Thursday, May 10, 2012

Just how exactly are you going to reduce the deficit?

It always amazes me when I listen to politicians who rail about the deficit yet simultaneously talk about lowering taxes and increasing spending. Basic math should help people figure out that cutting revenue and increasing spending is in fact the very definition of deficit spending. Any increased spending and reduction of income would have to be completely offset in order to even think of crafting a deficit-neutral budget. Unfortunately, those significant cuts that would offset this spending are never brought up. Politicians certainly have their favorite causes to champion against cutting (welfare, Planned Parenthood, "tax loopholes", etc.) however none of those even remotely approach the mountain of deficit spending being proposed. Any serious debate on the deficit needs to address all four items that take up the majority of the federal budget: medicare, medicaid, social security and defense spending and not the side issues that the pundits always go on about. Unfortunately, doing that means you lose votes and don't get elected. So, the solution to this problem on the campaign trail appears to be acting like you understand how the economy works, while simultaneously complaining about the deficit, pitching lowering taxes and raising defense spending ... As for the fine graph, it comes from this eye popping article about proposed defense spending under Romney.

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