Economics

Obama's Budget Makes the "terrible mistake" of "borrow[ing] against our children's future to pay our way today"…According to Obama

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Here are some words President Barack Obama spoke yesterday when unveiling his new $3.8 trillion budget proposal:

[W]e can't simply move beyond this crisis; we have to address the irresponsibility that led to it. And that includes the failure to rein in spending, as well a reliance on borrowing –- from Wall Street to Washington to Main Street –- to fuel our growth. That's what we have to change. We have to do what families across America are doing: Save where we can so that we can afford what we need. […]

Trying to find a non-hyperbolic "Obama two-face" image on Google is not very easy

[I]t would be a terrible mistake to borrow against our children's future to pay our way today […]

That's also why we're restoring pay-as-you-go: a simple rule that says Congress can't spend a dime without cutting a dime elsewhere. This rule helped lead to the budget surpluses of the 1990s, and it's one of the most important steps we can take to restore fiscal discipline in Washington. […]

[T]he bottom line is this: We simply cannot continue to spend as if deficits don't have consequences; as if waste doesn't matter; as if the hard-earned tax dollars of the American people can be treated like Monopoly money; as if we can ignore this challenge for another generation. We can't. […]

What I will not welcome -– what I reject -– is the same old grandstanding when the cameras are on, and the same irresponsible budget policies when the cameras are off. It's time to hold Washington to the same standards families and businesses hold themselves. It's time to save what we can, spend what we must, and live within our means once again.

Here are some other words President Barack Obama spoke yesterday when unveiling his new $3.8 trillion budget proposal:

The budget includes…investments that will create jobs repairing roads and bridges, and tax breaks for retrofitting homes to save energy. […]

[I]t would be equally wrong to neglect [our children's] future by failing to invest in areas that will determine our economic success in this new century.

That's why we build on the largest investment in clean energy in history, as well as increase investment in scientific research, so that we are fostering the industries and jobs of the future right here in America.

Like I said….

That's why I've proposed a more than 6 percent increase in funding for the Education Department. […]

And that's why we eliminate a wasteful subsidy to banks that lend to college students, and use that money to revitalize community colleges and make college more affordable.  This will help us reach the goal I've set for America:  By 2020 we will once again have the highest proportion of college graduates in the world.

These are the investments we must make to create jobs and opportunity now and in the future.

Given that President George W. Bush's first budget clocked in at $1.9 trillion, I estimate that at current rates we will achieve Real Existing Fiscal Responsibility by approximately 2022.

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  1. I saw his OMB director on the news this morning (Orszag, right?), and he actually started a point with “Let me be clear…” That lying stuff is contagious.

  2. My eyes! The lie-blocking goggles do nothing!

    1. Sounds like a sham to me.

      1. Shama Lama Ding Dong?

        1. Shama Flama Lama

          1. Caddying for the Dalai Lama.

            1. Only if I receive total enlightenment, preferably before my deathbed.

          2. You’re on probation P Brooks.Caddying for the Dalai Lama.

  3. Save…investments…irresponsible

    You keep using those words. I do not think they mean what you think they mean.

    1. It drives me nuts to hear politicians of any stripe descibe government spending as “investment”.

      It’s like describing a threesome as “reality”.

      1. It’s an investment the same way as a shopkeeper’s payment to the local mob guy is an investment.

      2. If it’s an investment, I want to see the account statement and what sort of return I’m getting on it.

  4. Shouldn’t both images be of Obama’s ass? Because that’s what he is talking directly out of.

    And forget “double” talk. This is talk that is exponential in its mendacity.

    1. Obama is the Anti-George Washington.

      Obama’s dad: Who chopped down my cherry tree?

      Obama: George Bush.

  5. It’s time to hold Washington to the same standards families and businesses hold themselves.

    Of his $3.8trillion budget, 40% is borrowed money. Think what your life would be like if you took your yearly income and nearly doubled it. We’re talking a lot of hookers and blow and shiny red sports cars.

    1. Hey, it’s great while it lasts, trust me.

    2. We’re talking a lot of hookers and blow and shiny red sports cars.

      Sweet! Where is that in the budget? I’m not seeing it.

      1. Redacted for national security reasons.

      2. You can find them at the government auction web sites. Although my husband tells me the cars have no engines or wheels… I can only imagine what the hookers and blow would be missing.

  6. The government could help the economy by dramatically reducing spending, cutting taxes, etc. Instead, they intend to place further friction on any recovery by piling on more spending.

    Absolutely pathetic, and totally and unreservedly self-serving–at the nation’s expense.

    1. The government could help the economy by dramatically reducing spending, cutting taxes

      Citation needed.

      1. Sorry Tony, but the looking glass that you went through is non-permeable to clues.

        You’ll just have to make do with what you find on the other side.

      2. Gah. Tony, I wonder how you have the gall to show your face in this thread. You should be hiding it in shame.

        The government is spending 40 percent more than it is taking in.

        How is that sane or responsible? How is borrowing EVEN MORE than in the year of TARP and Stimulus responsible and helpful? What? Blowing $1.4 trillion dollar last year means it’s all okay to keep blowing that kind of cash EVERY YEAR?

        I can’t believe that even YOU seriously believe that this is a responsible policy.

        1. Beliefs are for real people, not sockpuppets.

          1. Indeed. Not partisan hacks either.
            For Tony it’s all about his “side” winning, not doing what’s right for the country. He’ll lick Obama’s boots as long as he’s waving a blue flag.

        2. The State shall provide, if we only have faith.

      3. http://www.amazon.com/Basic-Ec…..amp;sr=8-1

        http://www.amazon.com/Macroeco…..amp;sr=8-2

        If you need more, look up the history of the republics in Eastern Europe after the break up of the Soviet Union in the early 1990’s.

      4. I know you’re fictional and everything, but at least you could construct an argument.

        Here’s a question: Has the United States been an economic juggernaut primarily due to its freeish market economy or because of its government? If the former, then it makes all the sense in the world to take as little as possible away from it in the way of money, time, and resources, right?

        If the latter, then we should hand over all of our wealth to the ?ber-efficient government, correct?

      5. If you want to do it properly, you semen-mop, it’s [citation needed]. Fuckdrip.

  7. That’s why I’ve proposed a more than 6 percent increase in funding for the Education Department. […]

    Because K-12 educational achievement has skyrocketed since the creation of the Department of Education, right?

    Any budget that includes more than severance pay for Department of Education employees is a denial of reality.

    1. Really, was digging a giant whole in the ground and pouring money into it really that much worse an idea than what is actually happening?

      1. A giant “whole”? Are you drunk? Wait, you’re just a Floridian. And a lawyer. It all makes sense now.

        1. As a drunk Floridian, I leap to the defense of ProLib. And then stumble and scrape my knees and elbows.

        2. Really, what’s up with me lately? I’m usually one of the less error-prone commenters. Now I’m just sloppy, like Episiarch after a visit to the Lucky Lady.

          1. “That’s no lady!”

            1. “It’s a space station.”

      2. Part of the problem fighting this increase is the way the liberal media frames the increase as “Obama’s budget increases spending on schools.” The phrase implyes the money makes it down to the local level efficiently without the need for a substantial tribute payment to the bureaucratic godzilla.

  8. It’s time to hold Washington to the same standards families and businesses hold themselves.

    Really? Because we’re cutting back on our retirement savings, the kids’ college fund savings, putting off fixing up the house and skipping vacation this year. What are you guys doing?

    1. We’ve wiped out our savings, I’ve taken a second job, we’ve have not even begun to fund our childrens’ college funds, and are also putting off fixing the leaking roof and windows and missing trim. And we’ve got a nice, big, outstanding medical bill that’s now in collections.

      I’m having so much fun over here, let me tell you, Mr. Obamasshole.

      Maybe we should send a big list of all the cuts we’re making and ask these assholes what they’re giving up.

      And hey! We can make LoneWhackoff happy by asking the question on camera and posting their answer on YouTube!

      YIPEEEE!

      1. I had the great fortune of inherited wealth, but I also inherited empathy. Hang in there JW and Bronwyn. Things will turn.

        1. Thanks Gobbler. I wasn’t so lucky, but I hope my kids get something from me.

          Oh, did I mention that I took a $5K pay cut this year? I still have a job, so I count my blessings as such. Still, I’m looking….

          Maybe I should just go and get one of those cushy federal gummint jobs the wife is always pestering me to get. I think they might have a spare one or two jobs open.

          Of course, I’d be bringing a shotgun to work by the 2nd week, with the ravenous and entropic bureaucracy stealing my soul and all.

  9. [I]t would be a terrible mistake to borrow against our children’s future to pay our way today […]

    Megan McArdle had a post on this topic the other day, in which she convincingly demonstrated that she is an idiot.

    1. A linky link is just good internet manners. You’re on probation P Brooks.

  10. I think Obama just imploded.
    He submitted a budget with a bigger deficit than last year’s – the year of TARP and Stimulus. It’s mindboggling that he could be that stupid and irresponsible.

    Almost everyone last year was saying that the whole TARP/Stimulus thing was a one-time event and deficits would return to normal the next year. Instead, he manages to spend EVEN MORE money.

    What. The. Fuck.

    They still havn’t fucking figured it out. It’s not just about health care. It’s the fucking out-of-control spending. Jesus.

    1. They haven’t figured out that they should bend to right-wing talking points that make no sense?

      How about the GOP deficit-hawks-come-lately STFU about the budget and the economy, subjects they clearly know nothing about?

      1. Yeah. Being against blowing even more ridiculous amounts of borrowed money than last years insane deficit is “right wing talking points that make no sense”.

        How are YOUR talking points coming, you partisan shill?

        1. Easy Hazel, be nice. He was dropped on his head a lot as a baby. It’s not his fault that he’s a blathering twit.

        2. You want to talk about spending, fine, invent time travel, go back and tell Ronald Reagan not to turn the US in the a debtor nation, and then tell all his rightwing acolytes who ran government most of the time since to stop perpetuating the problem.

          Now that we’re in Bush’s recession, it’s not the time to focus on spending as if there aren’t other problems that should come first. The only reason to make cutting spending a priority over everything else is if you want to hobble the current government and prevent it from accomplishing anything for partisan reasons.

          1. Tony|2.2.10 @ 12:29PM|#
            “….Now that we’re in Bush’s recession, it’s not the time to focus on spending as if there aren’t other problems that should come first.”
            Translated:
            ‘Now that Obama has kept the recession going, it’s time to blow the bank on whatever hare-brained schemes he has’
            You got the transparency part down pat.

          2. You’re absolutely correct that the Republicans have no place giving the Democrats a hard time about out-of-control spending. They’re just as bad.

            However, you also correctly point out that we started down this path in the Reagan era due to irresponsible government spending. So why do you think it’s now ok to double the budget?

            Conservatives got us into this mess by supporting politicians who spent our children’s future, how will Liberals make it better by spending our grandchildren’s future?

            1. Reagan *should* shoulder his share of the blame, but which party controlled the House, where all appropriations originate, during the 80’s?

              Which party resided over a tripling of spending in that decade, as tax revenues merely doubled?

          3. Bush’s receession?

            It didn’t start until after the Democrats took over Congress.

            If you want to play the correlation is causation game, that one fits every bit as well as the one you’re trying to peddle.

            1. I don’t care who’s to blame for the recession so much as whose economic philosophy was completely demolished by it, and how sad yet amusing it is that libertarians and conservatives still cling to it.

              1. Newsflash, Tony, the consensus is no longer that ‘deregulation’ caused it, (a facile consensus in the immediate aftermath, when nobody had time to seriously analayze the issue) but that the federal reserve’s loose credit did it. Wake up and smell the coffee.

                1. That and the federal government trying to engineer specific economic outcomes for specific groups of people – i.e promoting home ownership by giving loans to people who were bad credit risks.

                  Exhibit A: Fannie Mae, Freddie Mac, Barney Frank and Chris Dodd.

                  Exhibit B coming up: the FHA

          4. You’re right to criticize the Republicans for their spending habits, but at the same time you want to emulate them.

            1. I criticize them for spending while also cutting taxes, and backing it up with an economic philosophy that is recognized by serious people as a total sham.

              Spending in the abstract doesn’t make me pee myself with anger. Depends on what it’s on and what’s paying for it. Spending during a recession is prudent; bellyaching over deficits during a recession is not.

              1. Yes, I know. “Serious people” think what they are told to think by Paul Krugman. “Serious people” don”t question the narrative.

                But do you really think any of us expected there to be NO deficit this year? Of coruse not. It’s not about the fact that tehre IS a deficit. It’s about the fact that it is ACTUALLY LARGER than last year’s. A fucking amazing feat, given that last years deficit ballooned by hundreds of billions of dollars due to TARP and the Stimulus package. Both of which were supposedly going to be one-time events.

                Moreover … isn’t the recession supposed to be over by now. Your glorious leaders told us that by this time we’d already be in a recovery.
                So why the need to fucking blow another several hundred billion dollars a year more than we were spending two years ago, huh?

          5. Okay, so your talking points are:

            1. Reagan ran budget deficits, so therefore it’s okay for Obama to blow as much money as he wants on whatever shit he feels like.

            2. Obama and the Democrats don’t have any responsibility for the recession, despite controlling the Congress since 2006 and despite a decades-long history of pushing loose loan terms to promote homeownership.

            3. Anyone who doesn’t think the government shouldn’t spend as much money as possible, as fast as possible, because after all it’s a recession, is a partisan right-winger mouthing talking points.

            Glad we’re understood on what the script is, Tony.

      2. How about the GOP deficit-hawks-come-lately STFU about the budget and the economy, subjects they clearly know nothing about?

        Fine. That still leaves plenty of room for Reason and others, who were bitching during GWB’s Presidency, to continue to bitch.

        Tony, I assume you’re enjoying GWB’s Third Term, since the guy in charge has your team’s uniform on?

    2. Meet the new Normal.

  11. If this means he’s going to hire somebody competent and knowledgeable (not you, Krugman!) to teach him Economics, it might conceivably be money well spent.

    But I don’t think that’s the actual plan.

    1. Understanding of Economics isn’t necessary, just understanding of Accounting at this point.

      1. Economics is hard!

  12. We simply cannot continue to spend as if deficits don’t have consequences; as if waste doesn’t matter; as if the hard-earned tax dollars of the American people can be treated like Monopoly money; as if we can ignore this challenge for another generation.

    I’ll quit smoking tomorrow.

    1. But first I’m going to smoke ten cartons of cigarettes today.

    2. I will gladly repay you on Tuesday for a hamburger today.

  13. “…let a bipartisan commission propose the hard medicine. The White House is counting on the commission to get Republicans to come to the table on deficit reduction.”

    Wanna bet ‘deficit reduction’ is WH jargon for ‘more taxes’?
    Anyhow, the story shows even liberal economists are not pleased:
    http://www.sfgate.com/cgi-bin/…..1BQTKK.DTL

  14. Shorter Tony:

    “Nothing the government does is ‘nonessential’!”

    (Dear JsubD- I took a quick lazy (and unsuccessful) look for that McArdle link; either she was being extremely lazy and careless, or she has no better understanding of the difference between “investment” and “expense” than the Presidential Suit. appy polly loggies)

    1. I suspect the other half of that image is a specific character, but you’ll have to enlighten me.

      1. The other half is Barack Obama, current President of the United States.

      2. Sorry, my capricious maliciousness sometimes gets the better of me. It’s the Batman villain Two-Face from the mid-90’s Batman: The Animated Series.

        1. my capricious maliciousness sometimes gets the better of me.

          I consider that a feature, not a bug.

  15. Banker #1 Here comes that American.
    Banker #2 I can’t believe he would show his face after the last time.
    Banker #1 Americans are shameless.
    Banker #2 Wanna give him a good scare?
    Banker #1 What do you have in mind?
    Banker #2 Just watch. Hey, you American. Your money is no good here!
    Banker #1 Eww, American just shitted all over himself.

    1. That makes no sense. The American is coming to borrow money. Not to spend it.

      1. Banker #1 Did you here what she said?

        Banker #2 Yeah.

        Banker #1 You watch out, lady. We come to collect on those notes one day soon.

        Banker #2 We wont be accepting it in dollars, either.

        Banker #1 No. Dollars is bullshit. We lose money if we give you a loan in 2000 and cash out in dollars in 2020.

        Banker #2 Maybe, we will accept a return on our investment if made in pretty North American ladies?

        1. I see we’re finally getting back to the fundamentals of economics.

          1. I thought we were getting back to the fundamentals of racial fear mongering (protect the white wimmins!, etc.), but YMMV.

            1. Banker #1 What else will you have to offer us once your printing presses grind down?

              Banker #2 We will accept in denominations of Blonde, Brunette, or RedHead.

              1. Poor chinese guys. Not getting laid by the white women.

            2. Banker #1 You should shred that masters degree in Racial Studies, anonymous, into a hundred strips of paper.

              Banker #2 Eh, no doubt it is worthless, but why should he do that?

              Banker #1 One day he is going to need that paper to create a fire to keep him warm.

              Banker #2 Ah, for proper rationing!

  16. Two-face Obama looks a lot like Bert, if Bert were a Negro triclops.

  17. I just had my daughter last Sunday and the thought of borrowing against a happy future for her for a better today dosn’t sit too well with me. I found a good article here about Obama’s budget. Check it out http://gopost.info/66

  18. The U.S. govt. no longer sets the example for the rest of the world, if it is ok for congress to deficit spend with no penalty then why should the average American who is deficit spending using credit pay penalties?….LETS START TAKING RESPONSIBILITY FOR OUR ACTIONS AS HUMANS, take a step back and honestly think about our 12+ trillion dollars of debt, if we hold Washington to the same standards as the average family and private owned business, then much more than a “recession” will take place. I say “let the US dollar become worthless” we have side-stepped this inevitability by deficit spending like we are a bunch of cowards scared of what will happen if we don’t have any more money……well, take a stab at answering what WILL happen if the dollar crumbles to nothing??
    We are rapidly approaching that point in time my friends, The average American lives in false security anyway….Anyone want to guess how much American land is owned by foreigners????
    Think about this 98% of Americans know what “American Idol” is, but only 26% knows that it takes 60 votes to break a filibuster in the Senate and force a vote on a bill, if knowledge is power then 74% of American’s do not have the power to tie their own shoes.
    There are several certainties in our current economic situation.
    1. 2% of the wealthiest hold over 50% of the worlds assets.
    2. The rich WILL get richer (at least until money is worthless).
    3. The rich and wealthy will do whatever they have to legal or illegal to keep their wealth.
    4.As long as money rules the world these 2% make the decisions for the rest of us.
    5. The Govt. is powerless to help the economy.
    6. If consumer spending is 70% of the economy then we have moved so far away from self sustaining that there will be NO RECOVERY.
    What was considered “The American Dream” is no longer attainable. If illegal immigrants are flocking here because of it being a better life then we will start seeing legal citizens immigrating to other countries without these economic problems (Australia, Europe, etc)

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