Was Obama Praising Inflation?
I went straight from shooting at zombies on Xbox Live to watching President Obama’s press conference last night. The conference was relatively boring, I thought, and I was still thinking about zombie-shooting, so maybe I misunderstood, but did Barack Obama defend the $9,300,000,000,000[a] deficit that his budget would cause the deficit to shrink because the spending would be a smaller percentage of GDP than ever before?
I only see one way to make an increase in spending to become a decrease in terms of percent of GDP. We have to increase GDP. There are two ways to do that. We can become a lot more productive society, somomething I find somewhat unlikely, given the Administration’s apparent desire to punish our most productive (read: “high earning”) workers. The other alternative is to change the measurement, which is actually pretty simple for the Federal Government to do — just cause inflation.
We now have a President all-but promising us inflation as a solution to a problem that the policies of he and his hyperliberal Congress have caused. When massive inflation is the answer to a problem, the problem is really bad.
[Update: According to the LA Times transcript of the conference, I didn't entirely misunderstand:
But, keep in mind, just to give one other example, as a percentage of gross domestic product, we are reducing non-defense discretionary spending to its lowest level since the '60s, lower than it was under Reagan, lower than it was under Clinton, lower than it was under Bush, or both Bushes.
So, he was only talking about "discretionary" spending, but I think he and I have different ideas of what is discretionary. My disgust at the President's economic policies still stands, but he wasn't quite as openly calling for inflation as I had thought.]
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Two quick asides:
The graph in this post at Power Line shows exactly how blatant a lie President Obama is trying to sell us. He promised that his deficit would cut those of President Bush’s, the deficit that he estimates for his first year is more than $1,200,000,000,000 more than the biggest deficit of Bush’s four years. His “budget plan” would reduce the deficit over four years, but the estimated deficit for 2012 is still much larger than Bush’s worst deficit.
Also: Did President Obama actually get by without using a teleprompter last night?
[Update 2: Oh. I guess he didn't.]
- I think it’s important that we stop hiding these numbers behind words. “Nine-point-three trillion” is a scary number to be sure, but most of the time, I think we fail to understand the true enormity of it. Typing out the whole number makes it seem a little more “real”, at least to me. [↩]