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Study: "Debt Problem Began Four Decades Ago"

Kyll-Why-T Wrote: Jan 22, 2013 8:58 AM
Costa Rica has no military. What happens when Costa Rica's neighbor sees all those American fat cats living there all ripe-for-the-taxing and decides to annex Costa Rica?
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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