In response to:

Study: "Debt Problem Began Four Decades Ago"

jim2040 Wrote: Jan 23, 2013 9:32 AM
It's like the lights are on, the windows are wide open and nobodies home in Washington. The real problem is the politicans who think they can just spend our money, on anything, and then come back asking for more. It's like they think the spicket never runs dry. I guess the term low information voter really is a nice way of explaining why we're in the mess we're in and it looks like, again, we're kicking the can down the road only to make our grandkids pay for our stupidity.
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