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Politics : Politics for Pros- moderated -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (746)	5/9/2003 12:42:21 PM
From: JohnM	Read Replies (3) \| Respond to of 794223

I also don't buy the argument that the present deficit is a major problem. It is due to 911, mainly, and is minor compared to the size of the economy. An economic upturn would wipe it out overnight. Neither of us is terribly knowledgeable here but it shouldn't keep us from beating up on one another in our usual fashion. I disagree on the source of the deficit (what's new). It's more about the economic downturn than 9-11, somewhat about the past tax cut. But a small problem becomes a much larger one if this next round of cuts goes through. I read an interesting piece in the past couple of days, forget where, that we've just missed the one good opportunity we had to fix the baby boomer retirement issue with SS and health insurance by using the surplus Clinton left for such. Now it's not there (wonder whose fault that is.) You believe that the "Robin Hood" approach is the way to tax. I don't. I always love that line--taxes is about stealing from the rich to give to the poor. How about the line that taxes, if well spent (yeah, I know, big if) make for a better social order which makes life better for all of us. Let's take health insurance. If everyone has it and has it in a way that encourages regular health checkups, serious illnesses are caught before they become more expensive (save government money in the longer run) and before they spread too much, endangering all of us. Not to speak of the few of us humanitarians left who just think it's good social policy to see us all in the same boat. And then I could type about social security, doing something about the terrible state of big city public education, yada, yada, yada. Don't you just love it.

To: LindyBill who wrote (746)	5/9/2003 1:10:47 PM
From: KyrosL	Read Replies (1) \| Respond to of 794223

>>minor compared to the size of the economy<< It looks like the budget deficit for this year will be $300 billion and next year will climb to $400 billion. That's 3% and 4% of GDP respectively. Not minor, especially when the revenue side includes the huge Social Security contribution surplus -- something that some politicians wanted to put in a "lock box" not too long ago. The trade deficit will be $500 billion this year, 5% of GDP. Again, not minor. In fact, a record. Interest rates are low because AG is pumping furiously and because foreigners have not yet decided to get tough. When they do, watch how fast the dollar loses its position as the world's reserve currency. Your dollar, by the way, is buying 30% less in Europe than when Dubya started his term. So at least some of the adjustments are under way.