Help needed regard Commerce Secretary Don Evans on Hannity today

none | me

[Republican Extremist]

Sean had Commerce Secretary Don Evans on today, who did an excellent job of putting the deficit into terms and percentages that were understandable.

Something about the deficit now is 5% of GDP, whereas it averaged "X" in the past 50 years

I was in my car, and want to get the facts and numbers he talked about.

Can anyone help, or point me to a source?

[eureka!]

If nobody here remembers, I think that Sean's shows are archived and can be reheard from his website...

[chiller]

I heard as well. Iirc, he said the target was under 2% , which would beat the 2.2% avg. Time frame, and whether they were talkng about discretionary spending is unclear though.

[Keith]

I use this argument all the time...we always hear about things like "record deficits". I guarantee you, the government will ALWAYS run record deficits.

Think of it like your home. As your house appreciates in value, you may borrow on the equity. If the equity keeps going up, you will keep borrowing out the value of it. Now, none of us want to keep doing this with our home, or a business, but a government will NEVER be run that way. It's a service provider and wealth-redistributor. I don't care how many Ronald Reagans we elect, that will never change. Some will be better than others, but that is the way it is.

But the important calculations mortgage lenders do is what that mortgage is versus your home value AND your income stream.

As long as our GDP keeps rising nicely, and the "income stream" is secure,(and rates stay low) then the deficit, even at these high levels, is manageable.

I'm not saying that it's a GOOD thing, but it's no "disaster waiting to happen." Unless you are a Democrat and it's an election year...funny how they suddenly get religion about deficits when they are on the outs...

[expat_panama]

He was probably talking about the budget deficit as a percentage of GDP (1/2 trillion divided by 10 trillion).  It's arguably lower if you say the deficit is the actual change in the debt from year to year (and not what congress had budgeted).   Then you get numbers like:

But when you use 'real-time' 2004 numbers, it changes from day to day.  So if the economy goes as sour as Kerry says it is, that 3% can go up to 5% easy.

[RJCogburn]

Number games.

The truth is the huge deficit is simply a manifestation of GWB's major expansion of government....bigger, more powerful, more intrusive.

He is a huge disappointment.

[Ben Ficklin]

According to an Overview of the fy2005 budget, it has averaged -2.2% over the last 40 years. Projected for 2004 is -4.5%; '05 is -3.5%; '06 is -2.1%; '07, '08, & '09 will be under -2%.

Overview of the President's 2005 Budget.

FY2005 Table of Contents

[Ben Ficklin]

"He is a big disappointment"

Did you learn that from Daschle? Show us YOUR spread sheet.

[RJCogburn]

Did you learn that from Daschle?

Sad that reflexive defense of this disappointing president is that the dems criticize him too.

[Ben Ficklin]

I wasn't speaking to any criticisms, only that your statement was so Daschle-esque.

[Republican Extremist]

That's what I need. Thanks!

[expat_panama]

Show us YOUR spread sheet

And the reason RJ doesn't show a spreadsheet is because he has none.  These days, the way most people approach economics, climate change, Y2K, or whatever is by first choosing a belief, and then calling any numbers that disagree with the beliefs 'number games'.

How to handle people like this?   When I run into them outside the Freerepublic, I usually end up saying "I don't need any new workers right now but I'll call you if something opens up".

[Glenn]

% of GDP is a farce. Money is money. You spend more than you have, you pay foreign bond holders interest. We should live within our means.

[RJCogburn]

first choosing a belief

Right...such as limited constitutional government, an outdated concept for some of the apologists.