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Government Debt

Discussion in 'IMO: In My Opinion' started by denice, Feb 9, 2018.

  1. kittypa

    kittypa TCS Member Super Cat

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    It could be like when during the Bush I Presidency the government played with the withholding tables to put more money in our pockets. At the end of the year I owed $4k in taxes.

    To get back on topic, it seems to me that congress creates a crisis so they can more easily pass an irresponsible budget. If it were up to me we would always have the opposition president/congress dynamic. That seems to be the only time we're able to control our spending.
     

  2. xlpooper

    xlpooper TCS Member Top Cat

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    Hmmm, that never happened to me during 41's presidency, in fact it's never happened to me, that's weird.
     

  3. doomsdave

    doomsdave TCS Member Top Cat

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    You point out, correctly, another good reason The First Pig should not be president.

    You also point out the voodoo surrounding "trickle down economics" which has been renamed, repackaged and re-sold to new suckers.

    All that said, at least for now, the U.S. is in far better shape than many other "rich" countries. Our debt's a bit high, but we're not as bad off as Japan or Italy. DT wanted our NATO allies to pay more of their share, and now he wants, among much else, an expansion of the armed forces anyway, which is a large part of the debt.

    Countries like Australia can offer a nice life without a lot of national debt because they don't engage in excessive ego-building military buildups. (Being lucky in the resources department won't hurt, either.) That's not the same as saying no defense, though.
     

  4. mschauer

    mschauer TCS Member Top Cat

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    China is the country we have to watch out for. They want very badly to take over the US role as the favoured world currency. I don't have any where near the expertise to speculate on how quickly that could happen or under what circumstances but us willingly making our fiscal situation so perilous can only help them achieve that goal.
     
    micknsnicks2mom purraised this.

  5. denice

    denice Thread Starter Advisor Staff Member Advisor

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    I have read that 'trickle down' was something that politicians came up with to sell tax cuts in the 80's. The idea was to bring down revenue and shrink government. Their idea was to 'starve the beast', of course the spending increased and accelerated anyway and we now have a 20 trillion debt and rising faster now.

    Intel chief: Federal debt poses 'dire threat' to national security

    That article says that the 2019 budget that Trump just put out doesn't balance within 10 years and continues with deficit spending. He talks about how great the economy is doing, this is not what you do when the economy is doing well. This is what you do in a situation like we had in 2008. I have heard from several of the talking heads that we cannot safely do what was done in 2008. A lot of people didn't like what was done in 2008 but where would we have been if it wasn't done?

    There is still the issue with entitlements, we have been kicking the can down the road on that one for many years. It's much better to get this mess straightened out and try to do something about entitlements now rather than waiting until there is no choice but to slash benefits.
     

  6. mschauer

    mschauer TCS Member Top Cat

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    That is what I was talking about in my post. Deficit spending can be used to get the economy going after a recession but once the recession is over fiscal restraint needs to return. We don't have to have 0 public debt but we shouldn't be adding to it at a time when the economy is doing fine. We don't need the tax cuts. If we add to the debt in good times, like now, what will we do if another recession does hit? We will want to expand the debt to help end the recession but will it be so large at that point that it just can't be increased???
     

  7. xlpooper

    xlpooper TCS Member Top Cat

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    Why is that, that Trump shouldn't be POTUS? Because the Democrats spend so much less than the Republican's?
    Well we know that isn't true, both parties spend our money like drunken sailor, just on different things.
    Personally if they are going to spend, spend, spend, I'm more in favor of them building up the military.

    Trump isn't spending any more than than Obama did and I don't even have to call Obama any childish names to get my point across. :cringe:
     

  8. xlpooper

    xlpooper TCS Member Top Cat

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  9. mschauer

    mschauer TCS Member Top Cat

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    I don't think that is as significant as you seem to think it is:

    U.S. runs January budget surplus of $49 billion, Treasury says

    As for Trumps proposed budget:

     

  10. denice

    denice Thread Starter Advisor Staff Member Advisor

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    From one of the articles posted it said that it isn't unusual for the government to have a surplus for January. I know that a lot of people get holiday bonuses. I have never gotten holiday bonuses but I have in the past and do still get performance bonuses throughout the year. For the past 30 years anyway my bonuses are taxed at a much higher rate than my regular pay. Even now that I am prepared for it I am still surprised at what I clear from a bonus.

    I don't know how companies pay taxes, I know there is some type of quarterly estimated tax paid by many companies. A lot of companies are retail in nature and they do more than normal business during the holidays.
     

  11. AbbysMom

    AbbysMom At Abby's beck and call Staff Member Moderator

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    The government is spending money more and more and the deficit keeps getting bigger and bigger. At some point the money will have be made up, whether it is in government, state and local taxes.
     
    artiemom, micknsnicks2mom and mani purraised this.

  12. xlpooper

    xlpooper TCS Member Top Cat

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    From your link:

    Didn't the Left complain we hadn't spent enough in Puerto Rico?
     

  13. xlpooper

    xlpooper TCS Member Top Cat

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    President Trump isn't doing anything they all don't do.
     

  14. mschauer

    mschauer TCS Member Top Cat

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    I have no idea and regardless it is off topic and irrelevant.
     

  15. AbbysMom

    AbbysMom At Abby's beck and call Staff Member Moderator

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    Where did I say he was? All I said was tht all of this "extra" money we are getting will be going back to the government at some point.
     

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