But getting growth to 3 percent, and restrained spending seems impossible. Every policy they do kills growth and increases spending.
I think in DC they have given up on fixing it, and are currently in a looting phase before the collapse.
Posted on 06/19/2024 6:38:01 AM PDT by Red Badger
The employer files a form 8846 with their tax return, and receives a credit for FICA paid on any tips that when paid with other serving compensation exceed the minimum wage
But getting growth to 3 percent, and restrained spending seems impossible. Every policy they do kills growth and increases spending.
I think in DC they have given up on fixing it, and are currently in a looting phase before the collapse.
That falls apart because growth is by definition G dependent.
If you reduce spending (G) you reduce growth. If you increase taxes you reduce (I) and that reduces growth.
There is no fix. Buy farmland and hope you get to keep it.
Our family already owns a farm, and I am wondering how much to downsize TLT holdings.
For the Us budget, In the 1990’s, the revenue fraction went up, but spending was not cut.
If that happened again the USA “might” be able to get to a sustainable 3 percent deficit to GDP.
No, that doesn’t work that way. GDP is determined by
C(onsumption), + G(ovt Spending) + I(nvestment) + (exports - imports)
Oddly the Soc Sec payout gets categorized as C. If you cut govt spending and raise revenue (this reduces I), you don’t increase GDP growth, you shrink it.
Because it’s past the limits of mathematics. Nothing can be done.
In the 1990’s, none of C or I or G went down.
REvenue fraction of GDP went up because of clinton’s tax increases as well as income growth in more highly taxed sectors.
If the USA can get back to late 1990’s revenue share of GDP, it just about looks sustainable.
What is a “PM-based financial system”?
That is living in a world that doesn’t exist.
1990s numbers had easy North Sea oil flowing. Alaska is dying, too. And much of many places. Only difficult oil (difficult in joules in per joule out) flows now.
1990s numbers were pre dot com crash. Pre 9/11/2001. Pre 2008 Apocalypse and pre 2020 global plague. Each catastrophe was bailed out with interest generating debt. That world is gone and lost forever.
Dreadful sorrow, Clementine.
I say that it is possible, not that it is likely.
Oil sand production in Venezuala and Alberta would be profitable at much less than $80 a barrel.
Current oil prices are a political construct, not a constraint of nature.
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