Quote:
Originally Posted by Cletus Miller
We either need to cut spending or raise taxes. Unless one adopts an (unreasonably) optimistic economic outlook. The deficit/debt are a real problem, now, and are going to be a bigger problem.
|
During the 70s and 80s, we had protracted periods of deficit; Clinton cleaned that up in the 90s only to see a return in the Bush administration.
Now, we have essentially a two year spike in the deficit because of TARP and the stimulus, but neither of those programs build in a sustained deficit, and the expiration of the Bush tax cuts may let us address the part of the equation Bush sent out of whack. And HC Reform was done in a manner that is essentially neutral <insert Sebby's unsubstantiated and unsupported screams of disgust>.
So, at the moment, I am not frightened by deficits.
However, public debt as a percentage of GDP is now back to where it was when Clinton took office, partially as a result of the wars, partially as a result of the erosion of GDP in the recession, partially as a result of TARP and the stimulus. It's not a crisis, but it's a problem of a size comparable to that Clinton was given.
