liberaltendencies

Where do all the crazy numbers come from?  Every day we are bombarded with figures on taxes, spending, deficits and national debt.  We are also constantly slapped with qualitative statements from various pundits who strive to boil down the facts for us, placing data at our feet in the form of sound bites.  I am very interested in the basis for some of the statements made by politicians and pundits regarding Barack Obama’s budget and stimulus packages and the overall level of his spending.  If one goes to the historical budget documents the numbers don’t seem to add up.

• Statement #1:  Barack Obama has spent more than every other president in the history of the United States combined.  Not true.  There is obviously some creative accounting at work which allows for the justification of the statement.  If Barack Obama’s budgets from now through the end of his presidency are totalled, (which is silly because future budgets don’t really exist yet) his spending total, including TARP and stimulus, will total about $36 trillion;  Bush and Clinton combined spent around $33 trillion.  It is important to note here that this included President Obama’s future budgets as well, his current budget totals less than $6 Trillion.  Yes it is a huge amount of money but it also assumes a growing economy as do the budgets of most presidents before him.
• Statement #2:  Barack Obama spent more in his first 60 days than President Bush spent throughout his 2 terms.  Again what exactly are we talking about.  President Barack Obama’s stimulus package of $787 Billion, TARP $700 Billion, Mortgage bailout $75 Billion, and the first budget $3.552 Trillion, totals a breath taking $5.8 Trillion.  According to the historical tables provided by the White House Office of Management and Budget President Bush spent $16.884 Trillion from 2001-2007.  Am I missing something?

Am I missing something?  Where is the factual basis for the statements being made?  I am not offering a qualitative opinion of Barack Obama’s spending.  I cannot not see the future, and have no way of knowing if the economy will be appropriately stimulated by the efforts being made.

Also I have to state that Barack Obama’s spending packages are significant, even historical, but it is not the first time that this has happened.  As a percentage of GDP the New Deal spent just as much, ran up comparable deficits, (5+% Obama’s may or may not exceed this over his two terms) and grew national debt to roughly 100% of GDP at the time of the conclusion of WWII.  We recovered then and I believe we will recover once again.  People will state that it was different then, that we were fighting a War.  Isn’t  a dollar a dollar? If the US was able to draw down the National Debt from 100% of GDP in 1947 to 67% now can’t we do it again?

What is more important here in my opinion is the need for people to have their arguments converted to easily digested bullet points by the media, or party spokes people.  Can’t people disagree based on the REAL numbers without the need to create sensational sound bites to further their arguments? 

Living in a Democracy is a wonderful thing.  The Government only has as much power as we give them.  If the country doesn’t work for people the power structure will change, policies will adjust, taxation and spending will swing  whatever direction the people decide at the time.  Policy will be directed by the people of the United States and will depend on the changing values and priorities of each generation.  In the face of such splendid flexibility and capacity for peaceful change I find it very difficult to stomach arguments from cynics and nihilists who forget the history and potential of this great country.

Trackback URI | Comments RSS