Date: Oct 30, 2012 12:24 AM
Author: Paul A. Tanner III
Subject: Re: Speachless In New York (or, another OMG moment)
On Mon, Oct 29, 2012 at 9:25 PM, kirby urner <wrote:
> On Mon, Oct 29, 2012 at 1:42 PM, Paul Tanner <wrote:
> ...Uncle Sam is broke
People just don't get how easily this can be fixed while giving up not a single social program - they don't get just how devastating the Bush tax cuts were.
They are costing us about half the present federal deficit, which is about 1.1 trillion dollars this year, about 7% of the GDP. That is, just let the Bush tax cuts expire, and that extra half trillion dollars per year gets the annual federal deficit down to 3.5%.
To get the total federal debt as a percentage of GDP to start decreasing, all we need is the annual federal deficit presently at about 7% of GDP to get below the GDP growth rate of the last four years of about 2.5%. We already got it down to around 3.5%. Closing loopholes and "welfare" for rich individuals and corporations gets an extra 100 billion per year, ending the war gets an extra 100 billion per year in spending cuts, and that extra 200 billion pr roughly 1.5% of GDP gets the federal deficit down to about 2% of GDP, below the 2.5% GDP growth rate.
For the long-term future, just more of this type of thing.
>>> The sun is the ultimate source of energy for Planet Earth
>> I'm talking about money.
> Yes, I know, another STEM-deficient economics teacher, talking about
> money. Lets talk about physics more.
Let us know where one can buy toilet paper [metaphor] with "physics" instead of money because I and I'm sure many others would like to spend our money on something else.