Since 9/11 the US Government has ran a budget deficit which was exacerbated 2008-2013 and there is no indication at present that US Government spending can be returned to surplus. US Government debt now stands at almost $18 trillion; over 100% 0f GDP and repayment of interest alone is sucking much needed capital out of the system and the raising of taxes to pay down the principal will simply slow the economy further, IMO.
http://www.statista.com/statistics/...icit-of-the-us-governments-budget-since-2000/
I am keenly aware that many on this board are not concerned with Government debt but at a time when the
economy is struggling Government spending and taxation are critical to the health of the economy.
Had the Bush regime not spent like drunken sailors on the Middle East War and at the same time reduced middle class
and upper class taxes, the country would have been in better trim to withstand the GFC. Just look at he above deficit graph
and imagine if years 2000 to 2008 were in surplus or zero, what a difference that would have made to the immediate
GFC deficits and to today's accumulated debt !
MM
