The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Macro Economic Trends and Risks


Subject:  Re: Here's your chance: Balance the Fed budget Date:  1/2/2007  9:15 AM
Author:  caddman Number:  200140 of 603176

<i.t's better not to be addicted to crack, but once you are, cold turkey may not be the smarter course of action. Unless the sight of long, long lines behind soup kitchens and national guardsmen fighting their way through barricaded cities is your idea of "a healthy government."

one reason why holding down spending growth and letting economic growth grow is considered the least painful.

I found it interesting the choice of "hold even." There is no such in the federal budget. Base line budgeting was passed in the 70's...and allows for automatic growth in budgets. So if a departments baseline is 4% and spending is increased by 6%...well Mr./Mrs. Politician gets to claim a paltry 2% increase. Or better, if the baseline was 4% and spending was limited to 3%, then the claim is a cut.

Copyright 1996-2020 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us