Saturday, February 26, 2011

In Case We Forgot What the Budget Fight is About

Keith Hennessey does a great service by graphing the data in the President's budget submission (H/T Greg Mankiw.)

I previously said that the President showed a lack of leadership on his budget submission. After looking at this graph (click to enlarge), I retract that judgment. The President has displayed total political cowardice and cravenly submitted a budget that will cause harm to the nation.

I guess he expects the Congress to save him from himself and produce a good budget. How'd that work out on health care.

The other important point made by Hennessey is that everything to do with government rises. Government spending increases, sucking resources out of the economy. Taxes rise, sucking incentive out of the economy. The budget deficit rises, sucking credit out of the economy. This budget basically. . . , well, you get the idea.

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