wahday
Cyburbian
- Messages
- 3,959
- Points
- 23
Bear in mind that it is not necessary to run a federal budget that has no deficit every year. This has been the case in many instances in the past. Between 1983 and 1992, for example, the US averaged $206 billion a year in deficits. I'm not saying its a GOOD thing to run a deficit, but I also don't think its a good thing to think we can budget our way out of such a large one (predicated by our financial situation, lest anyone forget about the recession...) over too short a period of time. That's just unsound policy, IMO, because it often requires removing critical programs that will end up costing the government even more in the long run (I've cited the healthcare example before - that if a sick person goes to the hospital, they WILL be treated even if they cannot pay and ultimately, tax dollars will be used to reimburse the providers - why not just pay for the service at the outset? It would be a lot cheaper!).
For a little perspective, I thought it helpful to know that the federal deficit has breached 10 percent of GDP four times in US history: during the Civil War, during World War I and World War II, and in aftermath of the financial crisis of 2008.
Here is what it looked like as far as US federal deficit as a percentage of GDP (the higher the number, the larger the deficit)
2010 8.92
2009 10.01
1942 12.04
1943 28.05
1944 22.35
1945 24.07
1918 11.88
1919 16.85
True, there are many other ways in which our current situation is different from these past instances, but my point is that I feel the mania about the deficit is a little overblown. In that respect, I think the Republicans have done a good job of framing the argument - that "spending is out of control" and we have to "reign in" this outrageous situation. Personally, I'm not convinced these are even the case - but I do think that the Democrats have engaged in this discourse to their detriment instead of standing up for the importance of the programs that exist which help many people which stimulating growth and for taking a more long term approach to controlling deficit spending. Its not a problem we are going to resolve in a year and the American people need to understand that.
IMHO...
For a little perspective, I thought it helpful to know that the federal deficit has breached 10 percent of GDP four times in US history: during the Civil War, during World War I and World War II, and in aftermath of the financial crisis of 2008.
Here is what it looked like as far as US federal deficit as a percentage of GDP (the higher the number, the larger the deficit)
2010 8.92
2009 10.01
1942 12.04
1943 28.05
1944 22.35
1945 24.07
1918 11.88
1919 16.85
True, there are many other ways in which our current situation is different from these past instances, but my point is that I feel the mania about the deficit is a little overblown. In that respect, I think the Republicans have done a good job of framing the argument - that "spending is out of control" and we have to "reign in" this outrageous situation. Personally, I'm not convinced these are even the case - but I do think that the Democrats have engaged in this discourse to their detriment instead of standing up for the importance of the programs that exist which help many people which stimulating growth and for taking a more long term approach to controlling deficit spending. Its not a problem we are going to resolve in a year and the American people need to understand that.
IMHO...