In response to:

It's the Spending, Stupid!

coveyrise Wrote: Dec 19, 2012 10:57 AM
During our most prosperous years Government Spending ran between 18% and 20% of GDP. We are now at nearly 25% which is unsustainable no matter what we do about taxes. You can only drain so much blood out of your host before it becomes so anemic that it cannot function. This is what is happening to our economy.
Richard_B Wrote: Dec 19, 2012 1:22 PM
"During our most prosperous years Government Spending ran between 18% and 20% of GDP." From 1776 to the 1930's and FDR spending by the federal government averaged less than 3% of GDP. Were none of those years as prosperous as when spending was between 18% and 20% of GDP?
coveyrise Wrote: Dec 19, 2012 8:12 PM
The greatest prosperity and most significant growth of the Middle Class was during the 1950s and 60s. You hear people say "Well during the 50s the top marginal tax rate was 91%" but what they don't tell you is that nobody paid that because of what everyone calls loopholes today. The real effective tax rate was around 30% then JFK lowered it even more and the economy grew at a faster rate.
bearcub Wrote: Dec 31, 2012 3:40 AM
during most of our years as a nation we have been in and out of debt, and our most prosperous years were actually post WWII when the debt was at it's very highest from that war. spending was at it's absolute hight as well as we were spending enormously from 1930s to 1950s on building up a military and creating things we had never had before. you are simply wrong on the facts - another time of growth but uneven growth was post WW1 - when spending again had been at an all time high - and debt was as well. one thing that so far has been true is that we are usually in debt during and after major wars - GWB cut taxes while starting two wars -t he fallout over decade not good.
bearcub Wrote: Dec 31, 2012 3:42 AM
main reason for high growth in 1950s not tax rates - tax rates rarely the major factor in growth - corps and people rich and poor pay taxes one time per year for the most part and any decent business makes FAR more than they save or pay in taxes based on how much they sell. Growth is what leads to growth often enough - production for WWII created an entirely new economy - this was from unpresc investment by govt in private sector throughout 1940s. new economy was created over that decade one that sustained us until now.
bearcub Wrote: Dec 31, 2012 3:44 AM
if you have no growth - no investment by govt or anyone else in MEANS of production - i.e. factories, roads, whatever - nothing being made, and no investment in markets - i.e. financial markets - a zero tax rate for everyone will not do a single thing to create wealth or growth.
True Conservative! Wrote: Dec 19, 2012 12:30 PM
And that's only federal spending ... State and Local government spending take it to around 40% of the entire economy ... simply unsustainable. But, like the Greeks, a majority in this country wants to find out the hard way that socialism STILL doesn't work!
Gail104 Wrote: Dec 23, 2012 2:59 PM
Its not socialism, the correct word is communism.
bearcub Wrote: Dec 31, 2012 3:37 AM
so sad that nobody so far seems to know economic terms or how economics actually works on this entire thread. :-( Communism is communal ownership of the MEANS of production. this is not what occurs in greece or really anywhere - communism is about ownership, not about distribution or govt ownership or social security or any of that - communism is a theory that has rarely been practiced - but it is when the workers own the factory. get it, yet?
Listening to progressive media pundits, I'd think the most evil man in the universe is Grover Norquist, head of Americans for Tax Reform. His crime? He heads a movement that asks political candidates to pledge not to raise taxes.

I think Grover accomplished a lot. But I wish he'd convinced politicians to pledge not to increase spending.

President Obama says raising taxes to cut the deficit is a "balanced" approach.

Balanced ...

But what's "balanced" about raising taxes after vast increases in spending? Trillions for war, Medicare, "stimulus" and solar panels. Tax receipts rose -- after tax-rate cuts -- from $1.9...