Comparing Presidential Tax Cuts and Deficits During the Modern Era
A lot of people complain about the budget deficit, but if you put the deficit in perspective it's actually lower than it as a percentage of GDP that it has been in years past. Most people view deficits as a negative, but in order for our economy to grow we need it to be a LARGER percentage of GDP that it currently is. Mike Norman states that if we can increase our deficit to the 5-6% range, like it was when Reagan was in office that created the 1980-2000 boom, we'll be better off in the long run. Erasing the deficit, as many people want, will kill us. If you want to look at one thing in deciding to make a long term investment, the trend of the deficit will tell you the most about the direction of the economy. Our stock market has gone nowhere since 1998 because our fiscal balance crossed the line between deficit and surplus.
A lot of people complain about the budget deficit, but if you put the deficit in perspective it's actually lower than it as a percentage of GDP that it has been in years past. Most people view deficits as a negative, but in order for our economy to grow we need it to be a LARGER percentage of GDP that it currently is. Mike Norman states that if we can increase our deficit to the 5-6% range, like it was when Reagan was in office that created the 1980-2000 boom, we'll be better off in the long run. Erasing the deficit, as many people want, will kill us. If you want to look at one thing in deciding to make a long term investment, the trend of the deficit will tell you the most about the direction of the economy. Our stock market has gone nowhere since 1998 because our fiscal balance crossed the line between deficit and surplus.
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