Debt Crisis? What Debt Crisis?

Jamelle Bouie  is a “writing fellow” at the monthly magazine The American Prospect, which describes itself as covering politics, culture, and policy from a liberal perspective. In this recent article, Mr. Bouie lets the liberal drivel spew out of control.

The subject of Mr. Bouie’s diatribe was a recent meeting at the National Press Club of a group that calls itself the Committee for a Responsible Federal Budget. Here is his opening volley:

Yesterday afternoon at the National Press Club (the standard Washington venue for events that need a little class), the Committee for a Responsible Federal Budget—a bipartisan debt-reduction group—rolled out its “Fix the Debt” campaign, an attempt to push deficit reduction to the top of the congressional priority list. It’s hard to overstate the extent to which this was an almost stereotypical gathering of Beltway deficit scolds…

Mr. Bouie is not impressed by our national debt or our year-over-year deficits. This was the tag line to his article:

To many in official Washington, hypothetical debt crises are more important than mass immiseration.

That’s right. He sees it as a “hypothetical” debt crisis. Bouie laments that there wasn’t much in the way of policy recommendations:

Instead, the bulk of the conversation was devoted to hyperventilating over the threat of the federal debt, and indulging the centrist conceit that both parties are responsible for the impasse in Congress…

In response to one of the meeting participants saying: “We can’t grow the economy without fixing the debt.”, Bouie had this to say:

Of course, this isn’t true: As we saw to a limited extent with the stimulus, you can improve the economy by taking on debt, as long as that debt is used to finance consumer spending. A second, $1 trillion spending program would increase the debt, but would do more for jumpstarting the economy than any agreement on long-term budgets.

Now, I know that Mr. Bouie is not Greek; but he sure sounds like one. He apparently believes that the 2009 stimulus package wasn’t nearly enough. I’m guessing he reads Paul Krugmna’s column. Being a “writing fellow” for a liberal magazine, I can excuse Mr. Bouie for not knowing that by the end of Obama’s four years as President, that stimulus spending will be over $3 trillion. This is because the 2009 stimulus package never went away but became part of the baseline budget with every Continuing Resolution since then. Paul Krugman does know better but he is too dishonest to say so.

As you would expect with a liberal magazine, most of the comments were supportive of mr. Bouie’s point of view. Here is part of a comment attributed to a Mark Matson. This will blow your socks off:

I agree completely.  Or, I did up until a day or two ago.  Now, all of a suden, the big worry is the “Fiscal Cliff”.  Ironically, the Fiscal Cliff is a Keynesian problem.  If we go over the Fiscal Cliff, all of our deficit problems will go away.  But Washington insiders now consider this a bad thing.

Imagine that! Washington insiders “now” consider going over the fiscal cliff a bad thing.

Surprisingly, at least one conservative got their comment published. This is what Tom Genin said:

Current Federal Tax Revenue: $2.36 Trillion. Current Federal Tax Spending: $3.630 Trillion. Current Income/Spending Difference: $1.27 Trillion.

Federal Tax increase required on All Americans to make up the difference to cover Federal Spending: 57%.

Current Annual State & Local Spending $3.07 Trillion Current State & Local Revenue: $2.58 Trillion Current Income/Spending Difference: $490 Billion

State Tax increase required on All Americans to make up the difference to cover State & Local Spending: 20%

And that doesn’t even pay $1 to lower the debt, or account for the future projected skyrocketing liabilities of entitlement programs.

Spending is the problem that taxes won’t solve.

Well done, Tom.

The way the liberal mind works is beyond comprehension. I would guess that Mr. Bouie and sadly, Paul Krugman would agree with what people like  Steny Hoyer and Nancy Pelosi who believe that the best way to “stimulate” the economy is through more unemployment benefits and more food stamps.

Is it any wonder why our country is in such a mess? Liberals can not see reality and if they could, they wouldn’t believe it.

Well, that’s what I’m thinking. What are your thoughts?

27 thoughts on “Debt Crisis? What Debt Crisis?

  1. Well golly gosh gee-wizz I’m sure glad Mr. Bouie and Krugman have enlightened me. Today I’m taking my Visa, Mastercard, and hitting the town…spend…spend…spend…take em to the limit! Because all my spending will then increase my income! Of course it will put me into a deficit, spending money I do not have, or can’t pay back timely… Doesn’t sound right, or logical, but if it works for the Liberals…It’s gotta be a smart economic move on my part…Right?

    PLU from SSF

    1. Well, if they raise taxes, they might bring in enough to cover my debts and yours, but that will be about it. I read today that the super rich Italians are all moving to Sovania to avoid taxes. Mind you if John Kerry were to move to Slovania it might be worth it.

  2. Hey, since my first college economics course, I’ve been told by economic professors and Nobel Prize winners that the debt doesn’t matter because “we owe it to ourselves.” And I went to college a long, long time ago, so Keynesian educators have been doing their magic on millions of liberal brains since I took that first class.

    When we go over that fiscal cliff, we’ll all forgive the current debt we owe ourselves and we’ll begin creating new debt. Like hitting the reset button. Or, if you believe Ellen Hodgson Brown, we won’t even have to bother with keeping tract of this new paper debt. She claims she can make our current debt crisis disappear overnight with no resulting inflation. You guessed it. By driving over that fiscal cliff with a smile.

    It’s simple economics. Why can’t you get it through your thick skull? 😉

    1. How you doing, Sherman? It’s good tp hear from you.

      It is amazing how these people don’t think. Although it is true that we owe a lot to ourselves, we also owe a big chunck of change to China, Japan, and others. What do think is going to happen to the value of the dollar if the US can’t even pay the debt service? We won’t be filling the shelves of Walmart and Home Depot with cheap goods from China that’s for sure. But, what do I know? I do have a thick skull. 🙂

  3. These economically-ignorant people calling for more Keynesian stimulus are like the old SNL skit: “Need more cowbell!”

    We had the stimulus, and all we’ve got to show for it is trillions in new debt.

  4. I don’t get the part where he says the debt crisis is hypothetical. Does he think America can just continue spending out of control and not suffer the consequences? If so, his hypothetical crisis is going to cause a major hypothetical financial catastrophe if it isn’t stopped.

  5. They (Mr. Bouie, Paul Krugman, Steny Hoyer, Nancy Pelosiare et al.) are twisting themselves into knots trying to make the economic’s ‘work’ in order to advance their liberal agenda.

  6. How does she expect a “hypothetical” debt crisis to not result in immiseration? What’s hypothetical here is the idea that we can go over the fiscal cliff and be just fine… Whistling past the graveyard.

  7. And if Obama gets reelected there will probably be enough likeminded people in the Congress who feel the first stimulus wasn’t large enough. We can expect a larger stimulus package if Obama is reelected and this is just one more reason why he must be defeated.
    I am not convinced Romney will make the choices that need to be made but hopefully he can slow the process down enough so that we have time to do what is right.

  8. The fallacy is that building more debt does not encourage economic activity. I know it. You know it, The devil knows it. Those who deny it are fools. That makes Mr Bouie a writing fool of a fellow. Where do these simple minded people come from?

  9. Let’s buy a Ferrari and drive it off the cliff. Here, you hold a really expensive video camera so we can share this insane experience with the world. We’ll send a copy to China and tell them our debt is forgiven. Let’s talk about how that is going to turn out.

    They are facing a fiscal crunch with their aging demographics too. The difference is, they are saving money and investing as a country. Our debts will come due when it comes time for them to take care of their aging. We must be ready. If we aren’t, there will be consequences, and it will hurt the US more than the Chinese.

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