Reducing the Deficit... Is it really that important ?

[rb336]

http://www.washingtonpost.com/blogs/...fore-watching/

[oladub]

You could theoretically raise tax rates to 100%. If people aren't working, you're not maximizing your revenues, no matter what the rates. That's why it's necessary to return to something resembling full employment and normal economic growth as soon as possible. And frankly, that can't be done when government keeps shedding jobs in the name of "fiscal responsibility".

We go through this over and over but it was done under Harding. It was not done under Roosevelt however much as I like the hydro eclectic dams he built that modern Democrats are removing to sell fishing licenses. Roosevelt confiscated gold, devalued the dollar by about a third, followed corporatist policies, and still had unemployment higher than Obama's until WWII broke out. There was that cheerful song about happy days are here again though.

Trouble is, we already did this. That is why the average American owes $51,613 to the federal government, $17,139 thanks to President Obama. We ought to be doing pretty good according to your theory but we aren't. How are we going to return to full employment when government policy encourages production jobs to go overseas?