Thursday, January 29, 2009
The main question he asks and then answers is this: How did we ever get to this point where bad science is driving big government we have to struggle so to stop it?
Wednesday, January 28, 2009
There is a secret program lurking within the Obama-Pelosi-Reid Debt bill. You won’t find it listed in the table of contents, or anywhere else for that matter. Yet it will cost taxpayers an additional $347.1 billion over the next decade.
It starts out at the relatively modest level of $700 million in 2009, but rises inexorably thereafter—to $4.1 billion in 2010, $11.1 billion in 2011, $22.0 billion in 2012, $31.9 billion in 2013, $37.5 billion in 2014, $42.1 billion in 2015, until it reaches $53.6 billion in 2019.
We’re talking about the interest charges that will be required to finance the $825 billion cost of the debt bill. We learned this today in a letter that Congressional Budget Office Director Douglas W. Elmendorf sent to the senior Republican on the House Budget Committee, Rep. Paul Ryan of Wisconsin.
Here is the relevant part:
Under CBO’s current economic assumptions and assuming that none of the direct budgetary effects of H.R. 1 are offset by future legislation, CBO estimates that the government’s interest costs would increase by $0.7 billion in fiscal year 2009 and by a total of $347 billion over the 2009-2019 period.
So when you hear politicians talk about the $825 billion ten-year cost of this legislation, keep in mind that it masks these unavoidable interest costs, bringing the total ten-year cost to at least $1,172,000,000,000.00.
The debt that gives rise to $53.6 billion in interest costs in 2019 alone, moreover, will not magically disappear in 2020 or beyond. Thus, the real cost of the debt bill will grow and compound over the years so long as that debt remains unpaid
Tuesday, January 27, 2009
Monday, January 26, 2009
Friday, January 16, 2009
The Congressional Budget Office announced last week that the federal deficit for 2009 would be $1.2 trillion-as a share of the economy, the largest since World War II. Responding to that staggering sum, President-elect Barack Obama warned that without decisive action, "trillion-dollar deficits will be a reality for years to come."How much is $1.2 trillion? To put the deficit in perspective, we thought of a few unrealities that carry a similar price tag: * For the sake of our children: 4.8 billion Nintendo Wiis.* What really does the body good: 300 billion gallons of milk.* Love thy neighbor: everything produced in Canada in one year.* Monopolize: purchase Exxon Mobil, General Electric, Microsoft and Wal-Mart.* IS our children learning?: fund the entire education system, Kindergarten through college, for one year.* Second time's a charm: pay for the entire War in Iraq twice over.* At the pump: free gasoline for all Americans for the next five years.* At the box office: one free movie ticket for every American, every single day.* I.O.U.'s: pay back all the money we owe to China and Japan.* Reverse the Ponzi: compensate all of Bernard Madoff's defrauded investors with a 2000% rate of return.A recent article in The Christian Science Monitor provides some additional spending scenarios. For example, according to CSM: "If the sum were calculated as a traditional 30-year fixed-rate mortgage, Uncle Sam would have to write a monthly check for $6.7 billion. That would be enough to pay the mortgage on about 10 percent of the nation's homes each month."PGPF's Manager of Research & Analysis Matthew Helm told CSM that "another way to view the $1.2 trillion deficit is in terms of citizens and households. It works out to $4,000 per citizen, or $10,000 per household.
"For more information: http://www.cbo.gov/ftpdocs/99xx/doc9958/01-08-Outlook_Testimony.pdfhttp://www.nytimes.com/2009/01/08/business/economy/08deficit.html?_r=1&scp=2&sq=deficit&st=csehttp://features.csmonitor.com/economyrebuild/2009/01/14/what-does-a-12-trillion-budget-deficit-look-like/