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Posted

So you're suggesting we spend and collect less? Now your thinking. :thumbsup:

 

This chart spells it out pretty clearly that it's a spending problem. The spending has gone of an average of 10% per year the last 60 years.

What's clear is that it's currently a recession problem, which causes revenues to fall and spending to rise, and additional stimulus packages to save the financial system and building industries....

Posted

What's clear is that it's currently a recession problem, which causes revenues to fall and spending to rise, and additional stimulus packages to save the financial system and building industries....

 

So you take a chart of 70 years of data and pull out two years to make your point? If you were a client of mine I'd fire you on the spot. You don't see a pattern there?

Posted

So you take a chart of 70 years of data and pull out two years to make your point? If you were a client of mine I'd fire you on the spot. You don't see a pattern there?

Yes, my point is that current extreme deficits are recession-driven. Once we're back near full employment, expenditures will be closer to the historical average of 19-20% of GDP, and revenues about 18-19%.

The main issue regarding future liabilities is related to medicare/medicaid. Fix that, and most of the problem deficit problem is taken care of.

 

As far as the growth in revenues and expenditures, if you take the period from 1960 to 2007 (to exclude the recession's distortion), nominal revenues have increased at a compound rate of 7.3%, while expenditures have increased by 7.5% annually. What, me worry?

Posted

Yes, my point is that current extreme deficits are recession-driven. Once we're back near full employment, expenditures will be closer to the historical average of 19-20% of GDP, and revenues about 18-19%.

The main issue regarding future liabilities is related to medicare/medicaid. Fix that, and most of the problem deficit problem is taken care of.

 

As far as the growth in revenues and expenditures, if you take the period from 1960 to 2007 (to exclude the recession's distortion), nominal revenues have increased at a compound rate of 7.3%, while expenditures have increased by 7.5% annually. What, me worry?

You say that as if it is a piece of cake. :rolleyes: Anyhoo, it's not just medicare/medicaid but it will also be S.S. Not to mention the hundreds of billions if not trillions of dollars we have in unfunded pension liabilities throughout the states.

 

Sorry bud, its much more dire than you are making it out to be.

Posted (edited)

And that abortion of Obamacare coming up.

Edited by Wacka
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