TV News LIES

Saturday, Aug 27th

Last update05:20:13 AM GMT

You are here News Politics How the Deficit Got This Big

How the Deficit Got This Big

E-mail Print PDF

Despite what antigovernment conservatives say, non-defense discretionary spending on areas like foreign aid, education and food safety was not a driving factor in creating the deficits. In fact, such spending, accounting for only 15 percent of the budget, has been basically flat as a share of the economy for decades. Cutting it simply will not fill the deficit hole.

A few lessons can be drawn from the numbers. First, the Bush tax cuts have had a huge damaging effect. If all of them expired as scheduled at the end of 2012, future deficits would be cut by about half, to sustainable levels. Second, a healthy budget requires a healthy economy; recessions wreak havoc by reducing tax revenue. Government has to spur demand and create jobs in a deep downturn, even though doing so worsens the deficit in the short run. Third, spending cuts alone will not close the gap. The chronic revenue shortfalls from serial tax cuts are simply too deep to fill with spending cuts alone. Taxes have to go up.

More...


Most Recent Related Stories...


Anti-Semitic Trump campaign CEO Stephen Bannon not a big fan of ‘whiny brat’ Jews, ex-wife says

Bannon made anti Jewish remarksDonald Trump's campaign CEO Stephen Bannon was branded an anti-Semite by the same ex-wife who claimed...

Donald Trump’s ‘Apprentices’ Had to Agree to Go Nude

Trump's Apprentice rulesAppearing on The Apprentice with Donald Trump required agreeing to a series of odd and invasive...

Trump’s mob-linked ex-associate gives $5,400 to campaign

Trump donor mob connectedA Russian-born, mafia-linked businessman whose ties to both Donald Trump and loyalists of Russian President Vladimir...

What Donald Trump Knew About Undocumented Workers at His Signature Tower

Trump's undocumented workersIn the summer of 1980, Donald Trump faced a big problem. For six months, undocumented Polish...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!