How does that saying go?

I think it is, “Better to keep your mouth closed and be thought a fool than to open it and remove all doubt.”

Well apparently the McCain campaign is not familiar with it, thanks to this gem,

“The McCain administration would reserve all savings from victory in the Iraq and Afghanistan operations in the fight against Islamic extremists for reducing the deficit. Since all their costs were financed with deficit spending, all their savings must go to deficit reduction.”

Most comments I have seen to this focus on the pro-war, pro-surge, aspect of McCain’s foreign policy efforts, not the much simpler, what did he just say?

How do you apply money that you would have borrowed to offset, the savings part, to reduce other money you are borrowing?

Lets say that your budget deficit for the year is going to be $500 and you add an additional (what is called supplemental funding these days) $100 to that deficit for the war, you have a total annual deficit of $600.  Now lets say you end that war, saving $100 from the deficit, that means you still have $500 in deficit for the year, and no additional funds to reduce that amount below $500 from ending the war.

Now a defender of McCain could make the argument that reducing the deficit will reduce the fiscal burden of interest payments, but that would be the case in any deficit reduction, not solely due to reduction in war costs, so I would not count that argument as explaining away the imaginary numbers he is playing with.

Thanks for opening up your mouth and proving without a doubt that you are fool on basic economics.



1 Comment

  1. Ickster said,

    July 8, 2008 at 10:15 pm

    That’s just breathtaking in its stupidity.

    Any word on how he’s planning on reducing the structural deficit? Hey! Maybe if we reduce taxes to 0%, we’ll make it up on volume!

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