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An Adjoinder

December 19, 2011

A quick word about the level of federal spending: the level of public federal debt (according to this socialist website here) stood at $10,024,724,896,912.49 at the end of 2008, and at $13,561,623,030,891.7 at the end of 2010. Undoubtedly, this is a massive increase in the level of debt, and no American should be happy that it grew so quickly in two short years (and has since grown). However, to blame it upon the Democratic White House is far too simplistic. As mentioned above, the stimulus spending didn’t even account for a trillion dollars. Furthermore, policies such as rescuing the auto industry and bank bailouts obviously cost the US Treasury. Deeper than that however, is simply the huge contraction experienced in the American economy, which logically decreases taxation revenue. Less business is being conducted; as a result effective demand is weaker and less people are employed. Those unemployed workers are not only not contributing towards income tax, but are the recipients of government welfare, which further costs the budget. There’s also less revenue from other taxes; consumption tax being the most obvious. Oh and the cost of America’s two wars rages on – that you can blame the Democrats for.

As a side note, yeah, the US is “out” of the Iraq war, and by “out” they mean still continuing to employ over 5000 private contractors.

After a while you begin to realise that politicians aren’t just unaware, ignorant or opportunistic, many of them are simply willfully complicit in a corrupt system.


From → Economic, Political

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