Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Well obviously a growing economy does help generate more tax revenue, but to simply grow out of our national debt isn't realistic.
All these plans sound nice, but won't work worth beans unless you can FORCE Congress to implement them, and stick with them.
As I said:
Pass a Balanced Budget Amendment.
One that makes exceptions ONLY for wars DECLARED BY CONGRESS. And those exceptions must expire after a period, say 6 months, and must be re-voted by a two-thirds majority of each house, every time, to be kept.
Don't like it? Think it causes too many problems?
Name something else that will work.
Huge, soaring debt causes even more problems than this BBA will.
And the BBA must have another feature: teeth. If a Congress fails to pass a balanced budget by October 1 of any fiscal year, ALL members of that Congress (House and Senate) become ineligible to run for office in the next election, or any subsequent election for ANY public office.
There's nothing magic about the 535 people currently in the House and Senate. Throwing them all out and putting in completely new stock, will not do appreciable harm, and will likely do a lot of good.
How much do you think taxes can be raised and spending cut before it hurts the potential for the economy to grow?
We don't know. Because taxes aren't the problem right now. The economy's problem is lack of demand, not taxes. Taxes were higher in the 80s and 90s and growth was higher. So there's absolutely no correlation.
You do know that we would have to let them do that. If they threatened, we can lock those bonds down (make them non-transferrable) or even invalidate them. When you borrow money by selling bonds that are completely controlled by your rules, denominated in a currency you issue, you have a lot of control over that debt.
Quote:
Originally Posted by HappyTexan
China can cripple us without firing a shot.
All they need to do is sell all their US bonds and not buy any more.
We don't know. Because taxes aren't the problem right now. The economy's problem is lack of demand, not taxes. Taxes were higher in the 80s and 90s and growth was higher. So there's absolutely no correlation.
I respect your opinion on this , what do you think the reason demand is low?
Continuous moderate inflation, something like 2-4%/year. Doesn't have much effect over the short haul, but in the 10-20 year span of the longer term bonds, it dramatically reduces the real value of the debt.
No debt the US has ever issues has ever actually been paid off. The debt issued to pay for WWII is still out there, being rolled over. but in real terms, it's worth a tiny fraction of it's initial face value.
This is all an explicit part of the Keynesian playbook.
Quote:
Originally Posted by wjtwet
More taxes is not the answer we will just spend it, or if you think more taxes are the answer how much more?
we are rocking along like 17 trillion is nothing yet it is eating more and more of our gdp through maintain interest payments?
Are there any answers or are we headed one day in to default?
The only answer I see is for the economy to expand and grow at rates we have not seen in years while we do real cuts to more than defense
Continuous moderate inflation, something like 2-4%/year. Doesn't have much effect over the short haul, but in the 10-20 year span of the longer term bonds, it dramatically reduces the real value of the debt.
No debt the US has ever issues has ever actually been paid off. The debt issued to pay for WWII is still out there, being rolled over. but in real terms, it's worth a tiny fraction of it's initial face value.
This is all an explicit part of the Keynesian playbook.
BI have always wondered if high inflation some day would make 20 trillion look like a dime
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
