Sunday, July 31, 2011
Should Government Finances Be Run Like Household Finances?
I've picked up a series of three very interesting graphs over at Illusion of Prosperity. They go into a little more detail than I do.
Here is the first graph.
This is a graph of the growth of the GDP and Wages and Other Labor Income since 1952. They track each other very closely, with Wages, etc. dropping more than GDP over the last couple of years.
Now, let's add Civilian Employment and Corporate Profit Before Taxes to the graph.
Corporate Profits kind of track along with GDP, Wages, and Civilian Employment bouncing between the two until Bush II came along in early the 2000s, then Corporate Profits soared, crashed, and are now soaring again.
Finally let's get to my point and add Federal Government Debt and Household Debt.
WOW! Household Debt kind of dwarfs everything else, including the Federal Government Debt. Household Debt takes off in the early 1980s. Thanks Ronny! Then there is another jump in the rate of increase about the time GWBII comes along. Thanks George! By the time the economy crashes, Household Debt is about 4 times as big as the other items, including the Federal Government Debt.
So, when the Tea Party and the republicans say we should run government finances like we run our household finances, what they are really saying is that we should have about 4 times as much debt. That means that they want us to be about 60 Trillion Dollars in debt. And who do you think would get all that money? Why the wealthy and the big corporations, of course.
Once again, republicans are full of crap! And while they may have interesting sound bites, their sound bites don't mean crap. And if you don't look past their sound bites, you have crap for brains.