Fuzzy Math
Allan Sloan writes about government bookkeeping (perhaps it is too generous to call it that.):
The federal budget is a bizarre mess, with unique bookkeeping practices that make it almost impossible for an outsider - or even most insiders - to figure out what's really going on. If corporations produced numbers like these, jail cells would be filled with CEOs. But Washington doesn't impose laws like Sarbanes-Oxley reform legislation on itself. It does whatever it wants.As someone who suffers on a daily basis from having to deal with the effects of the Sarbanes-Oxley bill, this does indeed make me mad. From my reading of the article, it doesn't really speak against Social Security Reform or in favor of it, it mostly says that the government lies about it's money in a way that would make Ken Lay blush and as a result it is really tough to critically examine the effects of any change in policy.
posted by Dave Justus | 12/17/2004 01:29:00 PM
1 Comments:
I am always facinated by the way US commentators can concentrate on just one aspect of US fiscal policy - such as tax cuts, education funding, or as in this case the accounting - and in the course of that commentary mention what to me is by far the most important fact of all and then just pass on, glide over it, ignore it completely.
How bad is the fiscal deficit going to get before someone has the gumption and intestinal fortitude to point out what is obvious to the rest of the world...
The only explanation that can be found for the present policies of the Bush administration is that it is based upon the worst of Mr Micawber's policies - "Something will turn up..."
Well, is it not about now that someone should ask? "What and from where?"
Is the 0.25 increase in cash interest rates worrying anyone in the States as yet? It is after all about a 20% increase in the rate of interest being paid by the Federal Bank. What does that do to the fiscal deficit? Anyone figured that yet?
I have seen it before, here in NZ. It led to the fall of a government here, and resulted in some 15 years of harsh financial stringency. That was the consequence of ignoring the finances in favour of the rentention of votes.
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