Is lack of federal revenue the problem with the deficit? No. (government, percentage)
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And his argument is that the Goverment's budget tripled.....LOL......................Per capita spending is essentially the same since 1965....LOL
[the material writes itself....lol ....literally]
You think its really that simple?
Money went a lot further in 1965 then it does now, homes were cheaper, cars were cheaper. you could buy a brand new car in 1965 for $3,000, not everything can be multiplied by three and become equal to 2011 values.
Then the problem was with your question. Now, why do you believe the government doesn't? After all, I see tax revenue being a part of the debate (although, some among them are only interested in pushing for a dysfunctional family that wants to ignore the issue of revenue completely).
Money went a lot further in 1965 then it does now, homes were cheaper, cars were cheaper. you could buy a brand new car in 1965 for $3,000, not everything can be multiplied by three and become equal to 2011 values.
That is correct. Not everything can be multiplied by three. Although, you could use three to multiply the size of the economy during the time.
According to YOUR chart, we should be cutting spending to balance the deficit, just like what happened during the late 1990's. Your chart actually validates the OP's thread more than the OP did..
How do you know it was the tax cuts that increased revenue?
The housing bubble was pumping up the economy in 2005.
Quote:
Originally Posted by le roi
It could have been any number of policy decisions that nominally increased tax revenues.... devaluation of the currency comes to mind, or the fact that we were building $500,000 houses, printing money out of thin air, and giving it to any random jackass who could sign his name. Building all those houses for people who can't afford them may be malinvestment, but in the short-term it is still technically tax-generating economic activity.
Actually the bulk of the money being printed was being printed in foreign countries. The money was then used to buy debt in the US and that drove the trade imbalance.
Quote:
Originally Posted by le roi
You're right, the deficit is a result of a monetary problem, a political problem, a moral problem, an education problem, a psychological problem, a sociological problem, you name it... but it isn't a revenue problem.
Yet, although the problem is not with revenues, the solution may need to be.
Inflation is one very effective way of getting more revenue. The fed is trying hard but having no success. If you can’t loan out enough money at 0.25% interest to get the economy to grow then you may have to give it away for free.
Inflation is one very effective way of getting more revenue. The fed is trying hard but having no success. If you can’t loan out enough money at 0.25% interest to get the economy to grow then you may have to give it away for free.
i would buy a house if i could get a 30-year fixed mortgage from the fed or the treasury at 0.25% interest. i might start a business, too. unfortunately they give that loan to a middleman, who doesn't give anything like those terms to me.
i would buy a house if i could get a 30-year fixed mortgage from the fed or the treasury at 0.25% interest. i might start a business, too. unfortunately they give that loan to a middleman, who doesn't give anything like those terms to me.
Even at 3 or 4% the raters are very low. But with the falling prices of houses the real rate is far higher when you look at the resale price going down. And with the economy contracting it isn't attractive to loan out money.
If you can't loan out the money we need to get true inflation going then try giving it away.
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