debt deal reached

So given recent behavior when in power, which party should you vote for in 2012?

Well, if you care about the deficit, you'll want to vote Democrat. They spend almost identically to Republicans, but don't also cut taxes at the same time.

If you care about reducing spending, you're pretty much fucked, because a look at the last time each party controlled both houses of Congress shows that there's almost no difference at all:

Democrats, 2006 to 2010: spending increased $880.8b. Of that, $497.7b was mandatory spending that happened automatically: more people got old, increasing Social Security and Medicare spending; the recession put more people onto food stamps and unemployment insurance, etc. The interest expense fell by $29.7b because of low interest rates, despite shill warnings of bond vigilantes from conservatives since 2008. So that's a net increase attributable to Democrats of $880.8b-$497.7b+$29.7b = $412.8b. Part of that was also the stimulus, which is partially tax cuts and was spread out over several years. Actual spending in 2010 on the stimulus was only about $150b. The stimulus, of course, is not a permanent increase in the size of government, since it is a one-time bill.

So we have now broken down the Democratic "spending spree" into:
Automatic increases + interest: $468.0b
Stimulus: $150.0b
Permanent "expansion of government": $262.8b

But even that is still misleading, because some of the increased spending comes from the wars, which are (hopefully) not permanent. Defense spending rose by $169.1b from 2006 levels.

So the "unprecedented expansion of government" we keep hearing about from conservatives since 2006 actually entails:

Democrats, 2007-2010: $93.7b in new, non-defense, permanent discretionary spending.

(All figures are in nominal dollars taken directly from the CBO website, so not adjusted for inflation, GDP, or anything like that.)

For comparison, the Republicans in 2003-2006, when controlling Congress and the Presidency, increased total spending by $644.2b. Mandatory* +$305.9b, interest +$55.7b; defense +$171.0b, so:

Republicans, 2003-2006: $111.6b in new, non-defense, permanent discretionary spending.

The only real difference relative to the deficit between the parties in the last decade has been that Republicans have insisted on cutting taxes even as they go on their spending spree.

*And note that this method gives the Republicans a free pass for their Medicare expansion, since that falls under mandatory spending.
 
what a bunch of crap. Blue sox what do you have to say about the amount of money the federal reserve is injecting into the economy to replace consumer spending?

the economy is in recession again too. the financial system is done.
 
the real reason america is f*cked is because Obama lost control of the middle east(or rather, the middle east doesn't care what America has to say anymore), Saudi Arabia now sells more oil to China and the world is preparing to shift currencies.

Americans will fight over the scraps and eventually have to join a governing body like the one the EU put together to survive. At least the republicans are making a face value attempt to reign in spending.
 
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let's remember the legacy of debt started in the late 60's in the form of entitlement programs War on Poverty - Wikipedia, the free encyclopedia which only disappeared when Carter decided to balance the governments checkbook at the cost of the population, causing inflation and recession until Reagan shifted the burden to the government and loosened up taxes

the deficit isn't from war, its from entitlement... and now we have class wars

democrats point their fingers at spending, and neglect to look at exactly where the money came from and where it's going. The difference between Republicans and democrats when it comes to spending is Republicans always have something to show for the spending that makes the debt seem not so bad.

7 years of expansion under Reagan at about 3% a year, a deficit 1/4 the size of Obama's, roughly adjusted for inflation, same thing for Bush
 
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they aren't meant for you, they are meant for bluesox

people like him prey upon the ignorance of the masses. Did you know its not by accident that America got stupid?
 
togowack world renowned economist who dropped out of the Salt Lake Community College School of Economics to pursue economic policy and spread his thoughts on obscure internet gaming forums.

Show respect where it is due.
 
oh look, here's another idiot

ender, meet togowack

i'm sure he'll debate with you togo

the two of you can rant yourselves into an intellectual blackhole
 
togowack world renowned economist who dropped out of the Salt Lake Community College School of Economics to pursue economic policy and spread his thoughts on obscure internet gaming forums.

Show respect where it is due.

He doesn't even live in America :lol:
 
what a bunch of crap. Blue sox what do you have to say about the amount of money the federal reserve is injecting into the economy to replace consumer spending?

the economy is in recession again too. the financial system is done.

QE3 will do nothing as long as the desired rate stays below 0. As long as businesses don't see enough demand to expand (and they will see even less of it now as the government cuts its demand out), they won't expand M2 or M3. This is all we'll see:

japandeflation.jpg


usmonetarybasegreatdepr.jpg
 
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