Buying off half the electorate ain’t cheap

by wfgodbold

And when you borrow heavily to do so, with no hope of paying it back, you get downgraded.

Who knew?

The S&P’s statement read:

We lowered our long-term rating on the U.S. because we believe that the prolonged controversy over raising the statutory debt ceiling and the related fiscal policy debate indicate that further near-term progress containing the growth in public spending, especially on entitlements, or on reaching an agreement on raising revenues is less likely than we previously assumed and will remain a contentious and fitful process. We also believe that the fiscal consolidation plan that Congress and the Administration agreed to this week falls short of the amount that we believe is necessary to stabilize the general government debt burden by the middle of the decade. [emphasis added]

No shit, Sherlock.

When the ruling class tries to claim an $8.5 trillion dollar spending increase (over ten years) is a $1 trillion dollar cut (thanks to the miracle of baseline budgeting; after all, if they hadn’t “cut” a trillion bucks, they would have increased spending by $9.5 trillion), it’s patently obvious that those in charge of budgeting have neither the ability nor the inclination to cut (or even freeze) spending.

We can’t ignore the problem any more.


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