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The Anemic Deficit Reduction Plan of the Democrats April 30, 2013

Posted by geoff in News.
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The CBO reviewed deficit projections for 10 years from now (FY2023), comparing their projections based on current law to the Dems’ and the GOP’s deficit reduction proposals. Even without delving into the projections themselves, I think you can see a serious issue with the Dems’ plan.

CBOProjectionofBudgetPlans

Yeah – the part where the Dems barely reduce the deficit? That’s a problem for me.

The current law projection says we’ll have a deficit of 3.8% of GDP in 2023. The Democrats say that their bold plan will reduce that deficit to a mere 2.2% of GDP. Thanks for nothing, guys.

Meanwhile the GOP is trying to achieve a balanced budget by 2023. You can argue about whether their plan is realistic, but you can’t argue about their goal – at least they’re trying to make a serious impact on our budget problems.

But why does it matter? Here’s why – take a look at the interest curve in this chart:

CBO Spending Projection

Yup, interest will climb to 3% of GDP under current law, so that it will cost us about half what health care will cost. But for some reason a 1.5 point rise in health care costs is supposed to freak us out, while a 1.5 point rise in interest payments is no problem.

In the meantime, defense spending drops by 1.5 points. The Dems’ plan is to reduce defense spending by another half a point, to half its historical average. Good thing the world is so peaceful, with nary a trouble spot in sight.

In summary, the Democrats idea of addressing the debt problem is basically to cut defense and increase taxes. Like it always is. And after they’ve done it?

We’ll still be adding to our debt at a prodigious rate.

Comments»

1. wiserbud - April 30, 2013

But gay basketball player!!!

2. Michael - April 30, 2013

Who the fuck cares about interest on Treasury debt in 2023?

Don’t fuck with my Social Security and Medicare!


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