Posted on 01/22/2013 3:48:01 AM PST by Kaslin
A new report from the Federal Reserve Bank of St. Louis reminds Americans that, contrary to the narrative that huge deficits and debt are merely a recent product of the Great Recession, the problem began over forty years ago.
Daniel Thornton, the St. Louis Fed's Vice President and economic adviser, finds what conservatives have been saying all along is true: it's steadily increasing government spending, not a lack of tax revenues, that's causing all of this.
[A]fter 1970, both revenues and expenditures increased on average relative to the previous two decades; however, revenue increased marginally while expenditures increased significantly... on average, the government spent 2.4 percent of GDP more than it received in revenue during the 38-year period.
The new study confirms that what's been driving the increases in spending hasn't been that old liberal boogeyman defense spending. It's entitlement programs - Medicare, Medicaid, Social Security, and other transfer and welfare programs.
Finally, Thornton concludes, the progressive response that all the U.S. has to do is raise taxes is bankrupt.
The long-run perspective offered here shows that there is a deeper and more fundamental issue that must be addressed if the problem is to be resolved solely or primarily by raising taxes. Specifically, the analysis shows that the deficit/debt problem began when the government decided to increase spending significantly without increasing taxes.
Debt problem began in 1913 when the central government began taxing incomes. As if that wasn’t enough the president at that time, Woodrow Wilson, decided to involve this nation in a strictly European war.
Thus began the guaranteed decline of the USA.
The interstate hwy system was brought to life in the 50’s by President Eisenhower. It was based upon military requirements as well as public transportation needs.
I clearly remember all the gnashing of teeth over LBJ’s welfare programs, deficits, bankrupting the country, “guns and butter” re Vietnam...this debate has been around at least 40 years. I think it really took center stage with LBJ’s “Great Society” programs. What a resounding success hat was — decaying country and social values, no jobs, disappearing middle class, blacks worse off than ever due to government “largesse.”
bttt
Ditto, the seeds of mischief were set during that time (Also Judges began attacking weak points in the US Constitution). Another reason why the word/movement of “progressive” in the realm of politics means malignancy, not proficiency.
Ditto, the seeds of mischief were set during that time (Also Judges began attacking weak points in the US Constitution). Another reason why the word/movement of “progressive” in the realm of politics means malignancy, not proficiency.
Apologies for the double post
So it’s not really Obama, Bush, Clinton’s fault??!!!
We are so detached from reality, Washington and the American people. They can’t even talk seriously about real cuts, just a slow down of an increase of the budget is cast as an affront to decency and people will suffer and die if the budget increases 1% instead of 4%.
No it started in the 20’s and 30’s. Commerce, etc.
I entered the United States Air Force in 1956 and President Eisenhower was my commander in chief. You don’t have to take my word for it, here is a reference to the Interstate Highway
system and its development if you care to see it. http://www.fhwa.dot.gov/interstate/history.htm
I believe you. But the 20’s and 30’s were when this stuff began.
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