No. of Recommendations: 2
Man do I agree with this statement! These deficits are crazy and absolutely need to be pared down IMHO. I don't hear either one of the presidential candidates really hammering on this issue either.

While these deficits may seem crazy, they still aren't the biggest they have been in relative terms (i.e. relative to GDP). Absolute figures don't have much meaning. I think it is interesting that we *always* seem to be going to hell in a handbasket, and our economy keeps marching forward. You could have always found reasons to back up your pessimism in the past, and you would have always been wrong. The American economy is flexible and incredibly resilient. As long as the economy maintains its flexibility, it should be able to adapt, and we should be okay.

That said, I am still concerned with what our "leaders" are doing. There is plenty of rhetoric coming from both sides about how they want to reduce the flexibility of our economy (although they don't word it like that). They want to raise taxes (except for Bush and some Republicans), increase regulation, and increase protectionism. This will reduce the ability of our economy to absorb the financial mess that the government is creating, and it will make our economy less competitive globally.

Neither the Republicans nor the Democrats are showing anything resembling financial discipline. The current deficits aren't even the big problem. I would expect deficits during a recession and during a war (although Bush is using that as a excuse). However, what really concerns me is the incredibly massive liabilities for Social Security and Medicare that are accumulating. Congress supposedly knows about the difficulty we will face when Baby Boomers begin to retire, so they took the "logical" step of "strengthening" Mediscare, which just means that they added a few trillion in liabilities. That's just great, isn't it?
Print the post  


The Retirement Investing Board
This is the board for all discussions related to Investing for and during retirement. To keep the board relevant and Foolish to everyone, please avoid making any posts pertaining to political partisanship. Fool on and Retire on!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.