Marco Rubio lies to make his point

I’m sure that many others have done this, but let’s look at Marco Rubio’s answer to President Obama’s State of the Union address:

Presidents in both parties – from John F. Kennedy to Ronald Reagan – have known that our free enterprise economy is the source of our middle class prosperity.

many of them also know that unions and the government are also a big reason for the rise of the middle class after WW II with programs such as Social Security, Medicare and Medicaid, the GI plan, support of education (including colleges), support of research through plans like the NSF and NIH (have you heard of this thing called the internet?), and many other programs.

But President Obama? He believes it’s the cause of our problems. That the economic downturn happened because our government didn’t tax enough, spend enough and control enough. And, therefore, as you heard tonight, his solution to virtually every problem we face is for Washington to tax more, borrow more and spend more.


Maybe lots of promised cuts turned out to be “cuts”. But the record shows that total federal governmentoutlays were 25.2% of GDP in 2009, 24.1% of GDP in 2011, and 22.8% in 2012. (Receipts rose from 15.1% of GDP in 2009 to 15.4% in 2011 to 15.8% in 2012.)

Both outlays and receipts are, as a share of GDP, below pre-crisis levels. And while receipts are now forecast to rise back to pre-crisis level by 2014, outlays are expected to remain about two percentage points higher than before the recession. But the point remains that the “austerity” of 2011-2012 wasn’t “austerity” but austerity. Federal government spending fell by a meaningful share of GDP over that period. So did federal government employment, which dropped by 31,000 jobs in 2011 and 45,000 jobs in 2012. What’s more, we have good reason to believe that these cuts entailed positive multipliers above those we’d observe in normal times. You don’t have to take the IMF’s word for it; even stimulus sceptics like Valerie Ramey find that multipliers may sometimes be above normal, and above one, during periods of economic slack.

Update: A bit more information to make clear that the change in outlay/GDP ratio isn’t solely about growth: the CBO indicates that in current-dollar terms total outlays fell from 2011 to 2012 (by about $50 billion). CBO reckons outlays will fall again, also in nominal terms, from 2012 to 2013.

and this doesn’t include the states where government spending dropped. Also, Obama has passed tax cuts several times (although taxes are going up now).

This idea – that our problems were caused by a government that was too small – it’s just not true. In fact, a major cause of our recent downturn was a housing crisis created by reckless government policies.

Wow, that’s some major revisionism–go read Krugman.

And the idea that more taxes and more government spending is the best way to help hardworking middle class taxpayers – that’s an old idea that’s failed every time it’s been tried.

Yes, austerity is working so well for much of Europe.

For example, Obamacare was supposed to help middle class Americans afford health insurance. But now, some people are losing the health insurance they were happy with. And because Obamacare created expensive requirements for companies with more than 50 employees, now many of these businesses aren’t hiring. Not only that; they’re being forced to lay people off and switch from full-time employees to part-time workers.

The number of companies that provide health insurance for their employees has been decreasing for years:

The percentage of non-elderly workers with employer-sponsored coverage has been falling, from 68% in 2000 to 61% in 2009, the latest year for which data is available.[5] While the primary cause of falling rates of insurance is the rising cost of health care for employers, the economic downturn since 2008 has swelled the ranks of the uninsured, in large part because workers who lose their jobs also lose employer-sponsored insurance. Over 1 million workers lost their health care coverage in January, February and March 2009. Approximately, 268,400 more workers lost health care coverage in March 2009 than in March 2008, so the decline of employer sponsored insurance has likely accelerated in recent years.

but hey, let’s blame it on Obamacare.

When we point out that no matter how many job-killing laws we pass, our government can’t control the weather – he accuses us of wanting dirty water and dirty air.

So, Marco you don’t believe in global warming and/or don’t think it matters?

Aah, that’s all I can stand. I’m not going to bother with Rand Paul’s idiocy.

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