I understand that reducing the deficit currently is not feasible in the minds of most, but when will it be “timely” to do so? Will future economic prosperity occur when the time is ripe to knock it out? As a realist I would say no, but as an idealist I would say of course. When will a majority on the hill agree that “now” is the time with the never-ending governmental overspending?
I don’t see it ever happening in the future. Money conditions are going to get worse instead of better for many years. The US will likely go into hyper inflation due to Biden's bumblers ineptness. It will require 2 terms of a true conservative leader to recover from the current mess that could have been avoided.
So what will happen? Nothing. Our elected congressional reps on the hill will, yet again, kick the can down the road saying that, “Well, the national debt can be handled later, knowing the likelihood is slim, so it never is reduced. Kicking the can down the curb is a good example of history repeating itself, no matter how dumb.
Here is the problem, and it has happened time and time again. I mean you can take it back to the 1950's, but lets keep it more contemporary. Clinton and Obama both kicked ass when it comes to stimulating the economy. Clinton actually ran a surplus for a while, and he retired all the 30 year Treasuries and replaced them with shorter term, and lower interest rate, bonds. I mean I don't know if you remember the Gore v. Bush election, but one of the critical issues was what the government was going to do with its budget surplus. Gore was going to do like Clinton, pay down that deficit. But Bush, well he was going to "give it back" to the American people. Those magic taxcuts, you know, the ones that don't cost anything because the taxcut fairy will show up and government income will increase. A damn fairy tale from hell when marginal tax rates are already low. I mean if they are north of 70%, like under Kennedy, then yeah, maybe so. But at rates less than 40%, no way in hell. And I would be happy to show how Reagan found that out within the first two years of his first term. Mostly because I worked for the OMB and was screaming it wasn't going to work from the getgo.
But that is the thing. If some miracle prevailed, Biden got all his legislation passed, we borrowed more money and INVESTED, I mean most Republicans are all about "investing", except when it comes to the government. But if we invested all that money, borrowed on the cheap, and expanded the frontier curve---basic Macroeconomics 101, it will result in increased revenue. But then some slick talking, bought and bossed Republican, Joe Manchin comes to mind, will stroll in and promise those magic fairy tale taxcuts and BAM, we will be right back where we started, IF WE ARE LUCKY. What history as shown is that we will seeing increasing deficits.
I mean it is so obvious for anyone with any real Economics training. But that is a lost art, destroyed by organizations like the Koch brothers, But then, that is another story. Everyone often bitches about Hitler, and yes, his social policies were an abomination. But his economic policies, they provided real dividends for the German people. To this very day, some of his public works projects still provide dividends to the German people. That is what we could do, if Republicans were not so bought and bossed by the corporations and the elite and would put this country first, above their own desire for continued power. But you don't have to turn to Hitler. You can look no further than Franklin Roosevelt and the CCC, to find public works projects that, even today, almost a century later, still provide increased economic efficiencies that have expanded that frontier curve. Like the Outer Banks of North Carolina.
www.forbes.com
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