What's Your Higher Priority--Balancing the Budget or Growing the Economy?

Discussion in 'Politics' started by Shoobis1, Feb 18, 2011.

  1. Shoobis1
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    Shoobis1 Member

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    Granted, there are smart ways to balance the budget. But in general, balancing the budget, whether by cutting spending or by raising taxes, will make it harder to grow the economy. We're in a bad situation where we have huge budget deficits and a stagnant economy. So which, to you, is the higher priority--balancing the budget even if it slows the recovery, or growing the economy even if deficits balloon higher?

    I'd look at situations like this on a case-by-case basis, and in this case, I think our deficits are just so far out of control that something has to be done about it. It would be suicide to keep growing our debt. In the past when we've had a recession, whatever bone-headed thing the government has done about it, real growth has eventually come along to save the day and make it all moot. But now I'm not so sure real growth is coming anytime soon. We may have to get used to a stagnant economy for awhile and not rely on an economic boom to save our asses and fix all our problems.
     
  2. Avorysuds
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    Avorysuds Gold Member

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    The budget...

    A budget will mean less taxes over the years (I would hope)

    Less money wasted

    Adds to Certainty in the market place

    Over time helps create an environment for job growth

    And of course, is the right thing to do...

    There is no way to “fix the economy” through spending. FRD failed, Bush 2 failed and Obama is failing, it's pretty basic history. I have said many times, FDR was awesome, unless you lived during the time he was president. I hope you guys love a depression lasting a tenth of your life time.
     
  3. Sheldon
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    Sheldon Senior Member

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    I think it's probably easier to reign in the budget in a stable low-unemployment economy, so that would be step one. Imo we need revenue increases AND spending cuts to make a substantive difference in the budget trajectory and get us back on track to debt levels that the global economy is cool with. An either/or scenario won't get us there anymore.

    But I am not an economist.
     
  4. Twin Fist
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    Twin Fist Member

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    if we stop spending money we DO NOT HAVE the market will recover faster
     
  5. Quantum Windbag
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    Quantum Windbag Gold Member

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    I think a balanced budget will grow the economy.
    [​IMG]
     
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  6. Charles_Main
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    Charles_Main AR15 Owner

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    They are one and the same. The only Realistic Way to balance our budget long term, is to grow the economy so that we take in more money, and are able to pay down some of the Debt, The interest on which is nearing 1/3 of our Deficit.

    The only way to Grow the Economy is enabling the Private Sector to Grow. We will not spend our selves out of this mess with Government spending on government programs. We need Private Sector Expansion. Period.
     
    Last edited: Feb 18, 2011
  7. Dot Com
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    Dot Com Nullius in verba Supporting Member

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    Once they get together on the budget, or rather IF they get together on the budget and take up some of the debt commissions recommendations as Quantum Windbag indicated, it would be good for the economy. IOW- entitlement reform.
     
    Last edited: Feb 18, 2011
  8. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    Growing the economy. After which, in a sane world, it would be appropriate to raise taxes to re-coup the money spent by the government to grow it.
     
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  9. Avorysuds
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    Avorysuds Gold Member

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    So you mean "barrow," then "spend," and then pray it works after the Bush AND Obama stimulus failed because you have to raise taxes soon or else you will have to "barrow and Spend" again really soon?

    So even IF all this borrowing and spending somehow gets us out of a Recession the US will have to go something like 60 years of no recession/Depression with high taxes, massive Military and Social cuts to pay back the debt from our "Barrow and Spend" theory.

    What does the FED lend at these days? POINT.2%? Down from 15%? LOL. Soon they will just pay people to take our money hahaha.

    HEY WAIT! NOT A BAD IDEA!
     
  10. Sallow
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    Sallow The Big Bad Wolf. Supporting Member

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    What the heck is "barrow"?

    The economy is not one solid thing, like a rock, it's a fluid thing, like water. It changes frequently and needs adjustments to keep it flowing.

    And there are some very basic principles one can adopt to do this..in times of growth, the government can afford to be austere and raise taxes. In times of retraction, the government can do things like spending on infrastructure, lower taxes and ease some regulations to get the economy moving.

    The problem is the mindset that believes there will always be growth and the government must not do anything.
     
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