Wednesday, February 09, 2011

5th Grade Economics

I have maintained that economics is above all else, simple.

It's common sense.

It's easy.

And if you're just willing to spend the 3 minutes or so to check something out on the internet to see if something is true or not, it becomes very apparent how pretty much all of the world's problems can be solved.

And so, now an economics lesson your average 5th grader can understand.

The Republicans have proposed $74 billion in budget cuts from the Federal Budget. They will catch hell for this and be called racist and evil and so forth.

I ask you, is this anywhere near solving the problem?


Aeroguy said...

Whats interesting is how if you cut the entirety of discretionary spending (which includes the military) we would still be in debt. This is why anyone who doesn't talk about fixing medicare/medicaid costs isn't serious about fixing the budget (social security costs are comparatively tiny at the moment but will also explode soon enough). I'm thinking about moving to Australia.

Anonymous said...

Is there an expression that goes, "might has well be hung for sheep than for a lamb"?

If you are going to do something that you are going to be excoriated for, you might as well do it right.

This is just sad.

Anonymous said...

@ Aeroguy: Australia is rapidly cutting its own throat too.

- Breeze

CSPB said...

DDo they teach what happens at the peak of civilizations that leads to the collapse? Bread and Circuses.

Why can't we all just vote to change reality and suspend economics until we get all this sorted out? Was there any economic reason for the Jubilees every 50 years in the Old Testament? Free will is great but God should save us from our dumb decisions. God is so mean! God is angry at us and is punishing us. Why didn't someone tell us that this would happen? (I’m feeling snarky and sarcastic)

Anonymous said...

"Whats interesting is how if you cut the entirety of discretionary spending (which includes the military) we would still be in debt"
You are not alone ;).
Some numbers from one dirty little european country:
proposed budget expenditures for 2011: 1,179 billions CZK
proposed debt for 2011: 135 billions CZK (final debt will be greater - my estimation is 150 or more)
ministry of defense expenditures: 44 billions CZK
pensions expenditures: 364 billions CZK (have doubled in 10 years)
pensions receipts and expenditures deficit for 2010: ~ 30 billions CZK (is/will be only increasing with aging population)
overall "income" tax for average employee: ~ 50%
VAT: 10% for basic food etc., 20% otherwise (proposed to default on 20% for everything)

PS: digging those numbers from official government sites is like looking for a needle in a pile of stinky manure

Rosalys said...

"I ask you, is this anywhere near solving the problem?"


sth_txs said...

This exactly why I did not bother to vote last November. I don't feel bad about it at all.

Ecclesiastes said...

I was reading Bernanke's testimony to congress.

Cap, does it seem ... light and breezy to you? He sounds like a news network talking head to me.

Anonymous said...

One of my hobbies is history.

I find it hard to read the bits about the end of the roman republic these days.

The Empire was very successful, but I honestly wouldn't want to live there. The Empire ate it's children, and ate the republic and left nothing of the goals and ideals and values that made rome great. That and it destroyed the roman people and imported slaves from around the world.

Anonymous said...

To answer your question: no. But what did you expect.

Anonymous said...

What this really points out, is why bankruptcy is probably going to happen. The government and all their spending, just keeps growing and growing.
It is very similar to a person with an addiction problem. The person will not change until they hit bottom or they end up dead. The government is addicted to debt and spending.
Hey the aon, the Roman Republic and Roman Empire lasted many centuries. Most Americans would be happy, if the current US Spending Empire lasted another 50 years.

Anonymous said...

The chart explains why we will soon experience astronomic inflation - gotta pay that debt down somehow! Also demostrates why, in my opinion, the average "brillant" Ivy/Government economist has less of an understanding of real world economics than the typical truck driver pushing an 18 wheeler up I-95 through DC.