Cato: Mountain of Debt

[spursncowboys]

‘Mountain of Debt’ (http://www.cato-at-liberty.org/2010/08/12/mountain-of-debt/)

Posted by Tad DeHaven (http://www.cato.org/people/tad-dehaven)
The White House Office of Management and Budget (http://www.whitehouse.gov/omb/) homepage currently features the following quote from the president:
http://www.cato-at-liberty.org/wp-content/uploads/201008_blog_dehaven121.jpg
President Obama says he wants to “invest in our people without leaving them a mountain of debt.”
That’s a curious statement because the Congressional Budget Office’s analysis of the president’s current budget proposal projects that publicly held debt as a share of the economy would reach levels last seen at the end of the Second World War.
When the CBO’s numbers are plugged into a bar chart, the projected Obama debt levels (red bars) look like…the upward slope of a mountain (!):
http://www.cato-at-liberty.org/wp-content/uploads/201008_blog_dehaven122.jpg
To be fair, Obama’s predecessors — particularly the previous Bush administration — share in the responsibility for the mountainous rise in federal debt. However, that’s all the more reason for the Obama administration to work toward a peak instead of a steeper incline.

[Parker2112]

SNC, what did we determine about the osama guy?

[spursncowboys]

you keep bringing that up in the wrong topic. Why?

[Ignignokt]

SNC, what did we determine about the osama guy?

Why shit on him if he has a good point?

[Nbadan]

I'd like to have a chicken that lays golden eggs...big f deal

The CATO continues to undermine its own credibility..

[spursncowboys]

2012=73%

we need some hope and change like yesterday.

[ElNono]

...projects that publicly held debt as a share of the economy would reach levels last seen at the end of the Second World War....

I'm sure they would have loved to use the phrase 'levels never seen before' instead.

But I digress, if this is anything like the end of the second world war, then the economy should be recovering anytime now... what's wrong with that?

[Supergirl]

http://www.thedailyshow.com/watch/wed-august-11-2010/deductible-me

I love it when Jon Stewart points out the ridiculous hypocrisy of the Republicans...

Deficit=bad. But oh, a chance to cut it by a third if people making more than 250K pay more in taxes? We can't do that...

[ducks]

http://www.thedailyshow.com/watch/wed-august-11-2010/deductible-me

I love it when Jon Stewart points out the ridiculous hypocrisy of the Republicans...

Deficit=bad. But oh, a chance to cut it by a third if people making more than 250K pay more in taxes? We can't do that...

giving 3 billion dollars away is stupid
give that money to people who are in the housing problems

giving 892 billion dollars to for stimulas

humm keeping the tax breaks would make more since then giving 895 billion dollars away and creating more debt

[SnakeBoy]

Deficit=bad. But oh, a chance to cut it by a third if people making more than 250K pay more in taxes? We can't do that...

Isn't there some level of hypocrisy in democrats saying deficits=bad and raising taxes is the answer but we're only going to make 5% of the population pay more and the other 95% can go on paying less than they ever have.

[ElNono]

giving 3 billion dollars away is stupid
give that money to people who are in the housing problems

giving 892 billion dollars to for stimulas

humm keeping the tax breaks would make more since then giving 895 billion dollars away and creating more debt

What you call giving $700 billion away just to Wall Street?

[ElNono]

Isn't there some level of hypocrisy in democrats saying deficits=bad and raising taxes is the answer but we're only going to make 5% of the population pay more and the other 95% can go on paying less than they ever have.

That's the rationale that eventually takes you to the tax cut for the 5% because they're supposedly paying too much, and increases the deficit just as much.

The reality is that if you actually look at income, the gap between the top 5% and the bottom 95% keeps on widening.

That said, I think everybody should shoulder the burden one way or another.

[SnakeBoy]

The reality is that if you actually look at income, the gap between the top 5% and the bottom 95% keeps on widening.


Is that a result of tax rates?

Will increasing the tax rates on the 5% increase the income of the 95%?

I'm not arguing against raising taxes on the 5%, I think tax rates are too low across the board but I don't see what the tax rate has to do with the widening income gap.

[ElNono]

Is that a result of tax rates?

It can be. It certainly can be a tool to do that.


Will increasing the tax rates on the 5% increase the income of the 95%?

Depends on how the money the government collects is eventually used. If it's funneled towards the 95% then yeah, it would.

I personally would like to see it go towards paying off some of the debt. Then again, I think some of the 95% should shoulder some of the burden too.


I'm not arguing against raising taxes on the 5%, I think tax rates are too low across the board but I don't see what the tax rate has to do with the widening income gap.

Well, given a set amount of wealth (money over time), if the top 5% has more of it, then the bottom 95% has less of it. Income is how you obtain that wealth.

[Jacob1983]

How is America still a country with all the debt it has? I mean seriously, this country is so fucked up in debt, it's ridiculous but the country still functions. Is it because America basically saved the world back in WWII? Just sayin'.

[CosmicCowboy]

http://www.thedailyshow.com/watch/wed-august-11-2010/deductible-me

I love it when Jon Stewart points out the ridiculous hypocrisy of the Republicans...

Deficit=bad. But oh, a chance to cut it by a third if people making more than 250K pay more in taxes? We can't do that...

I'm not saying that the tax increase is bad, but...

Raising taxes on the people making more than 250K will reduce the deficit by a THIRD?

:lmao:lmao:lmao:lmao

You actually believe that crap? Not even close.

But then again, I guess I'm expecting too much from someone that gets their news from Comedy Central...

[coyotes_geek]

http://www.thedailyshow.com/watch/wed-august-11-2010/deductible-me

I love it when Jon Stewart points out the ridiculous hypocrisy of the Republicans...

Deficit=bad. But oh, a chance to cut it by a third if people making more than 250K pay more in taxes? We can't do that...

Don't be ridiculous. We've got a $1.5 trillion dollar defecit and total income tax receipts for FY2010 are going to be about $950 billion. Raising taxes on those making over $250k isn't going to generate an extra $500 billion worth of tax revenue.

I'm not saying that we don't need to raise taxes, but you are grossly overestimating the impact that raising taxes on just the upper class would have.

[EmptyMan]

Why the fuck did we (Bush) give 50 bil to Africa when we have citizens in Atlanta bugging out over waiting lists for rent.

[EmptyMan]

http://www.thedailyshow.com/watch/wed-august-11-2010/deductible-me

I love it when Jon Stewart points out the ridiculous hypocrisy of the Republicans...

Deficit=bad. But oh, a chance to cut it by a third if people making more than 250K pay more in taxes? We can't do that...

Instead of enslaving more people to be dependent on the government, you could try increasing the number of tax payers instead of taxes.

What a novel idea.

[fraga]

I'm not saying that the tax increase is bad, but...

Raising taxes on the people making more than 250K will reduce the deficit by a THIRD?

:lmao:lmao:lmao:lmao

You actually believe that crap? Not even close.

But then again, I guess I'm expecting too much from someone that gets their news from Comedy Central...
No here's the sad part...

Comedy Central > Fox News

[EmptyMan]

The sad part is if you actually believe that.


Stewey never mentioned the context around Weiners theatrics. The peanut butter roommate bit was funny though.

[CosmicCowboy]

No here's the sad part...

Comedy Central > Fox News

Heres the really sad part. You don't even know that there is a Fox NEWS and then there are Fox Opinion Personalities.

Shepard Smith on Fox NEWS is probably the most fair and balanced NEWS anchor out there.

[fraga]

Mahahaha...Fox "News" has proported that they kind of sprinkle in "News" between all hours of the day...all the other crap is opinion...yet all the intros contain..."Most Trusted News Station" EVER...the sad part...is that more people BELIEVE Fox "News" opinion pieces to be "News"...

[101A]

It can be. It certainly can be a tool to do that.



Depends on how the money the government collects is eventually used. If it's funneled towards the 95% then yeah, it would.

I personally would like to see it go towards paying off some of the debt. Then again, I think some of the 95% should shoulder some of the burden too.



Well, given a set amount of wealth (money over time), if the top 5% has more of it, then the bottom 95% has less of it. Income is how you obtain that wealth.

The amount of wealth is fixed?

SHOULD expand, should it not?

[CosmicCowboy]

Mahahaha...Fox "News" has proported that they kind of sprinkle in "News" between all hours of the day...all the other crap is opinion...yet all the intros contain..."Most Trusted News Station" EVER...the sad part...is that more people BELIEVE Fox "News" opinion pieces to be "News"...

Obviously you are one of those idiots since you asserted that Comedy Central was > than Fox NEWS.

[fraga]

It sad when Comedians have more credibility than Faux "News"...

[CosmicCowboy]

It sad when Comedians have more credibility than Faux "News"...

It's sad when idiots like you believe that just because it's the "cool" attitude to take among whacko progressives.

[fraga]

Don't feel bad cause John Stewart and Steve Colbert point out all the mistakes Fox "News"...Glenn Beck and Sarah Palin make...the sun will come out...tomorrow...bet your bottom dollar...

[Wild Cobra]

http://www.cato-at-liberty.org/wp-content/uploads/201008_blog_dehaven122.jpg
To be fair, Obama’s predecessors — particularly the previous Bush administration — share in the responsibility for the mountainous rise in federal debt. However, that’s all the more reason for the Obama administration to work toward a peak instead of a steeper incline.
Even looking at it that way, there is no reason to continue having ever increasing percentages of GDP. The 63.2% should be too high already at an annual level, and the fact that projections don't have it coming down is extremely troubling.

[CosmicCowboy]

The really scary part of that chart is that most of the current debt is short term and will have to be rolled over. Zero% interest won't last forever. Start having to pay 15% interest and the debt starts compounding geometrically.

[Marcus Bryant]

When the answer to that chart is "Jon Stewart" you know this country is fucked.

[Wild Cobra]

The really scary part of that chart is that most of the current debt is short term and will have to be rolled over. Zero% interest won't last forever. Start having to pay 15% interest and the debt starts compounding geometrically.
Compound interest is a bitch. I wish democrats would realize they are signing this nations death sentence.

[CosmicCowboy]

I have seriously been toying with the idea of moving to Belize when I sell my business.

[spursncowboys]

It can be. It certainly can be a tool to do that.

Is that what you want taxes to be. A way to take from people who have alot and give to people who want more?
i personally think the only thing taxes should pay for are things that benefit the entire population and that everyone should pay taxes.

[ElNono]

The amount of wealth is fixed?

SHOULD expand, should it not?

No, I said 'given a set amount of wealth'. Meaning, if we were to take a snapshot of the overall wealth at a particular moment. Obviously, wealth changes over time.

[ElNono]

Is that what you want taxes to be. A way to take from people who have alot and give to people who want more?
i personally think the only thing taxes should pay for are things that benefit the entire population and that everyone should pay taxes.

No, I said taxes can be a tool to do that if that's what the government wants to do.