq and Afghanistan; Medicare costs rose 3% last year vs. the average 7% growth in recent years; and after the last year's Budget Control Act, excluding the automatic cuts set to take effect in January, nondefense discretionary spending is already on a path to shrink to 2.7% of GDP, well below the 3.9% average, notes the Center on Budget and Policy Priorities.

U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff - Investors.com

Republicans were wrong about Romney, wrong about economics, wrong about health care, wrong about Iraq, wrong. Just "wrong". Notice the line at the far right. Every line above zero is the deficit shrinking. I wonder who was in office the years when the deficit was shrinking?

Better yet, after the health care bill goes into full effect, only 19 million won't be covered and a third of them are illegal immigrants. The CBO says we will see major savings after 20 years.

This information is coming from "Investor's Business Daily", not some extreme site. But you can bet, because this information isn't showing up on Fox, these USMB right wingers will call it all "lies". At least we all know they have no proof that says otherwise. Except what comes from the Heritage Foundation, a group that is always wrong. There goes that word again:

Great! That means the Bush Tax cuts are working and that we don't need to increase taxes on anyone!

Thanks dean!

 

[rdean]

From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.
That's just a bit faster than the 3.0 percentage point deficit improvement from 1995 to '98, but at that point, the economy had everything going for it.
Other occasions when the federal deficit contracted by much more than 1 percentage point a year have coincided with recession. Some examples include 1937, 1960 and 1969.

TARP and the bailouts of Fannie Mae and Freddie Mac also make the deficit improvement look better, boosting the fiscal '09 deficit by about $200 billion more than in fiscal '12 (though the initial cost of TARP was overstated).
Still, military spending is now on the decline due to fewer troops in Iraq and Afghanistan; Medicare costs rose 3% last year vs. the average 7% growth in recent years; and after the last year's Budget Control Act, excluding the automatic cuts set to take effect in January, nondefense discretionary spending is already on a path to shrink to 2.7% of GDP, well below the 3.9% average, notes the Center on Budget and Policy Priorities.

U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff - Investors.com

Republicans were wrong about Romney, wrong about economics, wrong about health care, wrong about Iraq, wrong. Just "wrong". Notice the line at the far right. Every line above zero is the deficit shrinking. I wonder who was in office the years when the deficit was shrinking?

Better yet, after the health care bill goes into full effect, only 19 million won't be covered and a third of them are illegal immigrants. The CBO says we will see major savings after 20 years.

This information is coming from "Investor's Business Daily", not some extreme site. But you can bet, because this information isn't showing up on Fox, these USMB right wingers will call it all "lies". At least we all know they have no proof that says otherwise. Except what comes from the Heritage Foundation, a group that is always wrong. There goes that word again:

Great! That means the Bush Tax cuts are working and that we don't need to increase taxes on anyone!

Thanks dean!

Actually, it's the Bush tax cuts that caused the mess. Remember, they are years old. It's what Obama has done since Republicans tried to destroy the economy and turn over government to big business.

 

[PredFan]

From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.
That's just a bit faster than the 3.0 percentage point deficit improvement from 1995 to '98, but at that point, the economy had everything going for it.
Other occasions when the federal deficit contracted by much more than 1 percentage point a year have coincided with recession. Some examples include 1937, 1960 and 1969.

TARP and the bailouts of Fannie Mae and Freddie Mac also make the deficit improvement look better, boosting the fiscal '09 deficit by about $200 billion more than in fiscal '12 (though the initial cost of TARP was overstated).
Still, military spending is now on the decline due to fewer troops in Iraq and Afghanistan; Medicare costs rose 3% last year vs. the average 7% growth in recent years; and after the last year's Budget Control Act, excluding the automatic cuts set to take effect in January, nondefense discretionary spending is already on a path to shrink to 2.7% of GDP, well below the 3.9% average, notes the Center on Budget and Policy Priorities.

U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff - Investors.com

Republicans were wrong about Romney, wrong about economics, wrong about health care, wrong about Iraq, wrong. Just "wrong". Notice the line at the far right. Every line above zero is the deficit shrinking. I wonder who was in office the years when the deficit was shrinking?

Better yet, after the health care bill goes into full effect, only 19 million won't be covered and a third of them are illegal immigrants. The CBO says we will see major savings after 20 years.

This information is coming from "Investor's Business Daily", not some extreme site. But you can bet, because this information isn't showing up on Fox, these USMB right wingers will call it all "lies". At least we all know they have no proof that says otherwise. Except what comes from the Heritage Foundation, a group that is always wrong. There goes that word again:

Great! That means the Bush Tax cuts are working and that we don't need to increase taxes on anyone!

Thanks dean!

Actually, it's the Bush tax cuts that caused the mess. Remember, they are years old. It's what Obama has done since Republicans tried to destroy the economy and turn over government to big business.

False moron. How did the bush Tax Cuts cause the war in Afghanistan? How did they cause the housing market to fail. nevermind, don't answer that, i don't know how much more of your stupidity i can take today.

 

[Rozman]

They keep saying the Bush tax cuts caused it all...
What are they going to say when they go away and
we aren't much better off.

 

[Koios]

They keep saying the Bush tax cuts caused it all...
What are they going to say when they go away and
we aren't much better off.

That we were wrong, I'd hope.

Meanwhile what do you on the Right have to say now? Did the cuts turn into the economic nirvana you'd hoped? Prosperity was turned into uber prosperity was it? Or is supply side dead wrong as should be obvious to all with IQs north of a turnip's?

Whadaya say?

 

[rdean]

They keep saying the Bush tax cuts caused it all...
What are they going to say when they go away and
we aren't much better off.

That we were wrong, I'd hope.

Meanwhile what do you on the Right have to say now? Did the cuts turn into the economic nirvana you'd hoped? Prosperity was turned into uber prosperity was it? Or is supply side dead wrong as should be obvious to all with IQs north of a turnip's?

Whadaya say?

Not much. "South of a turnip", obviously.

 

[Koios]

They keep saying the Bush tax cuts caused it all...
What are they going to say when they go away and
we aren't much better off.

That we were wrong, I'd hope.

Meanwhile what do you on the Right have to say now? Did the cuts turn into the economic nirvana you'd hoped? Prosperity was turned into uber prosperity was it? Or is supply side dead wrong as should be obvious to all with IQs north of a turnip's?

Whadaya say?

Not much. "Sought of a turnip", obviously.

You thought that up all by yourself and in under five hours?

Give the lad a gold star! A prodigy in the making.

 

[Toronado3800]

My personal opinion is the tax cuts raised the deficit and marginally helped the economy. Same theory as the slow stimulus. The construction company next to us is STILL installing solar panels.

In this world of percentages I am always wondering if the xxxx lowered unemployment by x.x% and then what percentage of my taxes are going to pay the Reagan debt.

 

[Samson]

This information is coming from "Investor's Business Daily", not some extreme site. But you can bet, because this information isn't showing up on Fox, these USMB right wingers will call it all "lies".

​

Great! That means the Bush Tax cuts are working and that we don't need to increase taxes on anyone!

Thanks dean!

Actually, there was a lot of information that was conveniently omitted from the OP.

While long-term deficit reduction is important and deficits remain very large by historical standards, the reality is that the government already has its foot on the brakes.

In this sense, the "fiscal cliff" metaphor is especially poor. The government doesn't need to apply the brakes with more force to avoid disaster. Rather the "cliff" is an artificial one that has sprung up because the two parties are able to agree on so little.

Hopefully, they will agree, as they did at the end of 2010, to embrace their disagreement for a bit longer. That seems a reasonably likely outcome of negotiations because the most likely alternative to a punt is a compromise (expiration of the Bush tax cuts for the top and the payroll tax cut, along with modest spending cuts) that could still push the economy into recession.

Rather than applying additional fiscal restraint now, the government needs to make sure it sets the course for steady restraint once the economy emerges further from the deep employment hole that remains. In fact, a number of so-called deficit hawks are calling for short-term tax cuts to spur growth, rather than immediate austerity.

Read More At IBD: U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff - Investors.com

So, in summary (for the hopelessly confused, e.g. rdeanosaurs), the blog recommends:

1. No short-term change to anything; including Bush Tax Cuts.
2. Long term, gradual reduction in government spending

 

[The Rabbi]

Yeah, things are peachy. Obama isn't spending money like crazy. The deficit is not out of control. SS and Medicare are just fine.
Nothing to see here. Just move along.

 

[Sallow]

From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.
That's just a bit faster than the 3.0 percentage point deficit improvement from 1995 to '98, but at that point, the economy had everything going for it.
Other occasions when the federal deficit contracted by much more than 1 percentage point a year have coincided with recession. Some examples include 1937, 1960 and 1969.

TARP and the bailouts of Fannie Mae and Freddie Mac also make the deficit improvement look better, boosting the fiscal '09 deficit by about $200 billion more than in fiscal '12 (though the initial cost of TARP was overstated).
Still, military spending is now on the decline due to fewer troops in Iraq and Afghanistan; Medicare costs rose 3% last year vs. the average 7% growth in recent years; and after the last year's Budget Control Act, excluding the automatic cuts set to take effect in January, nondefense discretionary spending is already on a path to shrink to 2.7% of GDP, well below the 3.9% average, notes the Center on Budget and Policy Priorities.

U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff - Investors.com

Republicans were wrong about Romney, wrong about economics, wrong about health care, wrong about Iraq, wrong. Just "wrong". Notice the line at the far right. Every line above zero is the deficit shrinking. I wonder who was in office the years when the deficit was shrinking?

Better yet, after the health care bill goes into full effect, only 19 million won't be covered and a third of them are illegal immigrants. The CBO says we will see major savings after 20 years.

This information is coming from "Investor's Business Daily", not some extreme site. But you can bet, because this information isn't showing up on Fox, these USMB right wingers will call it all "lies". At least we all know they have no proof that says otherwise. Except what comes from the Heritage Foundation, a group that is always wrong. There goes that word again:

Great! That means the Bush Tax cuts are working and that we don't need to increase taxes on anyone!

Thanks dean!

It means we've been spending less. Iraq was wound down and states aren't getting the big checks they use to from the federal government. Consequently they are firing public employees and adding to unemployment. Which is part of the reason the recovery has been "slow".

The tax cuts are not working.

 

[Sallow]

My personal opinion is the tax cuts raised the deficit and marginally helped the economy. Same theory as the slow stimulus. The construction company next to us is STILL installing solar panels.

In this world of percentages I am always wondering if the xxxx lowered unemployment by x.x% and then what percentage of my taxes are going to pay the Reagan debt.

They didn't help the economy at all, quite the opposite. They created a housing bubble.

 

[editec]

IN terms of increasing deficit spending compared to the GNP, Obama is the most parcimonious POTUS in the last 40 years.

I personally don't think the deficit is as much of a problem as we're being told.

There are so many other Swords of Damacles hanging over the world's ecomony, that I doubt the US deficit is going to be the one that falls first.

The monetary system the world now has cannot last because it is guaranteed to create more debt than wealth to pay it back.

This failure of our system is BY DESIGN, kiddies.

 

[Stephanie]

From fiscal 2009 to fiscal 2012, the deficit shrank 3.1 percentage points, from 10.1% to 7.0% of GDP.
That's just a bit faster than the 3.0 percentage point deficit improvement from 1995 to '98, but at that point, the economy had everything going for it.
Other occasions when the federal deficit contracted by much more than 1 percentage point a year have coincided with recession. Some examples include 1937, 1960 and 1969.

TARP and the bailouts of Fannie Mae and Freddie Mac also make the deficit improvement look better, boosting the fiscal '09 deficit by about $200 billion more than in fiscal '12 (though the initial cost of TARP was overstated).
Still, military spending is now on the decline due to fewer troops in Iraq and Afghanistan; Medicare costs rose 3% last year vs. the average 7% growth in recent years; and after the last year's Budget Control Act, excluding the automatic cuts set to take effect in January, nondefense discretionary spending is already on a path to shrink to 2.7% of GDP, well below the 3.9% average, notes the Center on Budget and Policy Priorities.

U.S. Deficit Shrinking At Fastest Pace Since WWII, Before Fiscal Cliff - Investors.com

Republicans were wrong about Romney, wrong about economics, wrong about health care, wrong about Iraq, wrong. Just "wrong". Notice the line at the far right. Every line above zero is the deficit shrinking. I wonder who was in office the years when the deficit was shrinking?

Better yet, after the health care bill goes into full effect, only 19 million won't be covered and a third of them are illegal immigrants. The CBO says we will see major savings after 20 years.

This information is coming from "Investor's Business Daily", not some extreme site. But you can bet, because this information isn't showing up on Fox, these USMB right wingers will call it all "lies". At least we all know they have no proof that says otherwise. Except what comes from the Heritage Foundation, a group that is always wrong. There goes that word again:

Great! That means the Bush Tax cuts are working and that we don't need to increase taxes on anyone!

Thanks dean!

Actually, it's the Bush tax cuts that caused the mess. Remember, they are years old. It's what Obama has done since Republicans tried to destroy the economy and turn over government to big business.

Yeah, he extended the Bush tax cuts...

 

[Rshermr]

Great! That means the Bush Tax cuts are working and that we don't need to increase taxes on anyone!

Thanks dean!

Actually, it's the Bush tax cuts that caused the mess. Remember, they are years old. It's what Obama has done since Republicans tried to destroy the economy and turn over government to big business.

Yeah, he extended the Bush tax cuts...

He did indeed go along with extending them. With a repub house and a non filibuster proof senate, he made a deal to extend them in exchange for extending unemployment. Does not indicate that he or anyone wanted to do so. As you know, and would admit if you were honest. Instead of a mindless follower of the con dogma.

 

[EdwardBaiamonte]

Republicans tried to destroy the economy and turn over government to big business.

actually soviet Obozo turned the entire health care industry over to government while 100% of Republicans objected. Do you know why our liberals spied for Stalin?


See why we are 1000% certain that a liberal will be slow, so very very slow.

 

[EdwardBaiamonte]

he made a deal to extend them [tax cuts]

"The president then added: “You don’t raise taxes in a recession. We haven’t raised taxes in a recession… we have not proposed a tax hike for the wealthy that would take effect in the middle of a recession… The last thing you want to do is to raise taxes in the middle of a recession.”

Obozo is 100% confused about economics like any liberal.