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Not interested in the Truth

July 11, 2011

Here is a chart about our deficits from an article that tries to allocate blame for deficits:

The article pretends to try and determine who is responsible for our deficits, Bush or Obama.  But there is important information missing from the chart.  How would someone be able to tell who did what from this chart?

I’d change it slightly and put a few important points on it.  I think with a very small amount of information on the graph, the chart could tell a much more truthful story.

For example, we need to know when Obama took office.  We also need to know when his first budget took effect. Let’s put those on the chart so everyone can see them easily.

Remember, I am a fan of deficits in the current environment, but I’ve we’re laying blame for people to cause deficits, we need to know these basic facts.

It’s pretty basic timeline information that should be included in charts.

I say that someone isn’t interested in finding out the truth if this information isn’t included.

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  1. beowulf
    July 11, 2011 at 3:05 pm

    “More fundamentally, the budget balance is equal to the difference between the government’s receipts and outlays, but it is also equal, by definition, to the sum of private net saving (personal and corporate combined) plus the balance of payments deficit.

    “If the private sector decides to save more, the government has no choice but to allow its budget deficit to rise unless it is prepared to sacrifice full employment; the same thing applies if uncorrected trends in foreign trade cause the balance of payments deficit to increase.

    “A sensible target for the budget balance cannot be set unless it is integrated into a view about what will happen to autonomous trends and propensities in private net saving and foreign trade. Moreover, as those trends and propensities change, it will never be possible to determine viable targets for the deficit that are fixed through time such as, for instance, that it should never exceed some number such as 3 per cent of GDP or that it should on average be zero.
    Wynne Godley, “Why Gordon’s Golden Rule is now history” (2005)

    The govt should focus on regulating unemployment, inflation and, arguably, foreign trade. The govt deficit moves in reverse lockstep with private savings (like Ginger Rogers doing everything Fred Astaire did, except backwards and in heels) and it should be left free to move with savings as the govt takes action to keep unemployment and inflation under control (targets set by Full Employment Act in 1978, <4% unemployment, <3% inflation).

    • TC
      July 11, 2011 at 5:24 pm

      Oh Beo!

      It’s exactly true. We should be concerned about those three things. Employment and inflation first and foremost.

      I have some ideas on foreigh trade. I do not agree fully with Mosler, and if I recall, you don’t either. I need to learn to type much faster and type in such a way the writing needs little editing.


  2. July 11, 2011 at 3:08 pm

    “I’ve we’re” … (sic)

    Nice course correction. =)

  3. TC
    July 11, 2011 at 5:22 pm

    JJP – We’re trying around here! lol 🙂

  1. July 25, 2011 at 12:46 pm
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