Money Talk

I won't repeat everything this NY Times post says, but basically it says that the Senate will vote this week on the possibility of creating a commission focused on finding ways to reduce the deficit. In some ways, I totally agree with this, but I do have reservations about it.

Spending is definitely a problem in our government, and not just now, it has been for a while. In recent years, the federal deficit has grown immensely, especially in with the 'bailouts' that have been given. This graph shows the federal deficit as a percentage of GDP starting with the Hoover presidency. "Hoover got us in, and WWII got us out. Bush got us in, and to his credit, started trying to get us out," Stephen Stoft wrote under the graph. 

To end the Great Depression, the federal government started huge spending projects to stimulate the economy and give people jobs, much like they have attempted during the current recession. However, the difference between those projects and those of today is the fact that Roosevelt's New Deal helped revive the country from a horrible economy, where unemployment was much higher than the dreaded 10% that we hear about today. 

Today, the NY Times also reported that Obama, in his State of the Union Address, will call for a freeze in many federal spending programs. Once again, I am so happy that the government at least seems to be acknowledging the fact that they spend way too much money! However, the deal that Obama is proposing will only cut a tiny fraction of the spending that is expected in the years that it will be in effect. And somehow, at the same time as this freeze occurs, the government wants to be able to provide more services...

Healthcare? How can health care reform be achieved if the government is truly dedicated to cutting spending and reducing the deficit? That makes absolutely no sense, unless someone in the government is named Alexander Hamilton.