Quote:
Originally Posted by Stu from NYC
We have had a surplus during the second Clinton administration. Combination of both sides working together.
Unfortunately 9 11 happened and both parties decided lets run deficits all the time.
At some points deficit spending is good to help the economy but when they do it all the time spending gets out of control and inefficient govt spending crowds out small companies (from borrowing) who are the engine of our economy.
After the virus is under control we do need to get govt spending under control and at least run a balanced budget.
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The problem is that it is too late for a balanced budget, unless you are looking at gradually reducing spending over 10 or 20 years. If you forced a balanced budget in one year, I think the unemployment rate would increase to over 50 percent, and you would need to reduce Government pensions, Social Security, Medicare, and military spending drastically. And, the stock market would crash. That is because Congress has already spent money for many years into the future. The only way to balance the budget is to default on money that has been obligated. My opinion.