 | Moosekarloff (19) 07/11/2003 |  The truly Godawful and lame administration of Ronnie "I Want A Cookie, Mommy" Rectum displayed quite clearly the onerous pitfalls of Military Keynesianism, that mentally retarded economic strategy of using defense spending as a means to spur aggregate growth. It took just six years of that Voodoo nonsense to triple the then-existing U.S. debt to roughly $5.5 billion. Brilliant economic thinker, that Rectum. When you factor in the runaway federal deficits incurred under that senile old fart's stewardship to the entire U.S. economy during that time, you come up with an actual economic contraction, not an expansion. Government spending is counted as a contribution to the GNP, and actually is a function of growth if there is no deficit, because the government's purchase of goods and services, cash on the barrel, adds to the aggregate output/consumption. However, if the government is paying for goods and services through the assumption of debt, any growth that shows up on the radar screen is illusory. That illusory growth is actually a note that has to be paid in the future, with interest. Thus, to consider deficit spending as a engine of economic growth is totally fallacious, and such fiscal irresponsibility is also detrimental to future economic growth as tax revenues have to be dedicated to not only pay off the debt (theoretically), but also pay off interest (in actuality). During the Rectum years, deficit spending, fueled mostly by what proved to be a totally unnecessary military build-up, averaged about $200 billion/year in a roughly $6.5 trillion/year economy, which constitutes about 3% of GNP: as the average annual growth of the economy during that period was comparable to that, and factoring in an inflation rate of approxiamtely 2.5% at the same time, the U.S. economy was actually in contraction during The Old Whoremaster's two terms of office, and the private sector was particularly underperforming. Thus, the moronic "supply side economics" that the rightwingers so vigorously promoted, coupled with the greatest period of military overspending in U.S. history, turned out to be one of biggest fiscal disasters ever experienced on the planet. You would think that The Powers That Be in Washington, and especially in the GOP, would have learned their lesson from this, and that the usually noncomprehending public would have been become acutely sensitive to this issue, but NO!!! Currently we're seeing Regan Redux in the budgetary and tax policies of the Handjob Administration: the same mistakes are being repeated again, and no one seems to care. The government was looking at deficits in the $200+ billion range through the end of the decade before Handjob was told by his bosses to trash Iraq: the cost of this military misadventure, and the other blunder in Afganistan, will cost the U.S. taxpayers $5 billion per month into the foreseeable future. This will not be paid by tax revenues as Handjob subscribes to the mentally retarded Republican manta of cut taxes, cut taxes, cut taxes, so, more debt will be assumed by the government to fund this, adding considerably to the already deep and vast ocean of red ink the irresponsible and thieving GOP Congress has been churning out. Of course, this is a collision course with eventual economic disaster. It's interesting that when that supposed incompetant and GOP target of hatred and ultimate disrespect, Bubba Clinton, was in office, the federal budget was balanced for the first time in 20+ years, and there was a significant government surplus for the first time in a generation, but then Handjob gets appointed to the Chief Executive spot and we're back to the same old fiscal irresponsibility of the Rectum years, only this time, we're looking at deficits in the range of $350 billion per year. Maybe this is comforting and encouraging to the droolers, but I find it very disconcerting. Compounding this disquieting trend is Handjob's multi-trillion dollar giveaway to the superwealthy, which is just going to additionally fuel the deficit increases. What is grossly irresponsible about this is, after major bipartisan efforts were made over a number of years to balance the budget and generate surplus, the GOP gets total control of the White House and Congress and decides to squander enhanced tax revenues by giving huge refunds to the already wealthy instead of paying down the debt incurred largely as a result of the idiotic tax policy of their icon, The Crapper, I mean, The Gipper. As I am a fiscal conservative, I find it criminal that Handjob's tax policy is essentially a bribe of his well-heeled constituency (i.e., those greedheads who will contribute heavily to his 2004 re-election bid) when their tax refunds should actually be revenues earmarked to clean up the huge financial mess caused by the last ill-advised experiment in supply side economics undertaken by the imbecilic GOP. So, not only will Handjob's tax policy lead to financial contraction due to the negative effect of deficit spending, but dumping war debt on top of it all is a very reckless, short-sighted strategy that further destabilizes a very troubling economic picture for years to come.
(2 voted this helpful, 0 funny and 0 agree) |