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over the last 60+ years regardless of tax rates the government takes in around 18-20% of GDP. While revenues are down due to the recession, spending under Obama has gone up to 24% of GDP. We are spending above our tax capacity. We need to get budget back to 20% of GDP but will need 5 years or so to do it. If you try to do it too fast you will shock the economy back into recession. 2/3rds of all spending is now in the 3 entitlement programs and there is no real account with real money in some sort of trust fund. The money was all spend-yea that is bad but stay in realville-what to do now that these programs are pay as you go. We need to reform these programs or you will be doing generation transfer of wealth from young workers to old retiree
During a strategy retreat to Williamsburg, Virginia, leadership in the House GOP caucus took the opportunity to rally Republicans around a short-term debt ceiling increase that would come without any significant movement on deficit reduction.
House Republican leaders Friday offered President Barack Obama a three-month reprieve to a looming, market-rattling debt crisis, backing off demands that any immediate extension of the government's borrowing authority be accompanied by stiff spending cuts.Republicans hadn't settled on full details, but the measure would give the government about three more months of borrowing authority beyond a deadline expected to hit as early...
These dopes don't realize that virtually every economic collapse-public or private, has at its root too much leverage.