Tuesday, March 17, 2009

Other than that Mrs. Lincoln, how was the play ??

Tim Geithner testified before the Senate Budget Committee that the Obama budget is "not a significant growth in the overall size of government".


GEITHNER: Now, you've said several times this is a dramatic expansion in the size of the government relative to the economy. Now, again, if you take out interest costs, and you take out the modest increase forced by aging of the baby boom, this is a change in priorities for the country, but it's not a significant growth in the overall size of the government to GDP.
(emphasis mine)


Michael G. Franc explains the idiocy of this statement in this post from NRO's The Corner.
Restated, if we just pay no attention to that $80 trillion-plus Baby Boom entitlement liability over there behind the curtain, and ignore a budget line-item ("net interest" on the debt) that triples between now and 2013 (from $139 billion to $434 billion), and then doubles again by 2019 (to $622 billion), then we are on a sound fiscal course.

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