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|Subject: Re: More Shutdown Fallout||Date: 10/22/2013 11:08 PM|
|Author: Howie52||Number: 18695 of 20214|
"With the debt exploding, everyone will suffer eventually.
"Reagan proved that deficits don't matter."
-- Dick Cheney "
President Reagan proved revenues matter - that the deficit is
composed of two parts - spending and revenue.
If you are clever, you can grow revenue by growing the economy.
If you are stupid, you can spend your way into oblivion - although
Detroit shows that spending plus incompetence plus corruption
will take you to a bad end quicker than only one of the three.
We were in a high interest environment during the Reagan years -
and were in a high tax burden situation. He had room to maneuver
that we don't have the luxury of today I think.
What Reagan did was allow the Congress to channel funds to areas
where there was a real return - whether this was planned or a
lucky accident is arguable. The "star wars" technology actually
bought the country something - or so it seemed. Industry was not
killed or technology selected as much as our current
administration seems to enforce - if you are going to pick
a few companies or a technology to succeed, you have to do it such
that the companies do not go bankrupt or need continuous
returns to the trough.
They did reasonably well with GM - though the Chinese may have helped
there. History is easier to figure when there are a few years
down the road. The current economy seems to still be out to
lunch - but I am terrible at predicting the economy.
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