Biden Tries to Square the Economic Circle
July 17, 2009 · Posted in General Economics
Vice President Joe Biden told people attending an AARP town hall meeting that unless the Democrat-supported health care plan becomes law the nation will go bankrupt and that the only way to avoid that fate is for the government to spend more money.
“And folks look, AARP knows and the people with me here today know, the president knows, and I know, that the status quo is simply not acceptable,” Biden said at the event on Thursday in Alexandria, Va. “It’s totally unacceptable. And it’s completely unsustainable. Even if we wanted to keep it the way we have it now. It can’t do it financially.”
“We’re going to go bankrupt as a nation,” Biden said.
“Now, people when I say that look at me and say, ‘What are you talking about, Joe? You’re telling me we have to go spend money to keep from going bankrupt?’” Biden said. “The answer is yes, that’s what I’m telling you.”
…fortunately this one can be put to bed just as easily. Biden is saying we have to go spend money to avoid bankruptcy. OK, there is only one problem: This is what we have already been doing for the past decades. If he was right, then we wouldn’t have Americans going bankrupt left and right right now.
He refers to Health Care spending in particular. Unfortunately the United States government already spends more than any other industrialized nation on health:
… so we’re good there, right Joe?
And relative and absolute total government expenses have been growing for the past 60 years already:
…so we’re good here, right Joe?
And as individuals and government we have up to now been spending and consuming at levels unprecedented since the Great Depression, in fact consumption is still pretty high compared to historic averages:
… so we’re good here, right Joe?
It’s not that since WW2 we haven’t been diligent and thorough on consumer spending. We even borrowed money that we couldn’t afford to spend it on consumer goods, just to make sure we keep spending:
… so we’re good here, right Joe?
President Bush in particular has been rather diligent about driving spending up by more or less 100% in virtually every category, plus Obama’s budget even TOPS those expenses:
- Department of Defense and international expenses (spending on wars and occupations) will go up from $666 billion to $673 billion (under President Bush it grew from $316 billion to$666 billion)
- Other appropriated programs will go up from $613 billion to $695 billion (under President Bush it grew from $298 billion to$613 billion)
- Social Security expenses will go up from $662 billion to $695 billion (under President Bush it grew from $406 billion to$662 billion)
- Medicare expenses will go up from $425 billion to $453 billion (under President Bush it grew from $216 billion to$425 billion)
- Medicaid expenses will go up from $259 billion to $290 billion (under President Bush it grew from $117.9 billion to$259 billion)
- Other mandatory program expenses will drop from $673 billion to $571 billion (under President Bush it grew from $290 billion to$673 billion)
- Net interest will go up from $139 billion to $164 billion (under President Bush it dropped from $222.9 billion to$139 billion)
- Disaster cost will go up from $4billion to $11 billion (under President Bush it went from $0 billion to$4 billion)
So we’re good here, right Joe?
Whatever it is that Joe Biden recommends, it obviously has nothing to do with “change”.
By Joe Biden’s logic Americans should be far far a way from bankruptcy. We have followed his pathetic advice to the T for decades, haven’t we?
Who’s up for more spending? Anyone?