Trump Thinks That Stock Market Gains Offset the National Debt (health care, premium)

[kevinm]

Originally Posted by EvilEyeFleegle

They don't:


https://a.msn.com/r/2/AAtk5gw?m=en-us

When the economy grows, more taxes are collected which offset the debt. He is correct.

[PedroMartinez]

Originally Posted by kevinm

When the economy grows, more taxes are collected which offset the debt. He is correct.

Until we restrict outlays to below receipts, we will continue to see our debt grow.

[OnOurWayHome]

Originally Posted by kevinm

When the economy grows, more taxes are collected which offset the debt. He is correct.

So why did the debt grow under Obama with the tremendous economic growth during that period?

[GotHereQuickAsICould]

Originally Posted by bcattwood

So I guess by that math, Obama actually ran a surplus?

By any math, Bill Clinton had a budget surplus several years there.

But water under the bridge. Enough about Obama and Clinton, this thread is about how Trump seems to believe that Wall Street types making bank offsets the National Debt.

Remember when Trump was promoting "renegotiating" the national debt like he used to "renegotiate" his loans, i.e. telling lenders that they are only going to get twenty cents on the dollar.

[GotHereQuickAsICould]

Originally Posted by OnOurWayHome

So why did the debt grow under Obama with the tremendous economic growth during that period?

Good Lord.

Has been explained countless times on this forum.

Google it if you can't recall.

[GotHereQuickAsICould]

Originally Posted by kevinm

When the economy grows, more taxes are collected which offset the debt. He is correct.

This only works if the budget is balanced.

A deficit budget absorbs the increase in taxes and the National Debt continues to rise.

Why is this so difficult to comprehend?

[GotHereQuickAsICould]

Imagine you owe $100,000, make $60,000/year, and spend $80,000/year.

Even if you get a $10,000/year raise, you still are in the hole $10,000/year and are not paying anything off your debt.

Once you add in interest...

See how this works?

[OnOurWayHome]

Originally Posted by GotHereQuickAsICould

Good Lord.

Has been explained countless times on this forum.

Google it if you can't recall.

You need to read the post I was responding to.

[moneill]

How "Voodoo" Caused Most of the National Debt - zFacts

This suggests if Clinton and Obama had actually been able to do what they wanted the debt wouldn't be where it is -- not sure how accurate it is.

The only way to pay down debt, increase revenues and cut costs. Even having a balanced budget won't pay down the debt. It will continue to grow exponentially until more money comes in then goes out.

That's the main argument AGAINST tax cuts and FOR program cuts.

[GotHereQuickAsICould]

Originally Posted by kevinm

When the economy grows, more taxes are collected which offset the debt. He is correct.

Originally Posted by OnOurWayHome

So why did the debt grow under Obama with the tremendous economic growth during that period?

Originally Posted by OnOurWayHome

You need to read the post I was responding to.

Sorry. Misunderstood your point.

The debt grows when budgets run a deficit.

Because the nation was recovering from a financial meltdown and supporting a couple pointless wars, the budget was in deficit during Obama's terms.