U.S. budget deficit down 37.6 percent

[Fern]

So since all the conservatives are on board with cutting the deficit, let's start with the military since it's the biggest waste of resources.

How would the conservatives in this thread go about cutting $300b from the military in the most efficient manner?

Seriously?

Are you not aware that the military budget has been cut twice already, each cut was $400 billion?

Fern

 

[chucky2]

I think there's actually a case that things would have improved more quickly under President McCain than under Obama. I find it highly likely that the Republicans in Congress would have embraced stimulative policy as poor economic performance would not have been in their political interest. You probably would have had a mating of economic ideology from the Democrats and political expediency from the Republicans.

I wouldn't assume that. I get what you're saying, but McCain admitted on TV, during a debate no less, that he didn't grasp the economic issues like he needed to. Granted, I really doubt Obama did either, but you could tell, McCain was certainly not on the up and up on the economy. We needed McCain instead of Bush 2. After that, McCain wasn't McCain anymore...

Chuck

 

[Fern]

Some perspective, numbers from Whitehouse.gov:

The last 10 yrs:

2003 $377.6 Billion Deficit
2004 $413 Billion Deficit
2005 $318 Billion Deficit
2006 $248 Billion Deficit
2007 $161 Billion Deficit
2008 $459 Billion Deficit
2009 $1413 Billion Deficit
2010 $1294 Billion Deficit
2011 $1299 Billion Deficit
2012 $1100 Billion Deficit

And from what I've read the auto and bank bailouts money that was repaid is accounted for as a negative expense, meaning the deficit under Obama has actually been higher than reported.

Fern

 

[Darwin333]

Hmm, intergovernmental debt went down by $50B in that time frame. Does anyone have any specifics on why? I haven't been keeping up as much as I used to but that is a rather interesting find.

 

[fskimospy]

The easiest way to understand Obama's spending habits is to ask what policies he enacted and have people list how much they contributed to the deficit.

 

[Slew Foot]

So the recession that was occurring as Clinton was leaving office never happened? I always wondered if I dreamt that.

It was those dang Republicans that bid e-pantyhose.com to $500 a share!

 

[Matt1970]

I recall fox and other right wingers saying how it would not raise much money and only make the economy go down?

All the best guesses put the revenue from the tax increase at $60 billion.

 

[Balt]

Most of the "easy" cuts have already been made (ie ones that aren't THAT politically unpopular). Our esteemed political leaders are going to have to make some unpopular decisions at some point, though. All of the cuts can't come from a small percentage of the overall budget.

I doubt enough of them have the spine for it.

 

[Darwin333]

The way I see it the Republicans had their chance under Bush. They demolished a thriving economy inherited by Clinton.

Obama took a moribund economy created by Bush and his cronies (the second greatest depression in US history) he took that catastrophe and rescued it in 5 short years. It took more than 2 decades for the US to get over the last Great Depression. I think this accomplishment will propel Obama into the pantheon of the greats. It is a remarkable accomplishment. He has had his failures but damn he has done wonders with a completely broken economy. Me and my 401k thank him.

Bush can go to hell. 8 years of the market under him and I got net negative return on my investments. Nothing has made my retirement more tenuous than Republican control of the government.

I would literally do just about anything to have 8 more years with the market chugging like it is now. Eight more years of this kind of market would set me up for life. The irony is that people like me who had faith in Obama are the ones raking in the bucks, all those conservative haters on the sidelines have missed out on the epic market gains. I can't help but laugh...... ALL THE WAY TO THE BANK!!!! BAHAHAHAHAHAHAHAHAHAHA!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Lol, Clinton paved the way to said great depression, which of course you won't acknowledge but not liking the facts doesn't change them.

And you keep betting on the latest and greatest credit bubble. I have profited off of it a good bit myself but I have for the most part cashed out. If you don't I am not sure you will be laughing for very long.

The "fundamentals" haven't changed. The rule of law has not been restored. The banksters have not been reigned in, etc... But hey, your 401K is doing good for now so all is great, right?

 

[werepossum]

I assume you're referring to the slowest rate of spending increase of any President in over 40 years?
http://www.marketwatch.com/story/obama-spending-binge-never-happened-2012-05-22

The last year of Bush II involved a LOT of bailouts we were told were one-time deals which were necessary to avoid turning the Great Recession into the Great Depression Redux. Thus the 18% jump. What we've seen is that under Obama, this level of spending has largely persisted every year. Where any slight fiscal restraint exists, it has been forced on him kicking and screaming. That is hardly something to brag about.

 

[Matt1970]

So since all the conservatives are on board with cutting the deficit, let's start with the military since it's the biggest waste of resources.

How would the conservatives in this thread go about cutting $300b from the military in the most efficient manner?

Obama would cry like a stuck pig last time the military got cut.

http://www.youtube.com/watch?v=q_onW6rH6D4

 

[Darwin333]

So since all the conservatives are on board with cutting the deficit, let's start with the military since it's the biggest waste of resources.

How would the conservatives in this thread go about cutting $300b from the military in the most efficient manner?

We can obviously cut quite a bit but keep in mind we must continue to support our military so they can continue to protect our energy assets without which this last recession would seem to be childs play. You don't really think we give half a shit about the Mid East do you?

 

[Darwin333]

Doc,

I vote my own self interest. There is absolutely no denying that if you were in the market througout Obama's presidency, then you have materially profited. That is matter of OBJECTIVE FACT. It is NOT opinion.

Trying to convince ANYBODY that the market hasn't flourished under Obama would be akin to convincing them that water is not wet. It could be done but it would require brain washing and denial of REALITY.

I, and many people I know, made far more money flipping houses and luckily most of us didn't get stuck holding the bag.

That is REALITY too. How did that end up?

 

[werepossum]

Hmm, intergovernmental debt went down by $50B in that time frame. Does anyone have any specifics on why? I haven't been keeping up as much as I used to but that is a rather interesting find.

Isn't that because Social Security no longer generates much of an excess for government to borrow? Used to be we relied heavily on borrowing the surplus from the Social Security and Medicare/Medicaid funds, but I think the former is about even and the latter is in the red. Can't borrow it if it isn't generated, so we've replaced that with Red Chinese and, increasingly, Fed money. (The latter is one hell of a trick in my book.)

 

[bshole]

I, and many people I know, made far more money flipping houses and luckily most of us didn't get stuck holding the bag.

That is REALITY too. How did that end up?

Darwin,

When the DJIA hits 20k I will bail, I expect that to happen during Obama's presidency. If it does get that high, I will almost certainly have more than 1 million dollars in my retirement accounts.

Can you imagine where America would be right now with a Republican in charge? Instead of a market at record highs, the DJIA would be less than 5k and we would be in free fall. Until I retire, I don't want to see another Republican president. One failed Republican presidency can easily destory all the market capitalization that I accrued under a competent Democrat administration. If you are in the market, you are slitting your own throat when you vote for a Republican president.

 

[fskimospy]

The last year of Bush II involved a LOT of bailouts we were told were one-time deals which were necessary to avoid turning the Great Recession into the Great Depression Redux. Thus the 18% jump. What we've seen is that under Obama, this level of spending has largely persisted every year. Where any slight fiscal restraint exists, it has been forced on him kicking and screaming. That is hardly something to brag about.

It IS something to brag about. You have to remember that textbook economics clearly shows that the government should be spending more, not less. When you have people trying to force you to cut spending in a deeply depressed economy you SHOULD fight it kicking and screaming. My criticism would be that he hasn't fought it enough.

 

[rudder]

Doc,

I vote my own self interest. There is absolutely no denying that if you were in the market througout Obama's presidency, then you have materially profited. That is matter of OBJECTIVE FACT. It is NOT opinion.

Trying to convince ANYBODY that the market hasn't flourished under Obama would be akin to convincing them that water is not wet. It could be done but it would require brain washing and denial of REALITY.

Darwin,

When the DJIA hits 20k I will bail, I expect that to happen during Obama's presidency. If it does get that high, I will almost certainly have more than 1 million dollars in my retirement accounts.

Can you imagine where America would be right now with a Republican in charge? Instead of a market at record highs, the DJIA would be less than 5k and we would be in free fall. Until I retire, I don't want to see another Republican president. One failed Republican presidency can easily destory all the market capitalization that I accrued under a competent Democrat administration. If you are in the market, you are slitting your own throat when you vote for a Republican president.

You do realize that the fed is pumping $85 billion into the economy every month? This is what is giving the stock market life. That money will invariably end up in the stock market. But it is a house of cards... you know funny artificial money. I would rather I deal with a DJIA at 5K rather than my offspring figuring a way out of our mess.

Yes your own self interest. If I was a greedy self serving type of person... I would want obama to be president for the next 9 years.

 

[Doc Savage Fan]

It IS something to brag about. You have to remember that textbook economics clearly shows that the government should be spending more, not less. When you have people trying to force you to cut spending in a deeply depressed economy you SHOULD fight it kicking and screaming. My criticism would be that he hasn't fought it enough.

Doesn't that textbook also mention that the government should be taxing less, not more? Isn't it odd that we don't see many liberals kicking and screaming about that?

 

[Engineer]

Doesn't that textbook also mention that the government should be taxing less, not more? Isn't it odd that we don't see many liberals kicking and screaming about that?

Up to this point, what federal taxes have been raised (besides the expiration of the "temporary" SS tax cut from a few years ago)?

 

[fskimospy]

Doesn't that textbook also mention that the government should be taxing less, not more? Isn't it odd that we don't see many liberals kicking and screaming about that?

It does! If you go back and look at what liberals said it was that we need more stimulus, but tax cuts for the rich are among the least effective stimulus. If you are going to implement austerity that was the smartest place to start. What we should have done is take the extra tax receipts from raising taxes on incomes over $400k and either put it into more stimulus or used it for more tax cuts for the poor and middle class.

Like I said, Obama hasn't been perfect on economics or anywhere close to it. He foolishly listened far too much to conservative voices on economics and tried to reduce the deficit when he should have been increasing it.

 

[Doc Savage Fan]

Up to this point, what federal taxes have been raised (besides the expiration of the "temporary" SS tax cut from a few years ago)?

Are you serious? And many more new taxes coming as well. Google is your friend.

 

[fskimospy]

Are you serious? And many more new taxes coming as well. Google is your friend.

Even after recent tax increases, taxes as a percentage of GDP are considerably lower than their historical average (and lower than it was under Bush).

 

[Doc Savage Fan]

Even after recent tax increases, taxes as a percentage of GDP are considerably lower than their historical average (and lower than it was under Bush).

Which is a good thing...right?

 

[fskimospy]

Which is a good thing...right?

It is better than having higher taxes and a lower deficit, but overall it would be best to have higher taxes and higher spending leading to a larger overall deficit.

My point was that if you were talking about all the tax increases that Obama has put in, the figure you should really care about is taxes as a percentage of GDP, and that is quite low by historical standards and low even as compared to his predecessor.

 

[Atreus21]

http://www.gosanangelo.com/news/2013/aug/12/us-budget-deficit-down-376-percent/

http://www.npr.org/templates/story/story.php?storyId=211398148

http://bigstory.ap.org/article/us-budget-deficit-down-376-percent-through-july

This is an interesting story... It'll be interesting to see how the different news and opinion sources spin it and who if anyone ignores it.


The numbers are numbers but given the political divide it's a virtual certainty that there will be radically different interpretations of it.


What say you Anandtech P&N?

*edited 2 add*

for a comparison to last year at approximately the same point in time.

For July, yes.

Let's hope the trend ends with such a percentage decrease in the yearly deficit.

Furthermore, let's see if it's ever possible to pay off even $1 of the national debt.