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Politics : American Presidential Politics and foreign affairs -- Ignore unavailable to you. Want to Upgrade?

To: DuckTapeSunroof who wrote (44954)	8/18/2010 5:34:42 PM
From: TimF	Read Replies (1) \| Respond to of 71588

There is no easy and highly reliable way for the government to increase the growth rate. For governments that already spend a lot like ours one of the more reliably (if not easy or certain) ways to increase the long term growth rate is to reduce the spending (and the regulatory burden, and the complexity of the tax code, generally the burden of government, but even if you can just reduce the spending it will normally be a positive all by itself, except perhaps when its done extremely quickly at the wrong time, with spending falling off a cliff during a deep recession). So reducing spending is a twofer here. It reduces the deficit directly, and also helps grow the economy.