Does the word 'communism'...
...ring any bells?
Bush wasted our surplus and now we have a huge deficit
Annual defecits are looked at in terms of percentage of GDP.
If you have a $5 trillion GDP and a $200 billion annual defecit that's, in terms of economic health, the same as $10 trillion GDP and $400 billion in defecit, both are 4%.
Out current national debt is about $7.5 trillion and the real issue is managing the debt service. We are constantly paying off old debt and incurring new.
Short term t bills are paying less than 2% right now so, $400 bill costs we, the people, $8 billion a year in debt service.
Contrast that with what $400 billion in tax cuts may do.
If a consumer borrows money against their house to pay off credit cards they are way ahead each month and are putting cash into anything they choose.
If they start a small business, hire some folks, buy eqiupment etc, they are likely, in all taxes from income to payroll et al, to return to the federal government (and state for that matter) far more than the measly 2% it is costing to run the defecit.
This is simplified because the tax code turns this into a maze but anyone, ANYONE would borrow money at 2% if they could get a return that allowed them to service the debt and earn a decent profit.
Anyone except, well, communists. They operate in a zero sum gain mentality and that's what it returns: ZERO
So, does the defecit return more than it costs?
Simply, yes.
Could you BE any more 90's? That story was debunked a LONG time ago - but I see you're still stuck in a time warp.
