Deficit must be dealt with

Originally posted by mchill
Frankly I have no idea what the Trump administration plans to do.

That is the one area where Trump actually did have a published policy rather than just 'we will do it bigly'. He plans to cut taxes on the rich which will increase the budget deficit and thus increase the debt. He claims that his tax cuts will result in more business in the US and thus higher tax revenues eventually.

Originally posted by mchill
I agree. Frankly I have no idea what the Trump administration plans to do. It's clear both the GOP and Democrats stand guilty in this area of the deficit. I just hope Trump sees it as a priority.

Did you hear anything about it in the debate?

No.

Nothing changes. In fact, I heard Trump plans to spend more than Hillary would have.

I'm beginning to think that whoever will spend the most taxpayer money wins.

Originally posted by no1marauder
The deficit and debt wasn't caused by ANY of those things, but by gigantic tax cuts that primarily benefited the wealthy and by wars and huge, unnecessary military spending.

EDIT: I suppose you could add in the costs and losses to revenue of the recessions caused by right wing policies in the last 30+ years.

What percentage of spending is spent on entitlements dingleberry?

Like it or not, spending is the cause of this mess. If they made us pay for it, the public would be demanding entitlements to be repealed because all their money would go to government.

Grave Digging in Iceland, Tofu in Convenience Stores: Your Tax Dollars at Work

http://dailysignal.com/2016/11/29/grave-digging-in-iceland-tofu-in-convenience-stores-your-tax-dollars-at-work/

Originally posted by whodey
What percentage of spending is spent on entitlements dingleberry?

Like it or not, spending is the cause of this mess. If they made us pay for it, the public would be demanding entitlements to be repealed because all their money would go to government.

You tell me.

Seriously, actually do some work and tell me what an "entitlement" is to begin with. Tell me why this country can't pay for a social welfare system that is pitiful compared to the rest of the industrialized world. Sit there and deny that there have been huge tax cuts, massive wastes of money on wars and the military and that the economic policies you support led directly to recessions that added more to the deficit then any "entitlement" program dreamed of.

In other words, lie through your teeth like you always do.

Originally posted by KazetNagorra
Actually, a debt of 2 trillion would be very healthy as that is only a small portion of GDP.

With a BA in economics you should also be aware that looking up the correct figures will help you make the correct judgement - so once again: the (2015) deficit was a bit over $400 billion, the debt is just shy of $20 trillion. Most of US debt is held by Amer ...[text shortened]... not wanting to do something.

https://en.wikipedia.org/wiki/National_debt_of_the_United_States

Actually, a debt of 2 trillion would be very healthy as that is only a small portion of GDP.

Earth to KazetNagorra: There is no "healthy" amount of debt. Tax payer dollars are being spent needlessly paying interest on this debt. Several billion per year needlessly wasted year after year. How may kids could we educate with that amount of money? How much lower would the deficit be? How many more police and firefighters could we hire? But No, you think it's totally OK to send billions to China to service this stupid debt. I see KazetNagorra is a bit "mathematically challenged" 😵

Originally posted by mchill
Actually, a debt of 2 trillion would be very healthy as that is only a small portion of GDP.

Earth to KazetNagorra: There is no "healthy" amount of debt. Tax payer dollars are being spent needlessly paying interest on this debt. Several billion per year needlessly wasted year after year. How may kids could we educate with that amount of money? How much low ...[text shortened]... to China to service this stupid debt. I see KazetNagorra is a bit "mathematically challenged" 😵

So you think people should never take mortgages? Just think what people can do with that money instead of making mortgage payments! Insisting that a government can never raise funds through issuing bonds would cripple any government in the case of crises.

If you had read the post you were quoting, you would know that about two thirds of American debt is held by Americans and about 5% by Chinese investors.

Originally posted by KazetNagorra
So you think people should never take mortgages? Just think what people can do with that money instead of making mortgage payments! Insisting that a government can never raise funds through issuing bonds would cripple any government in the case of crises.

If you had read the post you were quoting, you would know that about two thirds of American debt is held by Americans and about 5% by Chinese investors.

So you think people should never take mortgages?

There is a massive difference between a family buying a house on a mortgage and the federal government spending our tax dollars servicing a deficit that didn't need to exist in the first place. But I see you're having difficulty telling the difference.

Originally posted by mchill
So you think people should never take mortgages?

There is a massive difference between a family buying a house on a mortgage and the federal government spending our tax dollars servicing a deficit that didn't need to exist in the first place. But I see you're having difficulty telling the difference.

You may not have heard this during your study of economics, but you're actually mistaken. The government of Norway issues sovereign debt not because they have to, but because it is a cheap way to raise money. They could pay off their debt immediately by liquidating assets in their oil revenue fund (which has assets larger than Norway's debt) but choose not to because it doesn't make financial sense to do so. If the U.S. public debt would be only two trillion, interest rates would be so low the government could raise money at essentially zero interest, as certain wealthy European countries are already doing.

Originally posted by mchill
So you think people should never take mortgages?

There is a massive difference between a family buying a house on a mortgage and the federal government spending our tax dollars servicing a deficit that didn't need to exist in the first place. But I see you're having difficulty telling the difference.

Well I guess there is a very simple solution; US GDP in 2015 was about $18 trillion and if we assume a modest amount of growth, it might make it to $19 trillion in 2017. So the government could simply tax every economic activity at 100% and use the money raised to pay off that debt "that didn't need to exist" and is sooooooooooooooo "unhealthy".

Originally posted by mchill
Earth to KazetNagorra: There is no "healthy" amount of debt.

Actually you will find that Earth is with KazetNagorra on this one. As far as I know, every country in the world has some debt or considers having some debt to be 'healthy' at times.

Tax payer dollars are being spent needlessly paying interest on this debt.
It is not 'needlessly'. Do you not understand how loans work? You borrow money, you pay interest on it. Those are the rules. Sometimes borrowing money makes economic sense. I thought you claimed to have a BA in the subject? I think you lied.

Several billion per year needlessly wasted year after year. How may kids could we educate with that amount of money?
Have you considered the possibility that you are educating kids with the money you borrowed?

How much lower would the deficit be? How many more police and firefighters could we hire?
You seem to be assuming that you can pay off all the debt for free. Do you have a magic plan?

But No, you think it's totally OK to send billions to China to service this stupid debt. I see KazetNagorra is a bit "mathematically challenged" 😵
Along with most of the rest of the world, that actually understands borrowing.
I will ask you again: do you have a mortgage? If not, do you at least understand why someone might get a mortgage? Did you attend at least one class in your economics course?

Originally posted by mchill
There is a massive difference between a family buying a house on a mortgage and the federal government spending our tax dollars servicing a deficit that didn't need to exist in the first place. But I see you're having difficulty telling the difference.

I see you are having difficulty explaining the difference.
Many people do not get mortgages. They are not necessary. They do not need to exist in the first place. But they do often make sense.

Originally posted by no1marauder
You tell me.

Seriously, actually do some work and tell me what an "entitlement" is to begin with. Tell me why this country can't pay for a social welfare system that is pitiful compared to the rest of the industrialized world. Sit there and deny that there have been huge tax cuts, massive wastes of money on wars and the military and that the economic ...[text shortened]... "entitlement" program dreamed of.

In other words, lie through your teeth like you always do.

You tell me.

Why is it that all of those other industrialized world countries with a massive nanny state depend on the US military to protect them and then people like you turn around and ask why we can't have the same welfare state that they do as well? Militaries around the world are pitiful compared to the US military. Sit there and deny that there have been massive wastes of money in the US welfare system that you supported that led directly to the massive debt we have now. As for which wasteful spending led to recession and which causes more debt, there is no convincing you that the current system is destroying the country. All you know is that you want more of it.

In other words, sit there like you always do and cry that I lie 24/7 instead of facing the facts. The fact is, there are no checks and balances to make lawmakers pay for their free goodies and have created a Fed to bankrupt the country.

Originally posted by mchill
For the last 16 years George W Bush and Barack Obama have signed off on budget after budget authorizing the spending of billions of dollars more than tax revenue would support. Now America is burdened with a deficit of about 2 trillion dollars. Conservatives and Liberals have to face the hard fact that both sides are guilty of this reckless spending spree and ...[text shortened]... orities President elect Trump sees at this point, but this deficit must be dealt with, and soon!

First place I'd start is those that obey the laws of the land and those that do not.
If you wish to reject Federal funding to keep law breakers, fine spend the money else where.

The crux of the problem is that you have those in the GOP who say they want Big Government around the world and Dims who say they want Big Government at home while they both feed the other.

Once you create the monster you can't control it.