Senate Minority Leader Mitch McConnell (R-Ky.) voiced skepticism today about the emerging economic stimulus plan, applying a brake to Democratic plans to quickly pass up to $850 billion in spending and tax cuts soon after President-elect Barack Obama's Jan. 20 inauguration.
"As of right now, Americans are left with more questions than answers about this unprecedented government spending, and I believe the taxpayers deserve to know a lot more about where it will be spent before we consider passing it," McConnell said in a statement, which will be publicly issued later today.
Let me get this straight. A Senator who oversaw one of the largest expansions in government spending in history is now concerned about spending? According to the CBO, total government outlays under Bush and the Republican controlled Congress from 2001 - 2006 increased from $1.8 trillion to $2.4 trillion -- that's an increase of 33%. At the same time -- again under Republican rule from 2001 to 2006 -- the total debt outstanding increased from $5,807,463,412,200.06 at the end of fiscal 2001 to $8,506,973,899,215.23. And now a man who helped to oversee this is complaining about spending? Excuse me?
A note to Senator McConnell. The equation for GDP is simple. Here it is
C+I+E+G = GDP.
In case you are confused, those are symbols. Let's explains those symbols for you.
C - consumer spending. This is now in the tank. Personal consumption expenditures are now negative year over year. Retailers just reported a terrible Christmas. In other words -- 70% of our economy is out of order right now.
I - Investment. This has been neutral for awhile. You may be familiar with the housing bubble? (Actually, you probably just became aware of it because you were probably saying the economy was sound until recently). Well - there was a housing bubble and it has crashed. As a result, total investment has been weak for some time now.
E = net exports. The US runs a mammoth trade deficit, so this ones out as well.
That leaves G -- as in government spending -- to pull us out of this mess. Unless of course you like depressions you dolt.