Monday, February 01, 2010

Brad DeLong does the math

Obama budget for 2011 cuts Federal spending/increases taxes by 2.5% of U.S. GDP.

You'll note that we're currently in an unemployment crisis caused by a collapse of consumption. One of the things that has kept the official unemployment rate under 15% (and real rate under 25%) is Federal stimulus spending. It appears to me that President Obama is proposing an ANTI-stimulus: Basically, whack consumption by 2.5% *more*. Which should have a similar effect upon unemployment rates, except in the opposite direction.

If this goes through in the 2011 budget year, expect 12.5% official unemployment by the end of that fiscal year. This is insane. It is as if these guys learned economics from Libertards spouting Hayek talking points. To say that I am disappointed is an understatement -- the Obama Administration has disappeared from the reality we live in, where 10%+ unemployment is a slow disaster, into some alternate Washington bubble universe where ponies shit rainbows and cutting consumption won't cause unemployment.

Reality. Not just a good idea. Wish our leaders had a clue about it.

-- Badtux the "Better leaders, please?" Penguin

4 comments:

  1. I don't really care as long as my SS money keeps showing up and I think it will. It's all magic, smoke screens and bullshit anyway.

    Oh, and adding another trillion to the national budget, but why should I care, I won't be paying for it, ha ha ha ha ha

    ReplyDelete
  2. This comment has been removed by the author.

    ReplyDelete
  3. I'll just look for a short Austrian painter who has the answer, and follow him into power, duh. He'll know what to do about all them thare nasty lie-berals and sosh... shoshall... ah fuckit. It's called the "Tea Party". It's the latest up and coming thing, didncha know?

    - Badtux the Snarky Penguin

    ReplyDelete
  4. Shorter BBC:
    Fuck you, I got mine.

    Purple:
    Democrat is the new Republican. Republican is insane. We're fucked.

    BT:
    I'm so afraid you're right.

    I've had some fun at my blog the last couple of days. Check it out. I'd like your take.

    ReplyDelete

Ground rules: Comments that consist solely of insults, fact-free talking points, are off-topic, or simply spam the same argument over and over will be deleted. The penguin is the only one allowed to be an ass here. All viewpoints, however, are welcomed, even if I disagree vehemently with you.

WARNING: You are entitled to create your own arguments, but you are NOT entitled to create your own facts. If you spew scientific denialism, or insist that the sky is purple, or otherwise insist that your made-up universe of pink unicorns and cotton candy trees is "real", well -- expect the banhammer.

Note: Only a member of this blog may post a comment.