Immigrants Causing One Fifth Of Federal Deficit

[Mister D]

Edwin Rubenstyein proposes an immigration moratorium.


I have good news and bad news on the federal deficit front.



The good news: it has been worse. At the end of WWII the federal deficit was more than twice as high relative to Gross Domestic Product [GDP].



The bad news: this is the first economic recovery since World War II in which the deficit has not declined as a share of GDP. It was 10% of GDP in 2009 and is projected to be 11% in FY2011, which ended on Friday.



We’ve had weak recoveries before. George W. Bush’s first three years were essentially jobless. But he managed to reduce the federal budget imbalance by two-thirds (as a share of GDP) during his economic expansion.



This time, it is different.



This is also the first recovery in our post war history in which immigration has exceeded job creation.



The nexus between immigration, unemployment, and the federal deficit may be one of the greatest stories never told.

Snip

It’s no longer just an immigration problem. It’s not even a poverty problem: in this economy many middle-class households pay less tax than they receive in federal services.



It’s a population problem. We are all culpable.



As I see it, the country’s fiscal deterioration has a lot in common with its environmental and ecological deterioration. They are both exacerbated by population growth.

http://www.vdare.com/articles/immigr...ederal-deficit

[Conley]

"It’s sobering to realize that 15 years ago the entire federal deficit was less than one-half of 1% of GDP."

Is that really true? That doesn't seem possible.

[Mister D]

"It’s sobering to realize that 15 years ago the entire federal deficit was less than one-half of 1% of GDP."

Is that really true? That doesn't seem possible.

Not sure. They way we've been spending though...

[Conley]

"It’s sobering to realize that 15 years ago the entire federal deficit was less than one-half of 1% of GDP."

Is that really true? That doesn't seem possible.

Not sure. They way we've been spending though...

I have no doubt it's exploded, I'm just thinking that stat is either wrong or it is using Clinton's funky projections. No figures I've seen even comes close to that.

[Mister D]

"It’s sobering to realize that 15 years ago the entire federal deficit was less than one-half of 1% of GDP."

Is that really true? That doesn't seem possible.

Not sure. They way we've been spending though...

I have no doubt it's exploded, I'm just thinking that stat is either wrong or it is using Clinton's funky projections. No figures I've seen even comes close to that.

You would know better than I.

[Conley]

"The year was 1995, when total federal spending was about $1.5 trillion—less than half of what it is today."

http://www.heritage.org/Research/Tes...ending-Control

Federal Spending was a little over 1.5T, GDP was 7.3T, unless I am reading this wrong:

http://en.wikipedia.org/wiki/Nationa...ebt.2C_and_GDP

I encourage everyone to look at that chart. It is disturbing and more people need to realize what we're facing.

[Mister D]

In 15 years...what the heck happened?

[Conley]

In 15 years...what the heck happened?

That is a really good question. It has gone on for years now, through Democrats and Republicans in both the presidency and Congress. It seems like at some point the politicians just stopped caring about it. I have read that Nixon abandoning the gold standard also led to the debt we have now, since removing it was basically a license to print money without anything backing it up.

[Mister D]

In 15 years...what the heck happened?

That is a really good question. It has gone on for years now, through Democrats and Republicans in both the presidency and Congress. It seems like at some point the politicians just stopped caring about it. I have read that Nixon abandoning the gold standard also led to the debt we have now, since removing it was basically a license to print money without anything backing it up.

Wars are expensive but not that expensive. Perhaps the author has a good point about the increased population.

[MMC]

We’ve had weak recoveries before. George W. Bush’s first three years were essentially jobless. But he managed to reduce the federal budget imbalance by two-thirds (as a share of GDP) during his economic expansion.

This need to be reminded to those on the left. Each and everytime they bring up the economy. The one point that all those lefty economist keep failing to mention. >

"This is also the first recovery in our post war history in which immigration has exceeded job creation."

Another constant reminder in response anytime the Left starts blaming the right about jobs.