An interesting conversation:

[zbdent]

"Mr. President," I pleaded, "we can't live with that. It violates the basic laws of sound public finance.

"If we give up on the deficit, what will the politicians on the Hill do? They'll jump for joy. If Ronald Reagan says deficits are now okay - they'll run up the national debt like there's no tomorrow.

"But there is a tomorrow. Future generations will be paying off the interest forever.

(my emphasis added).

A relevent conversation.

David A. Stockman, p. 379, "The Triumph of Politcs - The Inside Story of the Reagan Revolution" - first Avon paperback printing.

And today, the Repukes are essentially saying - "Hey, the deficits are okay!" - especially if they bankrupt the nation and force a depression.

[STSNC]

1. Percentage question

What % of the Nation's current GDP does the deficit represent?

[thoughtanarchist]

2. 6% of GDP -- largest percentage in history...

But considering the deficit as an abstraction -- like as a percentage of GDP does not address what makes this applicable to you.
You have to pay off your share of this debt, which is roughly $26,352.17 It will come from your payroll taxes and your income taxes and from the community funding otherwise used to improve your municipality.

Personally, I wouldn't dream of taking on this kind of revolving debt. Nice of the neocons to foist it on me and you and all the rest of us.


--Welcome to DU!
:hi:

[zbdent]

3. Forgot to mention -

Under Clinton's economic plan, we were starting to get rid of that debt.

Well, until 1/21/2001 . . .

[progressive_realist]

4. I read this book about a year ago.

I am more than a little sympathetic toward old-school fiscal conservatives like Stockman. As I recall, his conscience eventually triggered his resignation from the Reagan Administration.

His book foreshadowed the rise of neo-conservative "borrow-and-spend" economics. You can picture the Republicans rediscovering the fantasy of a free lunch -- tax reductions with spending increases. It is a formula that makes everyone happy, until the bill comes due. Ask anyone who has had to work out from under debts -- it takes longer to get out of debt than to get into it.

However, even at the reckless rate * has run up the deficits, the overall debt probably won't be unmanageable until after he leaves office. And then they'll blame it on us somehow.