U.S. budget deficit "out of control"

[Alexander's Horse]

Goldman Sachs has issued a warning.

Bush is running a deficit of a a quarter of a trillion dollars with no end in sight.

That will be good for the global economy (not).

Didn't George Bush 1 lose control of the budget too?

[Lawrence of Arabia]

Dont all republicans lose control of the budget?

[GePap]

Yes, its what fiscal responsibility means: some one ends up being responsible for the fiscal mess.

[chequita guevara]

Goldman Sachs is raining on my parade.

[Alexander's Horse]

Yep.

It's a bit of laugh when the Republicans warn about "tax and spend" Democrats.

[GePap]

Oh, but see, the Republicans don;t spend..they just don;t have the guts to slash everything they would need to after their tax cutting shcemes..after all, Americans want lower taxes and government services, you know.

[Alexander's Horse]

There must be some sort of viscious circle going on here where the Republicans cut taxes and run up huge deficits and then the Democrats have to raise taxes when they get into office to repay Republican debt.

That's mad.

[GePap]

Don't try to figure out US politics, it is all madness.

Just think of this: the Rich states (that is, the ones with high per capita incomes, most liekly to benefit form Bush) generally vote Democrat (they are the ones paying for the welfare state-like NYC, which exports 11 billions a year in taxes), while the poor states (the ones that get money from the Feds well beyond their own tax rates), like Mississippi and Alabama vote hand over foot for the anti-gov reps. Go figure.

[Imran Siddiqui]

Only recently for the South going Republican. Mississippi still sends plenty of Dems to the statehouse and Congress. Their last and present governor are both Democrats, IIRC.

[DanS]

Bush is running a deficit of a a quarter of a trillion dollars with no end in sight.

ITYM half a trillion dollars?

I'm not happy about it at all. The only consolation is that economic growth should be fast next year in part because of it.

[PLATO]

Devaluation of debt over time reduces the real cost of the deficit. Keynes stated that we needed a deficit during recission...the problem is that we need a tax increase during expansion (not enough to stifle growth, but enough to keep inflationary trends under control.) The problem is that the moneterist keep getting involved and screw everything up. Of course, this is probably necessary since few have the political will for a tax increase simply for economic policy.

[el freako]

Re: U.S. budget deficit "out of control"

Originally posted by Alexander's Horse
Bush is running a deficit of a a quarter of a trillion dollars with no end in sight.

Actually using an internationally comparable measure (net lending by the government sector) the deficit is well over half a trillion dollars ($600bn to be exact)

Originally posted by GePap
Oh, but see, the Republicans don;t spend..they just don;t have the guts to slash everything they would need to after their tax cutting shcemes..after all, Americans want lower taxes and government services, you know.

Actually GWB has presided over a large rise in government spending, both military and civilian (both of them are up by around 1% of GDP)

[GePap]

Originally posted by Imran Siddiqui
Only recently for the South going Republican. Mississippi still sends plenty of Dems to the statehouse and Congress. Their last and present governor are both Democrats, IIRC.

Yes, conservative Dems. that complaint about NYC welfare mothers..went it is NYC paying for thier subsidies and roads!

[Imran Siddiqui]

Yes, conservative Dems

But not Republicans... which was the point .

[DanS]

Actually using an internationally comparable measure (net lending by the government sector) the deficit is well over half a trillion dollars ($600bn to be exact)

Just to make clear, that also includes state and local governments, which spend a lot of money in our system, and which make spending decisions independent of the federal government and whatever Bush can come up with.