Joe has a great post here worth reading. As the debt ceiling fiasco has continued few are talking about what has created the mess in the Furst place.
Reminder from the Times editorial board on how the deficit got this big. It’s their explanation of the above chart:The second graph shows that under Mr. Bush, tax cuts and war spending were the biggest policy drivers of the swing from projected surpluses to deficits from 2002 to 2009. Budget estimates that didn=E2=80=99t foresee t=
Reminder from the Times editorial board on how the deficit got this big. It’s their explanation of the above chart:The second graph shows that under Mr. Bush, tax cuts and war spending were the biggest policy drivers of the swing from projected surpluses to deficits from 2002 to 2009. Budget estimates that didn=E2=80=99t foresee t=
he recessions in 2001 and in 2008 and 2009 also contributed to deficits. Mr.Obama=E2=80=99s policies, taken out to 2017, add to deficits, but not by ne=
arly as much.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 s=
ustainable levels. Second, a healthy budget requires a healthy economy; rece=
ssions wreak havoc by reducing tax revenue. Government has to spur demand an=
d create jobs in a deep downturn, even though doing so worsens the deficit i=
n the short run. Third, spending cuts alone will not close the gap. The chro=
nic revenue shortfalls from serial tax cuts are simply too deep to fill with=
spending cuts alone. Taxes have to go up.In future decades, when ri=
sing health costs with an aging population hit the budget in full force, def=
icits are projected to be far deeper than they are now. Effective health car=
e reform, and a willingness to pay more taxes, will be the biggest factors i=
n controlling those deficits.But instead, let’s cut Social Secu=
rity, Medicare, Unemployment Compensation, and let’s make sure all those mil=
lionaires and billionaires keep those job creating tax cuts!![]()
arly as much.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 s=
ustainable levels. Second, a healthy budget requires a healthy economy; rece=
ssions wreak havoc by reducing tax revenue. Government has to spur demand an=
d create jobs in a deep downturn, even though doing so worsens the deficit i=
n the short run. Third, spending cuts alone will not close the gap. The chro=
nic revenue shortfalls from serial tax cuts are simply too deep to fill with=
spending cuts alone. Taxes have to go up.In future decades, when ri=
sing health costs with an aging population hit the budget in full force, def=
icits are projected to be far deeper than they are now. Effective health car=
e reform, and a willingness to pay more taxes, will be the biggest factors i=
n controlling those deficits.But instead, let’s cut Social Secu=
rity, Medicare, Unemployment Compensation, and let’s make sure all those mil=
lionaires and billionaires keep those job creating tax cuts!
Happy Su=
nday.
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