My views on a variety of subjects from political to economics to life.

Sunday, January 3, 2010

I just watched IOUSA, what a great documentary.



You can watch a 30 minute version of the movie at:  http://www.youtube.com/watch?v=O_TjBNjc9Bo

Its fairly non political documentary on the state of the Federal Debt of the USA, and how it is in critical shape.  It has the GAO's David Walker as a main person in the film, it really isnt political propoganda, he really gives a unbiased version of what both parties have done.  As a Austrian economist and a conservative libertarian I obviously have many ideas on how I would solve the problems that are addressed, but im not even sure if I was able to address all the problems it could solve the financial crisis this country is in.  The movie was made in mid 2008, so it doesn't even address the scale of the current administrations additions to the debt.  It states that if you add up all the federal debt in 2008 we are in debt to the tune of $53 trillion.  That includes the 12 trillion in federal debt + unfunded liabilities + other federal debts. 

Towards the end of the movie it states the more "popular" ways to solve the problem and states that they are not even close to solving the problem.

-Earmarks and Pork barrel spending accounts for 1% of the revenue needed.
-Rolling back ALL of the Bush Tax cuts accounts for 10% of the revenue needed.
-Ending the Iraq war immediately accounts for 3% of the revenue needed.

Thats 14% of the revenue needed to solve the coming financial crisis.

The 4 deficits in the US.

Federal Deficit
Savings Deficit
Trade Deficit
LEADERSHIP Deficit

It does mention the federal reserves place in the equation, but doesn't obviously highlight the huge problems that libertarians have with the FED.  It does give Ron Paul a fairly good plug during the movie.  It has him questioning former Fed president Alan Greenspan's ineptitude of hitting so called benchmarks.  Saying something like, "if I missed as many benchmarks as you do, as a doctor, I would have dead patients."

Its a well made movie for those without a degree in economics and does it in a fairly non political way.  I would recommend it to anyone.

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