The National Debt: Taxes and the Economic Lessons Even a Dummy Like I Have Learned

[FourScore]

This is one of the best articles I've read on the deficit. MUST READ.

Sun Aug 07, 2011 at 04:21 PM PDT
The National Debt: Taxes and the Economic Lessons Even a Dummy Like I Have Learned
by Steven D

I never studied economics in college, but I did attend law school. In fact I graduated 4th in my class. The standard buzz phrase that law school professors drum into the heads of their students is "think like a lawyer." What do they mean by that? It's simple. Look at the facts, not theories, not beliefs. Each case is different.

I went to work as a new attorney in the mid-80's. I started in bankruptcy representing both companies in reorganization and creditors. I learned a lot about why companies fail, and why bank loans go bad, because I had educate myself in order to represent my clients. I learned enough accounting to recognize when a company's financial statements were accurate and when they were nothing more than refried bullshit. Mostly I learned to trust facts -- not opinions, not hopes, not wishful thinking -- just the facts.

So, here I am offering you a "Dummy's perspective" on the economics of our national debt. Not economic theory, just facts, which are available to anyone who bothers to look for them. Here's the lessons I've learned after looking at those facts:

1. You stop taking in revenues, you run up big debts.

US debt in 1980 (Carter's last year) = $930,210,000,000. In 1980, the percentage of the National Debt compared to Gross Domestic Product (GDP) was 33.3%, or -2.5% less than it was at the end of the Ford administration (though the overall National Debt had grown by 142%). In short, the GDP expanded faster than the national debt under Carter.

Reagan took office in 1981. Let's look at his numbers for 1984 and 1988, shall we...

MUCH MORE: http://www.dailykos.com/story/2011/08/07/1004266/-The-National-Debt:-Taxes-and-the-Economic-Lessons-Even-a-Dummy-Like-I-Have-Learned?via=siderec

[Tennessee Gal]

1. Very good post. Thanks.