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Politics : American Presidential Politics and foreign affairs
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To: DuckTapeSunroof who wrote (28042)4/24/2008 6:32:53 PM
From: TimF  Read Replies (1) of 71588
 
A deficit of 2.4% of a growing GDP isn't likely to lead to any form of collapse. Don't get me wrong, I'm not saying its a good thing but I'm more conserned about the over spending side of the "parade" at the moment than the deficit.

And even the overspending isn't likly to lead to actual collapse, just long term slower economic growth. OTOH long term slower economic growth is a serious issue. If US economy had grown by about 1% less a year for the last century we would be something like Mexico. Decrease growth by more than that and it would be still worse.

A Constitutional Amendment (changing the highest law in the land to make the politician's deficit spending much more difficult), banning annual federal deficits (except when President declares an 'emergency' which is then ratified by Congress) would force the over-spending into control.

Then, tossing out our malformed Tax Code, and replacing it with a new and cleaner, more loophole-free system would the the second, and final, step necessary for restoring America's growth potential.

IMO the 2nd step should be the first. Its more important to me. But the problem is that if you get it, it can still go away. You can't reasonable set up the details of a tax system by constitutional amendment, but if you use ordinary law, than congress can change them any time it wants, and the incentives on congress are to use the tax system to exert power for their political agenda.

And in fact if you do manage to limit spendings and/or deficits by constitutional amendment a dark linking in that silver cloud would be the fact that politicians would have an even greater incentive to wield power through the tax code.
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