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

[Shoobis1]

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.

 

[Avorysuds]

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.

 

[Sheldon]

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.

 

[Twin Fist]

if we stop spending money we DO NOT HAVE the market will recover faster

 

[Quantum Windbag]

I think a balanced budget will grow the economy.

 

[Charles_Main]

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.

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.

 

[Dot Com]

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.

 

[Sallow]

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.

 

[Avorysuds]

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.

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!

 

[Sallow]

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.

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!

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.

 

[Cain]

Honestly? In my opinion, I think the best idea is economic efficiency. No money being put where it is not going to get 100% efficiency. No money used for things that are not essential to the nation. I am not a economist, so I cannot claim what is or isn't a efficient use, but their seem to be quite a few things we could go without putting a lot money into.

 

[Rozman]

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.

Maybe a Stimulus plan to get the economy going.....
You know a Stimulus Plan to get people working on shovel ready jobs....
A Stimulus Plan.....that sounds like a good idea.Get the Infrastructure up to snuff.
Yeh that's the ticket,A Stimulus Plan.

We can just keep spending our way to a greater America....

 

[Douger]

Neither one is possible, in a thinking persons mind, so what difference does it make ?

 

[Avorysuds]

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.

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!

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.

Oooh, I thought you supported Obama feverishly though, maybe not on the issue of the economy? Obama has pushed hard to up regulation, given mass tax credits (not tax cuts, added to deficit) and done zero for infrastructure.

 

[Twin Fist]

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.

it is quite telling that nowhere did you mention SPENDING LESS

 

[JBeukema]

I think a balanced budget will grow the economy.

Alas, the CIA's page on military spending isn't working now

 

[Skull Pilot]

Why does one assume the government must spend trillions of dollars it doesn't have in order for the economy to recover?

 

[KissMy]

Barrow money to hire 21,000 IRS agents, expand, & increase the EPA regulations & authority to help drive more evil business out of our country. Make these taxes & regulations so tough that the raw materials entering a US manufacturing plant cost more the the finished goods coming of the ship from China.

Barrow even more under the guise of shovel ready infrastructure projects & use all that money to pay off all the political cronies that got you elected. Never actually spend any of it on infrastructure & blame the other party as much & as often as possible.

Barrow even more to pander to the base with wealth redistributing handouts so they won't get to excited about education,working, investing or inventing.

And finally never forget to reward all those union & government employees that enforce those regulations on the private sector business with huge pension promises that the next administration will have to pay for.

 

[kaz]

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

The good news is there's a solution that does both. Tax and spending cuts. The bad news is tax and spending increases make both worse. Those are even more magnified when you measure deficits as a percent of the economy.

 

[Soggy in NOLA]

Getting the budget in order will lead to growth.