If you are really concerned about the deficit, you should NOT WANT Republicans and Democrats to reach
an agreement to prevent the “fiscal cliff.”
In fact, you should be writing Congress demanding that your
representatives DO NOTHING to prevent the country from going off the fiscal
cliff. Yes, NOTHING, INACTION, THE
FAILURE TO REACH AGREEMENT, TOTALLY GRIDLOCK is just what is needed to solve
the deficit problem.
Look at this chart prepared by the Congressional Budget
Office. The dotted line shows what will
happen if the Bush tax cuts are extended for everyone and the scheduled cuts in
domestic and defense spending aren’t allowed to happen. The solid like shows what will happen if we
plunge over the fiscal cliff big time—the Bush tax cuts expire for everyone and
all of the automatic cuts in defense and non-defense spending kick in as
scheduled. The debit to GDP ratio goes
from 73% this year to a very sustainable 61% in 2022 to an exceedingly healthy
53% in 2037. The debit problem is
TOTALLY SOLVED.
Of course, if we go off the fiscal cliff your taxes will go
up, we will have a second recession, the unemployment rate will return to 9% or
higher, our borders will be less safe because we will have fewer border guards,
our food and drug supplies will be less safe because we will have fewer
inspectors, there will be less money for schools, road and bridge repair, and
so on. However, we won’t have to worry
about the national debit.
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