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Cronkite

(158 posts)

3. That does nothing to address the 10% of GDP we are borrowing & spending.

Reply to drm604 (Reply #2)

Sun May 27, 2012, 01:25 PM

May 2012

Yes, your idea would have a little affect on GDP as it would just shift money from the private sector to the government component.

The problem is what to do about the 10% of GDP we borrow every year. That has to be stopped and either we increase tax revenue by 1.5 trillion, cut spending by 1.5 trillion or some combination of the two.

We are creating GDP out of thin air by borrowing. The issue is what happens when we can no longer do this?

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Romney Admits Budget Cuts Would Throw Economy Into ‘Recession Or Depression’ [View all] SunsetDreams May 2012 OP

Spending cuts or tax increases will do it. (we're pretty much screwed) Cronkite May 2012 #1

How about tax increases with an increase in spending? drm604 May 2012 #2

That does nothing to address the 10% of GDP we are borrowing & spending. Cronkite May 2012 #3

A common misconception quaker bill May 2012 #4

I was going to reply Prophet 451 May 2012 #5

And how it that working out for us? Cronkite May 2012 #6

It is not sustainable forever. True. cthulu2016 May 2012 #7

The Federal government doesn't need to borrow.. girl gone mad May 2012 #9

Recent Republican Presidents have governed the economy as Keynesians... girl gone mad May 2012 #8