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Re: Obama's win - good or bad for the US/the world?
Posted:
Nov 7, 2012 10:16 PM
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On Wed, Nov 7, 2012 at 9:28 PM, kirby urner <kirby.urner@gmail.com> wrote:
> The diagram:
>
> http://www.washingtonpost.com/wp-srv/special/politics/budget-2010/
>
And I say again to this: The deficit each each is roughly 7 percent of GDP. The Bush tax cuts are costing the US government a half trillion dollars per year, roughly 3 and 1/3 percent of the 15 trillion dollar GDP. Eliminate them, and we have a deficit each year that is only about 3 and 2/3 percent of the GDP. All we have to do to get the total debt to start to go down as a percentage of GDP is to get the yearly deficit below the GDP growth rate which historically has been about 3 percent. Get the growth rate back up to the historical average (since the Great Recession its been about 2.5%) and all we need is revenue increases and/or spending cuts of a bit more than 3/4 of GDP, which is about 125 billion - about the cost of the remaining war each year.
There is a crisis only because of this conservative fairy tale that so many believed since Reagan, that we can cut taxes again and again and again and again and never put taxes back up to where they used to be, we will not have to eventually slash and burn government spending to pay for these cuts.
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