The Baehr Essentials

Richard Baehr
Here is one way to look a the debt ceiling/deficit debate:  From 2010 to 2011, total federal spending grew by about $250 billion, to $3.7 trillion.  Absent any cuts, over the next ten years, it will be at least 50 trillion in total, likely several trillion higher, since interest costs are likely to rise, the estimated cost of ObamaCare subsidies is almost certainly too low, and estimates of economic growth (between 3% and 4% a year) are likely way too high, meaning that health and welfare costs will be higher than estimated. The  agreement reached yesterday reduces government spending by $2.4 trillion over this period, or less than 20% of the projected  growth in spending estimated for the next ten years.   Only with government, are baseline spending levels considered holy, and  cuts (always draconian, according to the left) nothing more than reductions in the growth rate in spending.   Federal spending is now 25% of GDP, 5 points higher than in...(Read Full Post)