The Center on Budget and Policy Priorities put together this
nice chart showing what the main causes of the growing deficit are.
Anyone complaining about the size of the government and the monstrous government spending should take a careful look at this chart. The budget shortfall going forward are mainly due to three factors: The economic downturn, The Bush tax-cuts and The ongoing war expenditures. Not the economic stimulus, TARP or Unemployment benefits. While recovery measures (Stimulus, TARP, GSE etc.) add to the deficit in the short-term (2009-2011), their contribution to the deficit fades pretty quickly.
So how do the good folks in the GOP address this issue? Privatize Medicare! Cut Medicaid! Repeal the Health Care Law (which actually reduces the deficit in the long run)! Bust up Unions! Don't let the Bush tax cuts expire! In fact, add to it for Corporations and Millionaires! Gotta invade Iran!
Good policy cannot become law unless there is common sense in both parties. Unfortunately, one of them is mostly bent on misinformation and winning the next election.
The Debt to GDP ratio is growing at an alarming rate. So, how should we address the issue?
The most urgent recommendation from the CBPP is to let the Bush-era tax cuts expire after 2012. Not just for individuals making $200K or more and couples making $250K or more. Of course, if the economy is still in bad shape, Congress can continue some of the tax cuts for those making less but they have to come up with steps to offset the cost. A second chart shows that the curve flattens if we just take this one step.
Any concrete attempt at addressing our mushrooming debt should begin with a factual examination of what is causing the debt. Will more folks become aware of the facts so we can have a better Congress?
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