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Thursday, October 31, 2013

Griper Blade: Deficit Falling at Fastest Rate Since WWII -- And Not Because of Spending Cuts

Pile of cash
Republicans like to say that you can't spend your way to prosperity. Why that statement doesn't get them laughed out of whatever room they're in every time they say it remains one of life's great mysteries. Of course you can spend your way to prosperity; ask any prosperous person. The only wealthy people who haven't spent their way to prosperity are those who've inherited wealth. Even lottery winners spent something to gain all their riches, even if it wasn't much. Wealthy people became wealthy by spending money -- and even by borrowing money.

Conservatives are dead wrong on this point and, indeed, the opposite is actually true -- you can't save your way to prosperity, since you're never going to be able to save more than you make -- or at least, figuring in interest, not much more. It's a case of Republican talking points contradicting other talking points; you can't spend your way to prosperity, but successful people are "risk takers" who put money on the line to get things done. One the one hand, conservatives praise entrepreneurs, on the other, they argue that entrepreneurial efforts are obviously doomed and only a fool would believe that you can spend money to make money. No wonder people who listen to talk radio make no sense at all when they start talking about economics. It's all a muddled mess of contradictory propagandizing with no real connection to how things actually work.

All of this started bouncing around in my head when I read this:

The Hill: The federal budget deficit for fiscal 2013 was $680 billion, the Treasury Department reported Wednesday.

This is the first time that the deficit has fallen below $1 trillion during President Obama's time in the White House.


The deficit has dropped $409 billion from 2012, when it was $1.089 trillion...[CLICK TO READ FULL POST]

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