Revenue is dynamic, and spending can be too. Only 12 times since 1934 have we managed a balanced budget. Not acceptable.
When consumer/business spending is down, tax receipts are down, so the deficit goes up since much of govt spending is structural not elective.
Revenue is dynamic, and spending can be too. Only 12 times since 1934 have we managed a balanced budget. Not acceptable.
"dynamic, and spending can be too"
tell that to the MIC (whose consumption of tax $$ only goes up).
and try that "dynamic" with the tax expenditures for the 1%, the UCA, loopholes, deductions (eg mortgage), bull write offs.
lol this is why no one engages you in real conversation. You're incapable of having it without relying on non-sequitous bouton-speak.
If you had bothered reading the links, you would have the answer to that question already.
China will be facing a huge proble outside their population bubble in that they are very very badly allocating capital.
Much of their current growth is built on quicksand.
The world is making much of China's rise, and views it as the most important economy, so when their bubble pops, and it is looking increasingly like it will, it will get ugly.
They have overbuilt steel capacity that will collapse commodity markets when that capacity goes unused or folds in on itself.
China's population is not expanding faster than the U.S.
Their population is due to start shrinking within a couple of decades, and will consequently very rapidly age.
China's industrialization will accelerate their trend of declining birthrates.
A certain amount of new debt per year is not exactly a bad thing, overall.
I would point out that a lot of investment funds, insurance companies, and banks, rely on having a supply of treasuries around.
That said, we do need to pare it down a bit. My gut says the U.S. government is crowding out private sector borrowing somewhat, although there is a huge demand for it over private sector borrowing/lending.
We just need to keep new borrowing at a rate generally lower than inflation, and let the debt's value decay through sheer inflation.
It is numerically.
I agree they are going to have long term demographic issues but the bubble is not through the snake yet. They currently have to add 25 million jobs and grow their economy at 8% + just to maintain the status quo on unemployment.
The issuance of debt is not necessarily tied to budget deficits. We don't need endless deficits to issue debt, in fact we can issue debt while having permanent surpluses.
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