How does McCain plan to balance the Budget?

by igwealth5tm, Mon Jul 07, 2008 at 01:59:59 PM EST

Did anyone review McCain's latest Economic plan and its fantasies including how he plans to balance the budget in four years using "Victory gains" from deficit financing of Iraq and Afghanistan wars?

Go to show you that McCain has no clue when it comes to economics.

SusanG at Kos said it best:  
"just because I stop charging on my credit card doesn't mean I'm suddenly making income to pay off the debt I've run up, does it?"

So the next time John McCain admits that he knows nothing about economics, better believe him.




Tags: 2008, election, John McCain, Obama, presidential, campaign (all tags)

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Re: How does McCain plan to balance the Budget? (none / 0)

Isn't life like professional sports that when you get declared champion you get a bonus? i think that's what McCain is thinking?


by Dog Chains on Mon Jul 07, 2008 at 02:12:14 PM EST

President McCain will not balance your budget... (none / 0)

and neither will President Obama.

President Clinton would not have either...


If you follow history with a long enough arc, things always get better, and the truth always prevails...Gandhi
by SevenStrings on Mon Jul 07, 2008 at 03:21:31 PM EST

Re: President McCain will not balance your budget. (none / 0)

President Clinton did balance the budget.


by dtaylor2 on Mon Jul 07, 2008 at 03:33:59 PM EST
[ Parent ]

Re: President McCain will not balance your budget. (none / 0)

Good point...

the past, however, would not have predicted the future in this case.

Noone can balance the budget today...


If you follow history with a long enough arc, things always get better, and the truth always prevails...Gandhi
by SevenStrings on Mon Jul 07, 2008 at 04:16:14 PM EST
[ Parent ]

Re: President McCain will not balance your budget. (none / 0)

All budgets can be balanced.  It just requires either cutting spending which is 100% under control of the president and congress or increasing revenue which is only mostly under the control of the president and congress.

Its political will that is needed to balance the budget.

It took Bill Clinton and the last 2 years of Bush Sr, 10 years to turn the budget around but its possible that the next turn around would be faster as the country understands there is a problem in a way that they did not in 1990.

Hillary Clinton could very well have done it in 4 as she brings with her a large amount of global confidence in the Clinton management decisions regarding finance and economic decisions.


by dtaylor2 on Mon Jul 07, 2008 at 04:43:15 PM EST
[ Parent ]

Re: President McCain will not balance your budget. (none / 0)

1990 was a different time... the mandatory expeditures (interest, SS, medicare, medicaid and defense.. you could quibble with defense, perhaps) were a smaller portion of the total budget.  Thus, there was more room to cut (from the discretionary portion).

Only the discretionary spending is 100% under the control of the President and Congress.

And increasing the revenue is more than just political will... it requires a willingness to embrace political death (as Bush Sr did, and Bill Clinton nearly did).

Look, I think we are vehemently agreeing on what it takes.  I very much doubt Pres Obama or Pres McCain can do it.

Maybe Pres Clinton would have...but I doubt that too !!


If you follow history with a long enough arc, things always get better, and the truth always prevails...Gandhi
by SevenStrings on Mon Jul 07, 2008 at 05:05:33 PM EST
[ Parent ]

Re: President McCain will not balance your budget. (none / 0)

All spending is 100% under the control of congress and the president its in the constitution.

I don't miss what you are saying but its important to look at the choices we like or are likely and realize that they are not the complete set of choices.

Balancing the budget under Bill Clinton was largely about telling the world we were going to do it and then starting doing the things necessary to do it until they believed us.

Once they believed us it was pretty easy.


by dtaylor2 on Mon Jul 07, 2008 at 06:50:24 PM EST
[ Parent ]

Re: President McCain will not balance your budget. (none / 0)

Not so.

The interest payment on the debt is not under the control of the current President and Congress.  Previous Presidents and Congresses decided that already.

Likewise with Social Security and Medicare/Medicaid expenses.


If you follow history with a long enough arc, things always get better, and the truth always prevails...Gandhi
by SevenStrings on Mon Jul 07, 2008 at 07:42:09 PM EST
[ Parent ]

Re: How does McCain plan to balance the Budget? (none / 0)

Balancing the budget isn't complicated it just has dramatic consequences.

For example, Social Security 5 year freeze on inflation indexing coupled with 6% inflation would probably take a big bite out of the yearly deficit.

The key is to do good things that also save the government money.  

For example, If the government build massive wind, geothermal or solar geothermal installations on government land with domestic manufactured parts and converted all government vehicles to electric or hydrogen it would be good and likely would also make money.   A network of recharge facilities or Hydrogen stations could also be used for citizens too.

If the government build say 800 billion worth of said power plants and used the power to displace oil and gas the money saved for the 5th year using a 15 year pay back would be ~53 Billion.  If the project was funded with government energy war bonds at say 5% then the project would save 13 billion dollars and displace 53 Billion of foreign oil and likely lower the cost of thermal solar enough to make it economical for MUCH MUCH MUCH larger investment by the private sector.

Balancing the budget is not a hard thing.  Balancing the budget with positive outcomes is a very hard thing.


by dtaylor2 on Mon Jul 07, 2008 at 03:47:55 PM EST


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