Ben Stein says that taxes has to be raised on the rich....

[Ail]

SamuelRSmith said:

klystron said:
There never was a surplus. It's a myth. It is a surplus based on standard accounting tricks the government uses. Look at the amount of united states debt outstanding per year. It never went down. Not once. Including the late 90s. Look it up. Oh heck, I'll do it for you.

http://www.treasurydirect.gov/govt/reports/pd/histdebt/histdebt.htm

Look at the numbers. You'll see they never go down. Ever.

Federal government spent over a trillion dollars on 82 means tested welfare programs. That's larger than even the defense budget. Welfare spending up 32% since 2008.

http://dailycaller.com/2012/10/18/report-welfare-governments-single-largest-budget-item-in-fy-2011-at-approx-1-03-trillion/

The solution is not even to cut spending (though I would love to see welfare eliminated by making any handouts civil debt against the recipients estate.) The solution is economic growth. We have been growing less each year the last several years. Most of the GDP growth has been in government spending.

Realistically you can't just shut it all down at once because sadly too many communities depend on military bases, government offices,etc, but you can slowly ramp it back. It's a balance that has to happen. Clearly making it larger is not working.

The United States won't ever get economic growth until it gets its monetary policy in order (you cannot having investment without savings, and you won't get savings with such low interest rates, and high inflation.), and it won't get its monetary policy in order until it gets its fiscal policy in order (interest rates can't rise, because then the Fed Government cannot afford the debt).

So, if the US wants to go back into prosperity, it first needs to eliminate the Federal deficit, over night. It then needs to work with its borrowers to restructure the debts, and it then needs to severely reduce the unfunded liability (though, there's less time pressure here, but some reductions need t come today).

After all that,  the Fed can allow interest rates to rise, the printing presses will stop, and the dollar will start reclaiming its value. Americans can start saving again, investing, and producing. Jobs will start flowing back into the country, and the trade deficit would also start to diminish.

... but, none of this will happen. At the current path, the ONLY result is hyperinflation, and a totalitarian Government.

Err are we living in the same country ?

I don't think most americans know what the word savings means...

This is the country of mortgage refinance and credits cards and the whole domestic economy is based on consumers  buying stuff through credit.......

How many adults on this site have 0 debts ? ( I do but I wasn't born in the US even if I live there so I was raised with different values).

 

As for economic growth you have to be realistic, baring a new technologic breakthrough like we had with computers in the 80s-90s the western world can not experience sustained growth of more than 4-5% in the next decade....

Growth is going at best to reach 4% and most likely stay closer to 3%...