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Originally Posted by Xantar
These economists are criticizing Bush's tax cuts because it balloons the deficit and sends the national debt skyrocketing. I don't know if you're worried about it or not, but if something isn't done to establish fiscal discipline, Social Security and other government programs could be jeopardized. It will also lead to weakening of the dollar. In other words, inflation.
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There is one big problem with that theory, and that is that lowering taxes increases revenue which then makes up for the cuts through volume. The same thing happened in 1986(?) with Reagan's tax cuts. He slashed taxes yet revenue for the remained consistent. Raising taxes or even maintaining them have shown to do more damage to the economy than good.
The problem comes with SPENDING. Reagan spent like a bastard trying to make Russia go broke, which he did, but it led to a recession.
As for goverment programs being in jeopardy, thats because we refuse to allow our programs to GAIN money rather than remaining as slush funds dependent on public funds that never match expenditures. Here's a fact: The stock market over the last 50 or so years has maintained a 11% return on investments. Its not that hard to find a mutual fund that maintains that level of return... SO WHY AM I BEING FORCED TO PUT PART OF MY PAYCHECK INTO A SYSTEM THAT IS DESIGNED TO LOSE MY MONEY????? Privatize these programs instead of stubbornly supporting social programs that were never designed to be permanent in the first place.
Well crap. It looks like I'm back, but I'm going to pick my spots a little better this time around.