The Federal Deficit Is Actually Shrinking

  1. You have chosen to ignore posts from massmoderateJoe. Show massmoderateJoe's posts

    The Federal Deficit Is Actually Shrinking

    I listened to this on NPR earlier today and it took a while to find.  So grid lock is proving to be a good thing and lower tax rates appear to be creating higher tax revenues.  Who would of thunk it.

    The Federal Deficit Is Actually Shrinking

    May 01, 2013 4:17 PM

     

    During the housing bust, taxpayers were forced to bail out mortgage giants Fannie Mae and Freddie Mac. But thanks to the real estate recovery, Fannie Mae could end up paying tens of billions of dollars back to the Treasury this summer.

    That's just one of the factors behind a better bottom line for the federal government. This week, the Treasury Department announced it will pay down some of its debt for the first time in six years.

    Washington has been so preoccupied with warnings of exploding deficits in recent years that John Makin of the conservative American Enterprise Institute was caught off guard when he checked out the numbers.

    "I'm surprised that more people who talk a lot about it haven't looked carefully at where we find ourselves," he says.

    The federal deficit is shrinking rather quickly — both in absolute dollars and as a share of the overall economy. The Congressional Budget Office projects the deficit will drop below 4 percent of GDP next year and below 2.5 percent in 2015.

    Greg Valliere of Potomac Research says the improvement could come even faster, thanks to rising government tax receipts and shrinking government payouts.

    "There are two really big spending stories that are changing the fiscal outlook in Washington," he says. "The first is that there's no new spending. Anything the president proposes will get rejected by the House. Secondly, through sequester and other cuts, domestic discretionary spending is actually falling."

    In a way, policymakers backed into this shrinking deficit. Both the spending cuts and the tax increases are more the product of government stalemate than any deliberate action.

    Click on link for full story and audio link.

    http://www.npr.org/blogs/itsallpolitics/2013/05/01/180335095/the-federal-deficit-is-actually-shrinking

     

     
  2. This post has been removed.

     
  3. You have chosen to ignore posts from Sistersledge. Show Sistersledge's posts

    Re: The Federal Deficit Is Actually Shrinking

     
  4. You have chosen to ignore posts from massmoderateJoe. Show massmoderateJoe's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to A_Concerned_Citizen's comment:

    Ummm ya, except that's not the point of the article.

     

    In a way, policymakers backed into this shrinking deficit. Both the spending cuts and the tax increases are more the product of government stalemate than any deliberate action.

    The economy is paying a price in slower growth. Even some conservatives like John Makin of the conservative American Enterprise Institute are now warning that austerity has gone far enough.

    That lack of long-term thinking is a different kind of deficit that Washington has yet to overcome.



    ...and as I said grid lock is shrinking the deficit.  If the consequence is slow growth that's OK in my book.

     
  5. You have chosen to ignore posts from Sistersledge. Show Sistersledge's posts

    Re: The Federal Deficit Is Actually Shrinking

     
  6. You have chosen to ignore posts from massmoderateJoe. Show massmoderateJoe's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to Sistersledge's comment:

     

     

    “No man should receive a dollar unless that dollar has been fairly earned.” 
    ― Theodore Roosevelt


     

     
  7. You have chosen to ignore posts from Sistersledge. Show Sistersledge's posts

    Re: The Federal Deficit Is Actually Shrinking

    Joe , what does the 3 C's stand for in Teddy's Square Deal domestic program ?

    Btw do you mind if I address you as Joe just to save me from typing ..... I hate typing because I'm awful at spelling .

     

     
  8. You have chosen to ignore posts from tvoter. Show tvoter's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to massmoderateJoe's comment:

    In response to Sistersledge's comment:

     “No man should receive a dollar unless that dollar has been fairly earned.” 
    ― Theodore Roosevelt





    hear hear!!

     
  9. You have chosen to ignore posts from FortySixAndTwo. Show FortySixAndTwo's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to tvoter's comment:

    In response to massmoderateJoe's comment:

     

    In response to Sistersledge's comment:

     “No man should receive a dollar unless that dollar has been fairly earned.” 
    ― Theodore Roosevelt





    hear hear!!

     



    Hey now....it's hard work playing video games all day long on a 64" flat screen with surround sound!

     
  10. You have chosen to ignore posts from Sistersledge. Show Sistersledge's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to tvoter's comment:

    In response to massmoderateJoe's comment:

     

    In response to Sistersledge's comment:

     “No man should receive a dollar unless that dollar has been fairly earned.” 
    ― Theodore Roosevelt





    hear hear!!

     




    tvoter the only way you earn a "fair buck" is by redeeming cans and bottles .... btw oil the wheels on your shopping cart ... I can hear them squeaking when you walk by my house on recycling day .

     
  11. You have chosen to ignore posts from Sistersledge. Show Sistersledge's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to FortySixAndTwo's comment:

    In response to tvoter's comment:

     

    In response to massmoderateJoe's comment:

     

    In response to Sistersledge's comment:

     “No man should receive a dollar unless that dollar has been fairly earned.” 
    ― Theodore Roosevelt





    hear hear!!

     

     



    Hey now....it's hard work playing video games all day long on a 64" flat screen with surround sound!

     




    Hey you are profiling all those on BDC !

     
  12. You have chosen to ignore posts from FortySixAndTwo. Show FortySixAndTwo's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to Sistersledge's comment:

    In response to FortySixAndTwo's comment:

     

    In response to tvoter's comment:

     

    In response to massmoderateJoe's comment:

     

    In response to Sistersledge's comment:

     “No man should receive a dollar unless that dollar has been fairly earned.” 
    ― Theodore Roosevelt





    hear hear!!

     

     



    Hey now....it's hard work playing video games all day long on a 64" flat screen with surround sound!

     

     




    Hey you are profiling all those on BDC !

     



    D'oh! : )

     
  13. You have chosen to ignore posts from massmoderateJoe. Show massmoderateJoe's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to Sistersledge's comment:

    Joe , what does the 3 C's stand for in Teddy's Square Deal domestic program ?

    Btw do you mind if I address you as Joe just to save me from typing ..... I hate typing because I'm awful at spelling .

     



    Sis, I'm OK with Joe

     

    The Square Deal three C's

    “Our aim is not to do away with corporations; on the contrary, these big aggregations are an inevitable development of modern industrialism, and the effort to destroy them would be futile unless accomplished in ways that would work the utmost mischief to the entire body politic. We can do nothing of good in the way of regulating and supervising these corporations until we fix clearly in our minds that we are not attacking the corporations, but endeavoring to do away with any evil in them. We are not hostile to them; we are merely determined that they shall be so handled as to subserve the public good. We draw the line against misconduct, not against wealth.” 
    ― Theodore Roosevelt

    "The movement for the conservation of wild life and the larger movement for the conservation of all our natural resources are essentially democratic in spirit, purpose, and method."

    - President Theodore Roosevelt

    “We demand that big business give the people (consumers)a square deal; in return we must insist that when any one engaged in big business honestly endeavors to do right he shall himself be given a square deal.” 
    ― Theodore Roosevelt

     
  14. This post has been removed.

     
  15. You have chosen to ignore posts from massmoderateJoe. Show massmoderateJoe's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to A_Concerned_Citizen's comment:

    In response to massmoderateJoe's comment:

     

    In response to A_Concerned_Citizen's comment:

     

    Ummm ya, except that's not the point of the article.

     

    In a way, policymakers backed into this shrinking deficit. Both the spending cuts and the tax increases are more the product of government stalemate than any deliberate action.

    The economy is paying a price in slower growth. Even some conservatives like John Makin of the conservative American Enterprise Institute are now warning that austerity has gone far enough.

    That lack of long-term thinking is a different kind of deficit that Washington has yet to overcome.

     



    ...and as I said grid lock is shrinking the deficit.  If the consequence is slow growth that's OK in my book.

     

     




    So you like high unemlpoyment and untrained military forces, amongst other things?

     

    What's the fascination with debt?

    Especially at the expense of growth.



    Actually unemployment is slowly droping.

    Lower tax rates appear to be resulting in some more business activity and higher tax revenues.

    So we are working ourselves out of a whole without burdoning our grandchildren.

    The expense is slow growth vs. artificial growth.

     

     
  16. This post has been removed.

     
  17. You have chosen to ignore posts from skeeter20. Show skeeter20's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to A_Concerned_Citizen's comment:

    Ummm ya, except that's not the point of the article.

     

    In a way, policymakers backed into this shrinking deficit. Both the spending cuts and the tax increases are more the product of government stalemate than any deliberate action.

    The economy is paying a price in slower growth. Even some conservatives like John Makin of the conservative American Enterprise Institute are now warning that austerity has gone far enough.

    That lack of long-term thinking is a different kind of deficit that Washington has yet to overcome.



    The GDP formula was changed recently, inoluding such hard-to-value non-comodities like R&D and unrealized royalties, so, the statement thatthe dept is dropping as a percent of GDP is nonsense.  In real terms, it is growing worse.  GDP, as measured by the "old" formula, as in the formula used last week, when you adjust for federal borrowing, has been shrinking for years, probably about a decade.  During this time, spending has been going up, so, it is actually getting worse, so, the Feds changed the optics by changing the formula!

    As far as austerity, the idea that what you call austerity, that is, slowing the growth in the rise of unfunded spending, has somehow gone far enough, is laughable.  

    Government borrowing which cannot be paid back in the existing fiscal cycle is borrowing capital from future generations, and is making it appear that things are ok, but in truth, it is creating a bubble.  We sit on top of a bubble, filled with future capital, which is putting our spending  n the backs of our children.

    Sorry to burst your bubble, so to speak.

     
  18. This post has been removed.

     
  19. This post has been removed.

     
  20. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: The Federal Deficit Is Actually Shrinking

    "So, despite all the naysayers,  this is a good recovery."

    Say what?

    The recession ended in 2009..The Obama policies have led to the feeblest economic recovery since the Great Depression. ... of the lost jobs, by far the worst performance since World War II.

     
  21. You have chosen to ignore posts from ComingLiberalCrackup. Show ComingLiberalCrackup's posts

    Re: The Federal Deficit Is Actually Shrinking

    What spending cuts?

    There are no real cuts, just limits on future increases....

    Spending is still far higher than what it was when President Obama took office, and is expected to continue to grow. While spending is expected to go down when compared to expected increases, the actual dollar value of federal spending will still grow !!!

    Read more: http://newsbusters.org/blogs/dustin-siggins/2013/02/15/ny-times-news-analysis-pushes-spending-cuts-myth#ixzz2S9bUkNq7

     
  22. You have chosen to ignore posts from massmoderateJoe. Show massmoderateJoe's posts

    Re: The Federal Deficit Is Actually Shrinking

    In response to A_Concerned_Citizen's comment:

    In response to massmoderateJoe's comment:

     

    In response to A_Concerned_Citizen's comment:

     

    In response to massmoderateJoe's comment:

     

    In response to A_Concerned_Citizen's comment:

     

    Ummm ya, except that's not the point of the article.

     

    In a way, policymakers backed into this shrinking deficit. Both the spending cuts and the tax increases are more the product of government stalemate than any deliberate action.

    The economy is paying a price in slower growth. Even some conservatives like John Makin of the conservative American Enterprise Institute are now warning that austerity has gone far enough.

    That lack of long-term thinking is a different kind of deficit that Washington has yet to overcome.

     



    ...and as I said grid lock is shrinking the deficit.  If the consequence is slow growth that's OK in my book.

     

     




    So you like high unemlpoyment and untrained military forces, amongst other things?

     

    What's the fascination with debt?

    Especially at the expense of growth.

     



    Actually unemployment is slowly droping.

     

    Lower tax rates appear to be resulting in some more business activity and higher tax revenues.

    So we are working ourselves out of a whole without burdoning our grandchildren.

    The expense is slow growth vs. artificial growth.

     

     




     

    So, despite all the naysayers,  this is a good recovery.

     

    And your article says that tax increases is what's paying down the debt.

    Where does your theory that lower tax rates increases revenues? That's not mentioned in the article.

    How do you conclude that there is an increase in business activity? I didn't see that in the article either.

     



    Pay roll taxes went up, as the holiday ended.  Other Bush cuts are in place.  Unemployment pay outs are down due to both increased highering and the longterm discouraged dropping off, over all govt spending is down.  

    Business activity is fueling higher tax revenue.

    Debt as a percent of GDP is falling.

     

     
  23. This post has been removed.

     
  24. This post has been removed.

     
  25. This post has been removed.

     
Sections
Shortcuts

Share