Keynes had it pretty straight forward. When times are rough, run a deficit and increase government spending to stimulate the economy because government is one of the few things of the size and means to do so. Then when the economy is growing and revenues increase, pay down the debt and then scale back spending. Pretty sensible business plan, honestly.
Unfortunately, Republicans during the last administration wanted to slash revenues via tax cuts while maintaining high spending when times were good, instead of paying down debt. That increased debt substantially and really bit us in the ass when the economy went sour. Then Republicans wanted to continue slashing revenues and also cut government spending when government was one of the few major sectors in our economy that could possibly spend, further restricting the resiliency of the economy. This substantially helped decrease current deficits but did nothing for debt because of the damage it did to revenue. Also unfortunately, Democrats seem completely unable to pay down debt when the economy is growing as well. More people remember the programs you fund than the debt you pay down when election time rolls around, I guess. The party in power wants to spend when they can in hopes of accruing the good will of voters. The Democrats approach seems to do slightly less structural damage to the economy and the government, I suppose, but it sure isn't fiscally responsible. Go into debt when you have to to increase revenues. When you do get to that place, be diligent about paying down debt. I'd really love to see a party committed to those economic ideals. Cheers, Judah On Mon, Oct 21, 2013 at 11:04 AM, GMoney <gm0n3...@gmail.com> wrote: > > I know i'm independent. > > Also, the last Republican presidential regime we had....how was their > spending??? > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Order the Adobe Coldfusion Anthology now! http://www.amazon.com/Adobe-Coldfusion-Anthology/dp/1430272155/?tag=houseoffusion Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:367956 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/groups/cf-community/unsubscribe.cfm
