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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (321604)	1/18/2007 4:51:56 PM
From: TimF	Respond to of 1576881

The thing is we got into this deficit mess because Bush cut taxes to avert a recession (supposedly). Where in this deficit mess because Bush and congress didn't control spending. If spending had staid flat (even in real per capita terms) we wouldn't have a deficit. If it had modest growth it wouldn't be a mess. I think the spending. Real growth in spending has slowed down (although not by as much as I think it should), and the deficit is shrinking. If the current trend continues we aren't in much of a mess. Can we cut taxes to avert the next recession It might be better to find a stable low value and keep taxes at that level rather then trying to fine tune the economic cycle. If you want to fine tune it, it might be better to have the Fed try. If you want to use taxes to fine tune it then we should be able to cut taxes, esp. with some spending restraint, unless the next recession comes soon. or are we heading into a negative feedback loop. It would only be a negative feedback loop if tax cuts caused recessions.