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Politics : American Presidential Politics and foreign affairs
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To: TimF who wrote (42612)4/6/2010 11:57:36 AM
From: DuckTapeSunroof  Read Replies (2) of 71588
 
EXACTLY TRUE.

Revenue 'went up', as it always eventually does in a growing economy, (just NOT AS MUCH as the baseline revenue that was forgone when the changes were made... mostly because the ever-rising spending kept adding more and more interest costs, and compounding the debt problem).

Re: "The key is to get a control of spending"

Apparently that is one of the biggest lessons our nation needs to learn... lesson drawn from our own sad experiences.

When the question is "how to best reduce deficits" while still keeping the economy on an upward path then MODERATING SPENDING is one of the two *absolute requirements* for an effective answer.

The OTHER required answer is KEEP THE ECONOMY GROWING (because growing GNP, growing wealth, also produces more revenue which --- if spending is moderated --- can then replace the need for borrowing...) and the deficits come tumbling down.

So, the two "best" political/economic requirements, prerequisites for controlling federal deficits are:

1) Keep the economy growing. (A 'rising tide lifts all ships'.) (And a lower regimen of taxation, ceuterus paribus, promotes a higher level of economic growth.)

2) Moderate spending. (So that the gains achieved from #1 above are not swamped by the need to issue ever more debt, and by the compounding effects of interest costs on that debt.)
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