GOP Sequesteria & The GDP Gambit (When Debt = Growth) Being a retired accountant, I take more notice of some things that tend to put others to sleep. Example, budget talk. Recently, POTUS has been accused of violating the Budget control Act of 1974. So, what is this 1974 law all about? The greatly despised President, Richard Nixon, took office in 1973. After one year Congress decided to reduce the power of the presidency concerning the annual budget. Nixon had been using his power as president to impound (look it up) items in the budget prepared by Congress. In effect, he refused to spend everything Congress had authorized. This earned him a disrespect from both sides of the aisle. To make up for this removal of one of the checks-and-balances, Congress did what Congress does best: it passed a law---creating the CBO (Congressional Budget Office). But this isn't meant to be a critique of 1974 happenings; that's just background; the purpose is to point out this 1974 law is still on the books---and is being violated today. Some say that is an impeachable act. http://en.wikipedia.org/wiki/Congressional_Budget_and_Impoundment_Control_Act_of_1974 For more views Google --> budget act of 1974 By the way, did you notice that the sequestration bill of 2013 didn't take effect until after the Congress could not agree on budget matters. There was nothing automatic about it at all. It took effect after the dead line passed; it became effective the following day, March 1, when POTUS signed the bill into law. The choice to proceed with the meaningless idiotical cuts was his and his alone. http://en.wikipedia.org/wiki/Congressional_Budget_and_Impoundment_Control_Act_of_1974 GOP Sequesteria & The GDP Gambit (When Debt = Growth) written by Ilana Mercer on 03.02.13 Read carefully. Watch out for political double talk. Read on the net: http://barelyablog.com/gop-sequesteria-the-gdp-gambit-when-debt-growth/ Are you able to tease apart Republican sequesteria from the Democratic position on the effects of a miniscule decrease in the increase in US government spending, for this year? I cant. The Democrats are adamant that a cut in oink-sector spending will destroy the chances of an economic recovery and will lower GDP. It didn't have to happen this way, lament the Republicans. Negotiations could have produced a better honed cutting instrument. Note that the Republican have never made relevant points such as that, Government spending increases unemployment because it crowds out so much private sector job creation (Thomas J. DiLorenzo, Organized Crime: The Unvarnished Truth About Government, p. 202). Or, as Larry Kudlow put it, When the government spending share of GDP declines, so does the true tax burden on the economy. As a result, more resources are left in the free-market private sector, which will promote real growth. Ask yourself why GDP would shrink if the burden of government is reduced slightly. Why would Gross Domestic Product be affected by a threat of a reduction in the parasitical sectorthe sector (government) that doesnt produce wealth, but only consumes it? Could this paradox be a result of the way in which GDP numbers are crunched? Indeed. Gross domestic product (GDP) gauges economic activity based on spending, or consumption, which is not what creates wealth. Production creates wealth. (Gross domestic income (GDI) is a lesser-known calculation used by the Federal Reserve to gauge economic activity based on income.) Official GDP numbers also chart and include the growth of government debt. As Vox Day has explained, GDP counts spending but doesn't subtract debt, so its like saying that youre rich because you maxed out your platinum Master card. Until the debt is paid back, you cant properly count it as economic growth. And almost all of the GDP growth over the last 20 years has been nothing but debt growth. The GDP is a political construct, defined, tracked and manipulated by the D.C. political machine. GDP statistically conflates the growth of debt with economic growth. When our economic definitional building blocks are thus perverted, it becomes easy to peddle the GDP hoax. And that hoax is that a reduction in state spending and debt is also a reduction in economic growth, and that reducing debt must be avoided at all costs. As Ayn Rand would have advised, Check your premises. http://barelyablog.com/gop-sequesteria-the-gdp-gambit-when-debt-growth/ It's time to stop spending on what we want before we have to cut things we need. Rich Martin When replying to this message, plz cc: [email protected] to assure prompt reply. TEA Party Nation Top Ten Tips For Getting The Most From Your TPN Membership! http://www.teapartynation.com/?xg_source=msg_mes_network I’m as mad as hell, and I’m not going to take it any more. http://www.youtube.com/watch?v=q_qgVn-Op7Q Mrs. Richard "Peggy" Martin (1935 - 2012) http://www.legacy.com/obituaries/dfw/obituary.aspx?n=margaret-irene-martin-peggy&pid=159081400&fhid=12241#fbLoggedOut http://www.legacy.com/guestbook/dfw/guestbook.aspx?n=margaret-martin&pid=159081400&sort=1 <> <> <> -- -- To join RichsRants, send email to: [email protected] For more options, visit this group at http://groups.google.com/group/richsrants?hl=en --- You received this message because you are subscribed to the Google Groups "RichsRants" group. To unsubscribe from this group and stop receiving emails from it, send an email to [email protected]. For more options, visit https://groups.google.com/groups/opt_out.
