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

Discussion in 'Politics' started by Quantum Windbag, Nov 23, 2012.

  1. Quantum Windbag
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    Quantum Windbag Gold Member

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    I read this and my head almost imploded from the sudden loss of intelligence.

    He even has a chart to prove it.

    [​IMG]

    http://news.investors.com/blogs-cap...-fastest-since-world-war-ii.htm#ixzz2D0jJnBML

    This is so stupid that it almost doesn't merit laughing at, but it turns out that there are actually people that buy into this claptrap. Can anyone look at the chart and tell me what is wrong with it? The first one to get it right wins The Internets.
     
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  2. jillian
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    jillian Princess Supporting Member

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    yes, we know how much more you know than investors.com.

    but then again, it's not like you ever let reality get in your way.
     
  3. bucs90
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    bucs90 Gold Member

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    I guess the biggest thing "wrong" with it is.......well, it makes Obama look pretty good, and Bush look really bad.
     
  4. bucs90
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    bucs90 Gold Member

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    I mean look at that graph. From around 92-2000 things were pretty damn good. Then, 2000-2008, it was mostly really bad. Then, around 2010-2011, it picked back upwards.

    Why is that?
     
  5. auditor0007
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    auditor0007 Gold Member

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    The percentage is based on the decrease from a high point of borrowing. There actually is a valid point to this, but there is also a problem. The valid point is that we are growing the economy at a faster pace than we are borrowing. The reasoning can be seen in the simple fact that federal outlays the past three years have barely increased. In fact, I believe that 2011 may have actually seen a decrease in spending from 2010. This would be wonderful if spending was not estimated to increase substantially in the coming years, because that would mean with spending put in a holding pattern, the economy would continue to grow, and borrowing would become a much smaller percentage of GDP, especially if tax revenues increase once the economy starts growing at an even healthier clip.

    What is not taken into account is the fact that SS and Medicare spending is going to escalate substantially in the very near future and that will continue for an extended period of time. While short term borrowing may be reduced, we still have a very big long term problem. The bottom line is that the things that caused the massive borrowing over the past four to twelve years are not that big of an issue. That borrowing we can recover from. All the extra spending on stimulus packages, ever the wars in Iraq and Afghanistan, and all the extra unemployment benefits, extra social spending due to so many being unemployed, all of those we can recover from by getting the economy growing at just a decent pace of 3.5 to 4.0 percent. But our long term problem with Medicare specifically is not going away. If all we did at this point was to reign in future spending on SS and Medicare, everything else would work itself out. The easiest way to do that is to raise the retirement age. The problem is that nobody really wants to address what the real problems are, because it is much more politically advantageous to scare people about too much spending on food stamps.
     
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  6. Quantum Windbag
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    Quantum Windbag Gold Member

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    Tell me something, if the deficit has gone down the last three years, why did it go up in 2009?
     
  7. Quantum Windbag
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    Quantum Windbag Gold Member

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    Because the Republicans had the most congresscritters in the good years?
     
  8. LoneLaugher
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    LoneLaugher Diamond Member

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    Or....the cap could be raised.
     
  9. jillian
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    jillian Princess Supporting Member

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    kind of wrecks their meme, doesn't it?
     
  10. ilia25
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    ilia25 I can do math

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    The deficit did go down in the past 3 years. For real.

    [​IMG]

    Because the tax revenues fell dramatically in 2009. But they started rising again since then.
     
    Last edited: Nov 23, 2012

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