Sunday, March 1, 2009
The latest government budget proposal from the executive branch is out, and it’s a masterpiece of fiscal irresponsibility. Clocking in at $3.6 trillion, it sports a deficit that is 12.5% of the projected GDP for FY2009 (fiscal year). It also displays no sacrifice in any quarter, as everything is funded, and then some. Sure, the priorities shifted between administrations, but a lack of spending limits did not.
"But this is an emergency!" we are told, implying that it’s not the right time to be pulling in our spending horns. This argument rests on the assumption that our problems can be fixed through additional deficit spending. However, the facts suggest that we are suffering from too much debt and too much deficit spending, not the opposite.