The Democrats Get Their “Tard” On

Alrighty, I knew that if I sat back for a couple of days, the Democrats would quietly start passing retarded legislation. It turns out, they’ve been hard at work insuring that our country will plunge into depression next time the going gets tough.

It would seem that Nancy Pelosi and her band of “revolutionary” tards forgot to take economics when they went to college. Earlier this week, the Demotards passed legislation that “sounds” reasonable. Hell, it sounds like something I’d do, if I wasn’t abnormally smart and educated. They passed new legislation that requires that any time a tax CUT is given, one of two things must happen automatically, a Federal program must be cut, or another group of taxpayers must have an increase to make up the difference.

Wow, Incredipete, that sounds VERY reasonable… it sounds like they’re trying to balance the budget! What’s wrong with that?

I’m glad you asked. It’s time for you to get smart so you won’t be duped by the Demotards when they get on TV and the radio and start talking about “fiscal responsibility.” They’re setting us up for disaster several years down the road.

This explanation will be visual and elementary so it will make sense even in you have no background with economics.

The gross domestic product (GDP) is the sum of everything our country sells each year. (Often talked about in terms of goods produced, yada yada.) Think of it as every dollar that’s spent on finished products by our country in a single year. It’s currently around 7 Trillion dollars. That’s good, in case you’re wondering.

So what the hell does that mean to you? Again, I’m glad you asked. Industry in America produces lots of dangerous, shoddy products each year, all of which get purchased by someone, which puts money back into the industry, who pays their employees, who go out and spend the paycheck to purchase other dangerous, shoddy products, and the cycle continues forever and ever.

Individual consumers buy a lot of the dangerous, shoddy products we produce, but it’s a relatively small amount of the GDP… a big chunk of the buying that happens in America is by businesses. Think about how many things the company YOU work for buys from other companies. There’s another big spender out there, though… the biggest spender, in fact. It’s the Federal government. Let me show you a hypothetical picture of what it looks like:

spending.jpg

So, the three spending components of the economy are consumers, businesses, and the federal government. The sum of everything those three groups spend equals the gross domestic product. With me so far? Good.

So, what happens in the economy starts to go into a recession… let’s say suddenly interest rates go up to counteract inflation. Businesses will put of capital projects until interest rates go down. This means layoffs and less product being produced, because less people can afford to spend money on their dangerous, shoddy products. Here… look at the picture:

recessionstarts.jpg

See the yellow area? That’s the gap created when businesses and indivuals start spending less money. Hmmm. Houston, we have a problem. That means there’s excess production… either someone soaks it up, or it’s going to be wasted. Who does the “soaking up?”

Well, the only one of the three groups that can spend money when things are bad are the people who print the money… the feds.

increasedfederal.jpg

Ahh. Thank god. The feds started spending MORE money, so the GDP didn’t go down. What you see in that diagram is what’s called “counter-cyclical spending.” The Federal government can spend MORE when things are bad, and LESS when things are good… which balances things out. So… what does that mean to the famous “budget deficit?” Well, when things are good, the deficit gets better, and when they’re bad, it’s the opposite. When Clinton was in office, he hit the economic cycle at a good time, and they actually had SURPLUS budget… they had MORE money than they could figure out how to spend.

But Incredipete, how can the government just spend money that isn’t there? Well, it’s because they can print money. States can’t do that, neither can you or I, nor can businesses. The fact is, it’s the government’s JOB to throw money at recession. Why is that?

Well, look what happens if they DON’T do it:

depression.jpg

Ahh. If recession hits and the government doesn’t increase their spending…. the GDP goes down and the snowball affect makes the economy spiral downwards into depression. It happened in the early 1900’s, and it can happen again. It happened in the 1900’s because we didn’t understand how all of these economic components worked together. Now we do. Well, some of us do… the ones who have studied Keyensian economics.

Counter-cyclical fiscal policy has been used by every administration since the Great Depression, and now the Demotards have BUILT IN legislation that insures it’s only a matter of time…. till the next Depression.

What should we do about it? Well, vote Republican, buy a gun, and invest your money in precious metals.

  9 comments for “The Democrats Get Their “Tard” On

  1. January 9, 2007 at 6:46 am

    Call me a tard but if one group is picking up the slack for another group (for the duration of the tax cut) how is this bad for the GDP? As long as someone is spending money won’t it balance out?

    Or am I missing something? And to think I actually kind of enjoyed economics…

  2. January 9, 2007 at 7:48 am

    Yes, Pedro…do tell us your point. The pretty pictures were just that, but why are you against Nancy’s funky idears? I mean, I get what they’re doing; they’re saying to everyone “If you want to give those rich white folk more money, we’re going to make the hard working minorities suffer. Now, you wouldn’t want that, would you?” It’s utter bullshit, but that’s their plan.

    Got to love those idealistic Democrats. Only thing…they’re all rich white folk too.

    Their “plan” does nothing about the GDP. It’s all about making rich Republicans take a hard look in the mirror before they give themselves more money. And that’s likely to happen about the same time as wings grow out of my ass and I can fly at Supersonic speeds.

    Next time, can we have graphs to show why the BCS is stupid?

  3. Dave
    January 9, 2007 at 9:11 am

    Well said, Incredipete! I hear they are also going to pass the minimum wage increase…which will raise the income of live-at-home high school kids working fast food, and make it harder for the true families of poverty to afford basic goods, which are now more expensive do to the hike in minimum wage!

  4. January 9, 2007 at 9:33 am

    Accept you missed part b. of their plan, which is if they can’t get the Republicans to go along with a tax increase for another group, they’re going to cut federal programs. That IS bad for the GDP.

    So option one is screw a certain segment of the population… take from the rich and give to the poor… communism, or option two which is screwing the economy.

  5. Dave
    January 9, 2007 at 10:28 am

    Strong bad on http://www.homestarrunner.com has some insight into the determination of what makes someone a Stupid Butt. His Butt I.Q. equation is quite accurate, and it fits in very nicely with the Demotard plans we all know and love.

  6. January 9, 2007 at 10:32 am

    I read this last night and the title STILL makes me giggle.

    Get yer TARD on, yo!

  7. January 9, 2007 at 1:03 pm

    But it’s the same thing: OK Republican richie riches. You want to give your donors more money? You have to tax the poor or cut federal programs (ahem for the poor). It’s a massively stupid guilt trip.

    Now, excuse me. I have to go pray to my Angelina Joline-as The Madonna Painting. Or kill myself.

  8. January 10, 2007 at 3:00 pm

    Well, there is actually a bigger part of the puzzle that you didn’t touch on.

    The economy is really driven by capital. Think money, but also other stuff like raw materials (steel), finished products (Aston Martins), services (Waiter!). But also, you need a free and open place to spend capital. Hence, when you hear terms like “free market,” “market driven forces,” “the open market,” and uh, “meat market,” they are all referring to the basic idea that when enough people are given the freedom to do what they want with their capital that as a group, they will do better than any one person. Every single place where we’ve let the market forces work, it has worked out for the better, and where we don’t, it sucks.

    One example would be education. The government has an essential monopoly on K-12 education. It does not have a monopoly on University education. Our higher education system is the envy of the world, and our grade school system sucks by any standard.

    So, the problems are that the government has a monopoly on what it does. The government is also the only one in the market that is legally allowed to use physical violence to get what they want. Last the government is the worst way to spend money.

    So, if during a recession, the government spends MORE money, but does it poorly, it creates the illusion that it is helping when in reality, what it should have done was put more money in the people’s hands where it would be put to work better.

    This is the central argument to why cutting taxes during a recession works. Bush did it in 2001-2002 and it worked. Reagan did it, and it worked. Clinton was forced to do it, and it worked.

    The reason it always looks like “Tax cuts for the rich” is because the poor don’t pay any taxes. And the reason the “rich get richer” or the “gap between the rich and the poor expanded” is primarily because both groups do with their money what they have always done. The poor tend to spend it poorly, and the rich tend to use it to make more money.

    So, what the Dems will do is horribly short sited, and heavy handed, but if it bankrupts the governement badly enough that they reform the system, then hooray!

  9. January 10, 2007 at 3:10 pm

    All great points, Eric. The multiplier affect of tax cuts really is the most powerful way to stimulate the economy… and by far the least likely to ever be considered by the Democrats.

Comments are closed.