Entroper on 30 December 2007
| Final-Fan said: So cut spending. THEN cut taxes. 22% of the budget is spent on interest of the debt, as I recall. That is a lot of wasted money. Tax cuts that precede spending cuts increase this waste. |
A lot of the debt is public, so the interest payments (on savings bonds and such) go back into the economy (with a side of inflation). Our external debt has grown faster than our internal debt under the current administration, though. Not a good thing.
This argument seems to be focusing on the economics of tax cuts vs. tax increases, when what Final Fan is really trying to say is that the government should not spend more money than it has except in case of emergency. That's pretty much the definition of fiscal responsibility, is it not? (PS, I don't mean to put words in anyone's mouth, so Final Fan can correct me on this if I'm wrong.)
