Free Republic
Browse · Search
News/Activism
Topics · Post Article

To: Deuce
Your choices implicitly assume that reduced government leads to greater GDP.

No, these 3 choices are unrelated to each other. I just wanted to see if you agree that the ability of the gov to pay Soc Sec in the coming years, when payments exceeds receipts, will depend on the size of the economy. Also that deficits need to be measured versus the size of the economy.

14 trillion dollar GDP, federal spending 12% of GDP, 1 trillion dollar deficit;

16 trillion dollar GDP, federal spending 10% of GDP, 1.6 trillion deficit;

I would prefer the latter example because the government controls a smaller percentage of a larger GDP. The deficit could become worrisome, but only if the growth of the economy was slower than the growth of the deficit. With a zero percent tax rate, I think we'd grow pretty fast.

114 posted on 09/04/2002 8:40:02 AM PDT by Toddsterpatriot
[ Post Reply | Private Reply | To 113 | View Replies ]


To: Toddsterpatriot
With a zero percent tax rate, I think we'd grow pretty fast.

With a zero percent tax rate, government bonds have no value, the dollar has no value, no government exists, capital flows elsewhere, and the economy becomes non-existent. Now you are taking "voodoo economics" to ridiculous extremes.

116 posted on 09/04/2002 9:23:20 AM PDT by Deuce
[ Post Reply | Private Reply | To 114 | View Replies ]

To: Toddsterpatriot
the ability of the gov to pay Soc Sec in the coming years, when payments exceeds receipts, will depend on the size of the economy.

No, it would depend on the government's capacity to borrow which you (incorrectly) implicitly assume is based on the size of the economy (which you incorrectly assume will grow) REGARDLESS of whether the government gets to tax that economy.

117 posted on 09/04/2002 9:28:42 AM PDT by Deuce
[ Post Reply | Private Reply | To 114 | View Replies ]

Free Republic
Browse · Search
News/Activism
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson