Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Dutch Central Bank Sale Announcement Imminent? -- Ignore unavailable to you. Want to Upgrade?

To: PAUL ROBERTSON who wrote (9601)	7/25/2000 11:36:39 PM
From: Hawkmoon	Respond to of 81411

However, lowering taxes into a rising budget deficit did not stop Ronald Reagan. Yes, it's true that under Reagan the deficit increased. However, that's because the democratically controlled congress would not pass his 25% budget cuts that he was demanding to accompany the 25% tax cut. We can only imagine how much progress the economy would have made had that occurred, rather than having to settle for only half the pie. The problem is that the Japanese govt is spending that money on "make work" projects, many of which will provide little return to economic productivity (like building artificial islands with sinking airports on them where the building have to be jacked up throughout the year to keep them level). They are actually increasing governmental spending in order to prevent economic growth from going negative and throwing them further into recession/depression, whereas much of the Reagon deficit spending was for the purpose of rebuilding the US armed forces (sadly neglected then, and being neglected now) and bankrupting the Soviets with missile defense research. Pump-priming one's economy can be a sound economic policy, so long as structural change lies at the heart of that deficit spending program. They require the structural changes in order to pay back the money they are borrowing now. However, we're not seeing that occur to the level I believe is required. Regards, Ron