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Look at this CNN Money article on the deficit. The deficit is down 32% on the year, but that is because Revenues are up 16%, with outlays only being down 1.9%.

What does this mean?

This should be the death knell for anyone who thinks that the way back to prosperity in America is cutting more and more vital services. I mean, look at the article. Outlays are down 1.9%, and what do we have to do to get there? Disrupt Meals on Wheels. Inconvenience folks at hundreds of airports nation wide. Cut Head Start programs for young children.

This should be proof that folks who claim that only a government "small enough to drown in a bathtub" is a financially prudent way to run a government. Our Representatives and Senators should metaphorically bash anyone who claims that austerity now and forever is the answer with this report.

They won't of course, but this should give additional momentum to demand fairness in taxes, continue to work to end corporate tax loopholes, and end the "Too Big To Fail"'s hold on manipulating our economy.

After all, we've only taken small steps, and we're already 1/3d of the way to erasing the yearly deficit. Imagine the further steps we can take now that we have the momentum

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Comment Preferences

  •  That's Only the Way to Prosperity for the Nation (3+ / 0-)
    Recommended by:
    puakev, elwior, Odysseus

    and most people.

    It's not the way to the most prosperity for our owners.

    We are called to speak for the weak, for the voiceless, for victims of our nation and for those it calls enemy.... --ML King "Beyond Vietnam"

    by Gooserock on Wed May 08, 2013 at 11:59:32 AM PDT

  •  This is PROOF that austerity works! (2+ / 0-)
    Recommended by:
    Roger Fox, livosh1

    "We cut spending by only 1.9% and the revenues grew by 16%!  Just think if we Tea Partiers got our way and cut government spending 50%.  We could have...um... uh...carry the two...a LOT more revenue!"

    - conservative interpretation

  •  I'm not sure this is really proof (2+ / 0-)
    Recommended by:
    Roger Fox, livosh1

    that austerity doesn't work. We HAVE had austerity the last few years. At a rate that has always in the past, lead to recession. And most of the revenue increases have only very recently gone into effect.  I think the growth, as meager as it's been, says much more about the resilience of the US economy as a whole than it does about fiscal policy. That said, I have no doubt the growth would have been significantly higher had spending per capita not been slashed over the last few years.  

  •  1 trillion in infrastructure creates (4+ / 0-)

    25 million jobs.

    This is how to raise revenues.

    .................expect us......................... FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Wed May 08, 2013 at 12:34:58 PM PDT

    •  Imagine what 4 trillion (3+ / 0-)
      Recommended by:
      Icicle68, S F Hippie, Roger Fox

      that was wasted on the wars in Iraq and Afghanistan could have done.  I'm not sure if it's a linear relationship, but it sounds like at least 100 million jobs, not to mention infrastructure improvements and additions that could have created better quality of life, savings in energy costs for Americans, reduction in greenhouse gases, innovations that could have been game changers, education (assuming it was invested in infrastructure and other things)... and who even knows what else.

      Plus, we might have done a lot less damage to our standing in the world, and the big obvious last by by far not least, avoid ruining and extinguishing millions of lives in the Middle East.


      "Justice is a commodity"

      by joanneleon on Wed May 08, 2013 at 12:53:18 PM PDT

      [ Parent ]

      •  Spend 1T, then take the other 3T (0+ / 0-)

        300 billion over 2-3 yrs for public schools
        1 trillion over 3-5 yrs to build 2 yr community colleges that are free.
        300 billion over 5-7 yrs, guaranteed loans for solar, wind, geothermal, grid construction.
        1trillion over 5-7 yrs for rail, high speed and light.

        That leaves 400 billion, to spend on....
        I dunno, other nice things....

        .................expect us......................... FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

        by Roger Fox on Wed May 08, 2013 at 05:43:25 PM PDT

        [ Parent ]

  •  US Policy is not Austerity (0+ / 0-)

    Federal deficits are near $1 Trillion/yr, the Fed pushed interest rates to near zero and Government spending still increasing year over year does not fit the definition of austerity.

    More accurately, there has been a reduction in a set of highly stimulative policies through higher taxes and reduced growth in spending.

    The most important way to protect the environment is not to have more than one child.

    by nextstep on Wed May 08, 2013 at 01:44:02 PM PDT

    •  Per capita, inflation adjusted (0+ / 0-)

      spending, is down. Even more significantly when total federal, state, and local spending is considered. Total  federal expenditures, when adjusted for inflation, have not  changed since 2009. In current dollars, the current year budget is less than 5% more than expenditures in 2009.

      •  2009 had an oddity of TARP financing (0+ / 0-)

        transactions which get reported as spending when it was lending activities.  When this was paid back it was reported as negative spending.

        Use 2008 as the base comparison year as it does not have that oddity or back out that oddity.

        There has also been a large increase in spending for new items such as green energy through tax credits, so this understates spending.

        The most important way to protect the environment is not to have more than one child.

        by nextstep on Wed May 08, 2013 at 02:45:12 PM PDT

        [ Parent ]

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