TV News LIES

Saturday, Aug 23rd

Last update07:37:11 PM 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...


Palin goes 0 for 2 in Alaska as clout disappears nationally

Sarah Palin clout disappearsSarah Palin has lost the magic. The defeat of her choice Tuesday in a Republican Senate...

Flushing Money Down the Tea Party Toilet

Tea Party toiletThis article is not a piece of commentary about beliefs or ideologies. Airing concerns openly can...

7 Pages That Gave President Obama Cover to Kill Americans

Drone Before David Barron was confirmed this year to a lifetime seat on the United States Court...

Rick Perry indicted on two felonies

Rick Perry indictedGov. Rick Perry was indicted on two felony counts for abuse of official capacity and coercion...
 
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!