TV News LIES

Friday, Aug 01st

Last update02:17:54 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...


Judge orders legislature to redraw Florida congressional map

Florida votersCircuit Court Judge Terry Lewis ruled Friday that the Florida Legislature must immediately revise its flawed...

Judge tosses Wisconsin senator's health care suit

Ron JohnsonA federal judge on Monday dismissed a U.S. senator's lawsuit challenging a requirement that congressional members...

GOP Senate Candidate Caught Saying States Can Nullify Laws

GOP candidat : states can nullify“You know we have talked about this at the state legislature before, nullification. But, bottom line...

Republicans Freak Out At Learning Reagan Decree Protects Lois Lerner

Darryl IssaAlthough legal experts warned at the time that little would come of Rep. Darrell Issa's (R-Calif.)...
 
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!