Deficits Do Matter (January 7, 2008)

There may be no greater lie than the one advanced by Reagan, Bush, Cheney and others that budget deficits do not matter.  Budget deficits do matter.  Budget deficits are a form of taxation.  Budget deficits are a tax imposed on the next generation.  The Cheney-Bush team and their ilk have raised taxes via deficit spending more than all other previous administrations in American history.  The Reagan budgets produced the second largest deficits as a result of “tax increases.”  About seventy percent (70%) of the Nine Trillion Two Hundred Billion Dollar + (9,200,000,000,000.00 +) Debt is attributable to Reagan, Bush, Bush and Cheney.  An irresponsible Congress constituted of Democrats and Republicans and an irresponsible White House populated by Democrats and Republicans contributed.

A temporary budget deficit followed by a balanced budget or a surplus would not matter in the intermediate run.  However, a deficit (“little d”) that is followed by a deficit followed by a deficit followed by a deficit followed by a deficit followed by a deficit has created and is creating a catastrophic national Debt (“Big D”).  Imagine spending $10,000 a month for twelve (12) months.  The $10,000 expenditure is a “rate” of spending and is described as the “deficit.”  At the end of the year, the total amount of $120,000 and accumulated interest is described as the “Debt.”  deficit + deficit + deficit + deficit + deficit + deficit ……. = Debt.  The Debt is now more than nine decimal two (9.2) trillion dollars.   $9,200,000,000,000.00.

Bumper stickers of the week:

deficits do matter;
Debt really does matter

Debt Is Deferred Taxation

Debt is Debilitating

Attention:  deficit Disorder

Attention:  Debt Disorder

Trade Deficits Matter Also

Household Debt Matters Also

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