Schansberg congratulates President Bush and Democratic Congress on world-record budget deficit
JEFFERSONVILLE, IN -- Just in time for the Olympics, the White House has predicted a $482 billion deficit for 2009—which if successful, would allow the President and the Democratic Congress to set a new world record. A $482 billion deficit would smash the current record of $413 billion in 2004.
The 2009 deficit will extend the current national debt to more than $10 trillion. On top of that, unfunded liabilities—most notably, for Social Security and Medicare—add tens of trillions of dollars in debt.
Dr. Eric Schansberg, a professor of Economics and the Libertarian candidate for the 9th Congressional District in Indiana, noted that current debt necessarily leads to higher future taxes. And Schansberg pointed to massive increases in spending as the cause: "Tax revenues, as a percentage of GDP, are well within historical ranges. But spending has increased dramatically. With hundreds of billions of dollars for a housing bail-out, a banking bail-out, the 'macro stimulus package', the farm bill, our on-going efforts in Iraq, and so on—after awhile it adds up to real money."
Schansberg pointed to the subtle costs of the profligate spending: "The dollar has depreciated about 40% since 2002. This leads to a host of problems—most notably, higher costs of imported oil and thus, gas prices. If the dollar was as strong as it was in 2002, we'd be paying less than $3 per gallon—and there'd be very little discussion about gas prices right now."
In terms of his campaign, Schansberg observed that he is the only fiscal conservative in the race: "If you look at the data from NTU, CAGW and Club for Growth, it is obvious that Sodrel is a fiscal moderate and Hill's claim to be a fiscal conservative is laughable. If we're going to restore fiscal sanity in the federal government, we need to send principled, fiscal conservatives to Washington DC."
Note: Sodrel and Hill are Schansberg's Demopublican opponents. One is the incumbent and the other used to be in Congress. I forget which one. Does it matter?
Maybe, Eric, we just need to send a real economist to Congress.
Just another one of those wild Libertarian ideas.