You guys shouldn't argue with Cad when he's trying to change the subject. He doesn't want to talk about Bush-lite's many flaws, so he diverts the discussion by focusing on the definition of "deficit". (What is "is"?) The more you argue with him, the more he wins, because this is not a discussion about the technicalities behind the federal budget.
Originally posted by: CADkindaGUY
Originally posted by: beer
Originally posted by: CADkindaGUY
They teach reading the first semester in your highschool - no?
If you go to a bad public highschool I'll repeat it for you -
"What I said was - there was NO surplus - PERIOD."
See? He isn't even pretending to address the subject of the thread. He's trying to change the subject.
Oh and don't forget this:
"Now he went on to make excuses for the gov'ts accounting practices and tried to "compare"(which wasn't my point) but lets..."
So reading comprehension would allow us to deduce that "comparing" Clinton to Bush wasn't any part of my point and that maybe my point was THAT THERE WAS NO SURPLUS.
Got it yet Mr.Frosh?
Care to continue? Or do you need to come up with another supposed "insult" by saying yapping about 1st semester high-school? Had enough of your little quip thrown back at you?
CkG
There are 100,000 ways to look at a budget the size of the United States. The point is that they have been computing budgets the same way for decades, and during Clinton's second term, there *was* a budget surplus by the way the United States does accounting. You are trying to compare a national debt (of the largest GDP in the world, obviously) to personal debt and that doesn't make economic sense, they have very little in common.
No -this isn't about debt - this is about budget deficits. If you spend more than you take in - you are in a deficit situation. Borrowing(IOUs) to pay for current spending doesn't suddenly mean you are running a surplus

It doesn't matter how long the gov't has played the IOU game - it doesn't change what a deficit or a surplus is.
CkG
By the way Cad, you just contradicted yourself. You are describing cash-basis accounting. That's how you and I balance our checkbooks, but it's not the way businesses do accounting. The federal "surplus" was calculated using a form of cash-basis accounting. By ignoring future obligations, e.g., social security, the Fed under Clinton truly spent less than it took in. It wasn't borrowing anything; those IOUs were for future obligations. Therefore, it truly was running a surplus ... after a fashion.
By your definition, the Clinton surplus was real. Oops. The problem is you heard the Clinton-bashers sniffle, "Clinton didn't really have a surplus," and dutifully repeated it without understanding what it meant.
The difference is that businesses can't use cash accounting (with a few trivial exceptions). They must keep their books using Generally Accepted Accounting Principles, a/k/a GAAP accounting. Under those rules, future obligations must be reflected in current earnings statements. The federal government, however, is not required to use GAAP accounting for its own finances. By Fed standards, the surplus was real. By GAAP standards, Clinton still ran a deficit, albeit a much smaller one than the Repulbican presidents before and after him.
Your confusion is understandable. Much of GAAP accounting is pretty foreign to people who haven't worked with it. There are a lot of things that are counter-intuitive to someone who's only worked with simple household finances, e.g, keeping a checkbook in the black. Perversely, that simplistic checkbook approach gave the Fed its surplus. The surplus was real -- or not -- depending on the bookkeeping rules one uses.
For the sake of harmony and to get this thread back on track, I encourage everyone to nod politely whenever Cad insists there was no surplus. He is right ... from one point of view. Instead, we can
all agree Bush spends like a drunken sailor, increasing federal spending by about a trillion dollars a year (
$1,000,000,000,000 per year) compared to Clinton, and that this only gets worse with all the future handouts Bush pushed. (Because by GAAP standards, we don't sweep those future obligations under the rug, right?)
In that spirit, according to an article I just read, Bush will NOT cut the deficit in half as claimed (by using cash accounting principles and ignoring future obligations). Those wacky liberals at
Business Week project a
$5 trillion ten-year deficit when including future expenses like Bush's Iraq costs, his continuing tax loan costs, and his Medicare "reform" costs.