Obamanomics and Trillion-Dollar Deficits

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Shouldn't this discussion of a record deficit fall under the topic "Dude, Where's my recession?"
Jimmy, you keep pointing to positive GDP numbers, but you ignore all the data points that go into those numbers.
GDP = Consumption + Investment + Govt Spending + (net exports)
GDP has remained positive due in large part to government spending growing to record levels. Meanwhile, prices have climbed higher on everything we need (food, energy, and debt servicing) and the value of the largest assets (homes and stocks) have dropped significantly. In other words, the consumers' monthly operating costs are rising; its financing costs are rising; and its balance sheets are deteriorating.
Dude...there's your recession.

pr of IL 11:12AM July 29, 2008

Obama and McCain are just following standard Keynesian economics in that deficits don't matter as long as government fiscal policy gives way to greater economic growth. I believe both campaigns are well aware that there is a deficit out there, but both are approaching it differently. McCain's camp is actively not educating McCain on the dangers of deficit spending and are not crafting an easy-to-understand message for normal Americans to grasp. Obama's group act as though only one type of deficit spending (military) is bad and seek to gloss over how expensive his plan will be by only giving out chunks here and there, so to the ordinary working man his policies sound cheap and attractive, but to the astute financial mind (if you know how to add, you're an astute financial mind) you realize that Obama's plan is huge and detrimental. So, in the end it comes down to who is the better politician. And that, my friends, is the person who is promising "change", Obama (ironic, isn't it?).

Chris of AZ 1:16PM July 28, 2008