A Quick Word About Deficits

Dave Johnson

I just wanted to say a few quick things about deficits and the “super committee.”

1) Never forget that 11 years ago we had a huge budget surplus and were on track to pay off the entire debt in 10 years. Then came the Bush tax cuts for the rich and a huge military spending boost. And we didn’t have these deficits and this huge debt at all before Reagan cut taxes for the rich, and his huge military spending boost. That should always, always be the first thing understood about our deficit “emergency.” If you honestly want to do something about the deficits, do something about the CAUSE of the deficits and put top tax rates back where they were before Reagan, and cut the military budget back to what it was when we were threatened by the Soviet Union, even though they’re gone and we don’t have any threats remotely as bad.

2) If the stock market is really dropping because of the failure to reach a deal, doesn’t that just mean that the geniuses in the market believed before today that the super committee was going to reach a deal? Nobody else did. That says a lot more about the geniuses in the stock market than it does about the super committee.

3) Doesn’t this just activate the “trigger” and the same amount of money will be taken out of the economy anyway? So for those who wanted all of this money taken out of the economy, why are they complaining? Teachers will be fired, infrastructure will be neglected – that’s how you wanted to “fix the economy” and that’s what you’re going to get. What’s the problem?

Get the money from where the money went.

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