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Politics : Formerly About Advanced Micro Devices
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To: Tenchusatsu who wrote (310195)11/10/2006 7:04:09 PM
From: RetiredNow  Read Replies (1) of 1574674
 
Why should anyone complain? We're spending $100B in Iraq per year. We're borrowing to do that. We're spending at a deficit overall of $500B per year. We're borrowing from the Chinese to do that. Every dollar we borrow takes interest rate flexibility out of the Fed's hands. In addition, we're borrowing from future growth, which will necessitate increased taxes in the future, crowding out business and consumer spending.

The Republicans will say, yes, but our debt has been steady as a percentage of our overall economy. But that is flawed logic. That kind of logic assumes that the economy will grow forever, which also assumes that our population will grow forever. What happens when the workforce starts to shrink? Don't think it will happen? Let me tell you about a scenario where this becomes very likely. The baby boomers are about to retire. That will take a huge chunk out of the workforce that WILL NOT BE REPLACED by the generation that comes after. The only possible replacement HAS TO COME FROM IMMIGRATION. If we clamp down on legal immigration, then our workforce shrinks, guaranteed.

If that happens, then all of the sudden tax revenues shrink, debt balloons, the dollar loses value, inflation reigns, and tax rates have to be hiked dramatically to support gov't operations and all the entitlement programs like Health and Retirement.

That's why we should care.
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