Bush budget would bring record deficits

[Pooks]

Well obviously, Logic dictates, they need to cut more since there is a deficit.

[Logan13]

Well obviously, Logic dictates, they need to cut more since there is a deficit.

yes........
taxation does not fix a deficit, spending cuts do.

[Coop77]

yes........
taxation does not fix a deficit, spending cuts do.

It doesn't really work when you only cut domestic programs and veterans benefits, then spend 10x that on wars.
Funny how every republican administration of recent times has produced record deficits, and the democratic ones produced record surpluses, yet so many people associate republicans with fiscal responsibility.

[Pooks]

It doesn't really work when you only cut domestic programs and veterans benefits, then spend 10x that on wars.
Funny how every republican administration of recent times has produced record deficits, and the democratic ones produced record surpluses, yet so many people associate republicans with fiscal responsibility.

OK, well aside from my regular job, I am big into the economy, I trade commodities, currencies, stocks, options, anything and everything, plus I really like to enjoy looking at economic data like inflation numbers, or how certain things act in certain situations, etc etc.. so here' is what I've dug up over time when it comes to this argument...

from 1994 or so - 2000.. there happened this non-political event in our country a lot of people would refer to it as the Internet Boom.

This event boosted the economy unbelivably

Clinton did not do any spending cuts in the budget to balance it, it was the economy booming, that created an incredible amount of tax revenue.

This unpredictable high levels of tax revenue, balanced the budget not Clinton.

in 2000 when the bubble crashed, that came to an end.
------------------

Bush takes over an economy that is in recession from Bill Clinton.
Bush does his first TAX CUTS to stimulate the economy.

IT WORKS!
the year after the first tax cuts, RECORD LEVEL OF TAXES are collected.. YES thanks to the tax cuts, stimulating business, and the economy.. the GOVT actually collected more taxes!..

Bush did make one mistake.. this mistake is he decided to "BRING PEOPLE TOGETHER" .. both democrats and republicans.. so he spent a lot of the new tax revenue on Democrat spending legislature.

---
9/11 HAPPENS..

Bush does his second TAX CUTS..
again it works!
Economy goes into a BULL MARKET from 2003-2007 WE WERE IN A BULL MARKET!!!

Ok second BUSH mistake (maybe, time will tell) is going into an really expensive war in Iraq..

Also.. something out of anyone's control is.. The wild speculation game on housing, started to burst and slow down.
This is natural economy at work.. speculation/economy tends to be cyclical.. it has to go down, before it can go up again etc.

but
2 things all great empires had in common was.

1. a strong army.
2. International presence.

We've had incredible Debt after wars before..

after the Revolutionary War, the nation was in big debt.. it led to the creation of the First National Bank.

and after the war of 1812 we were big in debt, which led to the creation of Second National Bank.. both these banks had 20 year mandats that eventually expired..

now we have the 3rd National Bank.. which is the Federal Reserve, there was no expirationary date on it tho.. it has been around since 1913..

but we should be able to get ourselves out of debt again.
A lot of people would like to see the Federal Reserve abolished.. their real complaints are on inflation, because the bank has the power to print money..

But historically it appears printing money is what got us back on track after the Revolutionary War, and the war of 1812, etc..

so as much as it sucks I doubt the Federal Reserve is going away any time soon.
The chief reason behind a National Bank, is for the funding of Wars.. or for funding speculation like right before the Panic of 1836..


The good news is.. pretty much all other Nations have even worse inflation than we do.. so their Central Banks are working even more overtime than ours;... of course if they all do it, does not mean we should also.. and it is not something we are very used to.

[Coop77]

OK, well aside from my regular job, I am big into the economy, I trade commodities, currencies, stocks, options, anything and everything, plus I really like to enjoy looking at economic data like inflation numbers, or how certain things act in certain situations, etc etc.. so here' is what I've dug up over time when it comes to this argument...

from 1994 or so - 2000.. there happened this non-political event in our country a lot of people would refer to it as the Internet Boom.

This event boosted the economy unbelivably

Clinton did not do any spending cuts in the budget to balance it, it was the economy booming, that created an incredible amount of tax revenue.

This unpredictable high levels of tax revenue, balanced the budget not Clinton.

in 2000 when the bubble crashed, that came to an end.
------------------

Bush takes over an economy that is in recession from Bill Clinton.
Bush does his first TAX CUTS to stimulate the economy.

IT WORKS!
the year after the first tax cuts, RECORD LEVEL OF TAXES are collected.. YES thanks to the tax cuts, stimulating business, and the economy.. the GOVT actually collected more taxes!..

Bush did make one mistake.. this mistake is he decided to "BRING PEOPLE TOGETHER" .. both democrats and republicans.. so he spent a lot of the new tax revenue on Democrat spending legislature.

---
9/11 HAPPENS..

Bush does his second TAX CUTS..
again it works!
Economy goes into a BULL MARKET from 2003-2007 WE WERE IN A BULL MARKET!!!

Ok second BUSH mistake (maybe, time will tell) is going into an really expensive war in Iraq..

Also.. something out of anyone's control is.. The wild speculation game on housing, started to burst and slow down.
This is natural economy at work.. speculation/economy tends to be cyclical.. it has to go down, before it can go up again etc.

but
2 things all great empires had in common was.

1. a strong army.
2. International presence.

We've had incredible Debt after wars before..

after the Revolutionary War, the nation was in big debt.. it led to the creation of the First National Bank.

and after the war of 1812 we were big in debt, which led to the creation of Second National Bank.. both these banks had 20 year mandats that eventually expired..

now we have the 3rd National Bank.. which is the Federal Reserve, there was no expirationary date on it tho.. it has been around since 1913..

but we should be able to get ourselves out of debt again.
A lot of people would like to see the Federal Reserve abolished.. their real complaints are on inflation, because the bank has the power to print money..

But historically it appears printing money is what got us back on track after the Revolutionary War, and the war of 1812, etc..

so as much as it sucks I doubt the Federal Reserve is going away any time soon.
The chief reason behind a National Bank, is for the funding of Wars.. or for funding speculation like right before the Panic of 1836..


The good news is.. pretty much all other Nations have even worse inflation than we do.. so their Central Banks are working even more overtime than ours;... of course if they all do it, does not mean we should also.. and it is not something we are very used to.

I'd like to point out a few things to you..

1) Bill Clinton consistently submitted balanced budgets to congress, with ZERO deficit, and consistently paid down the national debt. He even supported an amendment to the constitution requiring the budget to be balanced. Bush, Bush Sr, and Reagan all consistently spent more than was coming in, and all produced massive deficits and massive national debt for our children.

2) The increased tax revenue you mention under the Bush years cannot necessarily be attributed to Bush's tax cuts. Had Bush's tax cuts (mostly for the wealthy) not been in place, tax revenue would have been much much higher still.

3) When you say Bush "spent a lot of the new tax revenue on Democrat spending legislature", you must realize congress and the senate were republican for most of Bush's term.