In response to:

Study: "Debt Problem Began Four Decades Ago"

Bufa Wrote: Jan 22, 2013 12:23 PM
Word of the day: Ineptocracy: A system of government where the least capable to lead are elected by the least capable of producing, and where the members of society least likely to substain themselves or succeed are rewarded with the goods and services paid for by the confiscated wealth of a diminishing number of producers. Forward America.
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...
Related Tags: Debt Deficit budget deficit