|
A Man of Wealth and Taste
Join Date: Dec 2002
Location: Out there somewhere beyond the doors of perception
Posts: 51,063
|
Don't you boyz get it.....Clintons tax surplus was due to the fact that the government was taking in more tax revenues than it was spending due to a robust economy...which by the begining of 2000 was begining to turn into a Recession....so that no matter who became President in 2000 (Gore vs Bush), he would be faced with shrinking tax revenues due to a decling economy..
Now as it happened Bush won the election in 2000 and was faced with a recession, there are 2 things you can do to stimulate the economy besides lowering interest rates...one is increase Federal Spending or Cut taxes to stimulate spending....Bush chose tax relief...
Then Bingo along comes 911.. an event that nearly capsized the whole financial system.... what was done was the lowering of interest rates 7 time to a 1% Fed Rate, Tax Relief and NOT CUTTING the Federal Budget...all in the face of Declining tax revenues and having to fight a war on terrorism...
Then on top of that..you have the Enron scandal...which further depressed things alltogether....
Now the hope is that when the economy picks up steam tax revenues will increase and the budget deficeit will go away..or lessen.
Now can you boyz understand why a fiscal conservatyive like Bushy would be willing to be considered a spendthrift....the last Repblican President that cut Federal spending during an economic downturn was Herbert Hoover and you all should at least know what happened then...The Great Depression of the 1930's.
__________________
Copyright
"Some Observer"
|