Posted on 07/09/2013 8:16:56 AM PDT by Sub-Driver
Harry Reid: Insufficient Government Spending Hurts U.S. Economy July 8, 2013 - 4:37 PM By Ryan Kierman
(CNSNews.com) – Senate Majority Leader Harry Reid said in a press release Friday that insufficient government spending, caused by Republican "austerity policies" is hurting the U.S. economy and preventing a quicker recovery.
“We need to continue advancing policies that spur growth and create jobs," Reid said. "It's time for Republicans to let go of their failed austerity policies that weigh down our economy and prevent a speedier recovery. We simply can't cut our way to prosperity."
During President Barack Obama's first three years in office (2009, 2010, and 2011), according to the White House Office of Management and Budget, the federal government spent 25.2 percent, 24.1 percent, and 24.1 percent of GDP. That level of federal spending was unprecedented during a period when the nation was not in a World War.
During the eight years that George W. Bush was president for example (2001-2008), the federal government spent 18.2 percent, 19.1 percent, 19.7 percent, 19.6 percent, 19.9 percent, 20.1 percent, 19.7 percent, and 20.8 percent of GDP. At no time, during the Bush years, did federal spending hit even as high as 21 percent of GDP.
In 2012, under President Obama, federal spending was 22.8 percent, down from the 24.1 percent the federal government spent in 2011, but still at a very high level. Since World War II, there have been only two years--other than when Obama was president--that the federal government spent more than 22.8 percent of GDP. Those years were 1982 and 1983, when the government spent 23.1 percent and 23.5 percent.
(Excerpt) Read more at cnsnews.com ...
Somebody slap his stupid face off!
We’ve been doing it your way for 5 years now.
And your way has FAILED miserably. Fiscal conservatism is the only proven way for long term fiscal growth.
Government Spending in North Korea is quite high as a percent of GDP.
Harry you asswad. The Federal Government is BROKE, BANKRUPT, IN THE TOILET........
You (actually the taxpaying citizens) are 17 TRILLION dollars in debt. Exactly what money do you want to spend you friggin idiotic piece of trash...................
And this is only because I am in a good mood this day..........
Ironically, I believe there is some truth to Harry’s comments these days and it’s not a good thing. It certainly isn’t the way he is trying to push it.
See, our government has become so bloated, that a great number of tax payers and private contractors are now dependent on government spending. The government has become so big that when we finally do get around to spending less, some of the ridiculous cash flow will have to be reduced. There will be a gap between until the private industry fills the gap (assuming that some day we are able to shrink government).
Imagine that you (the government) have to distribute rain water to citizens as their only means of hydration (keeping them alive). You have to collect and distribute the rain water in leaky buckets. You only have so many leaky buckets and can’t control when it rains. The people are dependent upon the government for their drinking water. This is how government is killing us today (economically).
1. The people should be collecting their own water.
2. Why does the government bucket leak so much?
3. Why does the government insist on only waiting for it to rain to collect the water?
4. Who gets the water first?
5. Who doesn’t get water at all?
For every 10% increase in government spending,
GDP FALLS 1%.
Cutting spending by less than 1% after you’ve raised it greater than at any other time in history is an “austerity policy”?
It seems that “The Central Planning Office”, of The New Amerikan Politburo, has found that the Peoples’ Donations are not being supplied with enough speed, to The Premier’s appointed Kommisars, to disburse to The Premier’s beloved programs.
The Premier has stated that The peoples’ Donations must be spread more quickly, to move The U.S.S.A. towards its New Era.
Dear Harry,
More certainly, government cannot print (as in printing dollars) a way to prosperity.
OMG this is NOT SATIRE !!!!
This idiot couldn’t put M&Ms in alphabetical order.
LLS
Government spending is mainly consumption expenditure rather than productive expenditure.When government spending is increased, it leads to increased demand for consumer's goods and lower demand for capital goods.
A lower relative demand for capital goods compared to demand for consumer's goods leads to reduced ratio of production of capital goods to production of consumer's goods, which leads to lower production of capital goods, which leads to lower supply of capital goods, which leads to less total productive ability overall, which leads to lower capital accumulation.
Nothing could be more destructive to the true interests of the economy as a whole in the long run,and the standard of living of the average wage earner, than to lower capital accumulation.
Example # 193,987,454,285 that Harry Reid is completely insane.
“We need to continue advancing policies that spur growth and create jobs”
Yeah, how about you stop stealing the money from people who create jobs? I dunno, call me crazy but I think you need money to hire people.
Yes, because if you take one dollar from a taxpayer who is producing something, anything (a house, a car, farm products, etc.)and spend it on some bureaucrat or sycophant who produces nothing, then common sense says that is not a good return on that dollar. But common sense or economic history never has been a companion of progressives.
Rather than argue with the TV set, I shut it off and left the room. Not sure what disgusted me more, the wonk, the reporter who didn't call him out on it, or the fact that low-info voters saw this and said "Yeah!!!".
re: “We simply can’t cut our way to prosperity.”
Senator Reid, when have we EVER really done that in the past 50 years?
Sigh. These “progressives” are such fools. Government spending can come from only three sources: 1.) taxing productive activity, thereby remove the tax monies from the private economy where it would be used in an efficient manner in one way or the other (either spent or saved), OR b.) borrowed, i.e., likewise removed from the private economy by selling government bonds to private individuals, OR c.) borrowed from the Federal Reserve Bank which conjures its “money” from thin air.
ALL three of these methods ultimately negatively impact the economy, though like heroin injection it seems like a good idea at the time when you first start doing it.
I think many “progressives” are too stupid to understand the above. But I think a greater number of “progressives” know full well the negative long-term impacts, but either a.) don’t care because staying in power by buying votes with other peoples’ or conjured money is more important than anything else, OR b.) they deliberately desire to destroy the U.S. with such financial destruction.
Let me get this straight. If I am in debt, I should get another credit card to pay for my debt?
Dingy Hairy must have gone to a publick schroul that passes students who think 2 + 2 = 5 or 7 or 9.
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