No, The “Tea Party” Is Not Wrong About The Deficit

The former Executive Editor of Bloomberg claims that the statement, “The U.S. budget deficit is worse than ever,” is a false statement. Technically true but trivial. His elaboration is false:

A starting – and false – premise of the public, and some politicians, is that the deficit is spiraling out of control. In a national survey by Bloomberg News last month, Americans said, by a margin of 59 percent to 10 percent, the deficit was getting worse; this belief was held by 93 percent of Tea Party supporters.

In fact, the deficit, which reached a staggering $1.55 trillion in the 2009 fiscal year, has declined every year since and is less than half as big today.

So pulling back from adding to the national debt $1.55 trillion in a year to somewhere that is less than half means the deficit is “in control”? That is stupid and dangerous reasoning.

It isn’t uncommon for people to slip in their thinking and mistake “deficit” (each yearly addition to the national debt) and the debt itself (the result of years of deficits compiling up). But each year we add to the debt (which is super low because it doesn’t include our Social Security and other entitlement obligations which people are (vainly) expecting to use in the future. Here’s the graph from Wikipedia:

U.S._National_Debt_-_Dollars_and_Relative_to_GDP

Only this is outdated because we are now over $17 trillion.

Adding hundreds of billions of dollars more every year is absolutely the definition of “out of control” deficit spending.

Yet this is the kind of reasoning wealthy regime apologists use to pretend that you are ignorant and misled. They are happily promoting the flames burning down our house and waving their fingers at your for panicking.

Of course, having claimed that the deficit is not so bad after all, the writer goes on to tell us that we need to be taxed more. As if price inflation in energy and groceries produced by our Federal Reserve tyranny, and the huge Obamacare price hikes for medical care and insurance are not enough!

These people sit around thinking up labyrinthine rationalizations to make us pay more taxes, acquiesce to more debt, and distrust anyone who tells you the truth. They are stupid, suicidal, conspiring for some hidden objective, or guilty of some combination of all three.

Entitlement cuts are treated as unworkable when everyone who thinks about the future knows cuts are coming. The collapse will cut everything. But worse, even when entitlement cuts are considered, this is being offered as a way to end sequestration.

No! Sequestration is a first step that must never end until it is replaced with an absolute spending freeze. Then the next step is to reduce the budget in absolute terms. We need to start going backward in time to previous and lower levels of spending on the part of the Federal Government.

Nothing else even attempts to use the brakes before the car goes off the cliff. It is the only possible rational fiscal position. And it is one that neither party is yet advocating.