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Pastimes : Don't Ask Rambi -- Ignore unavailable to you. Want to Upgrade?

To: Jacques Chitte who wrote (69846)	1/12/2009 1:27:01 AM
From: JF Quinnelly	1 Recommendation Read Replies (2) \| Respond to of 71178

Reagan had no intention to run deficits, and in his last message as President he said that the failure to contain deficit spending was his biggest disappointment as President. There were at least two factors he had no control over that contributed to the deficits. Reagan had cut a deal with House Speaker Tip O'Neill that called for dollar for dollar reductions in spending to match the 1981 tax cuts. Tip O'Neill agreed to the deal and then reneged on it, so there were no spending cuts. I guess you could blame Reagan for taking the word of a Democratic politician if you wanted blame Reagan, but I'm not sure that argument has legs. The other factor was the collapse of inflation as Volcker's monetary policy took effect. A gradual fall in inflation was one of the assumptions of the Reagan team, but velocity fell off a cliff and caught them by surprise. This had the effect of increasing the real cost of spending.

To: Jacques Chitte who wrote (69846)	1/12/2009 2:24:20 PM
From: koan	Read Replies (1) \| Respond to of 71178

>> Reagan's deficit spending appalled me when I first saw the graph. So very Californian, y'know? Party now; the Big One will come along and wipe out the credit card mainframes. Look innocent! Being an actor helped... cheers "Mourning in America" << And then when lil bush started to run up big deficits, Chceny said: "Reagan taught us deficits do not matter". He said that! I cannot figure out why conservatives think it is better to borrow and spend than tax and spend. If we tax and spend it affects us. If we borrow and spend our kids have to pay the bill!? Lil Bush was so devious not only did he not raise taxes during war time, he made them put the war appropriations off budget. The non partison congressional budget Office said the first couple of years the huge budget deficits were the result of buhs's hug tax cuts for 1/10 of 1% of the richest peopel in the country. Tinkle down economics-lol. Clintons surplus tax revenues were prjected to pay off the budget by the end of 2010. So look what Bush did to us!!