Random Debt Thoughts – 4/14

A quote from the Wall Street Journal this morning:

According to Internal Revenue Service data, the entire taxable income of everyone earning over $100,000 in 2008 was about $1.582 trillion. Even if all these Americans—most of whom are far from wealthy—were taxed at 100%, it wouldn't cover Mr. Obama's deficit for this year.

That deficit this year is $1.6452 trillion. Within this reality all that can be cut is $38.5 billion (and yes I count the entire thing, those accounting measures are valid) and the President’s only answer is tax increases for the top 2% who already pay the highest rate on their taxable incomes. It appears as though the number of people voting themselves goodies at the expense of others is past half the electorate. We’re doomed.

It seems to have become conventional wisdom that every complaint made by a conservative towards the President’s budget must begin with a two-minute hate of former President Bush. It’s ridiculous on two counts. Most importantly, that ship has sailed. President Bush was no spend thrift and did sign bills in regard to spending that were irresponsible but he’s no longer in office and can’t help with what’s happening now nor change the past. Second, spending under the President has ballooned to unprecedented levels. The table below (Source) examines the debt by time period from 2002-2011 (to be fair, President Bush could not be responsible, because he didn’t sign it, for any budgets before 2002 and President Obama not for any before 2010, for the same non-signing reason).The reason for the split is to account for both houses of congress (they are in charge of creating the budget) changing to democrat control in 2006. The data shows that democrat congresses in 2007 and 2008 appropriated a budget with more debt in it than the prior 6 years combined. And yes, President Bush signed them. Even accounting for the more than TRIPLING of average debt per year following democrat control the average debt over the 8 years attributed to the Bush presidency was $443.49 billion per year compared to $1469.12 billion per year under President Obama. While it may be cathartic for the navel gazing to disown President Bush for spending under his watch; remember that average deficits have increased 69.81% per year under President Obama.

Also up for piñata duty recently has been House Speaker Boehner. Rush Limbaugh and Mark Levin have spent the vast majority of their shows in the last week decrying the budget compromise. It’s true that it isn’t enough. But, unfortunately, it’s the best those serious about spending could get. And plainly stating the deficiencies of the compromise is more than enough. Limbaugh and Levin go too far, ridiculing and questioning the fortitude of the Speaker. No matter what they think, shutting down the government would have done no good and encouraging Republicans to act as buffoons (such as some democrats) will do nothing to encourage citizens to support more like them. The most import thing for Republicans in Congress now is to do the best work they can given the current situation and educate the public enough to encourage them to send more people like them instead of those who offer something for nothing. The public must be patient, the 2012 budget will be the first that can be rightly judged within the context of the Republican controlled House’s influence.