The American Spectator : Happy Deficit Day

Text Size

Happy Deficit Day

By Doug Bandow on 8.12.09 @ 6:08AM

It's also known as Cost of Government Day, which this year is today, as government has just seized another month of your life.

(Page 2 of 2)

"According to a report by the Congressional Budget Office (CBO), it would have increased total spending by $2.7 trillion over ten years over the current baseline, including interest. This would amount to an increase of $9,000 for every American. Furthermore, federal spending under the President's budget would increase from 23.6 percent of GDP in 2011 to 24.5 percent in 2019, significantly above the 40 year average of 20.7 percent. In 2009 alone it would total 28.5 percent of GDP and reach 25.5 percent in 2010."

Indeed, the presidential budget is merely a starting point. Historically outlays always end up well above projections. Moreover, a number of financial storm clouds continue to billow around us, likely to lead to new proposals for additional bailouts, stimuli, and other forms of spending.

For example, despite the Bush administration's fevered demand that Congress approve $700 billion to buy up "toxic assets," the so-called TARP program purchased no toxic assets, instead providing cash to banks and bailing out the auto industry. Yet the problem of bad investments remain, as much as $4 trillion worth, according to the International Monetary Fund. Should the economy head back down, calls for another bailout are inevitable.

Freddie Mac and Fannie Mae continue to lose money. Another mortgage institution, focused on agricultural land ("Farmer Mac"), has lost money on financial derivatives. Defaults are rising for the Federal Housing Administration, leading to talk of a bailout. The Pension Benefit Guaranty Corporation, which insures private pension programs, has been running a deficit and likely will need more money as more companies fail. The FDIC has been shutting banks at a record rate -- 72 as of Monday, compared to 25 last year and three in 2007 -- and will require a cash infusion. And on it goes.

Congress continues to debate health care "reform," conservatively estimated to cost $1-$1.5 trillion over the next ten years. However, Stephen T. Parente of HSI Network LLC figures that the legislation currently under consideration likely would cost between $2.1 and $2.4 trillion over the coming decade. Moreover, the Congressional Budget Office (CBO) acknowledges that its forecasts run for only a decade; future costs are likely to increase at a faster rate, destroying whatever budget discipline Congress might attempt to impose on the program at the outset. Indeed, estimates for social programs and especially health care initiatives almost always have proved to be ludicrously low. Which is how Social Security and Medicare have come to have an unfunded liability of $107 trillion. Without reform, these two programs will eat up an ever larger share of the budget.

In June CBO declared:

Under current law, the federal budget is on an unsustainable path -- meaning that federal debt will continue to grow much faster than the economy over the long run. Although great uncertainty surrounds long-term fiscal projections, rising costs for health care and the aging of the U.S. population will cause federal spending to increase rapidly under any plausible scenario for current law. Unless revenues increase just as rapidly, the rise in spending will produce growing budget deficits and accumulating debt. Keeping deficits and debt from reaching levels that would cause substantial harm to the economy would require increasing revenues significantly as a percentage of gross domestic product (GDP), decreasing projected spending sharply, or some combination of the two.

It is time to panic.

The news at the state and local level is better, but only because it is harder for these governments to deficit spend. They can play accounting tricks and float bonds, as has hyper-profligate California, but there is a limit to use of these tactics. None compare to running the federal printing press.

Nor is the federal regulatory burden likely to ease. To the contrary, the administration is pushing a new financial regulatory system. Passage of health care "reform" would add another layer of federal dictates to American medicine. New energy and environmental rules also threaten: the so-called "cap and trade" program would impose an enormous load on the economy.

Finally, the usual regulatory cost estimates underestimate the impact on the economy. Explains Ciesielska:

Not counted are the negative economic effects of regulatory requirements. These hidden costs stifle the growth of the economy because they introduce inefficiencies and distortions and reduce the economic reward left over for productive activity. Regulations may prevent new firms from entering the market or stop existing ones from expanding. They may even force some existing firms out of business altogether. The end result is a reduction in overall output, fewer jobs, lower wages and suppressed economic growth.

The total losses likely are huge, as much as another $1.5 trillion a year, according to regulatory economists at Washington University in St. Louis. The amount of lost economic output will continue to grow over time.

Unless we change course, COGD is headed skyward. Even if COGD dips next year after the bailout flood ebbs, the date will remain historically high. And it is only likely to rise again in the future. "The era of big government is over," intoned Bill Clinton more than 13 years ago. In truth, the era of big government was only beginning.

Page: < 12

topics:
Government Growth, Regulation

About the Author

Doug Bandow is a Senior Fellow at the Cato Institute and the Senior Fellow in International Religious Persecution at the Institute on Religion and Public Policy. A former Special Assistant to President Ronald Reagan, he is author of Beyond Good Intentions: A Biblical View of Politics (Crossway).

Letter to the Editor View all comments (19) | Leave a comment

Baume Mercier| 8.12.09 @ 7:08AM

Baume Mercier watches

Neil S.| 8.12.09 @ 7:25AM

THE US DECLINE

He's borrowing and spending like never
To lock in his doctrines forever
(And reward his supporters, in fact).

But the President will someday come to regret
That his doctrines have crushed our children
with debt.

Does a fallen Power ever come back?

William| 8.12.09 @ 6:43PM

@ Neil S - I enjoyed the poem if not the facts behind it.

In answer to your question, there was a riddle within the defunct Soviet Union addressing their own economic and social derangements which asked: "If you boil an aquarium you will have fish soup. If you let the soup cool, will you have an aquarium again?"

William| 8.12.09 @ 6:49PM

This is an excellent article. I appreciate the fact that it lays out GOP culpability alongside of the Democrats. Again I say that the Democrats and Republicans are analogous to the Bolsheviks and the Mensheviks repectively. One is more radical, one is more Fabian, both are deadly poison to liberty and prosperity.

May both the GOP and the Democratic Party both sink into oblivion, and may I live long enough to see it.

Rothschild Looting| 8.12.09 @ 7:10PM

THE ANTI-CHRIST

In our study of prophecy we lay much stress on the "Second Corning of Christ," forgetting that there are two other comings of "individuals" that are just as momentous as Christ's coming. The first is that of the Antichrist, and the other is that of Satan.

In both the Old and New Testament we are told of a "Mysterious and Terrible Personage" that shall be revealed in the "Last Times." He is described under different names and aliases, and it is only by a careful examination and comparison of these names, and the Person they describe that we see that they refer to one and the same individual. These names are-

In the Old Testament.
Ezekiel 28

"Prince of Tyrus" and "King of Tyrus"

Daniel 7,8,9,11

"The Little Horn.", "A King of Fierce Countenance.", "The Prince that Shall Come.", "The Wilful King."

In the New Testament.
2 Thessalonians 2,

"The Man of Sin.", "Son of Perdition.", "That Wicked."

1 John 2:18,

"Antichrist"

Revelation 13

"The Beast."

Jesus also made a prophetic reference to him. John 5: 43 when the Jews rejected Jesus is their Messiah, when the Antichrist comes they will accept him.

43. I am come in my Father's name, and ye receive me not; if another shall come in his own name, him ye will receive.

His Personality.

The Apostolic Church believed that Antichrist was to be a "person," the embodiment of human blasphemy and wickedness, but toward the close of the Twelfth Century many began to look upon the Pope as Antichrist, and this view has been largely advocated by Protestant commentators. The arguments in favour of this view are ingenious and plausible, but they are hard to reconcile with the Word of God. This view makes Antichrist a "System" rather than a Person, and would see in the "Papal System" the Antichrist. But this is disproved by the Word of God. The Papal System although it plays a major part in bringing the Anti-Christ to power, is NOT the Anti-Christ.

The Apostle John says in 1 John 2:22 and 1 John 4:3;

22. Who is a liar, but he that denieth that Jesus is the Christ? He is Antichrist, that denieth the Father and the Son.
3. Every spirit that confesseth not that Jesus Christ is come in THE FLESH (His Deity) is not of God; and this is that spirit of Antichrist.

Judaism has denied that "Jesus is the Christ," and Unitarianism that He has "come in the flesh," but the Papacy never. The Church of Rome has always confessed "I believe in God the Father Almighty, maker of heaven and earth, and in Jesus Christ, His only Son, our Lord."

All Protestant commentators insist that the "Papal System" is described in Revelation 17: 4, 5.

4. And the woman was arrayed in purple and scarlet colour, and decked with gold and precious stones and pearls, having a golden cup in her hand full of abominations and filthiness of her fornication:
5. And upon her forehead was a name written, mystery, Babylon the great, the mother of harlots and abominations of the earth.

This is undoubtedly true, but this "Woman," the "Mother of Harlots," is represented as riding upon a "Beast," universally admitted to be the Antichrist. If the "Beast" is the Antichrist, the "Woman" cannot be, and that they are separate and do not signify the same thing is clear.

Again the Antichrist, as the "Man of Sin" is described in Daniel 11:36,37 and 2 Thessalonians 2:4 as follows;

36. And the king shall do according to his will; and he shall exalt himself, and magnify himself above every god, and shall speak marvellous things against the God of gods, and shall prosper till the indignation be accomplished: for that that is determined shall be done.
37. Neither shall he regard the God of his fathers, nor the desire of women, nor regard any god: for he shall magnify himself above all.
4. Who opposeth and exalteth himself above all that is called God, or that is worshipped; so that he as God sitteth in the temple of God, shewing himself that he is God.

However false and impious the claims of the Papacy, it always recognises its subordination to God, and the Pope's highest claim is that he is the "Vicar of Christ." Following on we must also look at Revelation 13:3-4.

3. And I saw one of his heads as it were wounded to death; and his deadly wound was healed: and all the world wondered after the beast.
4. And they worshipped the dragon which gave power unto the beast: and they worshipped the beast, saying, Who is like unto the beast? who is able to make war with him?

The Papal System worships the Virgin and the Saints, but it is not true that it worships the Devil. Now look at Revelation 14:9-11.

5. If any man worship the Beast and His Image, and receive his mark in his forehead, or in his hand, the same shall; drink of the wine of the Wrath of God.....and he shall be tormented with fire and brimstone;......and the smoke of their torment ascendeth up forever and ever…and they have no rest day nor night, who worship the Beast and His Image, and whosoever receiveth the mark of his name.

If the Papal System is the Antichrist, it follows from the above that all its worshippers, instead of being saved, are doomed to eternal torment. Again, the Lord, who destroys Antichrist at His Coming, comes to Jerusalem, not to Rome, the seat of the Papal System.

While there are many things in the history of the Church of Rome, and in the conduct of her Popes that foreshadow the Antichrist, yet it is clear from the preceding scriptures that the Papal System is not the Antichrist, and that these scriptures can only be fulfilled in the person of some Individual yet to appear.

The Antichrist is not a Rival or Counterfeit Christ, he is an Opposing Christ. This is clearly seen when we compare him with Christ in a series of Contrasts.

Christ came from Above. John 6: 38
Antichrist comes from the earth. Revelation 13: 1.

Christ came in His Father's name. John 5: 43
Antichrist comes in his own name. John 5: 43.

Christ Humbled Himself. Phil. 2: 8
Antichrist Exalts himself. 2 Thessalonians 2: 4.

Christ Despised. Isaiah 53: 3; Luke 23: 18
Antichrist Admired. Revelation 13: 3, 4.

Christ Exalted. Philippians 2: 9
Antichrist cast Down to Hell. Isaiah 14: 14, 15; Rev. 19: 20.

Christ to do His Father's will. John 6: 38
Antichrist to do his Own will. Daniel 11: 36.

Christ came to save. Luke 19: 10
Antichrist comes to Destroy. Daniel 8: 24.

Christ is the Good Shepherd. John 10: 4-15
Antichrist is the Idol (evil) Shepherd. Zechariah 11: 16,17.

Christ is the "True Vine." John 15:1
Antichrist is the "Vine of the Earth." Revelation 14:18.

Christ is the "Truth." John 14: 6
Antichrist is the "Lie." 2 Thessalonians 2:11.

Christ is the "Holy One." Mark 1: 24
Antichrist is the "Wicked One." 2 Thessalonians 2: 8, (R.V. says Lawless)

Christ is the "Man of Sorrows." Isaiah 53: 3
Antichrist is the "Man of Sin." 2 Thessalonians 2: 3.

Christ is the "Son of God." Luke 1: 35
Antichrist is the "Son of Perdition." 2 Thessalonians 2: 3.

Christ, "The Mystery of Godliness," is God manifest in the flesh. 1 Timothy 3: 16
Antichrist, "The Mystery of Iniquity," will be Satan manifest in the flesh. 2 Thessalonians 2:7.

The Jewish Assassins in USA| 8.12.09 @ 7:38PM

David Duke on the Barack Hussein Obama assassination threat
David Duke correctly states that Obama’s assassination would be disastrous for white America. He also correctly cites examples of anti-white discrimination in America. So far so good; Duke establishes credibility with his target audience. David Duke then goes on to describe the assassination of John Fitzgerald Kennedy:

I am old enough to remember the shock and horror of the Kennedy assassination. At the time of his death the people of the South overwhelmingly despised Kennedy. He was loved by a segment of Americans, but he was detested by just as many Americans who hated his plans to change our immigration laws and open our borders. Millions thought rightly that his proposals for forced integration and busing would eviscerate the nation’s public school systems, destroy the vitality of our inner cities and result in massive criminal victimization of Whites. His unpopularity was shown even on the day he died, for the streets of Dallas were practically empty as his fateful motorcade went past. The assassination changed all that.

Even before it was alleged that a radical communist who had traveled to Cuba and Soviet Russia had done the foul deed, newspapers headlined, “Hate killed Kennedy.”

Before his assassination, Kennedy’s immigration reform bill was dead in the water. His Immigration Reform Act was a bill that discriminated against European immigration and favored Third World immigration. Kennedy’s also sponsored forced integration initiatives, so-called “civil rights legislation.” They also languished in congress. The great majority of Congress opposed these racist, anti-White bills. Prophetic senators and congressmen said that the legislation would actually diminish the civil rights of Whites and eventually result in massive discrimination against European Americans. Time has proven them painfully correct.

After the fatal bullets were fired in Dallas, even though the alleged communist assassin supported those very same leftist policies, it was only a matter of time before all of Kennedy’s pernicious legislation passed and America was well on the road to demographic Armageddon. The Kennedy assassination also brought on the first laws in violation of the Second Amendment, our vital right to keep and bear arms. It also brought a change to American policy toward Israel. Perhaps one redeeming trait of Kennedy was his intense opposition to Israel getting the atomic bomb. My good friend Mike Piper of the Barnes Review, in his books, shows the involvement of many Israeli operatives in the very center of the conspiracy theories surrounding the assassination.

Note a few things about the JFK assassination that Duke tells us. Duke says that ‘the streets of Dallas were practically empty as his fateful motorcade went past.’ In reality, the streets were crowded, but JFK’s motorcade turned a corner and suddenly the crowd thinned. The Jews had it cleared to facilitate JFK’s assassination.

Duke tries to make it look like JFK was a key player behind the immigration reform bill and the civil rights legislation whereas Jews were the prime force behind them both.

Duke has nothing to say about Lee Harvery Oswald except that he was the alleged communist assassin and refers to another agents of the Jews, Mike Piper, who has described the involvement of ‘of many Israeli operatives in the very center of the conspiracy theories surrounding the assassination.’ In reality, the JFK assassination was entirely planned and orchestrated by the Jewish crime network.

David Duke had a good chance to show that just as the Jewish crime network killed JFK, if Obama is assassinated, rest assured, the Jewish crime network will be almost certainly behind it, but Duke misses this opportunity. Why? Because he is an agent of the Jews. He will provide us with some facts and mix it with lies his Jewish handlers want him to propagate.

Duke does allude to the possibility of Israeli involvement in Obama’s potential killing:

Revolution on the rise| 8.12.09 @ 7:43PM

They have assassinated all of American presidents who opposed the FED.

jordan 6 rings| 8.12.09 @ 8:30PM

One is more radical, one is more Fabian, both are deadly poison to liberty and prosperity. May both the GOP and the Democratic Party both sink into oblivion, and may I live long enough to see it.

S.L. Toddard| 8.12.09 @ 9:05PM

My my - the neoconservatives sure are "concerned" about deficits. Here's an easy way to tell whether or not they are sincere:

When George W Bush took office, Clinton handed him a $232 billion budget surplus, and the national debt stood at $5.7 trillion. George W Bush left office with an annual budget *deficit* of over $1 TRILLION dollars and the national debt stood at $10.6 TRILLION DOLLARS. That means George W Bush added almost as much to the national debt as ALL THE PRECEDING PRESIDENTS COMBINED.

Now, which pretend-enemies of "big government" and "big spending" here opposed this president while he was spending up a storm and running up the national debt as much all the American presidents in history combined? Who fought against his re-election? Who here fought against his reckless-spending party - which held both houses of congress through most of this time - and supported a Conservative instead of a Republican last election?

If you didn't - which is to say if you supported this fiscally irresponsible, wasteful, big spending party that ran up a trillion dollar budget deficit and nearly doubled the national debt - then your objections to the big government policies and fiscal irresponsibility of Barack Obama are - quite obviously - laughable and not to be taken seriously. Such people are called "opportunists" - they are inconsistent, dishonorable, dishonest, unpatriotic and - obviously and inarguably - *unconservative*. For what else can you call someone who supports reckless spending and unrestrained gov't growth when their party is responsible but a cynical liberal?

Anti Christ gains controlof US| 8.12.09 @ 9:34PM

THE ANTI-CHRIST

In the Old Testament.
Ezekiel 28

"Prince of Tyrus" and "King of Tyrus"

Daniel 7,8,9,11

"The Little Horn.", "A King of Fierce Countenance.", "The Prince that Shall Come.", "The Wilful King."

In the New Testament.
2 Thessalonians 2,

"The Man of Sin.", "Son of Perdition.", "That Wicked."

1 John 2:18,

"Antichrist"

Revelation 13

"The Beast."

Jesus also made a prophetic reference to him. John 5: 43 when the Jews rejected Jesus is their Messiah, when the Antichrist comes they will accept him.

43. I am come in my Father's name, and ye receive me not; if another shall come in his own name, him ye will receive.

His Personality.

The Jews Rejected Christ| 8.12.09 @ 9:37PM

The Jews rejected Christ and about to build a temple to Satan in Isreal with American taxes.

Justin Roether| 8.12.09 @ 9:56PM

S.L. - In support of your argument I suggest you view this chart http://zfacts.com/p/318.html that shows our national debt as a percentage of gross domestic product during presidency's since the depression. To the contrary I believe the difference lies in taxation on the American people considering this chart http://www.truthandpolitics.org/top-rates.php. Either way I am thankful for the right-wing perspective to provide an "other side" to our mainstream media.

William| 8.12.09 @ 11:08PM

@ S. L. Toddard - I am a paleoconservative. I realized the grassroots conservative movement had been highjacked with the inauguration of Bush Mk I - "New World Order", kinder gentler, etc. I have never supported the "Patriot Act" or DHS either, as these are yet more Statist tumors metastisizing through our system.

So, to summarize - go fuck yourself.

PS - please take the "Protocols of Zion freak with you. The freak can take pictures.

Petya| 8.16.09 @ 7:41AM

台大翻譯社是國內最久翻譯社已營業十年翻譯社的業務有翻譯社美語法語翻譯社德語日語翻譯社英文翻譯社等服務大陸新娘孝順公婆越南新娘去買菜外籍新娘學中文

嫁來台灣的大陸新娘是非常孝順的外籍新娘在家照顧家人越南新娘真的很幸福大陸新娘在家中打理一切外籍新娘是非常賢慧的越南新娘把家裡整理的很

mld| 8.18.09 @ 3:59PM

We need tax policies that preserve America’s global competitiveness, and we need to oppose policies that reduce businesses’ ability to grow. Make the tax system simple and fair. A successful economy encourages investment and rewards achievement. It would be the height of economic folly to target any group for a major tax increase. http://www.friendsoftheuschamber.com/takeaction/index.cfm?ID=42

fake watches paypal| 12.9.09 @ 3:00AM

Nice article!
Our web sells the excellent fake watches paypal at cheap price.Welcome to choose.
Thank you!

poptropica | 4.9.10 @ 12:15AM

I’ll have a Poptropica full written walkthrough very soon, but in the meantime, here are some answers to some of the frequently asked questions about Mythology Island. Having trouble? Post a question in the comments and I’ll try to answer it!
Getting Hercules to Help You Poptropica

Hercules won’t help you until you have all five items from Zeus’ quest. Once you have the five items, bring them to Athena. Zeus will appear and steal them. The big jerk! Once this happens, talk to Athena and she will tell you that Hercules will help you. You’ll need to have the magic mirror from Aphrodite because Hercules doesn’t want to have to walk. He’s so lazy!
Getting the Hydra Scale Poptropica

You can see how to do this in the videos, but basically you need to jump up when the Hydra is about to strike. He will rear one of his heads back to attack and his eyes will bulge out. Poptropica When this happens, jump up in the air and then try to land on top of his head. That head will get knocked out. When all five heads get knocked out, the Hydra will be asleep and you can click on him to get one of the scales. Poptropica I’ll have a full written walkthrough very soon, but in the meantime, here are some answers to some of the frequently asked questions about Mythology Island. Having trouble? Post a question in the comments and I’ll try to answer it!
Getting Hercules to Help You

Hercules won’t help you until you have all five items from Zeus’ quest. Poptropica Once you have the five items, bring them to Athena. Zeus will appear and steal them. The big jerk! Once this happens, talk to Athena and she will tell you that Hercules will help you.Poptropica. You’ll need to have the magic mirror from Aphrodite because Hercules doesn’t want to have to walk. He’s so lazy!
Getting the Hydra Scale

You can see how to do this in the videos, but basically you need to jump up when the Hydra is about to strike. He will rear one of his heads back to attack and his eyes will bulge out.Poptropica When this happens, jump up in the air and then try to land on top of his head. That head will get knocked out. When all five heads get knocked out, the Hydra will be asleep and you can click on him to get one of the scales. Poptropica