As I recall the visual of Newt Gingrich holding up his Congressional Voting Card and proclaiming it "the world's biggest credit card." and then sweeping Republicans to victory on the Contract With America, I wonder what happened internally in the GOP to go from wishing to amend the Constitution to forbid budget deficits to now using their control of Congress to end up with the largest budget deficit in US history, some $475 Billion (story.news.yahoo.com)
What's really impressive is that the $475 billion figure doesn't count the cost of Iraq and Afgahanistan. Count those in, and this year's deficit is well over half a trillion dollars - and, as a percentage of GDP, a point higher than the deficits the United States carried during the 89-93 recession which both parties agreed were untenable.
FWIW Palp, I respected Gingrich a hell of a lot more than most of the current lot of folks. I always had the sense he meant what he said, even if I disagreed with it. He struck me as an ideologue, but not as much of a liar. I'll take the former any day of the week, since at least then you know what you're dealing with and can choose whether to support or oppose accordingly.
Originally posted by godkingWhat's really impressive is that the $475 billion figure doesn't count the cost of Iraq and Afgahanistan. Count those in, and this year's deficit is well over half a trillion dollars - and, as a percentage of GDP, a point higher than the deficits the United States carried during the 89-93 recession which both parties agreed were untenable.
Actually, this isn't true. As a percent of GDP, the budget deficits were 4.8, 5.4, 5.5, and 4.6 percent in years 1990-93, respectively compared to the current deficit 0f 4.2 percent (and, in six of the past 20 years, the deficit has been higher--all times in which the economy was recovering from recession). Furthermore, it is a tenet of sound macroeconomic theory to run a deficit during a time of economic weakness (especially when conducting a war at the same time).
Lastly, who really cares what Congress deems as 'untenable' budget deficits. If Congress really felt the deficit was 'untenable' then they would do something about it since they do have *some* degree of power over the budget (it's called revealed preference).
1. Maybe less sarcasm around this forum, please (hint: if you feel the need to type "/sarcasm" after your funny joke because you're not sure anyone will get it otherwise...well, maybe it's not so funny and/or worth making) 2.