TV News LIES

Sunday, Dec 21st

Last update01:55:24 AM GMT

You are here News Politics How the Deficit Got This Big

How the Deficit Got This Big

E-mail Print PDF

Despite what antigovernment conservatives say, non-defense discretionary spending on areas like foreign aid, education and food safety was not a driving factor in creating the deficits. In fact, such spending, accounting for only 15 percent of the budget, has been basically flat as a share of the economy for decades. Cutting it simply will not fill the deficit hole.

A few lessons can be drawn from the numbers. First, the Bush tax cuts have had a huge damaging effect. If all of them expired as scheduled at the end of 2012, future deficits would be cut by about half, to sustainable levels. Second, a healthy budget requires a healthy economy; recessions wreak havoc by reducing tax revenue. Government has to spur demand and create jobs in a deep downturn, even though doing so worsens the deficit in the short run. Third, spending cuts alone will not close the gap. The chronic revenue shortfalls from serial tax cuts are simply too deep to fill with spending cuts alone. Taxes have to go up.

More...


Most Recent Related Stories...


President Obama commutes 8 sentences and grants 12 pardons

Obama pardonsPresident Obama commuted the sentences of eight drug offenders Wednesday and pardoned 12 federal offenders.  The...

The Koch brothers eclipse the RNC

Koch brothersThe Koch brothers and their allies are pumping tens of millions of dollars into a data...

US co-opted Cuba's hip-hop scene to spark change

Cuba hip hop groups infiltratedFor more than two years, a U.S. agency secretly infiltrated Cuba's underground hip-hop movement, recruiting unwitting...

Potential Indictments in George Washington Bridge Probe May Be Handed Down in January: Sources

GW bridgeMultiple sources familiar with the investigation into last year's traffic jams near the George Washington Bridge...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!