Re: Obama XIII: It's all Bush's fault.
I would also agree largely. Although the debate would come down to whether now is the time for serious action on the deficit as in theory this might hurt the economy in the short term and driving the economy in the short term helps on the tax revenue side of the equation. Regardless, I'm not sure that your post is in disagreement with mine.
If anything I think your point means that taxes go up higher than they would in order to pay down debt. But the other question is...who ends up with the money to spend after debt payments are made (govt or private hands)? Unfortunately for the health of the economy as it stands today, I think adequate taxes are necessary to work on the deficit (assuming you see the need for that) and fund the govt with enough to continue to push capital through the economy as nobody else will.
Tough issues...and we really don't know the right answer.
Part of this all comes down to your economic philosophy. Modern American economic philosophy has come to be dominated by the need to consume and thus drive the economy. There was a time when the economic philosophy was basically opposite. That you pay off your debts and accumulate surplus and out of that surplus you fund economic expansion. Today we just want people to go into debt further and further to keep driving the economic machine. Rightly, people are starting to recognize that debt isn't necessarily your friend, especially at very high levels. Short term it may not make the economy directly as active. But long term you're better off with less debt and financially robust entities. There is of course a whole lot of nuance I've left out, but I find it fascinating how this nation has bought almost exclusively into the spend, regardless of debt, and it's good for you and the economy. In the end I think it's a pretty lousy philosophy if you care about something more than very short term economic and/or personal benefit.
I would also agree largely. Although the debate would come down to whether now is the time for serious action on the deficit as in theory this might hurt the economy in the short term and driving the economy in the short term helps on the tax revenue side of the equation. Regardless, I'm not sure that your post is in disagreement with mine.
If anything I think your point means that taxes go up higher than they would in order to pay down debt. But the other question is...who ends up with the money to spend after debt payments are made (govt or private hands)? Unfortunately for the health of the economy as it stands today, I think adequate taxes are necessary to work on the deficit (assuming you see the need for that) and fund the govt with enough to continue to push capital through the economy as nobody else will.
Tough issues...and we really don't know the right answer.
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