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| Re: GOP House Votes To Eliminate Medicare, Raise Taxes On Middle Class, Lower Them for the Wealthiest (765612) | |||
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Re: GOP House Votes To Eliminate Medicare, Raise Taxes On Middle Class, Lower Them for the Wealthiest |
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Posted by David Fairthorne on Sat Apr 16 22:03:21 2011, in response to Re: GOP House Votes To Eliminate Medicare, Raise Taxes On Middle Class, Lower Them for the Wealthiest, posted by SelkirkTMO on Sat Apr 16 16:51:11 2011. So you're saying that raising revenue to pay for services ("tax and spend") is somehow inferior to BORROW and spendYes, for the following reason. Most politicians like to spend money, because those who benefit from the expenditures are more likely to re-elect them. But politicians don't so much like to raise revenue because that displeases those who have to pay. Given that spending makes politicians more popular than raising revenue does, governments usually spend more money than they raise in revenue. The result is a built-in tendency for democratically elected governments to run budget deficits. Hence the ever-increasing national debts, on which interest must be paid. Budget deficits can be beneficial if they help to stimulate the economy in times of recession or depression. But in boom times, budget surpluses would be better for the economy. Then the government can set aside the surplus money for the next "rainy day", without having to borrow when the rainy day comes. |
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