One of the tenants of the new conservatives, or neocons, in the US is "starve the beast". That is, run up large deficits so the goverrnment cannot start/invest/waste (depending on your spin) money on new programs. Thus the huge deficits are not a problem. The resulting government debt will keep "the beast" in check.
Whatever the reason, that course will eventually, in 10 to 20 years, destroy the US military. Every country who has seen their economy tank has also seen massive damage to their military complex. Whether Russia during the economic contraction following the demise of the Soviet Union, Great Britian at the start of WW2 (that's why the US got bases for the WW1 destroyers, GB was out of gold reserves), the USA at multiple points in it's history (post Civil War is an excellent example), in general a world class military cannot survice a fiscally starved government.
For those "supply-side economics" (better known as voodoo ecomics
- by Bush Sr.) please understand that we are not talking dogma, only economics. What I mean by that is if supply-side economics was truly science, they would calculate based on hard (though projected) numbers the point of diminishing returns, i.e. if you cut taxes below a certain point the government will have less money, period.
If any of you supply-side types can show, using standard economic statistical methods, where the sweet spot is, i.e. take taxes to exactly this point and the government optimizes between growth and being a drag on the economy, such that you optimize growth and tax revenue, then post on the issue. Please feel free to submit this to the Nobel committee, while starting your own thread
This thread is for the "starve the beast" mantra, huge deficits, and the resulting damage to the US military, if not reduction to a second class power.
Whatever the reason, that course will eventually, in 10 to 20 years, destroy the US military. Every country who has seen their economy tank has also seen massive damage to their military complex. Whether Russia during the economic contraction following the demise of the Soviet Union, Great Britian at the start of WW2 (that's why the US got bases for the WW1 destroyers, GB was out of gold reserves), the USA at multiple points in it's history (post Civil War is an excellent example), in general a world class military cannot survice a fiscally starved government.
For those "supply-side economics" (better known as voodoo ecomics

If any of you supply-side types can show, using standard economic statistical methods, where the sweet spot is, i.e. take taxes to exactly this point and the government optimizes between growth and being a drag on the economy, such that you optimize growth and tax revenue, then post on the issue. Please feel free to submit this to the Nobel committee, while starting your own thread

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