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USW Blog » Blog Archive » Why Does Sen. McCaskill Want to Bankrupt Our Children?

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Claire, everything is on the table; including your job. attack medicare or social security and watch your base divide very quickly

from article:

"By Dean Baker
Co-Director, Center for Economic and Policy Research

That is what people should be asking Missouri Senator Claire McCaskill along with her fellow senators who are advocated strict caps on government spending. The idea being pushed by Senator McCaskill, together with Tennessee Senator Bob Corker and several other prominent senators, would limit federal spending to 20.6 percent of GDP. It would require difficult-to-obtain super-majorities to exceed this cap. Spending would be cut across a variety of programs if the cap is not reached.

This proposal is hugely deserving of ridicule for a variety of reasons. First, it operates from a blatantly wrong premise — that government spending has grown out of control.

Those familiar with arithmetic know that government spending had increased by little as a share of GDP prior to the downturn caused by the collapse of the housing bubble. In 2007, the last year before the onset of the recession, spending as a share of GDP was 19.6 percent. That is 1.1 percentage points less than the 20.7 percent share 30 years earlier in 1977. So the idea that there is a long-term trend of out-of-control spending is simply not true, or what they call outside of Washington, a “lie.”