ARC's 1st Law: As a "progressive" online discussion grows longer, the probability of a nefarious reference to Karl Rove approaches one

Wednesday, June 21, 2006

You would think the Progressives would applaud

Yes, you would think that the Progressives would be cheering when government "revenues" increase by 13% and the fed government increases its spending by 8% annually:

The Wonder of Voodoo Economics
Bush 43 gets it.

By Rich Lowry When President Bush pledged in 2004 to cut the deficit in half by 2009, critics guffawed. The Boston Globe headlined a story, “Bush’s plan to halve federal deficit seen as unlikely; higher spending, lower taxes don’t mix, analysts say.” “Fanciful,” “laughable” and “all spin,” said the critics.

Well, it turns out that 2009 might be coming early this year. The 2004 deficit had been projected to hit $521 billion, or 4.5 percent of gross domestic product. Bush’s goal was to cut it to 2.25 percent of GDP by 2009—not exactly as stirring a national goal as putting a man on the moon, but one that was nonetheless pronounced unattainable. This year, the deficit could go as low as $300 billion, right around the 2009 goal of 2.5 percent of GDP.

The key to the reduction is revenue growth, which has been stoked by economic growth. Government revenues are up 12.9 percent in the first eight months of this year over the same eight-month period last year—without any tax increases. When individuals, investors, and corporations have more cash in a growing economy, they send more to the federal government in tax payments

According to Brian Riedl of the Heritage Foundation, if annual spending increases in the Bush years had been limited to the rate of the Clinton years, roughly 3.3 percent, there would be a federal surplus now. Instead, spending has been growing at 8 percent a year. That demonstrates that the formula for deficit reduction from the 1990s—moderate-spending restraint coupled with higher-than-expected growth-generated revenues—would work again today, if only someone could manage the moderate-spending restraint.
Unfortunately, there are a few factors which inhibit the Left from applauding:
  1. Increased revenues were the result of tax cuts
  2. Increased spending was the result of Bush
It is very difficult to be part of the "reality-based community" these days:
  • Taxes increase revenues despite your assertions to the contrary;
  • Karl Rove is not indicted, but you still believe that he is;
  • 1,000 people show up at YearlyKos in Vegas (compared to 4k electricians) and you think you're relevant; and
  • You think Algore has a real chance of winning the nomination and the Presidency in 2008.
and the list goes on... It almost - almost - makes you feel sad for them. Then you shudder as you realize what a nightmare this world would be should they ever grasp the reins of power.

Your Co-Conspirator,
ARC: St Wendeler