We fondly remember the old Abbott and Costello routine “Two Tens For A Five.” Fondly, because the routine was funny, but also because fifty years ago it was just a comedy routine and not government policy. Two tens for a five would be a huge improvement over what’s actually happened:
The Federal government borrowed and spent $5.1 trillion over the past four years to generate a cumulative $700 billion increase in the nation’s GDP. That means we’ve borrowed and spent $7.28 for every $1 of nominal “growth” in GDP.
We hate bad-news good-news jokes, especially when the punch line is “there is no good news.” This is one of those occasions:
In constant dollars, GDP is flat: we got no growth at all for our $5.1 trillion: zip, zero, nada. In constant dollars, the GDP in 2011 might return to the 2007 level, if the economy continues “growing” at the same pace reached in the first three months of 2011. If not, then the GDP will actually be lower than pre-recession levels.
We’re glad to find out it wasn’t just our imagination that last year’s vaunted “Recovery Summer” seemed like a typical summer in Anchorage – both lasted about a day. And we have noticed the “unexpected” change in the Democrat and media (yes, still the same thing) rhetoric from “good times are a’ comin” to “things could be worse.”
Unfortunately, we are compelled to add “and thanks to that mountain of useless debt, they will be.”
– Written by Bonfire of the Absurdities
Source: Charles Hugh Smith
This post was last modified on June 8, 2011
View Comments (8)
Looks like Obama ain't the guy to make communism/progressivism/fascism work either.
Does this mean that when Nanzi Pelosi said unemployment welfare would return $2.75 for each $1.00 spent could be wrong? Does 1+1=POTATO or does it equal BLUE?
Someone needs to tell them they are dealing with real money and with real people's lives. This is not Monopoly. They need to stop playing games.
I feel like I stepped into the Time Tunnel and went back to 1979. Oh there's Doug and Tony!
Abbott and Costello, man I love those guys...used to watch them almost as much as the Three Stooges. These guys were professional comedians and where actually hilarious, Obama and Geithner, well they're funny all right, but not funny ha-ha funny, more like funny I fell down the stairs and broke my legs and my back funny.
...where's my mower? I need to add some words to my lawn.
Math was never my strong suit, but let me take a crack at this...
Geithner + Obama = Economic Pancake
I suppose this could have worked in Home Economics class, too.
Yes, and just look at all the money those ivy league colleges rake in to turn out morons who approve of economics like this....same principal...spend a lot...get very little.
Government at work.