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Study: "Debt Problem Began Four Decades Ago"

Biggbear51 Wrote: Jan 22, 2013 7:33 AM
The one major thing not mentioned in this article was the abolishing of the Gold Standard. This standard kept the powers that be in check. Because like us, they had to have a balanced CHECK BOOK. If they didn't like us they could and would be locked up. Much like the House banking scandle that obliterated FDIC. Our money is no longer insured by the Fed because it cannot afford it. FDR insured, when he absolved that Standard and implemented "PUBLIC ASSISTANCE" the economic destruction of the American infrastructure and he darn well knew it. So with out a BUDGET, the child shall always over spend as in a candy store! "SAMUEL CLEMONS 1893.
Kyll-Why-T Wrote: Jan 22, 2013 8:43 AM
Normally I kind of roll my eyes at the people that advocate for the gold standard, but it is really interesting to see that the study is finding that the debt problem started right after leaving the gold standard behind. It would be interesting to see some follow up research looking for a connection.
A new report from the Federal Reserve Bank of St. Louis reminds Americans that, contrary to the narrative that huge deficits and debt are merely a recent product of the Great Recession, the problem began over forty years ago.

Daniel Thornton, the St. Louis Fed's Vice President and economic adviser, finds what conservatives have been saying all along is true: it's steadily increasing government spending, not a lack of tax revenues, that's causing all of this.

[A]fter 1970, both revenues and expenditures increased on average relative to the previous two decades; however, revenue increased marginally while...
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