poco_vino

A little bit of over-generalization there, wouldn't you say?

Deficits do not pose a problem for our economy (in fact they help it--somebody gets to keep the interest), interest rates pose the problem.

It is still being argued in the economic realm, but:

You CANNOT state "largest deficit" without stating the corresponding interest rate. We are not paying off the deficit (and we probably never will) we are making payments on the national debt. That being said, if the the deficit were decreased by 25% but the interest rose 15% (not a real number--just an example) we would actually being paying more.

We are a Free-Market system and must stay that way to sustain growth. Tax increases, never, ever, ever, ever cause growth in a Free-Market, they hinder it. The logic behind it is simple; the money must come from somewhere. Tax increases will always trickle down to the consumer--always. This has a negative affect on the demand. Demand goes down, supply goes down, prices go up again, yada, yada, yada.

Free the money in the economy and the system WILL ALWAYS seek equilibrium. It is a slow process but that is the nature of the beast.

That being said, we ABSOLUTELY MUST KEEP government spending in check (which it isn't now).

Very simple equation to market growth:

Lower tax rates + gov't spending cannot increase by more than 4% = Healthy Economy. If the spending by the government is kept in check, we will be o.k.

BTW - I keep up with economic news and I haven't heard any economist state anything like the line quoted above. The only negative I am hearing is in regards to the spending increases--a problem of the President and Congress (both parties).

There is a reason there is so much good news coming out regarding the economy. The last thing we should do is stifle it.

*gets off of soapbox and shuts up*

__________________
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I thought so once, but now I know it"

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