I looked at government spending and income as a percent of GDP. Bush (and Clinton to be fair) was obviously trying to spend about 20% of GDP as an annual budget. Income from taxes never got to 20% of GDP but, it was approaching that point before the 2008 crash.
Every single year Obama has been in office the Government has spent 25% of GDP (a 20% increase over Bush). Income under the Obama years has been close to 16% of GDP (hence the trillion dollar deficits).
In ay case, it is absolutely clear that the distance between income and outflow will not be closed by any spending cuts on entitlements. Military spending cuts and tax increases is the way to Obama’s Utopia. Obama’s game right now is to raise evryones taxes and then place the blame on the GOP. It’s simply no more complicated than that.
Of course, as intelligent people understand, raising taxes diminished economic activity. In other words, since the economy is not a static situation, a dollar of tax raised will not equate to an additional dollar of government revenue. Amongst other things, we necessarily will go into recession.
In the end, Obama’s goal is to destroy the republican party as a viable politcal entity by hanging the bad economy he creates around their neck. It’s a calculated risk but Obama is betting that when the dust settles, the Republicans will be blamed.
A compromise deal in front of the White House with Boehner and Obama shaking hands and smiling through forced grins is not coming. What’s coming is a big speech from Obama about how the GOP is radical and looking out only for the rich. The GOP will then be forced to make its speeches, too. Based on what I’ve seen dso far, Boehner’s speeches will likely come across as flat, weak, and defensive. Boehner is obviously ill-prepared for what he’s up against. He shows up to these things with a calculator. What he really needs to bring is a bad attitude, a PR team, and a great speech writing team. It’s politics, baby!!!
Next up for Obama comes the debt ceilig fight where the GOP will once again be accused of being radical for not simply signing up for trillions more in debt. Obama will have the politics on his side yet again but, the GOP will again have the math on their side. So far, having the math has been a feckless weapon which is painfully unfortunate for those of us who love this country. In any case, this is the game. We have no choice but, to play along and make our moves as best we can.
What poppycock. It’s over. The country is gone. Try to take everything you can from the dole while you can. We have reached the point of no return. I say this with a heavy heart
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