Monday, July 7, 2008

Balancing Budgets During a Recession

McCain Marries His Economic and National Security Policies and Produces a Patently Absurd Off-Spring

The utter ignorance evinced in McCain's preposterous proposal to balance the budget in four years, largely by proclaiming victory in the Travesty in Iraq, is making me think that his campaign has been penetrated by Democratic Party operatives who have somehow managed to secure leading positions on his Economic Policy staff.

1. The country is in, or on the precipice of, a severe economic downturn, a recession. During such times even staunchly conservative economists agree that a federal government deficit helps to stimulate the economy. In other words, at this point in the economic cycle, deficit spending is a plus---why did Bush and Congress agree on the tax rebate program? For just that reason.

2. So, deficit reduction at this point in time is a non-issue; in fact, reducing the deficit right now would further slow economic growth.

3. Linking "victory" in Iraq, not withdrawal from Iraq, to a decrease in government spending is the economic equivalent of linking "mission accomplished" to the end of hostilities in Iraq. There was no connection, just as there isn't any connection unless McCain defines, in minute detail, what "victory" means.

I think this is a misguided attempt to intermingle McCain's famous lack of knowledge regarding the economy with his alleged expertise on national security matters in the hope that the latter will obscure the former.

What it actually does is display his ignorance on both subjects.

No comments: