Bfgrn
Gold Member
- Apr 4, 2009
- 16,829
- 2,492
- 245
Nope, you are the one who is wrong. When a president signs a budget bill he has the ability to stop or reduce spending in accordance with the provisions of the bill.
That is exactly why no house-passed budget bill has been allowed to reach the floor of the senate by Reid. the dems and obama are afraid that one might pass and then obozo would have to either sign it or veto it and admit that he does not give a shit about deficit spending and our ever increasing national debt.
One of obama's primary goals was to destroy the US economy, and he has almost accomplished that.
Econ 101 shit for shit for brains right wing turds...
Definition of Mandatory Spending
What is "mandatory spending"? What is the definition of the term "mandatory spending"?
"Mandatory spending" is government expenditures that are "automatically obligated by virtue of previously-enacted laws".
This compares to "discretionary spending", which is spending that is set on a yearly basis by Congress.
Some examples of "mandatory spending" expenditures in the United States are:
-Social Security
-Medicare
-Interest on National Debt
-Medicaid and the State Children's Health Insurance Program
"Mandatory spending" makes up the majority of US government expenditures.
Government Expenditure Theories - Automatic Spending vs Discretionary Spending - Who is really in control of spending?
Automatic expenditure (not surprisingly!) is expenditure that happens automatically. In other words, the government doesn't have exact control over the level of this type of expenditure. The most obvious example of this is spending on benefits. The government sets regulations for who is entitled to benefits, and it sets the level of the benefits. However, the one thing that it cannot dictate is the number of people who may then be entitled to them as this will often depend on the state of the economy. As the economy goes into recession and people lose their jobs, more people will be entitled to benefits. This will mean government expenditure will rise - not because the government chose to spend more, but simply because of the state of the economy. This spending is therefore automatic spending.
Discretionary spending is, by contrast, spending the government chooses to make. In a time of recession, it may choose to spend more to try to boost the level of aggregate demand and therefore equilibrium output. At other times, it may choose to lower the level of expenditure to avoid 'crowding out' private sector spending. Either way, it is operating a discretionary fiscal policy.
Here's the deal...Laws which are no longer practical or have worn out their usefulness can be changed.
Therefore, non discretionary spending does not exist in perpetuity.
On additional spending to "boost demand"..That has never worked. IN fact it has always made things worse.
Increases in federal spending is tantamount to the federal government manipulating the marketplace. And it feeds on itself.
When the economy slows, lower revenues to government follows. When the federal government borrows more to pump money into the economy in the form of spending, the creation of deficit is compounded.
It's the wrong path, yet politicians insist on practicing the insane idea of repeating what does not work with the expectation of a different result.
Totally false. You right wing blood letting turds never learn.
Even one of the fathers on conservatism understood that.
Mere parsimony is not economy. Expense, and great expense, may be an essential part in true economy.
Edmund Burke
What NEVER works is what Herbert Hoover and Andrew Mellon did to bring on the Great Depression...liquidate, and austerity. They listened to the 'Austrian' school. Unless you also believe Medieval blood letting save lives?
Economic Policy Under Hoover
Throughout this declinewhich carried real GNP per worker down to a level 40 percent below that which it had attained in 1929, and which saw the unemployment rise to take in more than a quarter of the labor forcethe government did not try to prop up aggregate demand. The only expansionary fiscal policy action undertaken was the Veterans Bonus, passed over President Hoovers veto. That aside, the full employment budget surplus did not fall over 192933.
The Federal Reserve did not use open market operations to keep the nominal money supply from falling. Instead, its only significant systematic use of open market operations was in the other direction: to raise interest rates and discourage gold outflows after the United Kingdom abandoned the gold standard in the fall of 1931.
This inaction did not come about because they did not understand the tools of monetary policy. This inaction did not come about because the Federal Reserve was constrained by the necessity of defending the gold standard. The Federal Reserve knew what it was doing: it was letting the private sector handle the Depression in its own fashion. It saw the private sectors task as the liquidation of the American economy. It feared that expansionary monetary policy would impede the necessary private-sector process of readjustment.
Contemplating in retrospect the wreck of his countrys economy and his own presidency, Herbert Hoover wrote bitterly in his memoirs about those who had advised inaction during the downslide:
The leave-it-alone liquidationists headed by Secretary of the Treasury Mellon felt that government must keep its hands off and let the slump liquidate itself. Mr. Mellon had only one formula: Liquidate labor, liquidate stocks, liquidate the farmers, liquidate real estate. He held that even panic was not altogether a bad thing. He said: It will purge the rottenness out of the system. High costs of living and high living will come down. People will work harder, live a more moral life. Values will be adjusted, and enterprising people will pick up the wrecks from less competent people.
The Federal Reserve took almost no steps to halt the slide into the Great Depression over 192933. Instead, the Federal Reserve acted as if appropriate policy was not to try to avoid the oncoming Great Depression, but to allow it to run its course and liquidate the unprofitable portions of the private economy.
In adopting such liquidationist policies, the Federal Reserve was merely following the recommendations provided by an economic theory of depressions that was in fact common before the Keynesian Revolution and was held by economists like Friedrich Hayek, Lionel Robbins, and Joseph Schumpeter.