Government Still Spending Like Drunken Sailors

My apologies to drunken sailors!

from IBD:

No, Tax Cuts Are Not Driving Deficits — It’s The Spending, Stupid

Are President Trump’s massive tax cuts what’s driving federal deficits upward. Everyone says so. But, it’s not true. It’s just a way for lawmakers to distract the public while they crank up the spending machine. Just like the Senate did this week.

Earlier this week, Trump’s top economic advisor, Larry Kudlow, gave a talk at the Economic Club of New York in which he said that tax cuts aren’t to blame for deficits.

“People are quick to blame deficits on tax cuts, but I don’t buy that,” he said. “The gap is principally spending too much.” read more

Janet Yellen sees Nothing Wrong with Massive Entitlement Spending

by: Brent Smith at the Common Constitutionalist

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In 2015, about 65% of the entire federal budget of $3.8 trillion was spent on entitlements like Social Security, Medicare, Medicaid, housing assistance, and such. But this can’t possibly be the cause of the national debt and permanent deficit spending. No – of course not. It’s the Trump tax cuts that are killing us. The fact that they’re only months old is completely immaterial.

The socialist Nanny-State has been constructed over a period of about 80 years, where as tax cuts have been few and far between, happening only four times since JFK initiated the first. Yet are we expected to believe that it is not entitlements which are blowing up the budget, but tax cuts.

Now what idiot would believe such a thing? Unfortunately, considering the source of the claim, many will tend to believe such a ridiculous assertion.

And the source is none other than Janet Yellen, former Chief of the Federal Reserve. She also served as Chair of President Bill Clinton’s Council of Economic Advisers – so she’s got that going for her. read more

Government Knows Only One Thing – How to Spend

from Constitution.com:

Rand Paul is Right – Paul Ryan’s Bi-Partisan Budget Deal is a Disaster

Apparently, fiscal conservatism is dead. Long live spending without consequences and uncontrollably ballooning deficits.
Early Friday morning (around 4 am), Congress passed Paul Ryan’s bi-partisan budget deal that will stave off another government shutdown for at least the next two years.

It was an unexpected nail-biter: After a short “technical” shutdown, Congress early Friday passed a measure that would raise spending levels by $300 billion over the next two years. read more

Republicans Fiscal Hawks – Oh Please!

from the Daily Wire:

WHILE YOU WERE SLEEPING: Government Shutdown Begins And Ends, Republican Congress Authorizes Trillion-Dollar Deficit

Unicorns.

Leprechauns.

Fiscal conservatives.

All of these are figments of the imagination. But fiscal conservatives continue to haunt the darkened hallways of American politics, every so often materializing to shout “BOO!” at the party in power, only to recede into the shadows as soon as they are called upon to actually govern. How else to explain the sheer cowardice of a Republican Party that just passed a massive budget increase, then cheered it as the very model of a modern budget victory?

ABC News breaks down the bill: read more

So Why Are We Always Broke?

by: the Common Constitutionalist

A new report appears to show bad news on the financial front  as “the federal budget deficit this year will increase in relationship to the overall size of the economy for the first time since 2009 and continue to grow over the coming decade.” The Congressional Budget Office (CBO) estimates that the deficit will grow by an additional $105 billion, totaling $544 billion for 2016.

In August the same CBO estimated the 2016 deficit to be around $414 billion. Still a lot but nowhere near the revised estimate. So what happened between then and now? Simple – a republican sanctioned shopping spree to the tune of an additional $2 trillion in December. Remember that? Oh sure, republicans say they are also instituting spending cuts, but there aren’t.

Now, in the grand scheme of things, whether we add $400 or $500 billion of deficit spending, the difference won’t make a hill of beans worth of difference. Not with a debt load of around $20 trillion and unfunded mandates approaching a quarter of a quadrillion dollars. That’s a two, a five and 13 zeros. What’s a few hundred billion?

It is potentially so bad that the CBO says, “The likelihood of a fiscal crisis in the United States would increase” without appropriate action,” the CBO study said. “There would be a greater risk that investors would become unwilling to finance the government’s borrowing needs unless they were compensated with very high interest rates; if that happened, interest rates on federal debt would rise suddenly and sharply.” read more