David Stockman - Regan's Budget Director from 1981-85 Says Raise Taxes, Cut Budget, Cut Consumption, Increase Savings, Let ALL Tax Cuts Expire

  • metta

    Posts: 39104

    Oct 07, 2010 10:44 PM GMT
    David Stockman - Regan's Budget Director from 1981-85 Says Raise Taxes & Cut Budget

    [QUOTE]The fact is, the Bush tax cuts were unaffordable when enacted a decade ago. Now, two unfinanced wars later, and after a massive Wall Street bailout and trillion-dollar stimulus spending spree, it is nothing less than a fiscal travesty to continue adding $300 billion per year to the national debt. This is especially true since these tax cuts go to the top 50 percent of households, which can get by, if need be, with the surfeit of consumption goods they accumulated during the bubble years. So Congress should allow the Bush tax cuts to expire for everyone. By doing nothing, the government would be committing its first act of fiscal truth-telling in decades.
    [/QUOTE]

    [QUOTE]
    The only solution is a long period of debt deflation, downsizing and economic rehabilitation, including a sustained downshift in consumption and corresponding rise in national savings.

    And a key element of the latter is a drastic reduction in government dis-savings through spending cuts and tax increases — and these measures need to start right now. Keynesian policymakers who say wait for the midterms to address the deficit are like battleship admirals: They are fighting the last war with the same failed strategy that gave rise to our current predicament.

    [/QUOTE]

    http://www.thefiscaltimes.com/Issues/Budget-Impact/2010/10/06/David-Stockman-US-Is-in-Race-to-the-Fiscal-Bottom.aspx?p=1
  • roadbikeRob

    Posts: 14342

    Oct 07, 2010 11:29 PM GMT
    David Stockman is 100% correct. This is exactly what the US needs to do in order to reduce and eventually get rid of this horrendous deficit. Otherwise we are going to go bankrupt and who knows what will happen to this country if bankruptcy becomes reality. We Americans are way too wasteful, we need to reduce consumption and be more wise with our resources. We need to end wasteful, unnecessary porkbarrel spending in all levels of government. We also need to repeal and tear up NAFTA. Free trade has ruined and seriously weakened the US.
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    Oct 08, 2010 3:31 AM GMT
    southbeach1500 said
    roadbikeRob saidDavid Stockman is 100% correct. This is exactly what the US needs to do in order to reduce and eventually get rid of this horrendous deficit. Otherwise we are going to go bankrupt and who knows what will happen to this country if bankruptcy becomes reality. We Americans are way too wasteful, we need to reduce consumption and be more wise with our resources. We need to end wasteful, unnecessary porkbarrel spending in all levels of government. We also need to repeal and tear up NAFTA. Free trade has ruined and seriously weakened the US.


    Old news. He said this on Kudlow on CNBC months ago.

    And no, the solution isn't more taxes. The solution is CUT SPENDING!




    That's right-wing BS that's NOT supported by a factual analysis of our debt situation.
    The ONLY way to pay down the National Debt is to "CUT SPENDING" - AND eliminate the tax cuts for the rich.
    We cannot afford to give the richest 1-2 % of Americans a tax cut that will add at a minimum - about 600 BILLION dollars to our National Debt over the next ten years.

    History has proved that the massive yearly budget deficits created by Republican TRICKle down tax cuts are UNSUSTAINABLE.
    It's refreshing to see that Mr. Stockman can see that and is willing to put "Country First" not the Republican party first - and admit that the cost of the tax cuts is unsustainable.
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    Oct 08, 2010 3:39 AM GMT
    southbeach1500 said
    roadbikeRob saidDavid Stockman is 100% correct. This is exactly what the US needs to do in order to reduce and eventually get rid of this horrendous deficit. Otherwise we are going to go bankrupt and who knows what will happen to this country if bankruptcy becomes reality. We Americans are way too wasteful, we need to reduce consumption and be more wise with our resources. We need to end wasteful, unnecessary porkbarrel spending in all levels of government. We also need to repeal and tear up NAFTA. Free trade has ruined and seriously weakened the US.


    Old news. He said this on Kudlow on CNBC months ago.

    And no, the solution isn't more taxes. The solution is CUT SPENDING!


    Putting aside regulatory issues, which are massive, what brought us to this point was Bush's cutting taxes and increasing spending. Therefore, the only way to restore fiscal sanity is to cut spending and raise taxes.

    It's simple cause and effect. And the rationale between keeping the cuts below $250K is that they are proven to be stimulative whereas income above that is kept out of the economy.

    Now, SB, and others may have a philosophical opposition to raising taxes as I, and others do to cutting services, but in the short term, both are definitely necessary.
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    Oct 08, 2010 11:04 AM GMT
    I don't agree with the cut consumption part...we need to consume as much as we can to stimulate the economy. Even to the point of worsening global warming...if it's possible to worsen it at this time since we'll never reach the targets of Kyoto at this rate. icon_twisted.gif