Posted on 02/25/2020 9:05:01 PM PST by Tolerance Sucks Rocks
The economic indicators all show the economy is booming. Unemployment is at record lows. The stock market is seeing record highs. Wages are up, and taxes are down. Stifling regulations are being lifted. Everything seems to be working just fine.
There is much truth in this perception of a boom. Part of this can be attributed to less government interference and taxation. Unnecessary government regulation and spending always hurt the economy. When markets are freer, profits tend to come galloping back. And much has galloped back.
However, beneath the surface, major problems threaten the boom. These problems have long plagued the nation. Yet, not much is being done to address these problems. Most people assume that if ignored long enough, they will go away. Decades of cheap, low-interest fiat money certainly makes it easier to paper over them.
The Problem of Debt
The big problem that the boom does not address is debt. America has a lot of federal debt—some 22 trillion dollars’ worth. Boom times normally pay off debts. But that is not happening. The government is still spending money with wild abandon.
Deficit spending is now the norm, and annual trillion-dollar shortfalls are the new normal. Low-interest rates make this borrowing almost painless so hardly anyone resists the temptation.
What makes this problem so exasperating is that the bad habit of overspending makes no economic sense. Since 1961, only five years have seen budget surpluses, the latest being in 2001.
This problem should be fixable. The national capacity to overcome practical obstacles is prodigious. The fracking turnaround is just one example of how, when Americans put their mind to something, they can make it happen. There is no practical reason why the federal debt cannot be resolved.
(Excerpt) Read more at returntoorder.org ...
Republicans talk a good game when they are not in control,but the fact is they are just as addicted to spending as the Democrats.
Republicans in general are all for big government, they just have different goals for that ever expanding government.
The problem with this analysis is reality.
The author says debt is bad. It is really, really bad.
But we have had dept and more debt, and more debt, and we have become the most powerful and prosperous nation on the planet.
Can a run of 75 years like that be papered over by saying “debt is bad?”
I do not have an easy explanation. Here are a few possibilities:
Technological innovation overcomes debt.
Fiat currency just inflates and ignores debt.
Being the world currency means the rest of the world funds our debt.
I don’t know what the mechanism is, but it is hard to argue with the results.
I have been expecting the crash brought on by debt to happen for 50 years.
It has never happened.
Perhaps we need a Jubilee
Combine the above with income tax CUTS and a modest spending reduction ( or freeze ). And problem solved.
“However, beneath the surface, major problems threaten the boom.”
In other words “BUT”.
Before I read on, I said to myself, “let me guess, the “Daficit” (sic).
The ole Bogeyman, (or Boogyman if you are a dancer), is trying to make a comeback.
I can’t list all of Trump’s GREAT accomplishments because my fingers would fall off, but ONE thing he hasn’t dealt with is the “Daficit”. He is working on the “trade” daficit, but that doesn’t count.
I have been hearing about the “Daficit” since, what, the 70s? FIFTY YEARS! OMG, the sky is falling, the end is near, total financial collapse is at hand, etc.
WHERE IS IT? Where is this boogyman? Still WAITING!
In “a” word... YES.
Not in the blue bits, but that is NOT Trump’s fault. It does prove Trump’s argument, however.
Note to POTUS: Come to Upstate NY and shine a light on what’s going on here, sir. Sunshine is the best disinfectant.
Yes.
But it’s really, really booming when you compare it to Obama’s promised baseline: “America is over and the economy is all downhill from here.”
No argue, but don’t you know republicans are for small gov.?
If you say so, but I don’t know why you commented to me as I haven’t commented on this thread.
But since you did, a bunch of the Republicans in Congress are big government right wingers.
They don’t care if government grows as long as they are in charge of it.
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