Edmund Storms <stor...@ix.netcom.com> wrote:
> Debt is good within limits, Eric. The problem comes when the amount of > debt exceeds the ability to pay back or even to service, i.e. to pay the > interest. This is why people lost their homes. The US government has now > reached a debt so large that it cannot be paid back and can barely be > serviced. This is a fact. > That is not true. All we have to do is raise taxes back to the level they were under Mr. Clinton. If the economy recovers the debt will soon begin to decline. It was declining rapidly under Clinton. Government expenditures have not increased, except for the Pentagon, and now that the wars are over I don't see why the military budget should be so high. The debt crisis is ginned up nonsense, in my opinion. It could be fixed with slightly higher tax rates so small we would hardly notice them. Mainly on wealthy people. I am sure that wealthy people can afford to pay 3% more than they now do. It is trivial matter for them. For that matter, the U.S. government can print money. A little inflation would soon reduce the debt as a percent of the GDP. We would hardly notice that, either. The Japanese government under PM Abe is deliberately trying to inflate by 3%, after years of deflation. It is about time! If they succeed and the economy also grows, their debt will decline. It is twice as high as the U.S., as a percent of the GDP, but Japan is not in crisis. - Jed
