Monday, October 11, 2010

Krugman: "Deficit? What Deficit?"

Evidently, the sky is orange in Paul Krugman's world:

Here’s the narrative you hear everywhere: President Obama has presided over a huge expansion of government, but unemployment has remained high. And this proves that government spending can’t create jobs.

Here’s what you need to know: The whole story is a myth. There never was a big expansion of government spending.


This is what is known in the real world as a lie.

For the 2009 budget (i.e. the last submitted by Bush) the total outlay of the Federal Budget was $3.1 trillion. For the first two years of the Obama administration the outlays were $3.6 trillion and $3.8 trillion. Thus, when compared to the baseline 2009 budget, the Obama administration spent an additional $1.2 trillion. Let's compare that with other two year periods since 1998 shall we? (data)

1998: $100 Million
1999: $100 Million
2000: $100 Million
2001: $300 Million
2002: $300 Million
2003: $400 Million
2004: $500 Million
2005: $300 Million
2006: $500 Million
2007: $700 Million
2008: $300 Million
2009: $500 Million
2010: $1.2 Trillion
2011: $1.2 Trillion

Thus I refute Krugman.

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