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

[richardhutnik]

Ail said:

SamuelRSmith said:

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%...

I do not believe Mr. Smith lives in the United States.   As it is now, the United States has gone too much into debt, and the bills have come due.  End result is that the reducing the debt will suck off any benefit of stimulus, and won't happen until the debt gets down.  Factor in decline in standard of living due to globalization, and you are seeing there being a LOT that is bogging things down.  The upper end continues to recover fine, but everyone else is stuck.

It isn't just the federal debt that has issues, but all debt that is a problem.

Ben Stein says budget cuts also have to happen.  He is just pointing out that those alone won't be enough and more revenue is needed.