TV News LIES

Friday, Jul 18th

Last update07:16:00 AM GMT

You are here News Politics How the Deficit Got This Big

How the Deficit Got This Big

E-mail Print PDF

Despite what antigovernment conservatives say, non-defense discretionary spending on areas like foreign aid, education and food safety was not a driving factor in creating the deficits. In fact, such spending, accounting for only 15 percent of the budget, has been basically flat as a share of the economy for decades. Cutting it simply will not fill the deficit hole.

A few lessons can be drawn from the numbers. First, the Bush tax cuts have had a huge damaging effect. If all of them expired as scheduled at the end of 2012, future deficits would be cut by about half, to sustainable levels. Second, a healthy budget requires a healthy economy; recessions wreak havoc by reducing tax revenue. Government has to spur demand and create jobs in a deep downturn, even though doing so worsens the deficit in the short run. Third, spending cuts alone will not close the gap. The chronic revenue shortfalls from serial tax cuts are simply too deep to fill with spending cuts alone. Taxes have to go up.

More...


Most Recent Related Stories...


Tens of thousands in US join ‘Good Trouble’ anti-Trump protests honoring John Lewis

Good Trouble protestsPeople across all 50 US states on Thursday are joining marches and rallies at more than...

WSJ: Lewd Trump Letter To Epstein Revealed

rump and EpsteinThe Wall Street Journal has published the contents of a lewd birthday message Trump allegedly sent...

White House Says Trump’s Bruises Stem From ‘Benign And Common Condition’

Trup hands with makeupThe White House on Thursday confirmed that what appears to be a recurring bruise on Trump’s...

Maurene Comey, daughter of James Comey, is fired from her job as a federal prosecutor

Kathleen Comey firedMaurene Comey, the daughter of former FBI director James Comey, was fired Wednesday from her job...
 
America's # 1 Enemy
Tee Shirt
& Help Support TvNewsLIES.org!
TVNL Tee Shirt
 
TVNL TOTE BAG
Conserve our Planet
& Help Support TvNewsLIES.org!
 
Get your 9/11 & Media
Deception Dollars
& Help Support TvNewsLIES.org!
 
The Loaded Deck
The First & the Best!
The Media & Bush Admin Exposed!