National Debt

http://economistsview.typepad.com/economistsview/2011/05/bush-tax-cuts-wars-major-drivers-of-projected-government-debt.html#comment-6a00d83451b33869e2014e888f2212970d

from the comments:

Michael Zoran said...

These are the things we need to remember:

1. George H.W. Bush doubled the national debt during his four-year term in office

2. Bill Clinton balanced the budget and created a budget surplus of cash

3. Bill Clinton used this annual surplus of cash to pay down the national debt, cutting it in half by the time he left office

3. Bill Clinton was able to balance the budget and create this cash surplus because he raised taxes, particularly on the wealthy -- the people that make the majority of their money from people with far less money

4. At the rate Bill Clinton was paying down the national debt, there would no longer be a national debt in just five more years. Once that national debt was paid off, Americans would be receiving checks in the mail every year thanks to the budget surplus!

5. When George Bush became president, he inherited a budget surplus from Bill Clinton his first year in office.

6. Rather than continuing to pay down the national debt the way Bill Clinton Did, George Bush skipped five years into the future. George Bush decided he would give that money surplus to Americans rather than pay down the national debt. Normal people like me received very little money, but millionaires like Bush and his staff received large amounts of money.

7. After one year in office, George Bush no longer had a balanced budget and was building a national debt.

8. By the time he left office, George Bush had doubled the national debt -- like father like son (Note: Please remember that if anyone else in the Bush family decides to run for president).

Bottom Line: When you are in debt, you are not supposed to lower taxes! Taxes are the source of income for a government.

The Republican method of "Reduce taxes and reduce spending" is only 50% correct. If they could make it say "Raise taxes on the wealthy and reduce unnecessary spending," it just might work. But the poor people that lose jobs when spending is reduced will be devastated.

The Democrat method of "Increase taxes and increase spending" puts more people to work, but it's important that the majority of the increased taxes comes from the wealthy, otherwise it will have a negative impact on the economy. Thankfully, this is the method President Clinton and Obama use. Any doctor or lawyer using the excuse of "I'm being penalized for succeeding in life" is a selfish person. Those wealthy people will still live comfortably if they see higher taxes.

Those are my thoughts on this subject.


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