Guest Saturday with A Conservative Teacher

The following article was originally published by A Conservative Teacher on Thursday, October 20, 2011.


Government Spending is UP 5% So Far This Year!

According to my liberal friends, the reason why the economy is going to
double-dip is because the Republicans have been cutting so much spending that it is de-stimulating the economy. Like most things liberals say, the facts don’t support it- not only haven’t Republicans been cutting spending they actually are spending more money. It’s understandable- they only control the House- but not acceptable- by spending more money, they are sucking up resources from the private sector and distorting our market system with their inefficient use of resources, corrupting free choices and mis-allocating valuable monies to make our nation more and more poor and less and less free. Cut spending now!

Here is the story, via IBD:

When Republicans took control of the House in January, they pledged to make deep cuts in federal spending, and in April they succeeded in passing a bill advertised as cutting $38 billion from fiscal 2011’s budget. Then in August, they pushed for a deal to cut an additional $2.4 trillion over the next decade.

Some analysts have blamed these spending cuts for this year’s
economic slowdown.

But data released by the Treasury Department on Friday
show that, so far, there haven’t been any spending cuts at all.

In fact, in the first nine months of this year, federal spending was $120 billion higher than in the same period in 2010, the data show. That’s an increase of almost 5%. And deficits during this time were $23.5 billion higher. These spending hikes haven’t stopped many analysts from claiming that the country is in an age of budget austerity, one that’s hurting economic growth.

A July article in USA Today, for example, claimed that “Already in 2011, softer government spending has sapped growth.”

Jared Bernstein, former chief economic adviser to Vice President Biden, wrote over the summer that “government spending cutbacks have been a large drag on growth in recent quarters and have led to sharp losses in state and local employment.”

Economist and New York Times columnist Paul Krugman argued in September that “the turn toward austerity (is) a major factor in our growth slowdown.”

If government spending is related to growth, as these and others claim, then the economy presumably should be growing faster, not slower, given the current higher rates of federal

Nor does the claim that state governments sharply cut spending
stand up well to closer scrutiny.

Overall state spending continued to climb right through the recession, when all money from state general funds and other funds, federal grants and state bonds is combined. Total state outlays in 2010 were almost 10% higher than in 2008, according to the National Association of State Budget Officers’ annual State Expenditure Report.

And general fund spending — which makes up about 40% of total state spending — is expected to climb 5.2% in 2011 and 2.6% next year, according to the association’s latest survey.



4 thoughts on “Guest Saturday with A Conservative Teacher

  1. Keep in mind that there are two places where money is being misallocated: First is government spending. The second is having Wall Street investing in derivatives instead of in businesses. Both have to be stopped. Republicans (like me) mouth words like we intend to stop the first, but we’re not making nearly enough noise about the second. We need government smaller, and Wall Street focused on the end of the business that helps the larger economy grow, and not just their own accounts. The problem is that we have politicians, who love money from unions and Wall Street lobbyists, fighting for us, and they’re not fighting nearly hard enough. None of them want to cause pain to the campaign contributors’ wallets. But pain there must be, or we’re seeing the end of dynamism in the economy of this country.

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