Posted on 05/24/2024 1:04:28 PM PDT by ChicagoConservative27
Washington’s addiction to deficit spending — a rare bipartisan habit — is unlikely to change, no matter the electoral outcome in November. A deep conviction exists on both sides of the political divide that fiscal consolidation, whether achieved through less spending or higher taxes, reduces growth.
What this political consensus misses, however, are situations in which the classic trade-off is suspended — when smaller deficits can counterintuitively deliver more growth. Today’s macroeconomic environment is ripe for such an approach.
Compared to the years before the pandemic, fiscal policy — government spending and taxation — has kept a foot on the gas. Deficits remain large, particularly given the economy’s health. At the same time, monetary policy via the Federal Reserve has kept a foot on the brake to slow the economy and rein in price growth.
(Excerpt) Read more at thehill.com ...
Clinton just coasted on what Reagan created and only because Newt forced him to.
Wasn't it accomplished by stealing the Social Security trust fund?
PHILIPP CARLSSON-SZLEZAK & PAUL SWARTZ and The Hellish Hill - apologists for the current totalitarian regime in the White House.
FUGEDDABOUDDITT!!!
In that session, the budget committee forecasted a surplus. If you got in the way of a legislator running to the till, you got run over!
Being a “newbie”, I asked a long serving senator why the surplus was being spent rather than saved or to pay down debt, he said “If we don't spend it now, we won't have it next year”.
Macro economics, politics style.
reduce capital gains federally and on capital sequestered on, basically, foreign islands when repatriated and Boom!
American Economic Explosion
Lower deficits are deficits and the Debt increases with them. Th inflation is being maintained in the vain hope that cheaper dollars will reduce the real debt by paying it off in those cheaper dollars. Problem is, as deficits continue and money is created out of air those interests rates rise along with it all.
Changed the way SS “reserve” is carried on the books. It justified more spending with the same basic economy and guaranteed more inflation in the after time and higher debt.
Social security was to take care of widows and dependent children. It has morphed into a huge giveaway for politicians to buy votes. I paid into Social security for 60 years, but now we give one-half trillion dollars to a puppet dictatorship set up by Obama. Politicians are scum of the earth.
The late 1990s saw a huge boost in tax revenues due to lower capital gains tax rates and the millions of Americans who did conversions from traditional to Roth IRAs and paid the taxes on their previously tax deferred IRA contributions.
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