Whatever the government estimates the deficit to be this year, the actual deficit will be bigger. First, government programs always turn out to be more expensive than they actually are.
But there is a second reason that is not being reported by the media. Federal receipts are down from last year. Tom Blumer figures that receipts for June 2009 will be at 90% or less than June 2008. The money is disappearing at a greater rate than the 3.2% contraction of the economy for the last three quarters.
Where is the money going?
Maybe people are saying something like, “I’m stopping that extra job I had on weekends because all it did was push me into a higher tax bracket; it wasn’t worth the effort.”
Or maybe they’re saying, “Screw it — I’ve got enough to be comfortable. Time to stop producing. I’m going to sit in my rocker and drink lemonade and let the rest of the suckers be Obama-Pelosi-Reid’s bitch.”
I can’t wait for some genius in Washington, D.C. to denounce people who stop working as “unpatriotic.” Then we’ll really be living Atlas Shrugged.