TV News LIES

Thursday, Apr 24th

Last update02:25:33 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...


Supreme Court to rule on political campaigns’ pretty little lies

Supreme CourtIt turns out that there is a tenet in American politics that groups as diverse as...

Sen. Warren willing to take on system

Elizabeth WarrenHow has an earnest 64-year-old Harvard professor with a specialty in bankruptcy law emerged as a...

South Carolina Republicans Snub Desegregation Judge

Julius Waties WaringOf all the names of American heroes you probably don’t know, Julius Waties Waring has to...

Kansas speech by Michelle Obama draws complaints

Michelle ObamaIf expanding the guest list to include Michelle Obama at graduation for high school students in...
 
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!