Worst Marxist EVER! You might remember back when Obama was elected that conservative airways were utterly abuzz with doomsday predictions. But, less than two years from the end of his presidency, Obama has yet to cast off his human-skin cloak, grow a Hitler mustache, institute Sharia law and declare himself emperor for life. Now, the worst news yet for Alex Jones: according to a new report from the Congressional Budget Office, Federal deficit spending is the lowest its been since before Bush sodomized our economy.
Deficit spending (the amount of money the government spends every year that it doesn’t have) reached an incredible new high in 2009. That year, deficit spending was a stunning 10.1 percent of the gross domestic product. Meaning, essentially, the government was keeping the local economy going by spending money it didn’t have.
This isn’t unusual during recessions and wartime. In the former case, fewer people are working and paying taxes, so revenue goes down and the government has to borrow more money to make ends meet. In the latter, revenues (usually) remain up, but spending increases dramatically. The Deficit/GDP percentage is often seen as an indicator of overall health, though there is a slight chicken-or-the-egg problem with using it.
Regardless, Obama’s chickens seemed to have hatched well, and are chirping their way all the way to the bank. According to the CBO, the deficit as a percentage of GDP will be the lowest it’s been since the Bush Recession started: 2.6 percent. And it’s due to maintain very modest levels until 2018. At that point, unless something changes between now and then, it’s due to go back up. The reasons given are three:
- The economic growth we’ve seen over the last few years, coming out of the Great Recession, is due to start slowing down in the next year or two. There will still be industry growth, we just won’t see the record numbers we did in 2014, or during the boomingest boom times of the 1980s and 90s
- As America’s largest generation (the Baby Boomers) retire and age, spending will increase on entitlement programs like Social Security and Medicaid. The subsidies paid out through Obamacare will add to that.
- The interest payments on out debt will also increase, adding more to the cash output and requiring more deficit spending. This potentially problematic situation is comparable to using one credit card to make the payments on another; we’ll have to start dealing with the principal sooner or later.
Part of the reason for the expected decrease in economic growth has to do with another of the given reasons — Baby Boomers retiring. Currently, Boomers occupy most of the highest-paying positions in the country. As they retire, either their positions will be dissolved, or they’ll be filled by younger employees with less tenure. Those lower-tenured employees will likely make less on average than the people they’re replacing, which will slow down the modest growth we’ve seen in hourly positions, and will probably drop the average salary wage.
So, fewer people employed making less money, supporting more retirees on Medicaid and Social Security. It’s not the ticking hydrogen bomb conservatives will undoubtedly make it out to be — but this confluence will slow growth, and create a few challenges to overcome.
Of course, we’ll probably overcome them pretty easily if Obama’s expected and highly progressive new tax plan ever gets implemented. Which it probably will by 2018, after the Republican party finishes burning out, dying or retiring, and Blue Team gains a super-majority in all three branches of government. If all goes well, that will coincide with the expected increase in deficit-to-GDP, and the slowdown that will follow. At that point, the people who can fix things will be in a position to do so, and Reaganomics will finally be relegated to the un-funny joke file of economic history where it belongs.
In the meantime though, The Worst Marxist Ever has seen us into a pretty favorable position, where we’ll at least have enough time to get the right people in power before things level off. We are, in a very real way, pretty well on track to see some real, long-term improvements.
As long as Barry Hussein Valdemort doesn’t throw us all into FEMA camps and elect himself Muslim Emperor for Life in the next 23 months or so.
We’ll keep you updated for early signs of the Hitler mustache.