When Republicans use deficit spending to pay for tax cuts why don't fiscally conservative people stop them?
I keep hearing how the current stimulus is going to hurt our grandchildren, but every single time republicans pass a tax cut, they always pay for it with deficit increases.
Whats worse, stealing money from your grand kids to save the economy or stealing money from your grand kids so that you can have more to spend?
- 1 decade agoFavorite Answer
BUSH-REPUBLICANS DESTROYED AMERICA, AND OBAMA IS DOING A GREAT JOB FIXING IT
Between Jan 20 2001-2009 under president bush's policies and leadership:
Unemployment doubled from 4% to 8.8%
National debt doubled from 5.7 trillion to 10.6 trillion
Yearly budget went from a 236 billion surplus to a 1.2 TRILLION deficit (a 1.4 trillion drop)
Dow Jones plunged 25% from to 10,587 to 7949
Gasoline tripled from 1.44 to 4.11 per gallon on July 11, 2008
Losing 700,000 jobs monthly
Economy in total freefall
(Republicans try to confuse people by saying democrats took over in Jan 2007 and started the recession, but they can not name one thing democrats did to hurt the economy. By Jan 2007, all subprime loans had already been made)
BUSH MORE THAN DOUBLED UNEMPLOYMENT FROM 4% TO 8.8% -----(Jan 2001-2009)
(Source: US Dept of Labor - Bureau of Labor Statistics-)
BUSH DOUBLED OUR DEBT FROM 5.7 TRILLION TO 10.7 TRILLION
(Source: US Treasury Dept - Bureau of Public Debt - http://www.treasurydirect.gov/NP/BPDLogin?applicat...
BUSH TURNED A 236 BILLION BUDGET SURPLUS INTO A 1.2 TRILLION DEFICIT (A 1.4 TRILLION DROP)
(Source 1: CBO - Congressional Budget Office - Historical Budget data - Shows the 236 billion surplus in 2000)
(Source 2: Congressional Budget Office - Annual budget and economic report and testimony before Congress on Jan 8, 2009) (Declares 1.2 trillion deficit for fiscal year 2009 ---2 weeks before obama takes office)
(Please note: The fiscal year 2009 started Oct 1, 2008 under president bush. At that time, the 2009 deficit was projected at 600 billion. Then the banking crisis occured in Oct 2008 and bush started a 700 billion TARP bailout program which was added to the 600 billion deficit which left obama with a 1.2 Trillion deficit the day he took office according to the CBO)
BUSH OVERSAW A DOW JONES THAT PLUNGED 25% OVER 8 YEARS
GASOLINE TRIPLED UNDER BUSH ENERGY POLICY
(Source: US Dept of Energy- Energy Information Administration) (http://tonto.eia.doe.gov/dnav/pet/hist/LeafHandler...
OBAMA IS DOING A GREAT JOB FIXING THE BUSH DEPRESSION
The dow jones rose 33% in his first year from 7949 to 10,600 on Jan 20, 2010
The job loss rate plunged 97% from 700,000 jobs lost in Jan 2009 to 20,000 jobs lost in Jan 2010
The GDP rate rose to 5.7% in 4th quarter of 2009 - the highest in 6 years
Existing home sales up 27% in 4th quarter of 2009
Jan 10 Home construction up 2.8% (up 23% since april 09 low)
Jan 10 Industrial production up 1%
Jan 10 Retail sales up .5%
In 2002, why did Bush ask his fannie mae appointees to "make 440 BILLION in subprime loans to minorities"?
In 2002, republicans controlled congress and the white house. You can't blame this on barney frank.
Here is the video...go to the 4 minute mark to hear him say it.
Here is the offical white house text of that speech he gave in atlanta.
Here is the offical white house fact sheet:
Bush said "...That's why I've challenged the industry leaders all across the country to get after it for this goal, to stay focused, to make sure that we achieve a more secure America, by achieving the goal of 5.5 million new minority home owners. I call it America's home ownership challenge.
And let me talk about some of the progress which we have made to date, as an example for others to follow. First of all, government sponsored corporations that help create our mortgage system -- I introduced two of the leaders here today -- they call those people Fannie May and Freddie Mac, as well as the federal home loan banks, will increase their commitment to minority markets by more than $440 billion. (Applause.) I want to thank Leland and Franklin for that commitment. It's a commitment that conforms to their charters, as well, and also conforms to their hearts."
(please note that bush appoints Leland and Franklin to their jobs at fannie mae and freddie mac so when he asks for 440 BILLION that is basically a presidential order)
Also note: The govt can not force a bank to make a bad loan. And surely, an ALL REPUBLICAN GOVT would not force a bank to make a bad loan.
- ?Lv 71 decade ago
True fiscal conservatives don't get elected, the voters want social services free and only put people in office who promise to achieve that. That is why no Republican President since Eisenhower has ever reduced the public debt, and no President of either party has ever reduced government spending. In order for a truly fiscally conservative person to stop anything he would first of all have to be a position so to do, and that is unlikely ever to happen.
- DawnLv 44 years ago
Let me guess.. you've never paid income taxes in your life? If you had, you'd probably understand there's a minimum amount of money you have to make before you pay a cent of tax. You might also have noticed that the more money you make the higher rate you pay. I'd suggest at some point in your life you consider getting an education and a job and actually learning how our tax system works. Sorry, Democrats don't pay the bills, they make decent Americans do it for them.
- Ynot!Lv 61 decade ago
This is what happen when they don't teach critical thinking in our schools
I will do my best to explain
When you cut taxes there will always be deficits at first, but as people have more money to spend and invest and start new business, more people are employed more business pay more taxes and revenue actually increase to the government, it work with all 3 presidents that did it kennedy, Reagan, Bush
Where people like you are confused is that deficits increase because with all the new revenue coming in the government ends up spending even more money that than is coming in because they believe the revenue growth is infinite, so they end up repeating the cycle
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- Don MLv 71 decade ago
The problem with your question is that you assume that tax cuts increase deficits. Wrong! Across the board tax cuts stimulate the economy and produce more revenue for the treasury. When President Reagan cut taxes, tax receipts almost doubled by the end of his administration.
What creates deficits is excessive spending, and if you think the current, reckless "stimulus" policy is going save the economy, you're wrong about that, too.
- EntropyLv 71 decade ago
The deficit increase primarily because of the SPENDING increases. While the stimulative effect of tax cuts may not make the cut pay for itself, it is much cheaper than the CBO's static price tag. The reason deficits sprialed up during the 80s and 00s is because congress went bananas with spending during those eras. Go look up the spending and revenue numbers.
- generousTLv 51 decade ago
You ignore the fact that tax cuts have historically raised tax revenue.
While it is true that, in the past, many Republicans who espoused tax cuts also raised the deficit. That was wrong then and it's wrong now. I hope that they do not repeat those policies.
It's time to stop anyone who tries to increase the deficit.
- regeruggedLv 71 decade ago
Your ignorance is showing. Conservatives cut tax rates. The lower tax rates spurred the economy. The net result was an increase in total tax dollars collected by the government. In 2007, taxpayers sent more money to the government than every before, and we still had a deficit over 200 billion dollars.
Deficits are caused by Congress. They spend money faster than it is brought in, no matter how much is brought in.
- Hatir Ba LoonLv 61 decade ago
Why don't the Democans or Republicrats listen to the fiscally conservative people when they call for spending cuts? Because Democans and Republicrats and their supporters are making a BUTTLOAD of money looting the treasury of the US.
- Anonymous1 decade ago
You are wrong on a technicality. Deficit increases are, by definition, NOT paying for it.
- 1 decade ago
The Republicans thrive on putting people in fear. They will always try to say we are hurting our kids futures, we are hurting eduction, and a we are allowing terrorists to overtake our country. The Republicans claim they have tried to support the administration and that they have submitted their own ideas but that they are never considered. I would ask when they have time to write any suggestions; they are in front of TV cameras more than they are in their office. Have any of them ever presented their input to the public so we could see what they are proposing? Maybe their input is so ridiculous it is not worth reading but they can still say they had input. When they put their work where we can see it instead of just making accusations maybe we can better understand them.