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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Wayners who wrote (768781)	3/4/2009 8:45:38 PM
From: DuckTapeSunroof	Read Replies (1) \| Respond to of 769667

Re: "I don't see how more debt cures our debt problem?" 'More debt' (particularly not 'regular, systemic sustained additions of more debt') do NOT 'cure debt problems'. HOWEVER... every single time since WW II that the US has made SIGNIFICANT REDUCTIONS in our real national debt (as a percent of GNP) it has been because of THESE TWO IMPORTANT CONDITIONS: In order of most importance (but both extremely important): 1) HIGHER ECONOMIC GROWTH. 2) Restraint in government spending/borrowing. During a major economic downturn however... the mere FACT that the economy is in FREE FALL becomes the single most important factor because the FALLING GNP also reduces government revenue in a big, big way, which forces the government to increase it's borrowing to pay it's bills --- which DIRECTLY ADDS TO THE DEBT that you are worried about. The WORSE the economy gets the WORSE the federal borrowing / federal debt gets.... It's a downward cycle that needs to be broken FAST. (Then, obviously, and JUST AS IMPORTANT as restoring growth --- once the economy is GROWING GOOD again, the government must seriously attack over-spending. This is the single most critical mistake that the Bush administration made. They never did that, and allowed all the gains produced by earlier polices to be washed away. So, ONCE and IF the Obama policies are able to RESTORE SOLID and STRONG GROWTH, then must then get serious about reducing federal spending to be able to keep the gains and not allow them to be washed-away like Bush did.)