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 ...
PING!
Yes, it’s booming.
“Can we find any way possible to sh1t on Trump for the economy?”
Yes
Get out of California and smell and see the changes.
Well it’s all relative, isn’t it? Compared to everywhere else, we are jumping over the moon!
For a great many the answer is no. The sheer quantity of articles that actually acknowledge the obvious fact that the economy is going gangbusters ALWAYS manage to also rain criticism of some sort.
Debt is an issue but, it’s never an issue when a dem is in the White House. Not acknowledged is the fact that the President’s recent budget proposal to Congress actually reduces debt and if voted on and passed it would result in a balanced budget in 6 years.
The House dems have already indicated that the President’s budget will not pass the House. Why? because it reaches balance by shrinking gov’t agencies and welfare programs.
Trump’s proposed budgets have consistently sought to reduce spending, but Congress will have no part of it, and Congress won’t until and unless the GOP controls both the Senate and the House. Trump could always let the government shut down, but he surely won’t do it in an election year.
” it reaches balance by shrinking gov’t agencies and welfare programs.
The author Harvat likes to be negative which is easy.
It is difficult to see road blocks, then pray for guidance and consult strategy experts. Decreasing government agencies, waste, welfare programs is the ethical use of tax money.
Er, the GOP controlled both the first 2 years, no?
Mueller mafia and weinie Session.... remember those bad actors?
Good point. They did when that corrupt snake Paul Ryan was Speaker. And, that massive tax cut, although jumpstarting the economy, likely helped to increase the deficit.
Now, though, Trump has earned significantly more power and support among the GOP because of his remarkable success in his first 3 years. If Republicans win back the House, I think Kevin McCarthy as Speaker will be much more in tune with Trump than Ryan was.
I agree with Rush on this. All my life I’ve heard about the federal debt and how it’s going to ruin us. It’s like climate change, we’ll all be dead in a few years. I’m tired of hearing about it.
I’m sorry man but Neither of those dudes got to vote on the budget.
NO MORE EXCUSES.
We need REAL conservatives and not these RINO clowns.
The only thing is even the real ones get bought or extorted.
I know with my skeletons it would take 12 to 15 minutes for the deep state to dig up enough dirt to own me for life.
That’s why I would never run for office :)
But skeletons?...everybody’s got em.
And boy does Deep State know how to find them.
Or make them by enticing...
No, and that is the fault of recent Presidents and Congress. The Fed says it’s not doing QE but it is and it was only supposed to be done in emergencies to spur growth. Now it’s being done even though we’re supposed to be in a boom. GDP growth should be a lot higher but the debt is limiting the Feds ability to spur growth and inflation is much higher than will be admitted. Trump is pulling us uphill.
For those who are not doing well in this economy they better take a good hard look at themselves.
I have the same discussion every few months with those who will not move and go to where the work is. It seems that they would much rather stay where the work isn’t, bitch like hell, and even watch their children go hungry or do with out necessities than move to another location where there are good jobs waiting for them.
I have zero sympathy for them. No one has the right to expect work to come to them. They don’t do better because they make a choice not to do better.
Its all relative.
If the economy grows then the debt isn’t as much a problem.
A 22 Trillion debt in a 20 Trillion economy is not such a big deal. A 40 Trillion debt in a 20 Trillion economy is a big problem.
Me and everyone I know in manufacturing is working their a$$ off. Alabama.
In my location, yes.
Yes, the GOP-e.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.