I say if debt % gdp goes up even if we have a budget surplus, then our debt is a bigger burden to us than before and we're worse off.. Conversely, if the debt % gdp goes down even if we have an increased deficit, then our debt problem is less and we're better off..
Do you agree?
I say if debt % gdp goes up even if we have a budget surplus, then our debt is a bigger burden to us than before and we're worse off.. Conversely, if the debt % gdp goes down even if we have an increased deficit, then our debt problem is less and we're better off..
Do you agree?
Yes, but that has nothing to do with PAYGO. That has to do with the policies and/or the events that pushed the deficit so high to begin with. It's very difficult to decrease the deficit quickly. The usual approach is to slow down or freeze spending growth and to slowly increase revenues (without a major tax hike, it's difficult to increase revenues quickly). That's why it's taking several years for Bush to halve the deficit. Doing so quickly would be economically and politically difficult.
PAYGO has even less power over the budget. Unlike the President, PAYGO cannot just submit a balanced budget. It can only serve to make NEW tax and spending policies revenue-neutral. It can do nothing about existing taxes and spending. The fact is, the deficit steadily declined under PAYGO and has steadily increased since it expired.
Neither Bush nor the Congress have shown the courage to make the tough choices when it comes to the budget. Only by tying those choices to the easy ones (tax cuts and increased spending) will the tough choices ever get made.